Best Tax Tips

Here are the top five changes that may show up on your 2009 return.

1. The American Recovery and Reinvestment Act ARRA provides several tax provisions that affect tax year 2009 individual tax returns due April 15, 2010. The recovery law provides tax incentives for first-time homebuyers, people who purchased new cars, those that made their homes more energy efficient, parents and students paying for college, and people who received unemployment compensation. 2....

February 17th, 2010 by The Tax Man

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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

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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

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Seven Tips about Claiming the First-Time Homebuyer Credit

If you purchased a home in 2009 or early 2010, you may be eligible to claim the First-Time Homebuyer Credit, whether you are a first-time homebuyer or a long-time resident purchasing a new home. Here are seven things to know about claiming the credit: 1. You must buy – or enter into a binding contract to buy – a principal residence located in the United States on or before April 30,...

February 11th, 2010 by The Tax Man

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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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Tax tips if you changed your marital status

If you were married or divorced recently, there are a couple of things you’ll want to do to ensure the name on your tax return matches the name registered with the Social Security Administration. Here are five items for recently married or divorced taxpayers. Following these steps will help avoid problems when you file your tax return. Image by stevie withers via Flickr 1. If you took...

January 8th, 2010 by The Tax Man

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10 tips that will help your tax filing process run smoother

While the tax filing deadline is more than three months away, it always seems to be here before you know it. Here are the Internal Revenue Service’s top 10 tips that will help your tax filing process run smoother than ever this year. 1. Start gathering your records Round up any documents or forms you’ll need when filing your taxes: receipts, canceled checks and other documents that support...

January 7th, 2010 by The Tax Man

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Scam E-mail Sends Malicious Software to Recipients’ Computers

In recent weeks, a phony e-mail claiming to come from the IRS has been circulating in large numbers. The subject line of the e-mail often states that the e-mail is a notice of underreported income. The e-mail may contain an attachment or a link to a bogus Web page directing taxpayers to their “tax statement.” In either case, when the recipient opens the attachment or clicks on the link,...

December 29th, 2009 by The Tax Man

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