EIC (Earned Income Credit) Table

EIC (Earned Income Credit) Table
The Earned Income Credit (EIC) is available to taxpayers who fall into a low-income tax bracket established by the IRS. The earned income credit is usually a substantial amount and many benefit from a large refund.

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You must meet the following requirements to be eligible for the EIC:

•You must be married and filing jointly, head of household, qualifying widow, or single. If married, you may not file separately.
•Qualifying children must be under 18, or full-time students.
•Household members must have valid Social Security numbers.
•You must be a U.S. Citizen.
•You must have earned income.
•You cannot be a qualifying child on someone else’s return.
If you meet the requirements for the earned income credit, look for one of the online tax calculators available through online tax preparation software sites that will calculate the amount you are eligible for. For example, TurboTax Online offers a free tax calculator.

The amount of earned income credit money you are eligible for is determined by your income level and family size. The tax credit either increases your refund or reduces the amount of tax you owe.

 FICA Calculator

EIC (Earned Income Credit) Table

Number of Children and Earned Income Credit Amount Income Limits

•0 $457 $13,460 ($18,470- Married filing jointly)
•1 $3,050 $35,535 ($40,545 – Married filing jointly)
•2 $5,036 $40,363 ($45,373 – Married filing jointly)
•3 or more $5,666 $43,352 ($48,362 – Married filing jointly)
There is only one limitation: taxpayers with investment income of more than $3,100 do not qualify for the EIC (Earned Income Credit).

TurboTax Freedom Edition

Software such as TurboTax offers answers and assistance to any questions you may have. A tax professional is available 24 hours a day, 7 days a week. All of this is offered free when filing your taxes.

For more information visit TurboTax Online. Use the free tax calculator to see if you qualify and to determine your earned income tax credit amount.

Oh how we love our tax credits! How do we love them? Let me count the ways!

•Adoption Tax Credit
•Child and Dependent Care Tax Credit
•Child Tax Credit
•Credit for the Elderly and Disabled
•Earned Income Tax Credit
•Foreign Tax Credit
•Hope Tax Credit
•Lifetime Learning Tax Credit
•Mortgage Interest tax Credit
I could go on and on but, I’ll spare you. Do you know how many tax credits there are? If you don’t then you should definitely use an online tax preparation software program like Turbo Tax Online that will search for all of the tax credits you deserve to take.

TurboTax Online Basic, Deluxe, Premier, Home & Business

Your Home May Not Be a Money Pit

Do you know weatherizing your home can bring you a tax credit? If you can improve your home’s energy efficiency you will be rewarded in the form of a tax credit.

•Windows and Doors
•Insulation
•Roofs (metal and asphalt)
•HVAC
•Water Heaters (non-solar)
•Biomass Stoves
That’s just the beginning of home improvement tax credits. Do you get the feeling you’ve been missing tax credits you could have claimed? Well, lots of people do miss out on deductions and that is unfortunate but, you don’t have to miss out anymore. Turbo Tax Online will search for over 350 tax credits for you. I’m sure it will find some you didn’t even know you were eligible to claim.

Child Tax Credit

Hybrid Cars

If you own a plug in electric hybrid vehicle you will be eligible for a tax credit for the car. The credit is based on the capacity of the battery system. Make sure you have the qualifying vehicle. The tax credit amount is based on a formula determined by the vehicle weight, technology, and fuel economy compared to base year models.

Learn More about Tax Credits

If I have your attention and you would like to know more about tax credits you may qualify to claim then read on. I have only scratched the surface of available tax credits.

Online Tax Filing

TurboTax Online will help you do a comprehensive search for every single tax credit you deserve to claim. If you would like to find out how you can lower your taxable income through tax credits then visit the web site today. You could have thousands of dollars in your pocket with a couple clicks of the mouse!

IRS Mileage Rate 2011

Increasing gas prices is a great cause for concern for vehicle owners, especially those who need to use vehicles on a regular basis. As part of the IRS’ incentives for business owners, all those who are required to use vehicles to carry out business activities are allowed to claim mileage deduction when they file their tax returns. Since the deduction is calculated on a per mile basis, you can expect to get a considerably large amount of tax deduction if you are putting a lot of miles on your vehicles.

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The IRS mileage rate may not remain the same from year to year, and it changes according to certain circumstances that affect transportation costs, one of which is the rise of gas prices. In the beginning of 2011, the mileage rate was 51 cents per mile for those who use their vehicles for business-related travel. However, due to the increase of gas prices in spring, the IRS decided to implement a midyear mileage rate increase of 4.5 cents. This means that you will get a tax deduction of 55.5 cents for every mile that your vehicles travel while performing business-related duties. This new mileage rate can help you save more money if the vehicles that you are using are economical. The increase in the amount of tax deduction that you will be getting may be proportionately more than the increase in the actual cost of using your vehicles.

