What is the Dependent Care Tax Credit?

What is the Dependent Care Tax Credit?

When you are a working taxpayer and have dependents that require care while you are working, you can take a tax credit called the Child and Dependent Care Tax Credit, to help offset the expenses. The dependent can be a child under the age of 13 or a spouse that requires care due to physical or mental limitations.

You can also claim the tax credit when you are looking for work. This is considered the same as working for this tax credit. Full time students are considered to have earned income while … Read more at 2009 Taxes

What is the Dependent Care Tax Credit?

When you are a working taxpayer and have dependents that require care while you are working, you can take a tax credit called the Child and Dependent Care Tax Credit, to help offset the expenses. The dependent can be a child under the age of 13 or a spouse that requires care due to physical or mental limitations.

You can also claim the tax credit when you are looking for work. This is considered the same as working for this tax credit. Full time students are considered to have earned income while they are away from the home to qualify for the tax credit.

You have to name the care provider on your tax return and it cannot be a spouse, dependent, or someone under age. And you must fulfill the residence test where the child or dependent spouse must have lived in the house for more than half the tax year.

You can claim $3,000 for one dependent or $6,000 for two dependents. See IRS Publication 503 for more information on completing Form 2441 and claiming this credit when you prepare your taxes this year.

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Notify the IRS When You Move

Notify the IRS When You Move

If you move addresses during the year and especially during the tax season, make sure to notify the IRS of your new address. Form 8822 is the IRS form for changing your address on file with the taxing authority. Completing this form and send it to the IRS is important. Other options are also available.

When you file your tax return, you can change your mailing address on the mailing label that comes with your tax forms. This will notify the IRS of your new address quickly. You can also write your new … Read more at 2009 Taxes

Notify the IRS When You Move

If you move addresses during the year and especially during the tax season, make sure to notify the IRS of your new address. Form 8822 is the IRS form for changing your address on file with the taxing authority. Completing this form and send it to the IRS is important. Other options are also available.

When you file your tax return, you can change your mailing address on the mailing label that comes with your tax forms. This will notify the IRS of your new address quickly. You can also write your new address on the 1040 form in the address area of the form. Finally you can write your local IRS office and in written form, notify them of your address change.

Make sure to notify your employer and other companies supplying tax documents to you. You want to make sure all tax forms are delivered directly to your new address and do not get lost with the postal service or returned to the company. Forwarding your mail with the post office is also important. Make sure to complete an address change form with the USPS.

If you pay estimated payments utilizing a voucher provided by the IRS, continue to use the old vouchers until the IRS sends you new vouchers with your new address printed them on you. The IRS shares data with the USPS so your new address is shared with the IRS automatically when you tell the post office, but you should contact the IRS directly to ensure they have your correct address.

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Help Me In My Tax Preparation

Help Me In My Tax Preparation

Nothing can make you grind your teeth more than the thought of tax preparations. Fortunately, there are some people making a living out of this.

If thinking about preparing your taxes raises your anxiety level, then stop, you don’t have to worry. This tax preparation job can be easily outsourced to other people. These people are known as tax preparers who prepare and file tax returns throughout the year. It will be of help to know the different types of tax preparers available in the market.

The basic tax preparers work at … Read more at 2009 Taxes

Help Me In My Tax Preparation

Nothing can make you grind your teeth more than the thought of tax preparations. Fortunately, there are some people making a living out of this.

If thinking about preparing your taxes raises your anxiety level, then stop, you don’t have to worry. This tax preparation job can be easily outsourced to other people. These people are known as tax preparers who prepare and file tax returns throughout the year. It will be of help to know the different types of tax preparers available in the market.

The basic tax preparers work at a low fee and have the least expertise. Most of these professionals are part-timers. For a simple tax condition such as basic W2 salaries without any home ownership, it is the best choice.

A more advanced form of tax preparers are the enrolled agents. IRS provides licenses to these people and they need to keep up their educational standards to protect their licenses. But they don’t have any formal education in tax or finance. Compared to basic preparers, the enrolled agents are more competent, but much less compared to a CPA. For a tax situation that requires basic 1040 filing along with some schedules, an enrolled agent would be a good choice. But if you need more sophisticated actions such as reducing your tax payments, then you would be better off approaching a CPA.

A certified public accountant or CPA is licensed as well as highly trained. It’s really a difficult task to pass the boards in order to become a CPA. After becoming a CPA, he or she is needs to pursue approximately another 40 hours of education. But the bottom line of using a CPA is that with higher competencies, the cost of service also rises proportionately. Most CPAs are worth the money you spend on them as they can guide you well with all your overall tax planning.

