by steve | Feb 15, 2012 | IRS Tax Advice, Tax News
One of the great tax deductions are for those with taxpayers having children. The Federal Government allows credits for those who met certain test requirements. Below find the key points and take advantage and the credits offered.
The Internal Revenue Service – Child Tax Credit
The Child Tax Credit is available to eligible to those taxpayers with qualifying children under age 17.
The IRS would like you to know these facts about the child tax credit. Take full use of these tax credits.
1. Amount With the Child Tax Credit, you may be able to reduce your federal income tax by up to $1,000 for each qualifying child under age 17.
2. Qualifications.
A qualifying child for this credit is someone who meets the qualifying criteria of seven tests:
Age, Relationship, Support, Dependent, Joint Return, Citizenship and lastly Residence.
3. Age.
Test- To qualify, a child must have been under age 17 – age 16 or younger – at the end of 2011.
4. Relationship.
Test- To claim a child for purposes of the Child Tax Credit, the child must be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister or a descendant of any of these individuals, which includes your grandchild, niece or nephew. An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption.
5. Support.
Test- In order to claim a child for this credit, the child must not have provided more than half of his/her own support.
6. Dependent.
Test – You must claim the child as a dependent on your federal tax return.
7. Joint return.
Test – The qualifying child can not file a joint return for the year (or files it only as a claim for refund).
8. Citizenship test To meet the citizenship test, the child must be a U.S. citizen, U.S. national or U.S. resident alien.
9. Residence.
Test – The child must have lived with you for more than half of 2011. There are some exceptions to the residence test, found in IRS Publication 972, Child Tax Credit.
10. Limitations.
The credit is limited if your modified adjusted gross income is above a certain amount. The amount at which this phase-out begins varies by filing status. For married taxpayers filing a joint return, the phase-out begins at $110,000. For married taxpayers filing a separate return, it begins at $55,000. For all other taxpayers, the phase-out begins at $75,000. In addition, the Child Tax Credit is generally limited by the amount of the income tax and any alternative minimum tax you owe.
11. Additional Child Tax Credit If the amount of your Child Tax Credit is greater than the amount of income tax you owe, you may be able to claim the Additional Child Tax Credit.
Should you have any questions regarding these credits and are need of former IRS Agents to prepare and audit proof your return call us today.
by steve | Feb 9, 2012 | IRS Tax Advice, Tax News, Uncategorized
Each year Tax Law changes are made and in many cases help the taxpayers. Before filing your tax return check on any and all changes that may effect your tax return.
Stay out of a IRS tax audit and by all means take advantage of all tax credits.
Should you have any questions, call us today. As former IRS Agents we can help navigate you through this process
Tax Law Changes for 2011 Federal Tax Returns
Due date of return.
You can file your federal tax return by April 17, 2012. The due date is April 17, instead of April 15, because April 15 is a Sunday and April 16 is the Emancipation Day holiday in the District of Columbia. Thanks DC!
New forms.
In most cases, you must report your capital gains and losses on the new Form 8949, Sales and Other Dispositions of Capital Assets. Then, you report certain totals from that form on Schedule D (Form 1040). If you had foreign financial assets in 2011, you may have to file the new Form 8938, Statement of Foreign Financial Assets, with your return.
Standard mileage rates.
The 2011 rates for mileage are different for January 1 through June 30 than for July 1 through December 31. For business use of your car, you can deduct 51 cents a mile for miles driven the first half of the year and 55 ½ cents for the second half. Medical and moving mileage are both 19 cents per mile for the early half of the year and 23 ½ cents in the latter half.
Standard deduction and exemptions increased, finally!!!
The standard deduction increased for some taxpayers who do not itemize deductions on IRS Schedule A (Form 1040). The amount depends on your filing status.
The amount you can deduct for each exemption has increased $50 to $3,700 for 2011.
Self-employed health insurance deduction. This deduction is no longer allowed on Schedule SE (Form 1040), but you can still take it on Form 1040, line 29.
