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Showing posts with label Taxes. Show all posts
Showing posts with label Taxes. Show all posts

Friday, January 30, 2015

Are You Eligible for the Earned Income Tax Credit?

Today is Earned Income Tax Credit Awareness Day in Washington.

Low-income people can reduce or eliminate the amount of federal income taxes they pay by claiming the Earned Income Tax Credit on their 2014 income tax returns. Some may even qualify for a lump-sum payment if the credit exceeds the amount of taxes owed.

Last year, the average Earned Income Tax Credit refund in Washington was $2,145 per person. Many Washington households, including seniors, those with lower incomes, and non-English speaking residents, do not know they are eligible or how to claim the credit.

Individuals can receive a tax refund of up to $6,143 depending on their eligibility. Even if no federal income tax is owed, a tax return must be filed in order to claim the money. The Department of Commerce and Department of Social and Health Services are partnering with other agencies and organizations across the state to raise awareness about the Earned Income Tax Credit and resources for free tax return preparation.

How To Find Out If You Qualify
Individuals can find out if they qualify for the Earned Income Tax Credit by visiting the Internal Revenue Service website at http://www.irs.gov/Individuals/EITC-Home-Page-Its-easier-than-ever-to-find-out-if-you-qualify-for-EITC .

Free tax preparation services are available to many low- and moderate-income families, by calling 2-1-1 and asking for “free tax preparation locations” or searching “free tax prep” at www.irs.gov.

Friday, January 31, 2014

Do You Qualify for the Earned Income Tax Credit? How to Find Out

Millions of dollars go unclaimed each year by Washington residents eligible to receive the Earned Income Tax Credit because they don’t file a tax return or simply don’t know they are eligible.

“Last year, the average Earned Income Tax Credit refund was more than $2,100,” said Gov. Jay Inslee. “Many Washington households do not know they are eligible or know how to claim the credit. By raising awareness and offering free resources at tax preparation centers around the state, we’re helping families and individuals, and giving a boost to our state’s economy.”
 
Eligibility Requirements
The eligibility requirements are:
  •  With three or more qualifying children, income less than $46,227 or $51,567 if married filing jointly. Maximum refund: 6,044.
  • With two qualifying children, income less than $43,038 or $48,378 if married filing jointly. Maximum refund: $5,372.
  • With one qualifying child, income less than $37,870 or $43,210 married filing jointly. Maximum refund: $3,250.
  • With no children, income less than $14,340 or $19,680 married filing jointly. Maximum refund: $487.
Free Tax Preparation Services
Free tax preparation services are available to low- and moderate-income families from January 31 through April 15. By telephone, Washington Information Network 211 will provide a directory of site locations throughout the state – just dial 2-1-1 and ask for “free tax preparation,” and an operator will provide you with free tax site locations and hours in your area. Or, go to http://irs.treasury.gov/freetaxprep to find free tax preparation service near you.
  
Learn more about EITC from the Internal Revenue Service.

Tuesday, January 7, 2014

IRS Offers Online Tax Assistance for Non-English Speakers


Finding federal income tax forms and publications for people speaking languages other than English is as easy as going to the IRS website.

The IRS site features Chinese, Russian, Vietnamese and Korean pages with links to publications, how to get IRS assistance and more.

EL IRS en Español is a site especially for Spanish-speaking individuals, and provides access to information, downloads and online tools.

For more information, visit www.irs.gov.

Friday, January 25, 2013

Earned Income Tax Credit – Nearly 20% of Washington Taxpayers Miss Out

Nearly 20 percent of Washington taxpayers eligible for the Earned Income Tax Credit miss out on it each year and the possibility of receiving up to $5,891 from the Internal Revenue Service.

The Earned Income Tax Credit is a refundable federal income tax credit for low to moderate income working individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.

Last year, 432,000 individuals and families in Washington applied for the credit, bringing about $885 million into the state’s economy. The average EITC refund was more than $2,000. That money is a welcome boost for these taxpayers and to businesses in their communities.

Thursday, January 17, 2013

Free Tax Preparation and Assistance

Each year, AARP and local community organizations offer free, individualized tax preparation for low-to moderate-income taxpayers – especially those 60 and older.

The free tax preparation services are located at thousands of sites nationwide beginning February 1.

A typical session with a tax preparer takes 60 to 90 minutes. Some sites see clients by appointment only, but others will take walk-ins.

