Taxes

Why You Should File A Tax Return Even If You’re Not Required To

On my previous post, we discussed the various filing requirements for various filing statuses. and whether or not you are  required to file an income tax return. Some taxpayers are not required to file because their gross income is less than the sum of their standard deduction and personal exemption. The reason for this is […]

Are You Required To File A Tax Return

Not everybody is required to file an income tax return. If you are a US citizen or resident, usually, the filing requirements depends on your gross income, filing status and age. In general, if your adjusted gross income (AGI) is less than your standard deduction and the allowed personal exemptions, then you do not have […]

Determining Your Tax Filing Status

When filing your tax return, one of the things that you have to identify first is your filing status. Your filing status is the key to determining how much your standard deduction is (if you are not itemizing your return) and what tax bracket your are going to be at or how much your tax […]

Who Can You Claim As Dependents on Your Return

When you file your return, you are entitled to a personal exemption of $3,650 ($7,300 for married filing joint) in tax year 2010. In addition to that you may be able to take additional exemption if you have dependents. The additional exemption is called dependency exemption and it is the same amount ($3,650) per dependents. […]

Child and Dependent Care Credit: What Expenses Can I Include?

Most of us work and we pay someone to take care of our children while we are at work. When this happens, you may be able to use those expenses to claim the child and dependent care credit. Depending on your income, you can claim a credit of up to $1,050 if you have one […]

Earned Income Credit (EIC): Meet the IRS Version of Welfare

The government has various ways on how to take care of the unfortunate ones. Different agencies, at the state, county or federal levels have different programs to help the poor. Among the government programs that are popular are free medical cost, housing assistance, cash aid, food stamp, WIC, etc. but your income must be at […]

Tax Issues For The Unemployed Individuals

During the economic downturn for the past couple years, millions of Americans have lost their job. However, as part of the American Reinvestment Recovery Act, the government made sure that even the unemployed are also taken care of by offering numerous benefits such as extending the unemployment benefits, exclusion of up to $2,400 of income, […]

Claiming Mortgage Interest Credit On Your Tax Return

If you think that there are no more tax credit for first time home buyer’s credit, think again!! One tax credit that has been around since 1984 but has been overlooked by most home buyer is the mortgage credit certificate program or simply called MCC. However, this is not a program administered by the IRS […]

Understanding The Child Tax Credit

The government has continually helped families financially by providing generous tax credits and deductions to those who have kids and have low to moderate family income. Families with children can avail tax deductions such as the dependency exemptions and tax credits such as the child tax credit, dependent care credit, earned income credit, etc. However, […]

Adoption Credit: What Expenses Are Included, How Much and The New 2010 Changes

Adopting a child is a long process and can be really costly. Prospective parents would have to attend various seminars and would have to be interviewed by a social worker on a consistent basis including numerous visits to the adopting parents home. Adopting parents would have to show that they are both financially and emotionally […]

Claiming The Residential Energy Credits

As a homeowner, being energy efficient pays off a lot when it comes to reducing your monthly electric or gas bills. In addition, you are also helping the environment in reducing deadly emissions in the air so it does provide double benefit. However, purchasing these equipment may be too costly and the break-even point (the […]

Miscellaneous Items You Can Deduct On Schedule A

There are really two kinds of miscellaneous deductions that can be deducted on your itemized schedule: items that are subject to the 2% of AGI limitation, which will be discussed on this article and the ones that are not such as gambling losses, casualty or theft losses, etc. Miscellaneous Section Subject to the 2% of […]