Tag: tax credit

Importance of Inheritance Tax Planning

Inheritance tax planning could be very helpful for your beneficiary to pay little tax on their inheritance. Often people overlook this important aspect and their beneficiaries have to pay excessive taxes. The beneficiary who is named in the legal will is liable to pay inheritance tax.
In simple words, inheritance tax is the tax on assets which you have received from the deceased ones. The tax rates involve a number of issues such as your relationship with the deceased, type of the assets and total value of the assets. As a beneficiary, you could claim several reductions on the tax owned on Inheritance. In U.S normally State Government collects inheritance tax.
You may find hundreds of books, articles, websites and blogs which are helpful to get a proper understanding about inheritance tax. Many people have shared their real life stories related to inheritance tax in numerous blogs. You may read these stories to make a comparison with your particular case to get a proper understanding and right measures to deal with the situation. Often people do pay huge inheritance taxes which could be easily avoided. The modern technology of internet has made it very simple for you to get all information at the comfort of your home with the help of few mouse clicks.
Taking the help of private wealth management advisors is also very effective tool to adopt the right procedure and steps towards reduction of inheritance tax. These wealth management advisors may charge minimal charges about their services. Your chosen advisor would help you in deciding the right you should try to look for the ones, who are reliable and trustworthy. Do a small research before hiring any advisors. You could make a use of major search engines to locate the private wealth advisors operating in your area.

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Volunteer Tax Assistance

Much to everyone’s chagrin the 2010 tax season is almost upon us. If you are looking for 2010 income tax preparation that won’t cost a dime,you may qualify for a sponsored community based  IRS program.

These are a few facts you may want to know about the Volunteer Tax Assistance programs.

  1. The Volunteer Tax Assistance and 2010 Tax Council program for senior citizens are sponsored by the IRS.

  2. The Volunteer Tax Assistance service gives 2010 tax assistance free of charge for those who earned less than $49,000. Some locations have free filing services.

  3. The Tax Counseling for the Elderly service gives tax assistance to those age 60 and older.

  4. If you don’t speak good English, several sites provide free translation services.

  5. The program volunteers get raining from the IRS to assist qualified taxpayers with tax credits and deductions like the Earned income Credit, elderly tax benefit, and child tax benefit.

  6. As many as 12,000 free locations are open for the 2010 tax year across the country as the IRS proceeds to establish more business relationships with community and nonprofit centers carrying out these important services.

  7. AARP has more than 6000 Volunteer Tax Assistance locations providing the free tax help program during tax season. The full licensed and trained volunteer AARP staff give aide to taxpayers who earn low to average wages with special attention given those over 60.

  8. The IRS also collaborates with the military to provide 2010 tax service free to members of the military and their household. The Armed Forces Tax program is made up of tax program counselors for the Air Force, navy, Marines, Coast Guard and Army who are trained thoroughly and prepared to handle any detailed like combat zone benefits.

  9. The hours and locations vary by city and details can be found through local community centers and hot line information.

  10. You can find out about local Volunteer Tax Assistance locations from the IRS site or by calling their toll-free number at 1-800-906-9887. For the AARP Tax Aide Program closest to you, call 1-888-227-7669 or go to their website at AARP.org.

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Green Tax Deductions

There are numerous ways in which you may recognize savings by way of green tax deductions. By making certain eco-friendly choices regarding your purchases or certain home modifications, you may be eligible for tax benefits while at the same time doing something good for the environment. Not only might the environment and your pocketbook be thanking you for your efforts, but you may be improving your home and lifestyle in the process. In many instances, you could be saving 30% of the cost of your purchases or up to a total tax credit of $1500, although certain purchases may … Read the rest

There are numerous ways in which you may recognize savings by way of green tax deductions. By making certain eco-friendly choices regarding your purchases or certain home modifications, you may be eligible for tax benefits while at the same time doing something good for the environment. Not only might the environment and your pocketbook be thanking you for your efforts, but you may be improving your home and lifestyle in the process. In many instances, you could be saving 30% of the cost of your purchases or up to a total tax credit of $1500, although certain purchases may not be governed by this limit.

