Earned Income Credit Missed by Many

Earned Income Credit Missed by Many

One of the best tax credits available today is the Earned Income Credit but many individuals don’t claim it even when they qualify. These individuals may not have qualified last year but their financial, marital, or dependent situation may have changed making them now qualified.

The tax credit maximum is $5,657 this year and depends on your income and how many dependent children you have in your household. Plus the credit is refundable, which means you can get a refund above the tax your into the treasury during the tax year. Make sure not … Read the rest

Earned Income Credit Missed by Many

One of the best tax credits available today is the Earned Income Credit but many individuals don’t claim it even when they qualify. These individuals may not have qualified last year but their financial, marital, or dependent situation may have changed making them now qualified.

The tax credit maximum is $5,657 this year and depends on your income and how many dependent children you have in your household. Plus the credit is refundable, which means you can get a refund above the tax your into the treasury during the tax year. Make sure not to file separately from your spouse as this will disqualify you automatically.

Having a valid social security number and earned income are two important first steps. And combat pay is considered earned income for qualify for the earned income tax credit. The easiest way to determine if you qualify is by using the EITC assistant at the IRS.gov website. Make sure to apply for this tax credit when you file your taxes if you determine that you are qualified.

The Government Retiree Tax Credit

The Government Retiree Tax Credit

If you are a government retiree and received a pension during 2009, you could be eligible to the Government Retiree Tax Credit. An extra $250 in tax credits is available to federal, state and local government retirees. This credit was created with the ARRA bill passed early in the current presidential administration’s tenure.

If you have a pension or annuity outside of the social security system, this credit is available to you. This credit and the Making Work Pay credit cannot both be claimed. Therefore your Making Work Pay credit is reduced if you worked … Read the rest

The Government Retiree Tax Credit

If you are a government retiree and received a pension during 2009, you could be eligible to the Government Retiree Tax Credit. An extra $250 in tax credits is available to federal, state and local government retirees. This credit was created with the ARRA bill passed early in the current presidential administration’s tenure.

If you have a pension or annuity outside of the social security system, this credit is available to you. This credit and the Making Work Pay credit cannot both be claimed. Therefore your Making Work Pay credit is reduced if you worked while receiving the Government Retiree Credit. Couples can get a full $500 if both spouses qualify.

The really good news is, this is a refundable credit which means you can get the refund even if you have not paid taxes into the system. Complete the Schedule M to claim the tax credit when you file your taxes this year.

How to Check Your Tax Refund Status Online?

How to Check Your Tax Refund Status Online?

Knowing that a tax refund is due after filing their tax returns, many people become happy. In case you have a refund due, then you can check your tax refund status online and here’s how.

Few things regarding tax refunds, I feel, are worth knowing before you proceed towards checking your online status. You should first be aware of the nature of your tax refund and possible internet scams.

If there is a good amount of refund due for you, then it’s better to give a good thought on how much … Read the rest

How to Check Your Tax Refund Status Online?

Knowing that a tax refund is due after filing their tax returns, many people become happy. In case you have a refund due, then you can check your tax refund status online and here’s how.

Few things regarding tax refunds, I feel, are worth knowing before you proceed towards checking your online status. You should first be aware of the nature of your tax refund and possible internet scams.

If there is a good amount of refund due for you, then it’s better to give a good thought on how much you are paying for your quarterly taxes and what is the sum of money getting deducted from your paychecks. Tax refund might sound good, but actually it’s not so. Overpaying your taxes means only that the government is acquiring a free loan from you. For the extra tax payments, you are not going to be paid any interest by the IRS; so it’s useless and you should modify your tax payments.

The next thing to be kept in mind is that you have to visit the IRS web site in order to check your tax refund online status. Because of multitude of phishing scams focusing on tax-related issues, people get numerous fake emails dealing with different aspects of tax refunds. All these emails basically are scams and spams! One thing you should remember is that IRS never sends emails to people notifying about a refund due. To check your refund status, just go nowhere else but the IRS web site. Beware of the fraudulent activities centered around tax issues and don’t spoil the possibility of a tax refund.

To know your tax refund status, find out the IRS web site on the internet and visit that site. Then look for the link Where Is My Refund by inspecting the home page. You only need to follow certain simple steps and a couple of mouse clicks and that’s it; your status is in front of you. For your information, keep your tax return copy handy.

Then you will get some responses from the IRS software. Summarizing, you will see some messages such as the tax return filed, but not processed; tax refund was mailed or sent to your account (date mentioned); or because of some problem, IRS could not deliver refund. In case there is some delay in refund due to some tax return filing issues, IRS will notify you regarding that too.