Find a location near you by searching online at http://www.aarp.org/applications/VMISLocator/searchTaxAideLocations.action

Tuesday, June 5, 2012

Types of Contributions You Can Make To a Retirement Plan

From time to time we get questions regarding the types of contributions you can make to a retirement plan. Here’s some helpful information from the IRS:

If you participate in an employer-sponsored retirement plan, you may have choices on the types of contributions you can make from your wages to the plan. Here’s a brief explanation of the different types of contributions:


Pre-tax elective deferrals – You don’t include these amounts in your gross income in the year that you make the contributions. For example, if you direct your employer to contribute $2,000 from your $30,000 salary in 2012, you only include $28,000 in income. You have to include these contributions, plus any earnings, in your income when you withdraw them from the plan.

Designated Roth contributions – These are elective deferrals that are included in your gross income in the year you make the contributions, but not when you withdraw them from the plan. Also, if you meet certain conditions, you don’t have to include any earnings on these contributions in your income when you withdraw them from the plan.

Wednesday, February 22, 2012

10 Things You Need to Know About Capital Gains and Losses

The Internal Revenue Service (IRS) sends out tax tips during tax time. You can signup at http://www.irs.gov/. Here is some good information about capital gains and losses.

Capital Gains and Losses
Did you know that almost everything you own and use for personal or investment purposes is a capital asset? Capital assets include a home, household furnishings and stocks and bonds held in a personal account. When you sell a capital asset, the difference between the amount you paid for the asset and its sales price is a capital gain or capital loss.

Tuesday, February 7, 2012

New search tool from IRS helps low- and moderate- income taxpayers find free tax preparation sites

The Internal Revenue Service (IRS) announced today that they have launched an online tool that makes it easier to find a location for volunteer tax preparation assistance.

The new tool makes it easier than ever for qualified individuals to find free help through the IRS Volunteer Income Tax Assistance (VITA) program. Volunteers at VITA locations generally offer tax preparation for people with incomes of $50,000 or less free of charge. Find a VITA site near you by visiting http://1.usa.gov/AmfCj2.

Thursday, January 26, 2012

Make less than $49,000? Look into the Earned Income Tax Credit. Extra money may be waiting for you.


Did you know that each year about 20 percent of Washington taxpayers miss out n receiving up to $5,751 in Earned Income Tax Credit (EITC) payments from the Internal Revenue Service (IRS)?

The federal tax credit is available to thousands of low-and moderate-income working families and individuals.

Eligibility requirements

EITC eligibility requirements are:
  • With three or more qualifying children, income less than $43,998 or $49,078 if married filing jointly. Maximum refund: $5,751
  • With two qualifying children, income less than $40,964 or $46,044 if married filing jointly. Maximum refund: $5,112
  • With one qualifying child, income less than $36,052 or $41,132 if married filing jointly. Maximum refund: $3,094
  • With no children, income less than $13,660 or $18,740 if married filing jointly. Maximum refund: $464

Monday, March 28, 2011

New Publication from FINRA: Use Tax Time to Take Control of Your Finances

The Financial Industry Regulatory Authority (FINRA) is encouraging you to use tax time to take stock of your finances and gain control of your financial future.

To help you, FINRA released "Take Control of Your Financial Future: Tips to Think About at Tax Time and Beyond", a new publication that identifies 5 steps you can take to better you financial well-being.

Check it out: FINRA’s Tips to Think About at Tax Time and Beyond

Wednesday, March 16, 2011

What Parents Should Know about Their Child’s Investment Income

New tax tips from the IRS.

Parents need to be aware of the tax rules that affect their children’s investment income. Here are four facts from the IRS that will help parents determine whether their child’s investment income will be taxed at the parents’ rate or the child’s rate:

1) Investment Income Children with investment income may have part or all of this income taxed at their parents’ tax rate rather than at the child’s rate. Investment income includes interest, dividends, capital gains and other unearned income.

2) Age Requirement The child’s tax must be figured using the parents’ rates if the child has investment income of more than $1,900 and meets one of three age requirements for 2010:
  • Was under age 18 at the end of the year,
  • Was age 18 at the end of the year and did not have earned income that was more than half of his or her support, or
  • Was a full-time student over age 18 and under age 24 at the end of the year and did not have earned income that was more than half of his or her support.

Tuesday, March 1, 2011

Get Credit for Your Retirement Savings Contributions

Did you know that you may be eligible for a tax credit if you make eligible contributions to an employer-sponsored retirement plan or to an individual retirement arrangement?

