The average 1040EZ filer is someone who earns less than $100,000, is under the age of 65, has no dependents, does not own a home, and does not qualify for most taxable credits. Tax filing using turbo tax is easy for this kind of person. One of their electronic filing applications, called SnapTax, can help these people file their taxes in as little as ten to fifteen minutes.
For a person using SnapTax, they can use the application straight from their phone by using a smart phone to capture a picture of their files. An optical reader will then import … Read the rest
2011 unemployment insurance benefits are taxable
Millions of Americans are without regular work despite a steadily dropping nationwide jobless rate. Being in this unenviable situation inheres a major tax implication: Unless federal income tax withholding was previously requested by the payee, unemployment insurance benefit recipients face an unwelcome surprise when calculating their 2012 taxes.
Previous Congressional exemption of the first $2,400 in unemployment insurance payments no longer exists. Although all 2011 unemployment benefits are taxable, other allowable deductions are available to offset out-of-work taxpayers’ public pecuniary obligations.
The Earned Income Tax (“EIT”) credit may be claimed by taxpayers whose … Read the rest