If you, your spouse or dependents had significant medical or dental costs in 2011, you may be able to deduct those expenses when you file your tax return. Here are eight things the IRS wants you to know about medical and dental expenses and other benefits. (more…)
Parents, guardians and other taxpayers who are eligible to claim a child as a dependent on their tax return may also be eligible for a federal tax credit of up to $1,000 per child. The Child Tax Credit is one of serveral tax-related benefits for families and children. Remember that a tax credit is different (and in most cases better) than a deduction. The Child Tax Credit is available to “eligible taxpayers” with “qualifying children” under age 17. Be aware that there are additional criteria and not all dependents will qualify.
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.
Qualification
A qualifying child for this credit is someone who meets the qualifying criteria of seven tests: age, relationship, support, dependent, joint return, citizenship and residence.
Age Test: To qualify, a child must have been under age 17 – age 16 or younger – at the end of 2011.
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 (more…)
Direct deposit is the fastest, safest way to receive your tax refund. When a taxpayer combines e-file and direct deposit, the IRS will likely issue your refund in as few as 10 days. Why choose direct deposit?
It’s that time again! Individuals and businesses throughout the United States have started receiving various tax-related documents. This year it is very important to save all of these documents and forward them to your accountant. Even if you are a corporation and don’t usually give the 1099s you receive to your accountant, you should do so this year. Be on the lookout for a new form, Form 1099-K. (more…)
Make sure you have all the needed documents, including all your Forms W-2, before you file your 2011 tax return. You should receive an IRS Form W-2, Wage and Tax Statement, from each of your employers. Employers have until January 31, 2012 to issue your 2011 Form W-2 earnings statement.
If you haven’t received your W-2, follow these four steps: (more…)