As part of the American Recovery Reinvestment Act, the IRS offered a special tax credit for tax year 2009 and 2010 allowing taxpayers to receive additional refund. Married Filing Joint (MFJ) taxpayers can receive as much as $800 while the rest of the filers can receive as much as $400. The credit equals 6.2 percent of earned income up to the maximum amount. Thus, any eligible … [Read more...] about Claiming The Making Work Pay Credit On Your 2010 Tax Return
Tax Credit
Claiming The Home Buyer’s Credit On Your Return
The American Recovery Reinvestment Act has brought a lot of tax benefits to the American people in order to stimulate the economy. After the real estate crash a couple of years ago, the government tried to find ways to stabilize the real estate market since this is one of the major reason why the economy was in a big mess. This is where the First Time Home Buyer's credit was … [Read more...] about Claiming The Home Buyer’s Credit On Your Return
Understanding the Lifetime Learning Credit
Lifetime Learning Credit is a tax credit to help offset the cost of higher education. A taxpayer can receive up to $2,000 of credit PER TAX RETURN (and not per student) and it is available for all years of post-secondary education and for courses to acquire or improve job skills. Student does not need to pursue a degree or other recognized education credential and the number of … [Read more...] about Understanding the Lifetime Learning Credit
Audit Finds the IRS Inability to Track the Home Buyer’s Credit
For a change, the IRS are the ones who got audited. A recent article in the Los Angeles Times stated that  an audit raises questions about the IRS ability to track home buyers credit. The auditor found that the IRS lacks a system to keep track or to monitor on the individuals who claimed the home buyers tax credit. In fact, the auditors identified that the IRS had … [Read more...] about Audit Finds the IRS Inability to Track the Home Buyer’s Credit
Understanding the American Opportunity Credit
The American Opportunity credit is a new educational credit in order to help alleviate the cost of education in the United States. The maximum amount that can be claimed per eligible student is $2,500. It is available only for the first four years of post-secondary education (and this includes any years the Hope credit was claimed). Unlike the Hope and Lifetime learning credit, … [Read more...] about Understanding the American Opportunity Credit