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 moreObama’s “American Recovery and Reinvestment Bill”
Just in the last few days, House Democrats have been hashing out a bill that is being called the “American Recovery and Reinvestment Bill” to hopefully stop the bleeding of our economy. This $825 billion bill is actually two bills in one. There will be $550 billion in spending that will be handled by the House Appropriations Committee, but the remaining $275 billion will be used for tax breaks. That’s right! The second half of this bill is said to include some tax breaks for businesses known as a “carryback” but the majority is going to the “Make Work Pay...
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 moreReasons You Could Be Audited…and How to Avoid Them
The concept of being audited by the IRS scares most people, including me. Even though I follow the rules and pay my taxes on time, there is always that worry that the IRS will come a knocking. The word has gotten itself a frightful connotation, but the audit is really just justifying your deductions to an investigator from the IRS. That still doesn’t mean I want that headache and I assume neither do you. Here are some things to avoid that just scream “AUDIT ME.” You Are Already Being Watched If you receive the bulk of your income in cash (e.g. servers, dancers, etc) the...
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