Reads from last week?
Well I have actually sat down and done this for a long time. I hope I can maintain the regularity that one would expect.
I’d like to start with a friend of mine. One truly and almost whole hardily responsible for guiding me into the world of blogging. (Did I use the word “Whole” correctly?) We have communicated over the past few years via email and blog post getting to know each other. Next month is the Annual NATP conference in Austin TX, where we had hoped to meet in person once and for along with several others. I say “hoped”, because I am unable to make it. Anyway. . . .
THE WONDERING TAX PRO has two posts that are must-reads. As a taxpayer, this is a topic you should be following. Closely. DEAR COMMISSIONER SHULMAN & SHOULD TAX PREPARERS BE REQUIRED TO FILE THEIR CLIENTS’ RETURNS ELECTRONICALLY?
On the same subject, Trish McIntire of Our Taxing Times has this to say Preparer Registration – Surprise!
Midyear tax tip #1: Welcome summer with energy-related tax breaks
Midyear tax tip #2: Plan health care account moves
Midyear tax tip #3: Adjust withholding – This is my entry
Midyear tax tip #4: Evaluate your estimated tax situation
Midyear tax tip #5: Pay attention to your portfolio
Kelly the internets TAXGIRL writes Congress Fiddles While We Burn: No Movement on Tax Bill, it is a look into HR 4213 or the Tax Extenders Bill. She also brings us news about the Senators Talk Tax Hikes on the Hill. A post that should be read.
James Maule from Mauled Again has two great post, FICA, Medicare, and Payroll Taxes and Internal Revenue Code: Small Change, New Feature, New Look. Both are great reads at least I thought so and feel you should read them. Knowing what’s going on helps, you plan.
Anyway . . .
- Audits Reveal Thousands Wrongfully Received Homebuyer’s Tax Credit,
- Former Company Controller Sentenced to 36 Months in prison for Tax Evasion,
- Top Quality Standards for a Tax Resolution Company
- Today’s tax burden much lower than 30 years ago
- 5 things you can do now to get ready for huge tax hikes in 2011
People management: What managers can learn from The Beatles
For those of you following the saga, I have joined the ranks over at The Daily Reviewer “Top 100 Blogs”. The Missouri Taxguy is on the second page of the tax section and the third row from the bottom in the Money section. You’ll be able to veiw many great blogs. So be sure to check out your favorite topics at The Daily Reviewer .
Ten days ago, I posted that I had submitted this blog to Alltop for inclusion to their listing. As it is truly a grow site I gave it awhile (ten days), but alas I haven’t made it to their newsstand of blogs. I was there once before but as my blogging tapered off and mostly stopped for a while, I was removed. Now upon my return, new web address and all, the Alltop site has grown wonderfully. Yet my submission has yet to be accepted.
Below is a list of the blogging sites I wish to join in the tax section over at Alltop. All of them are great resources I hope you all will use and enjoy.
Tax-News.Com Live Tax Headlines
Tax Policy Center: The Numbers
IRS Tax Problem Solver Blog – IRS Help
If you’d like to see me back on the shelf at Alltop, please contact them and let them know.
Do I have to File a Tax Return?
Do I have to File a Tax Return?
You must file a tax return if your income is above a certain level. The amount varies depending on filing status, age and the type of income you receive.
Check the Individuals section of IRS.gov or consult the instructions for Form 1040, 1040A, or 1040EZ for specific details that may affect your need to file a tax return with the IRS this year.
Even if you don’t have to file, here are eight reasons why you may want to file:
- 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.
- Making Work Pay Credit You may be able to take this credit if you have earned income from work. The maximum credit for a married couple filing a joint return is $800 and $400 for other taxpayers.
- Government Retiree Credit You may be eligible for this credit if you received a government pension or annuity payment in 2009. However, the amount of this credit reduces any making work pay credit you receive.
- Earned Income Tax Credit You may qualify for EITC if you worked, but did not earn a lot of money. EITC is a refundable tax credit; which means you could qualify for a tax refund.
- Additional Child Tax Credit This credit may be available to you if you have at least one qualifying child and you did not get the full amount of the Child Tax Credit.
- Refundable American Opportunity Credit This education tax credit is available for 2009 and 2010. The maximum credit per student is $2,500 and the first four years of postsecondary education qualify.
- First-Time Homebuyer Credit The credit is a maximum of $8,000 or $4,000 if your filing status is married filing separately. The credit applies to homes bought anytime in 2009 and on or before April 30, 2010. However, you have until on or before June 30, 2010, if you entered into a written binding contract before May 1, 2010. If you bought a home after November 6, 2009, you may be able to qualify and claim the credit even if you already owned a home. In this case, the maximum credit for long-time residents is $6,500, or $3,250 if your filing status is married filing separately.
- Health Coverage Tax Credit Certain individuals, who are receiving Trade Adjustment Assistance, Reemployment Trade Adjustment Assistance, or pension benefit payments from the Pension Benefit Guaranty Corporation, may be eligible for a Health Coverage Tax Credit worth 80 percent of monthly health insurance premiums when you file your 2009 tax return.