Free Self Employed Tax Calculator

The IRS does not only offer tax deduction for those who use vehicles to perform business-related duties. Its mileage deduction is also applicable to people who need to use their vehicles for seeking medical treatment, moving, and charity-related travel, but the rate varies from one purpose to another. If you need to drive your vehicle to a medical facility or transport your belongings to a new home, you can claim a tax deduction of 23.5 cents for every mile traveled. This new rate is 4.5 cents higher than the previous rate that was implemented in the beginning of the year. The deduction for medical-related vehicle usage is especially helpful for people who need to travel to medical facilities frequently to receive medical treatment. If you are involved in charitable activities and you have to use your vehicle to perform charity-related duties, you are entitled to a tax deduction of 14 cents for every mile traveled.

How Much is the SUTA Tax Rate

To make sure that you will get the full mileage deduction that you are eligible for, you need to take the necessary measures to record the total mileage on your vehicles correctly. You should have a log book to record the odometer readings on all your vehicles on a regular basis. If your employees are the ones who are driving your vehicles, you can ask them to record the distances they travel every day in the log book. Once you have added up the total number of miles traveled in the tax year, you have to multiply it with the IRS mileage rate to come up with the total amount of tax deduction that you can claim.

To learn more about the IRS mileage rate tax deductions please visit TurboTax Online. TurboTax offers Free Tax Calculators to help you maximize your tax deductions.

The IRS Gift Tax Limit for 2010, 2011 video discusses gift tax limits and when you have to report gifts you have received.  Remember, gift tax is different than inheritance tax.  If you are confused about whether or not your gift/inheritance is considered one or the other, read our post on the topic of inheritance tax.

Social Security Payroll Deduction

 
 In this video, we learn that gift tax does not apply to a single earner giving a gift over $13,000.  In other words, you can give a gift up to $13,000 without reporting it.  If you are married and filing your taxes together, you can give a gift up to $26,000 without having to report it on your tax return.  The gift can be cash or property with this value.  Remember, the receiver never has to pay tax on the gifts received.  If you are not required to pay tax, you do not have to report gifts.  This means if you are under the limits stated earlier, you do not have to report gift giving on your tax return this year.

Social Security Tax Cap

Gift tax does not apply to a gift given to your spouse or a charity.  Be certain your charitable donations are to a qualifying charity if you are not reporting your donations.

You will file form 709, which is attached to your 1040, when reporting gifts.  Boxes 1-7 will report your personal information, whereas 8-19 are yes or no questions.  Part 2 of the form is the tax calculation of the form.  It can be tricky, so we highly recommend you do your tax return online using tax preparation software, like TurboTax 2010, 2011.

Free QuickBooks Payroll

Temporary assistance for needy families (TANF)
Medicaid and supplemental security income (SSI)
Food stamps
Low-income housing
You can use the Free Tax Estimator provided by Turbo Tax Online to figure out your Earned Income Credit. Prepare and file your taxes with Turbo Tax Online and get all the deductions and credits you deserve!

IRS Gift Tax Limit Information
If you are someone who regularly gives away large amounts of money or property, then it is important for you to be familiar with the IRS gift tax limits. The gift tax limits are set in place by the IRS, so your gifts are taxable only above a certain amount.

Individual Retirement Account Contributions

Currently the IRS will allow you to give away up to $13,000.00 annually without having to pay any tax on the gift. This $13,000.00 can be given to one person or any number of people. If you are married, then this amount increases to $26,000.00.

One important thing to remember is that the recipients of your gift will never have to pay any tax on the gift. If the giver of the gift goes above the IRS gift tax limit amount, the giver will pay the gift tax on the gift.

How Much Can I Give In a Lifetime?

You are allowed to give up to one million dollars in gifts above the annual limit in your lifetime without having to pay taxes. This means you need to plan carefully to ensure you do not exceed your annual limit as well as your lifetime limit.

New Car Tax Break

Why Is There an IRS Gift Tax?

The gift tax was imposed to prevent taxpayers from giving away everything they own before they die to avoid paying estate tax. If you do go beyond the gift tax limit, then you could be taxed as high as 45%. So be careful with the amounts you are giving away.

FICA Rate

We suggest using an online tax preparation service such as TurboTax Online that will help you calculate the amount you have given away and if you owe any tax on those gifts. You can visit the web site of TurboTax and click on the support tab to gain access to their award winning library of tax information. Once you’re on the support page, you can enter, IRS gift tax limit, and you will have answers to any questions you may have.

Every business has a department that deals with complaints from customers. At the IRS, this department is known as the taxpayer advocate office.

