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Posted in General on Feb 03, 2011
1) A child is a dependent the year they were born; 2) Child Tax Credit for each child under age 17; 3) Child and Dependent Care Credit for a child under age 13; 4) Earned Income Tax Credit; 5)Adoption credit; 6) Children with earned income; 7) Children with investment income; 8) Higher education credits; 9) Student loan interest; 10) Self-employed health nsurance deduction. The list of Ten Tax Tips for Parents can be found on the IRS website at http://www.irs.gov/newsroom/article/0,,id=218184,00.html.
Last Updated by Bonnie on 2011-02-03 05:19:19
Posted in General on Jan 31, 2011
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The IRS plans a Feb. 14 start date for processing tax returns delayed by last month's tax law changes. The delay included returns claiming itemized deductions on Schedule A, the higher education tuition and fees deduction and the educator expenses deduction. |
Last Updated by Bonnie on 2011-01-31 06:53:16
Posted in General on Jan 27, 2011
On January 25, Max Baucus (D-MT) and Harry Reid (D-NV) introduced a bill to repeal the new Form 1099 reporting requirements for businesses. The legislation would repeal requirements for businesses to report payments made for goods and certain services to IRS using Form 1099. As businesses become aware of paperwork requirements, concerns were raised about the resources required to complete the forms.
Last Updated by Bonnie on 2011-01-27 08:33:15
Posted in General on Jan 21, 2011
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The information below explains whether a dependent must file a 2010 return. Single dependents ? Were you either age 65 or older or blind? No. You must file a return if any of the following apply: Married dependents ? Were you either age 65 or older or blind? No. You must file a return if any of the following apply: In addition, a dependent must file a return if:
Even if not required to file, a dependent should file if:
Responsibility to File
The child is responsible for filing his or her own tax return and for paying any tax, penalties and interest. If the child cannot file his or her own return due to age or any other reason, the parent or guardian is responsible for filing the return on the child's behalf. If the child cannot sign his or her own tax return the parent can sign the child's name and add his or her own signature, notating the return was signed "By parent or guardian for minor child." If a parent or guardian signs the return, that person is authorized by the IRS to represent the child in all matters related to the tax return. On federal income tax returns, any income a child receives in return for personal services or labor counts as the child's income, even if state law provides that the parent is entitled to the income. Standard Deduction The standard deduction for an individual who can be claimed as a dependent of another taxpayer is the greater of:
In some circumstances, the standard deduction is not allowed:
A person who can be claimed as a dependent on another taxpayer's return cannot claim his or her own exemption, even if the person who can claim the dependent chooses not to. For more information, see IRS Publication 929. |
Last Updated by Helene on 2011-01-21 07:44:51
Posted in General on Jan 19, 2011
Mónica Noguera, host for many of Telemundo's specials, will present the IRS program, which features in-studio interviews with IRS tax experts. IRS tax experts will also be available during the airing of the program to answer questions submitted online via Telemundo's website.
The program ?Los Impuestos y Usted? (?Taxes and You?) will air at: Check your local listings for exact times. ?Los Impuestos y Usted? will help viewers determine whether they qualify for many tax benefits, including the Earned Income Tax Credit or EITC. Workers who earned $48,362 or less from wages, self-employment or farming last year could receive larger refunds if they qualify to receive EITC. IRS estimates four of five eligible taxpayers claimed their EITC last year, obtaining an average $2,200 from the credit. To qualify, taxpayers must meet certain criteria and file a tax return, even if they do not have a filing requirement. Among other topics, the program features Free File, a program that allows individuals to file their taxes online at no cost, how to get free tax help at local community centers and other services available at www.irs.gov/espanol. Information about the EITC, Free File and other IRS programs and services is available in Spanish at www.irs.gov/espanol or toll-free at 800-829-1040, extension 8.
Last Updated by Helene on 2011-01-19 05:29:22
Posted in General on Jan 18, 2011
Free File software is for taxpayers who earn $58,000 or less
At http://www.irs.gov/freefile, you can use an online tool which allows you to give a little information about yourself and the tool will guide you to the software for which you are eligible. Or, you can review the complete list of companies and their offerings and make a selection.
Once you select a software product, you will be directed away from the IRS website to that company's website. There, the software generally will offer a step-by-step guide through the tax preparation process.
