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. On top of the exemptions, taxpayers may be able to … [Read more...] about Who Can You Claim As Dependents on Your Return
Archives for February 2011
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 qualifying dependent or $2,100 if you have more than one. The qualifying dependent must either be a child … [Read more...] about Child and Dependent Care Credit: What Expenses Can I Include?
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 the poverty level for you to receive this. So pretty … [Read more...] about Earned Income Credit (EIC): Meet the IRS Version of Welfare
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, and subsidizing the COBRA health … [Read more...] about Tax Issues For The Unemployed Individuals
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 but a program supported by your local agencies (county, city or a … [Read more...] about Claiming Mortgage Interest Credit On Your Tax Return