Eligible for the Elderly Tax Credit?
Feb 18, 2010 Tax Strategies, Taxable Income
Eligible for the Elderly Tax Credit?
Are you 65 or older (or under 65 and disabled)? Are you a US citizen? Are you a Single filer with an adjusted gross income (AGI) less than $17,500? Is the nontaxable portion of your Social Security or other nontaxable pensions, annuities, or disability income under $5,000? You need to file Schedule R for a tax credit of $750! Read IRS Publication 524, Credit for the Elderly or Disabled or call 1-800-829-3676 and ask to have a copy mailed to you.
Don’t forget the IRS Helpline – 1-800-829-1040 or your nearest IRS Taxpayer Assistance Center.
Tags: 2009
Are you a Senior? Do you need to file?
Feb 17, 2010 Taxable Income
Are you a Senior? Do you need to file?You don’t have to file your federal tax return if your gross income IS:
- For a Single person: less than $9,350 (over 64? less than $10,750)
- For Married filing jointly: less than $18,700 (one of you over 64? less than $19,800; both of you over 64? less than $20,900)
- For Head of Household: less than $12,000 (over 64? less than $13,400)
- For Married filing separately: any age, less than $3,650
- For Qualified Widow(er) with a dependent child: less than $15,500 (over 64? less than $16,150)
Don’t overlook your state tax requirements! Use this link for state tax information.
Tags: 2009
Form 1040A Schedules 1, 2, and 3 obsolete in 2009
Nov 8, 2009 Tax Changes, Taxable Income
Form 1040A Schedules 1, 2, and 3 obsolete in 2009
Trish McIntire, an IRS Enrolled Agent in Arkansas, in her blog, reports that the IRS is “simplifying” our 2009 income tax filing procedure by discontinuing the use of three supporting tax forms associated with the short IRS Form 1040A. She says that interest income over $1,500 will now be reported on Form 1040 Schedule B, Interest and Dividend Income (part of the longer IRS Form 1040) rather than Form 1040A Schedule 1. A similar substitution affects Form 1040A Schedule 2, Child and Dependent Care Expenses. In 2009, she says filers will use IRS Form 2441 (see IRS). The final filing change affects those seeking a credit for the elderly or disabled. The Form 1040A Schedule 3 form is replaced by Form 1040 Schedule R, Credit for the Elderly and Disabled (see IRS). I can’t express how excited I am that our government’s paperflow has been reduced by 3 IRS forms! While this definitely simplifies filing personal income taxes for some Americans, why don’t we save more paper, time, and money by simplifying the tax code for everyone?
Tags: 2009, Child Care, Dependent Care Expenses, Dividend Income, Form 1040 Schedule B, Income Tax Filing, Interest Income, Personal Income Taxes
Investment Income Tax Rates in 2010?
Nov 8, 2009 Tax Changes, Taxable Income
Investment Income Tax Rates in 2010?
Tom Herman from the Wall Street Journal advises that while tax rates on investment income will remain stable in 2010, don’t expect the same in 2011. Remember 2010 is yet another election year. Rules regarding long-term capital gains and unearned income like dividends will still hold at 15%; gains held for less than a year will be subject to your marginal income tax rates. Also keep in mind that gains on some art and collectibles are taxed at a higher rate; 28%. Assuming our US Congress pays more attention to the business of securing their re-election, rates will not change until 2011. But then the proverbial fecal material hits the fans on Capital Hill! Expect an automatic rise on capital gains to 20% as of Jan 1, 2011. Top tax rates on dividends are scheduled to rise to 39.6%. Our President has proposed new and significant tax “reforms” starting after the 2010 election year; “business as usual”. While no one can predict these or other “tax reforms”, budgetary concerns and increasing deficits compounded by world-wide economic issues do NOT augur well for anything other than SIGNIFICANT tax increases on income. Remember too that Congress still has not “officially” outlined how the cost of employee health care issues will be “shared” by government, the private sector, and the “average” Joe and Jane trying to balance their home budget and pursue their dreams.
Tags: 2011
IRS Form 1099 gives me a headache
Sep 16, 2009 Taxable Income
IRS Form 1099 gives me a headacheThere are two classes of income information that tax authorities like the Internal Revenue Service (IRS) use to track income; IRS Form W-2 and IRS Form 1099. The IRS W-2 family of forms report wages, salaries, tips and, most important, various federal, state, and voluntary tax withholdings. There are however, many forms of compensation and fund distribution that are not considered wages or salary. The large number of different 1099 forms are used to report all this tax-relevant information. Attach a copy of IRS Form 1099 to your tax return when the form shows any taxes withheld from reported compensation or distributions. Here is a list of some of the more common information documents:
