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Four Items To Know Before Filing Your Taxes
The deadline for filing your 2008 income tax return is rapidly approaching. Each year money is left on the when filing income tax returns. Dont let this be something that happens to you.
Earned Income Credit The earned income credit is for a specific group of filers with or without dependents. This credit can garner a bigger income tax refund if you meet the criteria and should not be overlooked.
Criteria Valid Social Security Number Earned income, employer or self Can NOT claim married filing separate US citizen or resident alien for entire year You cannot be the qualifying child of another If you have no children and meet the income guidelines you must be 25 or over and under age 65 at end of filing year Cannot file 2555 or 2555ez Must meet income threshold
The earned income credit maxes out with 2 qualifying children. A qualifying child for IRS tax purposes is defined as a dependent who is under age 19 at the end of the year or a full time student under the age of 24. They do not have to be your child they can be:
Son, daughter or qualified foster child or a descendant of any of these
Brother, sister, step brother or sister, half brother or sister, or any descendant of these
Any of these qualify for the EIC if they lived with you in the United States for more than half the year. Residency is not affected by incarceration, school or treatment facility, they are still considered to live with you if they will be returning to your home.
Tax Act There is an old saying that says a penny saved is a penny earned and this is certainly true when it applies to your taxes by taking advantage of all available deductions and credits. There are also several tax preparation companies that allow certain taxpayers free tax filing.
An example is Tax Act, a free online software for individuals which allows them to calculate and even efile that federal income tax return. The software provides a 100% guarantee and even offers you assistance in preparing and filing your taxes on time and online.
Deadline to File Filing your taxes on time is critical. Each year the deadline for filing your taxes is April 15th unless the fifteenth falls on a weekend. Then the date falls to the 1st business day following the fifteenth.
Stimulus The Recovery Rebate Credit is a one-time benefit available to people who didnt receive the full economic stimulus payment last year and whose circumstances may have changed, making them now eligible for some or all of the unpaid portion. If you are using a tax preparation software or service the amount will be calculated for you and included in your 2008 tax refund or reduce the amount owed on your tax return. Again lets make the most of every available opportunity to save those hard earned dollars.
About the Author Riche Goldmann is a professional CPA who has worked for several of the big four accounting firms in the United States. Before he was a CPA he used TaxAct as a way to get his taxes done easily and inexpensively. He recommends Tax Act to college kids and others.
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