Alternative minimum tax (AMT)
This years exemption amount increased. The AMT exemption amount has increased to $48,450 ($74,450 if married filing jointly or a qualifying widow(er); $37,225 if married filing separately).
Health savings accounts (HSAs) and Archer MSAs.
The additional tax on distributions from HSAs and Archer MSAs not used for qualified medical expenses increased to 20 percent. Beginning in 2011, only prescribed drugs or insulin are qualified medical expenses.
Roth IRAs.
If you converted or rolled over an amount from a traditional IRA to a Roth IRA or designated Roth in 2010 and did not elect to report the taxable amount on your 2010 return, you generally must report half of it on your 2011 return and the rest on your 2012 return.
Alternative motor vehicle credit.
This year you can claim the alternative motor vehicle credit for a 2011 purchase only if the vehicle is a new fuel cell motor vehicle.
First-time homebuyer credit.
The credit expired for most taxpayers for 2011. Sadly!
Some military personnel and members of the intelligence community can still claim the credit in 2011 for qualified purchases.
Health coverage tax credit.
Recent legislation changed the amount of this credit, which pays qualified health insurance premiums for eligible individuals and their families. Participants who received the 65 percent tax credit in any month from March to December 2011 may claim an additional 7.5 percent retroactive credit when they file their 2011 tax return.
Should you need tax help or tax preparation by Former IRS agents call us today.
by steve | Feb 8, 2012 | IRS Tax Advice, Tax News
This is one of the common questions we are asked at our Tax Firm. There is much misunderstanding about this issue. I hope these answers may help you.
By the way, if you are looking for former IRS Agents to prepare your tax returns call us today.
Top Tax Tips to Help You Determine if Your Social Security Benefits are Taxable
Many people may not realize the Social Security Benefits they received in 2011 may be taxable.
All Social Security recipients should receive a Form SSA-1099 from the Social Security Administration which shows the total amount of their benefits. You can use this information to help you determine if your benefits are taxable.
Top tips:
1. How much , if any , of your Social Security Benefits are taxable depends on your total income and marital status.
2. Generally, if Social Security benefits were your only income for 2011, your benefits are not taxable and you probably do not need to file a federal income tax return.
3. If you received income from other sources, your benefits will not be taxed unless your modified adjusted gross income is more than the base amount for your filing status (see below).
4. Your taxable benefits and modified adjusted gross income are figured on a worksheet in the Form 1040A or Form 1040 Instruction booklet. Your tax software program will also figure this for you.
5. You can do the following quick computation to determine whether some of your benefits may be taxable:
a. First, add one-half of the total Social Security benefits you received to all your other income, including any tax-exempt interest and other exclusions from income.
b. Then, compare this total to the base amount for your filing status. If the total is more than your base amount, some of your benefits may be taxable.
6. The 2011 base amounts are:
$32,000 for married couples filing jointly.
$25,000 for single, head of household, qualifying widow/widower with a dependent child, or married individuals filing separately who did not live with their spouse at any time during the year.
$0 for married persons filing separately who lived together during the year.
Hope this helps. Call us for the finest tax prep services.
by steve | Nov 4, 2011 | IRS Tax Advice, Tax Help
If you need IRS Tax Relief on International Matters call us today for a free no cost professional tax consult.
Contact 1-866-700-1040 and end IRS tax Issues.
International Services of the Internal Revenue Service:
If you are a taxpayer who lives outside the United States, the IRS has full-time permanent staff in 4 U.S. embassies and consulates.
These IRS offices have tax forms and publications, can help you with account problems, and answer your questions about notices and bills. You can reach these offices at the following telephone numbers, which include country or city codes if you are outside the local dialing area.
If you are calling about an e-file issue and it is not account related, please contact :
e-help Austin at 512-416-7750. Assistors are available from 7:00 a.m. to 6:00 p.m. Central time, Monday through Friday.