Again, if there is a sizeable refund for you, then you may like to fine-tune your tax payments. There is really no logic for giving a free loan to the government throughout the year. A good sum of money has already been taken by them.

Must I File a Tax Return?

Must I File a Tax Return for 2009?

The short answer to this question, do I have to file a tax return, is yes if your income is above the level required for your filing status. But a couple additional pieces of information affect the answer including your age and the source of your income. IRS.gov is a great resource for the exact tax rules.

In addition to the requirement, it makes sense to file a return to get a refund on any taxes that you did pay during the year. There is the special tax credit, Making Work … Read the rest

Must I File a Tax Return for 2009?

The short answer to this question, do I have to file a tax return, is yes if your income is above the level required for your filing status. But a couple additional pieces of information affect the answer including your age and the source of your income. IRS.gov is a great resource for the exact tax rules.

In addition to the requirement, it makes sense to file a return to get a refund on any taxes that you did pay during the year. There is the special tax credit, Making Work Pay, that is refundable to you even if you do not meet the income requirements to file. A government pension could provide you with a tax credit that will be refunded to you. The Earned Income Tax Credit will also refund money to you beyond what you have paid into the tax system. And there are a number of other tax credits that you might qualify for that you can receive a refund on without having earned enough to file.

Now, if you were self-employed during 2009 and earned over $400, you must file a return regardless of other factors. If you owe special taxes on retirement plans or medical savings accounts, you must file a return for 2009. If you work for tips and need to pay social security and Medicare tax, you need to file. If you need to pay the Alternative Minimum Tax or any recapture tax, you need to file a return. And finally, if you work for a church and your income is greater that $108.28.

The Making Work Pay Tax Credit

The Making Work Pay Tax Credit

Created by the ARRA federal bill with an aim at leading to an economic recovery in the US, the Making Work Pat tax credit is something you should be familiar with when completing your tax return for 2009, according to the IRS. The first thing you will notice is a $400 refundable tax credit for single tax filers and an $800 tax credit for married couples. If your employer has taken the credit out of your withholding already, you will not be eligible for an additional credit.

Use Schedule M if you feel … Read the rest

The Making Work Pay Tax Credit

Created by the ARRA federal bill with an aim at leading to an economic recovery in the US, the Making Work Pat tax credit is something you should be familiar with when completing your tax return for 2009, according to the IRS. The first thing you will notice is a $400 refundable tax credit for single tax filers and an $800 tax credit for married couples. If your employer has taken the credit out of your withholding already, you will not be eligible for an additional credit.

Use Schedule M if you feel you have not already received the credit and want to claim it this tax filing season. You file the 1040EZ, there is a worksheet for line 8, in place of Schedule M, which will allow you to claim the credit directly on the main tax form.

The credit was spread evenly over a shorter period of time in 2009 than it will be in 2010. Therefore you might see some additional withholding in 2010 to compensate. There are some instances were the credit was deducted incorrectly for individual tax situations and you might have received a bigger tax credit during the year that legislated. Review Publication 919 to determine how much should have been deducted from your pay check and how much you will owe when you file your return.

Extended and Expanded: The First Time Homeowners Tax Credit

Extended and Expanded: The First Time Homeowners Tax Credit

If you were looking to purchase a home last year before the First Time Home Owners Tax Credit ran out in November and did not find the home you wanted to purchase, you are in luck. The tax credit has been extended to the end April 2010. And this time you do not need to close on a home before the deadline, you just need to have a house in contract. You can close anytime prior to July 1st and qualify for the non-repayment credit. First time homebuyers are anyone that … Read the rest

Extended and Expanded: The First Time Homeowners Tax Credit

If you were looking to purchase a home last year before the First Time Home Owners Tax Credit ran out in November and did not find the home you wanted to purchase, you are in luck. The tax credit has been extended to the end April 2010. And this time you do not need to close on a home before the deadline, you just need to have a house in contract. You can close anytime prior to July 1st and qualify for the non-repayment credit. First time homebuyers are anyone that has not owned a home in the past three years.

And the really good news for those that are not first time home buyers, if you are considered a long time home owner there is a new tax credit for you. The tax credit is part of the First Time Home Owners Tax Credit but applies to home purchasers that have lived in the same home at least 5 of the last 8 years. They are eligible for a $6,500 tax credit towards the purchase of their new home. Not quite the $8,000 the first time buyers are awarded but helpful non-the-less.

For those that do not fall into one of these groups you will need to wait for another extension after the current April 30, 2010 deadline. And there are some income phases out to be concerned with. Single tax filers begin to be phased out of the credit at $125,000 in income and completely at $145,000. For married couples the phase out range is $225,000 to $245,000.