Heating a Cooling Options

Before you run out and buy a new addition to your HVAC system, you should ensure the product you want to purchase falls within the guidelines of the green tax deduction requirement by visiting www.energystar.gov.  Items such as biomass stoves (stoves that burn biomass fuels), certain hot water heaters, geothermal heat pumps, air conditioning units, furnaces, and boilers could be included in the tax deduction, but you don’t want to spend a bundle of cash on a new unit only to realize that it isn’t eligible for the deduction you were expecting. Furthermore, installations of items such as solar panels and wind turbines which actually generate energy for your home can qualify for up to a 30% federal tax credit.

Home Improvements

There are a variety of home improvements for which you may be eligible when it comes to tax deductions. Work to improve heating and cooling efficiency through fixing cracks and aging seals in your home and the replacement of insulation are simple ways of reducing energy costs in your home while possibly making yourself eligible for a tax deduction in the process.

You may also realize tax savings in the form of energy efficient window replacement, door replacement, roof replacement, other energy loss reduction repairs or modifications, and even the installation of solar panels.

New Homes

Tax breaks are not limited to the renovation of dated homes.  If you’ve built a new more energy-efficient home before January 1st you may be eligible for tax incentives. According to the Energy Policy Act of 2005, if you’ve build a new home that is 50% more in energy savings over the minimum standard you could qualify for a $2000 tax credit.  Those homes which achieve just 30% more energy savings over the standard are still eligible for $1000 tax credit.

Conclusion

Tax deductions can be a great benefit for making environmentally friendly decisions. However, it is important that you fully understand how these deductions apply to you and your situation and ensure that you are making the proper purchases and eco-friendly modifications to meet the guidelines to be eligible for these deductions. It might be helpful to visit the Energy Star website at www.energystar.gov to learn more about available tax credits and terms. If you are still unsure whether the improvements or purchases you are interested in making will result in tax benefits, you may want to consult a tax professional before committing yourself and your money.

Sources:

U.S Environmental Protection Agency. U.S. Department of Energy. Improve Your Home’s Efficiency & Earn Tax Credits. November 16, 2010. https://www.energystar.gov/about/federal_tax_credits. December 24, 2010.

Author Byline:

Anastacio Mindiola is an accomplished attorney and business owner. His company helps home and business owners protest property taxes in Houston and the surrounding counties. For more information on how you can lower your property taxes visit https://republicpropertytax.com/.

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  • Final Days to Donate for Tax Deduction (doyourpart.com)

School Tax – Tax Breaks for Giving

In Arizona, it is commonplace to be hit up by children selling wrapping paper, candy bars, and coupon books to help raise funds for equipment, trips, and other school programs. Another way for taxpayers to help children in the local schools, is available, though and would give a higher yield return on your state taxes than the purchase of a tub of cookie dough will.

A tax credit of up to $200 for individuals and $400 for a couple married and filing jointly for contributions of cash to a charter or public school exists as the Tax Credit program of Arizona and reimburses you for your support of extracurricular activities. Support can also go towards character education programs.

This is not just a tax-deductible contribution that comes of your adjusted gross income, but rather a dollar for dollar credit against any taxes owed to Arizona.

As an example, let’s say a person found after completing a state tax return they would owe $300 but they made a $200 donation to a school or its district for $200 to support extracurricular activities, their net tax owed would plummet to $100.

Contributors should check the federal guidelines and tax laws or consult a tax preparer for additional details, but in most cases, your contribution is also eligible to claim on federal taxes.

To take advantage of the program, one does not need to live in a particular district or have an child enrolled in school. Contributors can earmark a certain school or program to apply the funds or leave the decision up to the district to funnel the money into the areas that are most lacking or pressing in their needs.

How to Contribute
Most schools in the district or district offices will accept donations until winter break. After winter break, most schools will accept contributions in their district offices, by mail, by phone or online via secure sites. Some districts stay open December 30 and 31 to accrue last minute donations by those seeking to meet the tax write off deadline.

The elementary school district Business Manager Wendy Qualls of Litchfield says, “If mailing it in, make sure it’s postmarked by December 31.” West Valley View district offers a simple form for making a donation to any public school within the sate, and the accompanying links will have links for making donations, as well.

Contributions eligible for tax credits can also be made to private schools via an organization that provides students with scholarships. Married couples filing jointly can contribute a maximum of $1,000. Rules for single taxpayers or those filing head of household allow contributions up to $500.

If you have questions about where or how to make contributions, they should be directed to the school or the district.

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.

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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.

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