Federal Solar Energy Investment Tax Credits

Advocating for You

The purpose of the taxpayer advocate office is to provide taxpayers with a friendly source to handle customer service issues. The office is run independent of the IRS and has offices at every IRS center in the nation. The taxpayer advocate has a stated goal of resolving your problem with the IRS in seven short days. It doesn’t always happen, but it is a nice goal.

The taxpayer advocate has a surprising amount of power. The advocate agents can rifle through the IRS computers at will, which makes them great at locating filings the IRS claims never occurred. The advocate can also stop collection efforts by the IRS and even release tax liens on your bank account or property. Basically, the advocate office is the place to go when you think you are getting a raw deal from the IRS.

 Depreciation, Residual Tax Deductions, Break The Tax Code For Profit

The taxpayer advocate agents do not take any old case. In general, you have to show the IRS is unresponsive to your problem or causing you a major hardship. For instance, if your correspondence to the IRS is not being responded to, the advocate can crack the whip on your behalf. If the IRS puts a lien on your bank account, but you’re in the hospital, the advocated can release it. The advocate, however, does not give tax advice or fight audits for you.

If you wish to get the taxpayer advocate involved in your IRS situation, you should write the office in your area. Just search for taxpayer advocate online to get the location. Your letter should include a concise description of the problem, copies of your supporting documents, copies of what the IRS has sent you and a telephone number where you can be reached. In an emergency situation, you can call the taxpayer advocate by contacting the local IRS office. This should only be done in an emergency.

IRS Federal Energy Efficient Tax Credits for Home & Residential

The IRS is undoubtedly a dysfunctional government agency. The taxpayer advocate can help you get things straightened out when dealing with the IRS.

Prior to January 1, 2006, you were restricted to claiming a $2,000 tax deduction if you purchased a hybrid car. Now you can claim a tax credit, which is much more valuable.

College Tax Deduction

Tax Credit Amount for Lexus GS 450 Hybrid Issued By IRS

Conspiracy theorists often offer rather exotic arguments about how the government tries to control us. When it comes to taxes, they are absolutely correct. Both federal and state governments try to influence our behavior by levying or reducing taxes. If the government wants to promote something, it gives you tax breaks if you do it. If the government wants to discourage something, it loads the product or service up with taxes.

If you have filled up your car at the pump in the last week, you know gas prices are out of control. Despite our wailing, they politicians really cannot do that much since we are dependent on foreign oil sources. They have, however, taken one long-term approach by promoting the purchase of hybrid vehicles.  

Prior to 2006, the government provided all taxpayers that purchased a new hybrid with a healthy $2,000 tax deduction. With the recent passage of the Bush Energy Act, the government has made it foolish NOT to purchase a hybrid. It did this by changing the tax deduction into a tax credit.

Education Tax Benefits

The IRS is now allowed to set tax credit amounts applicable to hybrid purchases so long as the amount does not exceed $3,400. In regard to the 2007 Lexus GS 450 hybrid, it has just done so. If you purchase a new 2007 Lexus GS 450 hybrid after January 1, 2006, you can claim a tax credit of $1,550.

You may think $1,550 is nice, but not overly impressive. How wrong you are! Unlike a tax deduction, a tax credit is applied directly to the amount of taxes you owe. Assume you determine you owe $6,500 when you prepare your 2006 taxes next year. Instead of writing a check to the IRS, you will first deduct your tax credit from the amount you owe giving you a bill of 4,950. This dollar for dollar reduction in your tax liability is what makes tax credits so great. 

 Education Tax Benefits

As with all hybrid tax credits, they scale down as more cars are sold. Make sure to ask your accountant or dealer the current tax credit amount when you make your purchase.

Taxpayers across America have questions about preparing and filing their income tax return. You can visit the official IRS site but, get ready to spend some time digging through pages of text to find what you’re looking for.

 Filing a Schedule C Form

I get a headache just thinking about that. Wouldn’t it be better to use an online tax preparation company who will give advice to your unique tax situation?

Tax Questions and Helpful Advice

If you use tax return software you will be pleasantly surprised by how it picks up on anything beneficial for you. Little boxes will pop up that suggest ways to improve the filing of your tax return. Don’t under estimate the power of income tax return software.

Frequently Asked Questions

What should I do if I make a mistake on my tax return? It depends on what type of mistake you make. If you made a mathematical mistake, this will usually be caught during processing and corrected.

Federal Income Taxation

Of course you can avoid mistakes like this by using an online tax return software program. Your tax return will be scanned for errors and flagged before you send it to the IRS. If the mistake is more serious then, you will need to file an amendment using Form 1040X. If you forgot to attach a schedule, the IRS will be contacting you.

Is there an age limit on claiming my children as dependents? If you’re trying to qualify a child, age is a factor. If you’re trying to qualify a relative, age is not a factor. Relationship, residence, age, and support are the factors in determining a qualified child. This can get a little complicated. I would definitely use tax software to help me make sure my return is accurate and error free.

