The “Earned Income Tax Credit”
The “Earned Income Tax Credit” also-known-as the EITC is a credit meant to help those who make very little income. The government offers those citizens a chance to keep a little bit of extra money in their pockets by lowering their tax obligations. However, there are a few stipulations to receiving this credit. You must, of course, have a valid U.S. social security number and have earned income for the year, whether it be in self or regular employment. You must also be filing as an individual (those who are married but filing separately do not qualify) and not be claimed as a...
read moreThe “Make Work Pay Credit”…what it means for you
We have all heard the word “stimulus” and a lot of us get a little happy feeling inside knowing that you are going to be getting back some of your hard earned money. This term is getting thrown around a lot, especially when it comes to our new President, Barack Obama. This week (January 12th) the House Democrats have been working on an 825 billion dollar bill called the “American Recovery and Reinvestment Bill” that will have a mixture of spending and tax relief for U.S. citizens. Since taxes is what we do here, we are going to focus on the most important piece...
read moreWhat If I Can’t Pay My Taxes?
We all struggle to make ends meet sometimes. Just because it’s tax season doesn’t mean we can just make money appear. Here are some options for you if you find you owe the IRS money and you just don’t have it. Pay with a Credit Card - The IRS will accept major credit cards for payment. see: Pay Your Taxes with your Credit Card Apply for a Payment Plan from the IRS -The IRS will set up people in lower income brackets with a payment plan to help spread out your payments and make them more manageable. Borrow from a Friend or Family Member - This is always an option, but in my...
read moreTax Deduction for Jury Duty
No one likes to hear the words “jury duty.” You are forced to do your civil duty for 6-8 hours a day, stuck in a little wooden box away from your family. And you only receive $15 a day! Well, there is a way that you can deduct your jury duty. Some employers will pay full wages out to you even if you are called. Did you know if you pay your employer back the wage you earned from jury duty (yes, that $15 a day), you can claim a deduction. Fair trade off if you ask me….normal wages for your duration of duty for $15 a day. SWEET!
read morePay Your Taxes With Your Credit Card
Most people don’t realize that the IRS will accept any major credit card (Visa, Mastercard, Amex, or Discover) to pay your taxes. The easiest way to do this is, of course, to e-file. When you use TurboTax, TaxAct, or such software, you can input your credit card information right into their secure system. You may also do this on paper taxes by just filling out the proper information on your forms. Good news for those of us who owe money and don’t have any on...
read moreFile Without 1099s
Just like your W2′s, you can file your taxes without your 1099 forms. A 1099 form is used to track your stocks sold, interest or dividend income, or your income if you worked as an independent contractor. It is always better to wait for the forms if at all possible, to ensure accuracy on your return, but with a little bit of information, you don’t need to have the actual forms to do your taxes. 1099s come in a lot of different forms. Below is just a few of the different 1099 forms: **1099-B Proceeds from broker and barter exchange transactions. **1099-C Amount of canceled...
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