The Child Tax Credit can save parents up to $1,000 per child based on income. Higher income families are entitled to a smaller credit, as the IRS reduces the credit at modified adjusted gross income of $110,000 for joint, married taxpayers. The Child and Dependent Care Credit is an excellent way to recover some expenses […]
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Many people forget about claiming the Earned Income Tax Credit (EITC) if they qualify. In fact, one out of every five qualified workers fail to claim the credit. This credit does more than reduce the amount of taxes you owe. Depending on your situation, you could be eligible for a refund, and there’s a chance […]
— Read moreIf you’ve claimed the EITC in the past, or you’re wondering if you’re eligible this year, you may have already researched the different income thresholds that determine whether you qualify. However, you might not know that there are other rules that affect eligibility in addition to the income limits. These include: Having at least $1.00 […]
— Read moreErrors on your tax return happen, and generally they delay your refund. When the mistake is made while claiming the Earned Income Tax Credit, you can expect to wait a little longer to receive that part of your tax refund, even extending into months-long delays. In some cases, errors on the EITC portion of your […]
— Read moreWhether you’re in college currently, or have entered repayment of your student loans, every penny can matter. Maximize your tax refund by taking all the deductions you qualify for, including student loan interest. You may be eligible to deduct up to $2,500 from your taxable income if you’ve paid interest on your student loans. For […]
— Read moreEducation expense deductions can be beneficial to student taxpayers or their parents, however, knowing what qualifies as an appropriate expense is important. As the taxpayers in the next situation soon learned, even if you spend significant time educating yourself in various topics, if the expense is not deemed ordinary and necessary, it will be categorized […]
— Read moreBusiness travel can add up to a costly expense for many individuals, which is why deductions are offered at tax time to help alleviate the sting. In the case of mileage deductions, maintaining adequate records is extremely important to validate the expense, as the taxpayer in the following situation soon learned. The Situation The taxpayer […]
— Read moreEmployees who are required to wear a specific uniform to work may qualify for a deduction at tax time as an unreimbursed employee expense. However, as the next situation proves, the required clothing must not be suitable for wear outside of the workplace. The Situation Ralph Lauren Corporation sells, markets, and designs a wide range […]
— Read moreEducational tax credits can help taxpayers save when they file their return if they incurred any education-related expenses during the year. However, as the student in the following situation discovered, educational tax credits are based on what you actually paid, not what was billed. The Situation In 2010, the full-time Hampton University student registered for […]
— Read moreUnknowingly engaging in fraudulent transactions or learning you are the victim of a scam is never a good thing. When you’ve lost some of your hard-earned money due to theft, fraud, or a scam, you may be able to deduct the amount at tax time. However, state laws have three criteria that must be met […]
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