Recent Articles
A new IRS.gov section for the unemployed…
Mar 16, 2010 Tax Strategies Leave a comment
Are you unemployed or struggling with personal finances? There is a new informational section on the government website, IRS.gov, that has information and web links to tax-related resources, tax assistance information, and suggestions that could help you through these difficult financial times. The Tax Center to Assist Unemployed Taxpayers has been created to offer advice, free publications, links to sources for tax planning, tax settlement plans, offers in compromise, etc. as well as other relevant topics for which you need planning information. There are also links to videos, health insurance information, and other IRS publications covering topics like bankruptcy, cancellation of debt income, and bartering income. Get information directly from the “horse’s mouth” rather than your well-intentioned neighbor or friend.
Avoiding Tax Penalties
Mar 16, 2010 Tax Strategies Leave a comment
The IRS wants you to know about penalties if you don’t file your 2009 tax return by April 15, 2010. The government website’s newsroom offers the following advice:
Qualifications for claiming an adult as a dependent
Mar 4, 2010 Tax Strategies 12 Comments
There are several qualifications for claiming an adult as a dependent:
1. You as the taxpayer must provide over 50 percent of your dependent’s living or support costs.
2. Your dependent must either live with you for 12 months or be your parent, grandparent, step-parent, aunt, or uncle.
3. Assuming the person does not have a disability, your dependent cannot have a gross income that exceeds the tax year’s exemption amount. The exemption amount in 2009 is $3,650.
4. Your dependent cannot file a joint return with another person for the year unless that tax filing is only completed in order to claim taxes that had been withheld.
5. Your dependent must be a US citizen, a US national, or a resident of the US, Canada, or Mexico.
Eligible for the Elderly Tax Credit?
Feb 18, 2010 Tax Strategies, Taxable Income Leave a comment
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.
Are you a Senior? Do you need to file?
Feb 17, 2010 Taxable Income Leave a comment
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.
