Earned Income Tax Credit
As April 15th, tax day, approaches, are you filled with dread? Are you thinking that you don’t have enough money to meet your family’s need, so how can you meet your tax obligation? Things may be better that you think. If you are a low income working family or individual, you may qualify for a tax refund, even if you don’t make enough to pay taxes. The federal government may give you free money!!
The government may reduce your tax obligation or even pay you money if you qualify for the Earned Income Credit. If you made less than a certain amount of money in a given year, you may qualify for this tax credit. If you have children you may qualify for even more. Even if you don’t make enough to file a tax return, you may still qualify for the earned income tax credit and get a refund.
You may qualify for up to $4,400, if you are..
single and earned less than $11,750 single with one child and earned less than $31,030 single with 2 or more children and earned less than $35,263 married and earned less than $13,750 married with one child and earned less than $33.030 married with 2 or more children and earned less than $37,263
To qualify you need to have earned money and have a social security number. If you are married you must file jointly. If you have children, they need to qualify as well. The children need to be under 19 years old or if they are students, under 24. Children with permanent disability may be any age. Foster children and children that you have been financially responsible for may also qualify. The earned income credit is designed to help you financially. I think you should check this out, don’t you?
You can use the Free Tax Estimator provided by Turbo Tax Online to estimate your earned income credit. Prepare & File Taxes Online and get all the tax deductions and credits you deserve.
Its income tax time again. With the April 15th Deadline fast approaching you need to beware of these 9 common income tax mistakes as stated by Intuit the makers of Turbo-Tax.
1 - Not taking all of your deductions.
The 2 most common deductions missed are charitable deductions and the home office deduction. Many people underestimate the value of clothes and other items given to charity. Many taxpayers who are legally entitled to the home office deduction fail to take it for fear of being audited
2 – Not accounting for Reinvesting Mutual fund Dividends
Buying extra shares with reinvested dividends can affect your cost basis when you sell. Many taxpayers overpay the IRS because they don’t adjust the tax basis.
3 – Not claiming carryover items.
The two most common carryover many taxpayers miss are state and local income taxes paid with the prior year return and carryover capital losses.
4 – Not naming a beneficiary or naming wrong Beneficiaries to your IRA, 401k or other retirement plan.
If you fail to name a beneficiary then the money passes to your estate with unwanted tax consequences to your heirs.
5 – Not taking advantage of Matching employer contributions.
Many employees fail to invest in company sponsored retirement plans and loose out on matching contributions
6 – Failure to make estimated Quarterly Tax Payments.
Self Employed taxpayers are required to pay estimated quarterly payments to the IRS. Failure to do so may cause and underpayment penalty
7 – Poor planning in exercising stock options.
Taxpayers who exercise stock options then sell the underlying stock fail to anticipate and set aside money to pay the capital gains tax
8 – Not adjusting withholding when you change Jobs.
Taxpayers who change jobs for more money don’t always adjust their withholding to account for the higher pay and tax burden that goes with it.
9 - Contributing to a Roth IRA when your Income is too high.
Single taxpayers who earn over $110,000 or married Taxpayers who earn over $160,000 cannot contribute to a Roth IRA.
About the Author
Mike BigMak Makler Offers Financial Services (Life Insurance, Annuities and Mortgage Protection) in Florissant Missouri which is in North St. Louis County Missouri Just Across the Bridge from St. Charles Missouri and Alton IL
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Many people think about buying and selling property without thinking about real estate taxes. Before you buy property you should be sure that you look into the taxes. Depending on where you live, your taxes may be very low, very high, or somewhere in the middle. Every homeowner will pay different amounts of real estate taxes because they are based on the actual value of your home.
When you buy property you can expect to pay property taxes, you may pay taxes for the development that you live in, and you will probably pay school taxes. All of these taxes can range from a couple hundred to a couple thousand dollars each year based on the percentage of tax that you pay on the value of your home as well as on the worth of your home. For instance, you are going to pay more tax if you have a million dollar home when you live in the same area as someone who has a home that is worth $115,000 home. When you buy property you have to consider taxes as they will affect whether or not you can afford any given home.