Then there are tax attorneys. They can provide you with more sophisticated tax plans to save huge money. The tax attorneys also can look after situations when you get pulled for an audit by the IRS. CPAs are good enough to handle any tax issue raised by IRS, but they hardly have any clue regarding evidentiary laws. For any kind of legal issues raised by the IRS, you will need a tax attorney to fight for it.

So, who would be the right person for your tax preparations? The answer to this question rests on the type of financial condition you are in and your objective. Normally the equation is simple: more complexities need more competencies. If you can afford it, go for a CPA. If the CPA is good enough, your savings will be far more compared to the fee are paying.

Do You Need to File a Tax Return?

Do You Need to File a Tax Return?

Most American citizens need to file a tax return but there are some individuals due to age, filing status and income that are not required to do so. An example is a married couple filing jointly that earned less than $17,900 during 2008. The exception to the rule is if one of the individuals is self employed. Self employed individuals always need to file a return if they earned over $400 for the tax year.

Choose to File

If you contact a tax specialist or call the IRS and determine that you … Read more at 2009 Taxes

Do You Need to File a Tax Return?

Most American citizens need to file a tax return but there are some individuals due to age, filing status and income that are not required to do so. An example is a married couple filing jointly that earned less than $17,900 during 2008. The exception to the rule is if one of the individuals is self employed. Self employed individuals always need to file a return if they earned over $400 for the tax year.

Choose to File

If you contact a tax specialist or call the IRS and determine that you do not need to file a return there are cases where you would want to file a return anyway. For instance, if you paid taxes to the federal government through payroll deductions and are expecting a refund. Other cases include if you are eligible for the Recovery Rebate Credit, if you can claim the Earned Income Credit, or you are a first time home buyer and eligible for a tax credit.

Free e-File with EasyTaxReturns.com

Free e-File with EasyTaxReturns.com

Sign-up to prepare your taxes with EasyTaxReturns.com and get free e-filing. You’ll receive great help with your tax forms for your federal and the state returns and be able to check your refund status online.

Tax Forms and Help

EasyTaxReturns.com has all the tax forms you will need including all 1040 forms, 1098, 1099, and W2 forms. All common forms are included in their two separate packages, the Simple and Deluxe. Get your return fast and you will not need a credit card.

Tax Refund Status

Through EasyTaxReturns.com you will be able to check … Read more at 2009 Taxes

Free e-File with EasyTaxReturns.com

Sign-up to prepare your taxes with EasyTaxReturns.com and get free e-filing. You’ll receive great help with your tax forms for your federal and the state returns and be able to check your refund status online.

Tax Forms and Help

EasyTaxReturns.com has all the tax forms you will need including all 1040 forms, 1098, 1099, and W2 forms. All common forms are included in their two separate packages, the Simple and Deluxe. Get your return fast and you will not need a credit card.

Tax Refund Status

Through EasyTaxReturns.com you will be able to check your refund status at any time. Signup with Bank.com through EasyTaxReturns.com and receive your refund status in addition to free tax tips, news, and interact with tax experts.

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5 IRS Identity Theft Tips

5 IRS Identity Theft Tips

There are a number of organizations with helpful resources if your identity has been stolen this tax season or you feel that your identity might be misused. And do you know what kinds of emails to expect from the IRS so you know that the communication is legitimate?

  1. The IRS has a special office called the IRS Identity Protection Specialized Unit which can assist you if you feel your identity might be misused due to the loss of personal information. Contact them at 1-800-908-4490.

  2. The IRS never initiates contact with taxpayers through email. Therefore all

Read more at 2009 Taxes

5 IRS Identity Theft Tips

There are a number of organizations with helpful resources if your identity has been stolen this tax season or you feel that your identity might be misused. And do you know what kinds of emails to expect from the IRS so you know that the communication is legitimate?

  1. The IRS has a special office called the IRS Identity Protection Specialized Unit which can assist you if you feel your identity might be misused due to the loss of personal information. Contact them at 1-800-908-4490.

  2. The IRS never initiates contact with taxpayers through email. Therefore all email appearing to originate from the IRS are fraudulent unless in response to an inquiring that you began.

  3. Visit IRS.gov for reporting scams and for reporting bogus  IRS web sites.

  4. The Federal Trade Commission has similar identity theft resources and can be reached at 1-877-ID-THEFT.

  5. OnGuardOnline.gov is another resource for online protections from the federal government and the technology industry.