A new IRS.gov section for the unemployed…
Mar 16, 2010 Tax Strategies
A new IRS.gov section for the unemployed…
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.
Payment methods and distribution of the Making Work Pay Tax Credit
Jan 14, 2010 Tax Changes
Payment methods and distribution of the Making Work Pay Tax Credit
Making Work Pay Credit (MWPC) as noted in a previous blog post is a refundable credit available in 2009 and 2010 worth 6.2% of earned income up to $400 ($800, MFJ) for taxpayers with a valid for work social security number. You cannot be a dependent of another taxpayer or identified as a non-resident alien. If you receive earned income as an employee you more than likely began receiving this credit beginning in April, 2009 as a reduction in the amount of federal income tax withheld from your paycheck; though not large, an amount was proportionally reduced so that your net pay was greater than what it had been at the beginning of the calendar year. If you completed the IRS Form W-4 in 2009 using single withholding status, the total tax withholding for 2009 would have been reduced by $400 (those using a married withholding status, $600).
Making Work Pay and Government Retiree Credits
Jan 13, 2010 Tax Changes
Making Work Pay and Government Retiree Credits
The American Recovery and Reinvestment Act of 2009 (ARRA) was passed to help the US economy, with almost $800 billion in stimulus money, to recover from the recent financial crisis. Three provisions affect the average taxpayer in 2009; the Making Work Pay Credit (MWPC), the Economic Recovery Payment (ERP), and the Government Retiree Credit (GRC).
In brief:
Making Work Pay Credit (MWPC) is a refundable credit available in 2009 and 2010 worth 6.2% of earned income up to $400 ($800, MFJ). You are not eligible for this tax credit if you do not have a valid for work social security number, are a dependent or non-resident alien. When filing MFJ, only the taxpayer needs a valid social security number. Most taxpayers will have already received this “tax benefit” through the mid-year reduction in tax withholdings.
New IRS forms to review before filing
Dec 26, 2009 Tax Changes
New IRS forms to review before filingSome new IRS Forms to review:
- Form 656 (revised 3/09) – Offer in Compromise
- Form 886-H-AOC (revised 7/09) – Supporting Documents to Prove American Opportunity Credit
- Form 886-H-FTHBC (revised 9/09) – First-Time Homebuyer Credit Supporting Documents
- Form 1040 Schedule A Itemized Deductions
- Form 1040 Schedule L Standard Deductions for Certain Filers
- Form 1040 Schedule M Making Work Pay and Government Retiree Credits
- Form 4506T-EZ – Short Form Request for Individual Tax Return Transcript
- Form 4562 Depreciation and Amortization
- Form 4684 Casualties and Thefts
- Form 5405 First-Time Homebuyer Credit
Tags: 2010