Frankfurt
IRS
U. S. Consulate Frankfurt
Giessener Str. 30
60435 Frankfurt am Main
Germany
London
Internal Revenue Service
United States Embassy
24/31 Grosvenor Square
London W1A 1AE
United Kingdom
Walk-In assistance
Tuesday through Thursday
9:00 a.m.- 1:00 p.m. and 2:00 p.m. – 4:00 p.m.Phone Service
Tel: [44] (207) 894-0476
9 a.m. to Noon. Monday through Friday
FAX: [44] (207) 495-4224
Paris
United States Embassy/IRS
2 Avenue Gabriel
75382 Paris Cedex 08, France
Walk-In assistance 9:00 a.m.- noon
Phone service: M-F 1:30 p.m. – 3:30 p.m.
Tel. [33] (01) 4312-2555
Fax: [33] (01) 4312-2303
Beijing
Internal Revenue Service,
U.S. Embassy Beijing,
No. 55 Anjialou Road,
Beijing 100600 Peoples
Republic of China
TEL: +86-10-8531-3983,
FAX +86-10-8531-4287,
Taxpayer service by appointment only.
For an appointment, email
irs.beijing@irs.gov.
Puerto Rico
The IRS offices listed can answer your federal income tax questions, help with account and refund problems, and assist with the preparation of current and prior year tax returns.
IRS trained volunteers are also available at some embassy/consulate locations. If you are interested in becoming a volunteer, please contact one of our IRS offices.
Taxpayers located outside the U.S. may also contact the IRS by mail at:
Internal Revenue Service
International Accounts
Philadelphia, PA 19255-0725
Or you may telephone or FAX the Philadelphia Service Center office at:
Tel: 267-941-1000 (not toll-free)
Fax: 267-941-1055
Phone service available from 6:00 am to 11:00 pm (EST) M-F
Residents of Puerto Rico and the U.S. Virgin Islands may contact the IRS toll free at 1-800-829-1040. (Hours of Operation 7:00 a.m. to 10:00 p.m. Monday – Friday).
Other items of potential interest:
International Taxpayer Advocate:
To request Taxpayer Advocate help, call:
Worldwide: Puerto Rico office:
Tel: (Spanish) 787-622-8930, (English) 787-622-8940
FAX: 787-622-8933
Our Company Resume: ( Since 1982 )
- Our staff has collectively over 205 years of Professional IRS Tax Representation Experience
- On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
- We taught Tax Law in the IRS Regional Training Center
- Former IRS Agents, Managers and Instructors with over 60 years experience in the local, district and regional IRS offices.
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See our Home Page for more details Thank you
by steve | Nov 1, 2011 | IRS Tax Advice, Tax Help
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Areas of Professional Tax Practice:
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Our Company Resume: ( Since 1982 )
- Our staff has collectively over 205 years of Professional IRS Tax Representation Experience
- On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
- We taught Tax Law in the IRS Regional Training Center
- Former IRS Agents, Managers and Instructors with over 60 years experience in the local, district and regional IRS offices.
- Highest Rating by the Better Business Bureau “A”
- Fast, affordable, and economical
- Licensed and certified to practice in all 50 States
- Nationally Recognized Veteran /Published Former IRS Agent
- Nationally Recognized Published EZINE Tax Expert
- As heard on GRACE 90.3 FM Monthly Radio Show-Business Weekly
See our Home Page for more details Thank you
by steve | Oct 20, 2011 | IRS Tax Advice
Injured Spouse can fall into separate categories however not for e filing. Here is question we are often asked:
Injured Spouse Tax Relief in relational to E Filing
Question: Can you file your return electronically even though you am filed a Form 8379, Injured Spouse Allocation?
Answer: Yes, you can file the Form 8379 electronically with your tax return.
Allow 11 weeks for the return to process with the Injured Spouse Allocation request.
Otherwise if you file Form 8379 with a joint return on paper, the time needed to process it is about 14 weeks (11 weeks if filed electronically). If you file Form 8379 by itself after a joint return has been processed, the time needed is about 8 weeks.
Call us today to audit proof your tax return, 1-866-700-1040
