Not only is saving for retirement a great investment in your futures, it can also help save you some money at tax time. There are several different ways that retirement savings can have a positive impact on your tax refund, however, remember that penalties do exist for early or late withdrawals. Depending on the type […]

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Having a baby can be one of life’s greatest treasures. From their first smile, first step, first word, and even their first tax deduction- wait, what? That’s right, having a baby not only enriches your life, but also your pocket come tax time. The US Department of Agriculture reports that it costs an average of […]

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This year, income tax time can become quite a headache if you’re not familiar with the health insurance requirements. The Affordable Care Act, also called Obamacare, affects just about every American at tax time. This is due to a mandate that requires every taxpayer to have health insurance, along with a subsidy to help lower […]

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For 2014, taxpayers are eligible to receive an exemption of $3,950 (a fixed amount) if they are responsible for supporting another individual. There are a few other qualifying factors to what is known as the dependency exemption. Provided they meet the requirements, a taxpayer can receive a dependency exemption for each person they support. The […]

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Anyone who pays taxes and is not claimed as a dependent on anyone else’s return is eligible to receive a personal deduction simply because they are a taxpayer. This deduction is known as a personal exemption, and the amount is a set dollar amount for the entire year. In 2014, the exemption amount was $3,950, […]

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Taxpayers who work, but have low incomes, are entitled to a special tax credit known as the Earned Income Credit. This credit is essentially an incentive for low income taxpayers to continue working, and is second only to Medicaid in the amount of assistance it provides to low income families. The earned income credit amount […]

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For many parents, in order to make money, they have to spend money. Working parents may have to pay for the care of their child while they are at work, and if so, they may be eligible for a limited tax credit. The tax credit, known as the dependent care credit, is based on your […]

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If you have a child under the age of 17, you are eligible to claim a tax credit for that child. This credit of $1,000 per child, can be claimed each year until the child turns 17. This credit does not replace the dependency exemption that you may claim for your child, so you are […]

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If you are claimed as a dependent on someone else’s tax return, you still may be required to file your own return. To determine whether or not you need to file, consider the following definitions and how they relate to you: Unearned Income – is any taxable interest, ordinary dividends, and capital gains distributions you […]

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Some recipients of Social Security benefits may be subject to taxes on the income received. Since some taxpayers find that their benefits aren’t taxable, the IRS is the best place to go to determine which benefits you will be responsible for paying taxes on. Anyone who received Social Security benefits for the current tax year […]

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