If you want to sell property you need to take into consideration who will be able to afford the taxes. Many individuals that are selling their homes have to reduce the actual price of the home to accommodate for the fact that the real estate taxes in their area are so high. This is a drawback of living in an area where property taxes are very high. It can be hard to sell house when a seller wants to get top dollar for their home when they live in a high tax area, and generally the homeowner will have to drop the price or wait for the right buyer to come along, and in a buyer’s market this can take quite awhile!
If you are thinking of buying a house and you are afraid of how you will afford your real estate taxes each year, you should consider that your taxes can be paid out all year long. Most home buyers choose to have money put into an escrow all year long so that they don’t have to come up with a lump sum of money at the end of the year. Instead a dollar amount is added to your mortgage payment each month and that money is set aside in the escrow account. This money is then saved until tax time and the escrow management company pays out the taxes when the time comes, making it more affordable for you to pay your taxes and afford your home.
Caitlina Fuller is a freelance writer. If you want to sell property you need to take into consideration who will be able to afford the taxes. Many individuals that are selling their homes have to reduce the actual price of the home to accommodate for the fact that the real estate taxes in their area are so high. It can be hard to sell house when a seller wants to get top dollar for their home when they live in a high tax area, and generally the homeowner will have to drop the price or wait for the right buyer to come along, and in a buyer’s market this can take quite awhile!
The subject of corporation tax benefits is a complicated one. Most types of business entities – sole proprietorships, partnerships, subchapter S corporations, and limited liability companies - that have not elected to be taxed as regular (or C) corporations have taxes that pass through the business. These taxes appear later on when the owners file their individual tax returns. A regular C corporation and any LLC that elects to be taxed like a corporation are separate tax entities that have to file their own tax returns and pay their own taxes.
In the previous decade, the IRS issued its so-called “Check the Box” regulations. Effective beginning 1997, these regulations allow taxpayers to choose the tax status of a business entity without regard to its corporate (or non-corporate) character. Thus, a business entity with more than one owner can elect to be classified as either a partnership or a corporation in order to gain corporation tax benefits. An entity with only one owner can elect to be classified as a corporation or a sole proprietorship. In the event of default (that is, where taxpayer does not make an election), multiple-owner businesses are classified as partnerships and single-person businesses as sole proprietorships.
A business entity that is actually incorporated under state law or one that is required to be a corporation under federal law will have access to corporation tax benefits. Limited liability companies are not automatically treated as being incorporated under state law, which is why they must elect either corporation or partnership status.
Corporation tax benefits under Federal income taxation may acquire more meaning if compared with the treatments to individual taxpayers.
The gross income determination for corporations and individuals is done in the same manner. This includes income derived from business, compensation for services rendered, gains from dealings in property, interest, rents, dividends, to name but a few. Individual and corporation tax benefits contain certain inclusions of gross income, but corporate taxpayers are allowed less exclusions. For instance, both classes of taxpayer may exclude interest on municipal bonds from gross income.
Gains and losses from property transactions are treated similarly. Where non-taxable exchanges are concerned, individual and corporation tax benefits allow non-recognition of gain or loss on a like-kind exchange. Both may defer recognized gain on an involuntary conversion of property. Neither corporations nor individuals are allowed to deduct losses on sales of property to related parties or on wash sales of securities (with certain exceptions). The business deductions of corporations also parallel those of individuals, although certain credits that are personal in nature, like child care credit, are not available to corporations.
A further corporation tax benefit is that corporations pay federal income tax at a rate lower than that of most individuals for the first $75,000 of their profits – 15% of the first $50,000 of profit and 25% of the next $25,000. Professional corporations are charged a flat 35% tax rate. All allowable corporate deductions are treated as business deductions, making the determination of adjusted gross income, which is so essential for individual taxpayers, of little relevance to the corporation. Corporate taxable income is computed simply by subtracting from gross income all allowable deductions and losses. Individuals, on the other hand, have to consider itemized deductions or the standard deduction.
My name is Ashley Castellanos, and I have been helping Internet business owners set up and run their businesses correctly since 1997. I own Corporation Soft, a company that was created for, and is dedicated to teaching business owners about corporation tax benefit
