If your home or business address has changed, make sure that you update this information with the IRS to ensure that you receive any refunds or correspondence from them. Since the IRS meets its notice requirements by sending notices to your last known address, it is not an excuse that you did not receive the correspondence if you have not provided the new … [Read more...] about Are You Making a Move?
Personal Tax
Child and Dependent Care Credit
If you paid someone to care for a child under age 13, or a qualifying spouse or dependent to allow you to work or look for work, you may be able to reduce your tax by claiming the Child and Dependent Care Credit on your federal income tax return. To qualify, your spouse, children over the age of 13, and other dependents must be physically or mentally incapable of … [Read more...] about Child and Dependent Care Credit
Important Facts about Dependents and Exemptions
Some tax rules affect every person who may have to file a federal income tax return; these rules include dependents and exemptions. Here are some important facts you need to know that are related to dependents and to claiming exemptions on your tax return. Exemptions reduce your taxable income – There are two types of exemptions: personal exemptions (one for the filer or … [Read more...] about Important Facts about Dependents and Exemptions
Are You Supporting Your Parents?
If you are helping support your parents, you may qualify to claim a tax benefit if you are providing over half of your parents’ support. But you may be having difficulty showing over half of the support for both parents, thus failing to qualify for the dependency exemptions (and for the beneficial head of household filing status if you are a single taxpayer). You may overcome … [Read more...] about Are You Supporting Your Parents?
Do You Have to File a Tax Return?
Not all individuals are required to file tax returns. If your income is less than the sum of your standard deduction and personal exemptions, you are generally not required to file a tax return. There are, however, circumstances where you may have to file anyway based on certain types of income or special circumstances. Even if you are not required to file, it may be in your … [Read more...] about Do You Have to File a Tax Return?