Some companies provide state tax return software ? sometimes for free and sometimes for a fee. Some states also have a relationship with the Free File Alliance and those states are listed on the companies' websites.
For ALL TAXPAYERS including people who make more than $58,000
At http://www.irs.gov/freefile, you can use Free File Fillable Forms. There is no software assistance with Free File Fillable Forms. It does basic math calculations, but it does not support state income tax returns. Although you can e-file your state tax returns for free separately through your state's website. Ohio's options are located at http://tax.ohio.gov/divisions/communications/electronic_filing_options.stm.
With the complexities of the tax code, it may be necessary for you to seek assistance to properly prepare your return or deal with a tax notice. If that is your situation, contact Ellis-Rinner, CPA, Ltd (www.ercpaltd.com) at 419-660-1890 for personalized, professional attention.
Last Updated by Helene on 2011-01-18 11:20:18
Posted in General on Jan 17, 2011
IRS has raised the annual gross receipts threshold at which tax-exempt organizations must file Form 990, Return of Organization Exempt from Income Tax, from $25,000 to $50,000, for tax years beginning on or after Jan. 1, 2010. Thus, tax-exempt organizations with gross receipts under $50,000 can file Form 990-N (electronic e-postcard).
Last Updated by Bonnie on 2011-01-17 06:53:39
Posted in General on Jan 13, 2011
Among other changes, the 2010 tax relief act reduces estate, gift and generation-skipping transfer (GST) taxes for 2011 and 2012. It preserves estate tax repeal for 2010, but, estates wanting zero estate tax for 2010 must elect that option, along with the less favorable modified carryover basis rules that were set to apply for 2010. Otherwise, by default, the estate tax is revived for 2010, with a $5 million exemption, a top tax rate of 35%, and a step-up in basis. Also, for estates of decedents dying after Dec. 31, 2010, a deceased spouse's unused exemption may be shifted to the surviving spouse. However, these generous rules are temporary?much harsher rules are slated to return after 2012.
Last Updated by Bonnie on 2011-01-13 05:43:53
Posted in General on Jan 11, 2011
LONG TERM CAPITAL GAINS RATE STILL FAVORABLE Through Dec. 31, 2012, long-term capital gain (with the exception of 28% rate gain and unrecaptured section 1250 gain) will continue to be taxed at a maximum rate of 15%. And before 2013, qualified dividends paid to individuals will be taxed at the same rates as long-term capital gains.
Last Updated by Helene on 2011-01-11 07:07:19
Posted in General on Jan 10, 2011
FICA TAX REDUCTION FOR EMPLOYEE: Beginning in 2011, the 2010 Tax Relief Act reduces the employee tax rate under the FICA tax by two percentage points to 4.2%. (Similarly, for self-employment income for tax years beginning in 2011, the tax rate under the Self Employed tax is reduced by two percentage points to 10.4% percent.) As a result, for 2011, employees will pay only 4.2% Social Security tax on wages up to $106,800 (and self-employeds will pay only 10.4% Social Security self-employment taxes on self-employment income up to $106,800).
ENERGY CREDIT EXTENDED: The 2010 Tax Relief Act (P.L. 111-312) extended the Code Sec. 25C nonbusiness energy property credit for one year, through Dec. 31, 2011. However, stricter rules apply for 2011 than for 2010. A taxpayer can claim a 10% credit for qualified energy property placed in service in 2011 up to a $500 lifetime limit (with no more than $200 from windows and skylights) over the aggregate of the credits allowed to the taxpayer for all earlier tax years ending after Dec. 31, 2005.
Form W-4. 2011 Form W-4 has been released. On line H of the Personal Allowances Worksheet that is included with Form W-4, the IRS advises employees who have more than one job, or who are married and both spouses work, with combined earnings from all jobs exceeding $40,000 ($10,000 if married), to look at the Two-Earners/Multiple Jobs Worksheet on page 2 of the instructions to avoid having too little tax withheld. The IRS confirmed that the above numbers are correct. The form can be viewed on the IRS website at http://www.irs.gov/pub/irs-pdf/fw4.pdf.
Last Updated by Admin on 2011-01-10 08:25:40
Posted in General on Jan 09, 2011
- 51 cents per mile for business miles driven
- 19 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
Last Updated by Admin on 2011-01-09 02:10:07
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