Tag Archives: Tax credit

Money Saving Tips Through Tax Moves

Every year there are changes that are made in most homes. These changes always affect the taxes filed. In order for you to save up on tax, there are a few things to consider.

Check the following money saving tax moves before filing your tax returns

If you changed or set up a business in 2011, then the expenses for all the movements will be tax deductible.

• To be eligible for job search expense, you have to have used more than 2% of your adjustable gross income. Make sure to list your deductions. This means that those expenses greater than the 2% may be claimed back.

• Another tax deductible expenses include that moving expenses. However, this depends on a test of time and distance.

• All unemployment benefits received from 2011 onwards are taxable.

• If you use your home as your central place of business, as a meeting place for customers or you have a separate structure detached from your home, used as an office, then the home office deductions will apply.

If you sent a child to college or had another one join the family.

Or, if you are a parent you may be able to save up a dollar or two when filing your returns.

• If you have a boyfriend, girlfriend or any other individual that qualifies the test of being a relative and a dependent then you will qualify for dependent deductions.

• The government is generous enough to provide for education tax credits and deductions for those individuals who are paying expenses for their education or their spouse’s or dependent’s education.

• Qualified expenses of up to 35 percent of qualifying expenses are deductible under the child and dependent care credit.

• If you decide to adopt, then you will qualify for a Qualified Adoption Tax Credit of up to $13,360.

As long as you own a home, bought it or refinanced it, you may be lucky to receive some form of deductions on your tax to help you reduce the cost of being a property owner.

• The loan origination fees paid to refinance your mortgage taken up when the interest rates were lower then you may qualify for the mortgage refinance deductions.

• The overall Energy tax credit was dropped in 2011 but if you have new insulation, roofs and doors you may be able to save up to $500 on deductions.

• Most first-time Home buyers are lucky. This is because, if they took up credit for that purpose, they tax credit will be paid through their tax returns filed yearly.

From these money making tax moves, which one will you use to reduce you tax liability?

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Tax Credits And Turbo Tax

4 tax credits that can boost your refund

A dollar-for-dollar reduction of taxes owed is a tax credit. Several tax credits if you claim one and are eligible, are refundable. You can receive the remainder of it in a tax refund even though your tax liability is zero.

Here are 4 refundable tax credits you should consider on your two-thousand eleven federal income tax return to increase your refund:

1.For people earning less than forty-nine thousand and seventy-eight dollars from wages, self-employment or farming there is the Earned Income Tax Credit. Age, Income, and the amount of qualifying children decide the credit amount, up to five-thousand seven hundred and fifty-one dollars. Workers who do not have children might qualify too.

IRS Publication 596.

2. Costs paid for the care of children under the age of thirteen who qualify, or for a disabled dependent or spouse; while you are looking for work or working, is called the Child and Dependent Care Credit.

IRS Publication 503.

3. The Child Tax Credit has a maximum credit of one-thousand dollars for every qualifying child. You can claim the Child and Dependent Care Credit and this tax credit.

IRS –Publication 972.

4. The Retirement Savings Contributions Credit is intended to aid workers with low-to-moderate incomes to save for retirement.

IRS Publication 590,(IRAs).

There are plenty other tax credits that might be available depending on your circumstances. Check all your information carefully for more tax credits. Go to www.irs.gov or call 800-829-3676). Check out turbo tax too.

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How Education Tax Credits Can Help You Get To College!

Many students are scared away from pursuing postsecondary education by the perception that they cannot afford it. It is important to know that the federal government is currently offering two different types of tax credits – The American Opportunity Credit and the Lifetime Learning Credit – that may help you to offset high education costs. Both of the available education tax credits pay for eligible expenses up to a given amount, including tuition, books and equipment or material fees.

The Lifetime Learning Credit is also good for up to $2,000 in credit each year, and covers not only degree-seeking students, but courses that are related to furthering one’s job opportunities. Unlike the American Opportunity Tax Credit, however, those who claim this credit are not eligible to receive a tax refund based on its use. In other words, you can only receive the maximum amount of tax that you owe.

Although many students do qualify for one of the two grants above, for those that do not, there is still the opportunity to take a tuition and fees deduction on your taxes. This can save you up to $4,000 in taxes. It is important to note that individuals may not claim both the tuition and fees tax deduction and either of the tax credits -the American Opportunity Tax Credit or the Lifetime Learning Credit – in the same tax year. It is, therefore, to your advantage, to consult with someone with knowledge in the area of tax law, or to conduct careful research on your own, to determine which of these options would be of the most benefit. The most important thing to remember is that there are numerous options to help students pay for postsecondary education. It just takes a little bit of legwork to find out where they are.

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Tax Carnival Ecstasy – February 7, 2012

Welcome to the February 7, 2012 edition of Tax Carnival Ecstasy. In this issue we have an article by Gregory Stokes on not Missing The Tax Credits Income Deadline. Mark Roberts takes a look at How To Choose The Right Filing Status. Plus there’s a post on  Making 401k Withdrawals by Roger White. Hope you enjoy the articles, share, bookmark, tweet, like on Facebook, and come back real soon.

DeWitt Dudley presents My Mom Is Dying: What Should I Do About Estate Tax? | Law Offices of Givner & Kaye posted at Law Offices of Givner & Kaye, saying, “We get the call all too often: “My mom (or dad) is dying: what should I do?” Of course, if they are calling us, what they really mean is “what should I do to reduce the potential estate tax?””

credits

Gregory Stokes presents Don’t Miss The Tax Credits Income Deadline posted atTax Credit Calculator, saying, “The deadline for income tax credits is January 31st. If you don’t provide your actual income figure by this time you could get the wrong amount of tax credits and have to pay a penalty.”

filing

Mark Roberts presents How To Choose The Right Filing Status posted at Tax Brackets, saying, “This blog post looks at how to choose the correct filing status for your situation.”

tax law

M K Karn presents House Rent Allowance – Income Tax Provisions posted at Central Government Employee News & Tools, saying, “Indian Tax Law”

Steve presents Four Structured Settlement Questions and Answers – 2008 Taxes – Free Tax Filing Options posted at 2008 Taxes, saying, “If you have recently come into a large sum of money, you may want to think about setting up a structured settlement instead of receiving a lump sum.”

taxes

Jessica Bird presents Taxing Your Car posted at CarTaxBands.org, saying, “If you need to pay tax on your car, this blog post will outline three important documents that you will need.”

Steve presents Options for Investing for Your Retirement – 2009 Taxes – Free Tax Filing Options posted at 2009 Taxes, saying, “Many people get nervous when it comes to thinking about retirement investing. It can be a very confusing process with complicated terms and options available.”

 

tips

Roger White presents Making 401k Withdrawals posted at 401k Calculator, saying, “If you are thinking about making a 401k withdrawal, you should consider the choice very carefully. This blog post highlights some of the risks of making a withdrawal.”

DeWitt Dudley presents The Top Five Asset Protection Strategies For The Owners Of A Closely Held Business | Law Offices of Givner & Kaye posted at Law Offices of Givner & Kaye, saying, “The owners of a closely held business that is operated as an “S” corporation may be the targets of lawsuits that will drain their insurance policies, that may even exceed the limits of their insurance policies and that may cause them sleepless nights. What steps should these business owners take so that if something goes wrong, they will not lose all or most of the assets that they have worked so long to accumulate?”

That concludes this edition. Submit your blog article to the next edition of tax carnival ecstasy using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

Technorati tags:

tax carnival ecstasy, blog carnival.

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