For more information about filing requirements and your eligibility to receive tax credits, visit IRS.gov.
Links:
- Forms and Publications
- Earned Income Tax Credit
- First-Time Homebuyer Credit Information Center
- Health Coverage Tax Credit
- 1040 Central
Do You Qualify for the EIC
They are really going after those who file for this credit and do not qualify. Make sure you really are eligable. Start by reading this IRS tax tip.
Be Sure to Know Whether You Qualify for the Earned Income Tax Credit
The Earned Income Tax Credit, commonly referred to as EITC, can be a financial boost for working people adversely impacted by hard economic times. However, one in four eligible taxpayers could miss out on the credit because they don’t check it out. Here are the top 10 things the Internal Revenue Service wants you to know about this valuable credit, which has been making the lives of working people a little easier for 35 years.
- Just because you didn’t qualify last year, doesn’t mean you won’t this year. As your financial, marital or parental situations change from year-to-year, you should review the EITC eligibility rules to determine whether you qualify.
- If you qualify, it could be worth up to $5,657 this year. EITC not only reduces the federal tax you owe, but could result in a refund. The amount of your EITC is based on the amount of your earned income and whether or not there are qualifying children in your household. New EITC provisions mean more money for larger families.
- If you qualify, you must file a federal income tax return and specifically claim the credit in order to get it – even if you are not otherwise required to file.
- Your filing status cannot be Married Filing Separately.
- You must have a valid Social Security Number. You, your spouse – if filing a joint return – and any qualifying child listed on Schedule EIC must have a valid SSN issued by the Social Security Administration.
- You must have earned income. You have earned income if you work for someone who pays you wages, you are self-employed, you have income from farming, or – in some cases – you receive disability income.
- Married couples and single people without kids may qualify. If you do not have qualifying children, you must also meet the age and residency requirements as well as dependency rules.
- Special rules apply to members of the U.S. Armed Forces in combat zones. Members of the military can elect to include their nontaxable combat pay in earned income for the EITC. If you make this election, the combat pay remains nontaxable.
- It’s easy to determine whether you qualify. The EITC Assistant, an interactive tool available on IRS.gov, removes the guesswork from eligibility rules. Just answer a few simple questions to find out if you qualify and estimate the amount of your EITC.
- Free help is available at volunteer assistance sites and IRS Taxpayer Assistance Centers to help you prepare and claim your EITC. If you are preparing your taxes electronically, the software program you use will figure the credit for you. If you qualify for the credit you may also be eligible for Free File. You can access Free File at IRS.gov.
For more information about the EITC, see IRS Publication 596, Earned Income Credit. This publication – available in both English and Spanish – can be downloaded from IRS.gov or ordered by calling 800-TAX-FORM (800-829-3676).
Links:
- EITC Assistant
- Earned Income Tax Credit
- Publication 596, Earned Income Credit (EIC) (PDF 373K)
- Free File
- Tax Topic 601, Earned Income Credit
Top Ten Tax Time Tips
The following is copy and pasted from the IRS Tax tips. This is Issue Number: IRS TAX TIP 2010-01
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.
- 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 an item of income or a deduction you’re taking on your return.
- Be on the lookout W-2s and 1099s will be coming soon from your employer; you’ll need these to file your tax return.
- Try e-file When you file electronically, the software will handle the math calculations for you. If you use direct deposit, you will get your refund in about half the time it takes when you file a paper return. E-file is now the way the majority of returns are filed. In fact, last year, 2 out of 3 taxpayers used e-file.
- Check out Free File If your income is $57,000 or less you may be eligible for free tax preparation software and free electronic filing. The IRS partners with 20 tax software companies to create this free service. Free File is for the cost conscious taxpayer who wants reliable question-and-answer software to help them prepare a return. Visit IRS.gov to learn more.
- Consider other filing options There are many different options for filing your tax return. You can prepare it yourself or go to a tax preparer. You may be eligible for free face-to-face help at an IRS office or volunteer site. Give yourself time to weigh all the different options and find the one that best suits your needs.
- Consider Direct Deposit If you elect to have your refund directly deposited into your bank account, you’ll receive it faster than waiting for a paper check. -(This is cheaper than RALs and is only about 14 days)-
- Visit IRS.gov again and again The official IRS Web site is a great place to find everything you’ll need to file your tax return: forms, tips, answers to frequently asked questions and updates on tax law changes.
- Remember this number: 17 Check out Publication 17, Your Federal Income Tax on IRS.gov. It’s a comprehensive collection of information for taxpayers highlighting everything you’ll need to know when filing your return.
- Review! Review! Review! Don’t rush. We all make mistakes when we rush. Mistakes will slow down the processing of your return. Be sure to double-check all the Social Security Numbers and math calculations on your return as these are the most common errors made by taxpayers.
- Don’t panic! If you run into a problem, remember the IRS is here to help. Try IRS.gov or call our customer service number at 800-829-1040.
Links:
*the red comments are of my own and not from the IRS or any of their representatives*
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