Here are six things the IRS wants you to know about the Savers Credit:

1) Income limits The Savers Credit, formally known as the Retirement Savings Contributions Credit, applies to individuals with a filing status and income of:
  • Single, married filing separately, or qualifying widow(er), with income up to $27,750
  • Head of Household with income up to $41,625
  • Married Filing Jointly, with incomes up to $55,500
2) Eligibility requirements To be eligible for the credit you must have been born before January 2, 1993, you cannot have been a full-time student during the calendar year and cannot be claimed as a dependent on another person’s return.

3) Credit amount If you make eligible contributions to a qualified IRA, 401(k) and certain other retirement plans, you may be able to take a credit of up to $1,000 or up to $2,000 if filing jointly. The credit is a percentage of the qualifying contribution amount, with the highest rate for taxpayers with the least income.

Tuesday, January 11, 2011

New Website to Help Answer Your Tax Questions

A new resource just in time for tax season 2011.

The American Institute of Certified Public Accountants recently launched http://www.360taxes.org/, a new website to help consumers understand their taxes.

The website features
  • Tax tips
  • FAQs
  • Resources
  • Ask-A-CPA section
  • Videos
  • Articles
  • And more!
Visit http://www.360taxes.org/

Monday, January 3, 2011

Tax Season Begins - 10 Tips from the IRS

New year, new tax season. Here are some great tips from the IRS to make filing even easier this year.
  1. Start gathering your records. Round up any documents or forms you’ll need when filing your taxes: receipts, canceled checks and other documents that support income or deductions you’re claiming on your return.
  2. Be on the lookout W-2s and 1099s will be coming soon; you’ll need these to file your tax return.
  3. Use Free File: Let Free File do the hard work for you with brand-name tax software or online fillable forms. It's available exclusively at http://www.irs.gov/. Everyone can find an option to prepare their tax return and e-file it for free. If you made $58,000 or less, you qualify for free tax software that is offered through a private-public partnership with manufacturers. If you made more or are comfortable preparing your own tax return, there's Free File Fillable Forms, the electronic versions of IRS paper forms. Visit www.irs.gov/freefile to review your options.

Monday, July 26, 2010

Five Tax Scams to Avoid this Summer



The Internal Revenue Service (IRS) is getting the word about tax scams to help protect you and your money. Here are five tax scams you should be aware of this summer.

From the IRS:

The IRS issues a list of the top 12 tax scams each year – known as the Dirty Dozen.

The scams are illegal and can lead to problems for taxpayers including significant penalties, interest and possible criminal prosecution.

These scams don’t just happen during the tax filing season, they can happen anytime during the year. Here are five scams from the 2010 Dirty Dozen list every taxpayer should be aware of this summer.

Tuesday, July 13, 2010

Steps You Can Take To Protect Financial Documents In Case Of Disaster




Living in Washington we are frequently reminded of the importance of preparing for a natural disaster. Stock up on water, batteries, food, etc. We’ve been taught this since elementary school.

However, little is said about protecting our financial and tax documents.

Think about it. What if you lost all of your insurance records, W-2s, home closing documents, etc? Major headache.

These tips from the IRS discuss the importance of preparing for disaster and simple steps you can take to protect your financial and tax records in case of disaster.

Wednesday, July 7, 2010

Tax Tip - Summertime Child Care Expenses May Qualify for a Tax Credit



The IRS wants you to know about a tax credit available for summertime child care expenses.

From the IRS:

Did you know that your summer day care expenses may qualify for an income tax credit? Many parents who work or are looking for work must arrange for care of their children under 13 years of age during the school vacation. Those expenses may help you get a credit on next year’s tax return.

Here are five facts the IRS wants you to know about a tax credit available for child care expenses. The Child and Dependent Care Credit is available for expenses incurred during the lazy hazy days of summer and throughout the rest of the year.

Thursday, October 22, 2009

IRS Retirement Plans Navigator


Small business owners looking for retirement plans for their employees now have some help from the IRS.

The IRS has launched an online IRS Retirement Plans Navigator that helps small employers choose the plan right for their business.

If you are a small business owner and already have set up a retirement plan, check out the section on maintaining and correcting a plan. You will find all the information you need to ensure your company's retirement plan stays tax law compliant.

The Retirement Plans Navigator can be found at http://www.retirementplans.irs.gov/.