Tips for understanding the Standard deduction and Itemized Deduction
Most taxpayers have a choice of either taking a standard deduction or itemizing their deductions. If you have a choice, you can use the method that gives you the lowest tax. Whether to itemize deductions on your tax return depends on how much you spent on certain expenses last year. Money paid for medical care, mortgage interest, taxes, charitable contributions, casualty losses and miscellaneous...
March 10th, 2010 by The Tax Man
Eight Reasons why you may want to file income tax
Even if you don’t have to file, here are eight reasons why you may want to file: 1. Federal Income Tax Withheld If you are not required to file, you should file to get money back if Federal Income Tax was withheld from your pay, you made estimated tax payments, or had a prior year overpayment applied to this year’s tax. 2. Making Work Pay Credit You may be able to take this credit...
February 19th, 2010 by The Tax Man
Tips on Items Excluded from Income
Here is a tax tip to reacquaint taxpayers with situations where certain types of income are partially taxed or not taxed at all. Common examples of items that are not included in income, such as: —adoption expense reimbursements for qualifying expenses —child support payments —gifts, bequests and inheritances —workers’ compensation benefits —meals and lodging for the employer’s...
February 16th, 2010 by The Tax Man
Five Tips to offset education costs
1. The American Opportunity Credit This credit can help parents and students pay part of the cost of the first four years of college. The American Recovery and Reinvestment Act modifies the existing Hope Credit for tax years 2009 and 2010, making it available to a broader range of taxpayers. Eligible taxpayers may qualify for the maximum annual credit of $2,500 per student. Generally, 40 percent...
February 15th, 2010 by The Tax Man
Seven things to know about the Government Retiree Credit
Certain government retirees who receive a government pension or annuity payment in 2009 may be eligible for the Government Retiree Credit. The American Recovery and Reinvestment Act of 2009 provides this one-time credit of $250 for certain federal and state pensioners. Here are seven things to know about the Government Retiree Credit : You can take this credit if you receive a pension or annuity...
February 8th, 2010 by The Tax Man
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Ten Tax Topics for Taxpayers with Tots and Teens
Got Kids? They may have an impact on your tax situation. Listed below are the top 10 things the IRS wants you to consider if you have children. Image via Wikipedia Dependents In most cases, a child can be claimed as a dependent in the year they were born. For more information see IRS Publication 501, Exemptions, Standard Deduction, and Filing Information. Child Tax...
January 26th, 2010 by The Tax Man
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Ten Things You Should Know about the Making Work Pay Tax Credit
Here are 10 things to know about this tax credit to ensure you receive the entire amount for which you are eligible. Image via Wikipedia In 2009 and 2010, the Making Work Pay provision provides a refundable tax credit of up to $400 for individuals and up to $800 for married taxpayers filing joint returns. For taxpayers who receive a paycheck and are subject to withholding, the credit will...
January 25th, 2010 by The Tax Man
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IRS Announces 2010 Standard Mileage Rates
The Internal Revenue Service today issued the 2010 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Image via Wikipedia Beginning on Jan. 1, 2010, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 50 cents per mile for business miles driven 16.5...
December 4th, 2009 by The Tax Man
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Tax-saving Moves for the Rest of 2009
April 15 is still several months away, but it’s not too soon to give your 2009 tax situation some extra attention. Here are some pointers that could lighten your federal income-tax burden. Image by Walt Jabsco via Flickr Buy a car. State and local sales or excise taxes paid on the purchase of a new vehicle are potentially tax deductible. Tax credits are available for purchases of new energy-efficient...
October 12th, 2009 by The Tax Man
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Last Minute Tax Tips
A few last minute tax tips this year. You do not want to miss these items on your tax return as you finish things off these last few days. Bigger standard deduction Image by Getty Images via Daylife Homeowners who pay state and local real estate taxes but don’t file an itemized return will receive a larger standard deduction. Besides the standard deduction, you can get the amount...
April 13th, 2009 by The Tax Man
