For those who pay for their education, some tax credits can help to reduce the amount due. For those responsible for education expenses, such as tuition, fees, textbooks, supplies and equipment, the American Opportunity Credit and the Lifetime Learning Credit are available. Some expenses incurred, such as insurance, transport and personal charges, are not eligible […]
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In order to get a little extra cash back this tax season, consider the benefits you can claim as dependents for children or adult relatives. For each dependent you claim that you qualify, you may be eligible for an additional tax credit that can reduce your tax liability and save you money depending on the […]
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It can be expensive to hire a professional to care for a disabled adult or to pay for childcare services for children under 13. Fortunately, the government has a tax credit to reduce these costs and put more money in your pocket. The child and dependent care credit can put up to 35 percent of […]
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Your teen turned 16 and has finally gotten a first job. Congrats! As a parent, you may be wondering if you should file a separate tax return for your working teen. Basically, there are three different questions to answer to determine whether your child should file a return of their own. Does the IRS consider […]
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When tax tie rolls around, there’s three different forms one can use in order to file their tax return: the 1040EZ, the 1040A, and the full Form 1040. There are benefits and restrictions to all three forms, so deciding which to use should be based on which is best for your tax situation. You can […]
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When it’s time to pay your tax bill, you have a few quick and easy options to make an electronic payment. Electronic Funds Withdrawal (EFW)- Taxpayers can chose to file their tax return electronically and pay directly from their personal bank account. You’ll need to e-file if you want to use this option, so it’s […]
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You owe money to the IRS but aren’t able to pay the whole balance at once. What can you do? Relax. You have options. In most cases, taxpayers can qualify for a relief program to help repay their financial obligations to the IRS. The two most popular programs include: Payment Plans with Installment Agreements – […]
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Disabled taxpayers who wish to deduct their medical expenses at tax time, generally must follow a unique set of rules to do so. Expenses related to the disability that fall under the category as necessary and ordinary business expenses include: Those necessary for you to perform your work in a satisfactory manner Goods and services […]
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Believe it or not, the IRS does actually audit a significant number of returns. The common rumor is that the IRS audits fewer returns than you might think. However, the IRS generally audits tax returns six times more than is reported. The IRS reports auditing roughly a million taxpayers every year, (approximately 0.7% of all […]
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Qualified U.S. Savings Bonds generate interest, which isn’t required to be included in your income at tax time, if you used the bond to pay for certain higher education expenses. Additionally, that interest isn’t subjected to any state or local income tax. Note: You can’t use the same expenses to claim the interest exclusion for […]
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