If I claim my son as a dependent because he is a full time college student, can he claim himself? The answer is a simple no. If you claim your full time college student son or daughter, then he or she will not be allowed to claim themselves on their tax return.

 Download Federal Income Tax Forms

To claim head of household filing status, do you have to claim a dependent child to qualify? There are certain circumstances in which you do not need to claim the child as a dependent to qualify for head of household filing status. For example, when the child is unmarried and is your child, grandchild, stepchild, or adopted child. You will have to read about the criteria for claiming head of household filing status. This particular filing status can be complicated.

To Learn More About Filing Income Tax Returns

I may have not addressed your particular question and if you still have questions pertaining to your tax needs, please consult TurboTax Online. If you choose a certain package, for example: “The Deluxe Edition” and the software determines another package would have been better for you, then the program will alert you. That is just one of the many benefits of their tax software.

If you have IRS tax questions, they will be answered by TurboTax Online as you enter your data. You can always use Live Community, online chat, or give them a call for free product support. Now here is a place that answers all of your questions!

The IRS Mileage Rate For 2010 is Set at 50 Cents Per Business Mile Driven

Does your company often send you driving to far away locations, all around the state and maybe even farther?

 Federal Income Tax, Married Filing Jointly

Those long business trips may be boring and tedious, but there is a bright side to them: the IRS Tax Mileage Deduction. For every mile you drive for your business, you get to deduct a certain amount of money; so if you do a lot of driving for your job, you’ll have a nice wad of cash coming your way for your troubles.

How Much is the IRS Tax Mileage Rate Per Mile?

In the year of 2010, for every mile you drive for your business you can deduct $0.50. This is a five cent drop compared to last year, which is supposedly made for by the lower cost of travel these days.

There Are Different Mileage Rates For Different Driving Purposes

It’s 16.5 cents per mile for medical or moving purposes (yes, the five is half a cent) and 14 cents per mile for charitable purposes: driving to make a donation or driving for a charitable company.

Hybrid Tax Breaks for Cars & Vehicles

You should always be sure to check the mileage rate every January as it is changed every year. There are also certain conditions regarding the medical, moving and charitable mileage tax deductions that must be present before you can take these tax deductions. A great place to learn more about the mileage tax deduction and others is TurboTax Online. You could also file your tax return there after some simple and easy questions.

You can learn more about the IRS tax mileage rate by using the support tab at the web site of TurboTax. Just click on the support tab and type in, IRS tax mileage rate, and hit enter. You will find tons of information about the standard mileage tax deduction and the actual vehicle expenses choice for tax deduction purposes. Discover today which method would be most advantageous for you!

Self Employed Federal Tax Deduction Tips

So, the next time you’re stuck on the highway for your job, remember the IRS Mileage Tax Deduction and maybe it will be a little more enjoyable. Get the money you deserve at TurboTax Online.

Oh how we love our tax credits! How do we love them? Let me count the ways!

 Oklahoma State Tax Forms

•Adoption Tax Credit
•Child and Dependent Care Tax Credit
•Child Tax Credit
•Credit for the Elderly and Disabled
•Earned Income Tax Credit
•Foreign Tax Credit
•Hope Tax Credit
•Lifetime Learning Tax Credit
•Mortgage Interest tax Credit
I could go on and on but, I’ll spare you. Do you know how many tax credits there are? If you don’t then you should definitely use an online tax preparation software program like Turbo Tax Online that will search for all of the tax credits you deserve to take.

Your Home May Not Be a Money Pit

Do you know weatherizing your home can bring you a tax credit? If you can improve your home’s energy efficiency you will be rewarded in the form of a tax credit.

IRS Hybrid Car Tax Credit, Get a Credit for Your Hybrid Car

•Windows and Doors
•Insulation
•Roofs (metal and asphalt)
•HVAC
•Water Heaters (non-solar)
•Biomass Stoves
That’s just the beginning of home improvement tax credits. Do you get the feeling you’ve been missing tax credits you could have claimed? Well, lots of people do miss out on deductions and that is unfortunate but, you don’t have to miss out anymore. Turbo Tax Online will search for over 350 tax credits for you. I’m sure it will find some you didn’t even know you were eligible to claim.

Hybrid Cars

If you own a plug in electric hybrid vehicle you will be eligible for a tax credit for the car. The credit is based on the capacity of the battery system. Make sure you have the qualifying vehicle. The tax credit amount is based on a formula determined by the vehicle weight, technology, and fuel economy compared to base year models.

Learn More about Tax Credits

If I have your attention and you would like to know more about tax credits you may qualify to claim then read on. I have only scratched the surface of available tax credits.

Qualifying for the Home Office Tax Deduction

TurboTax Online will help you do a comprehensive search for every single tax credit you deserve to claim. If you would like to find out how you can lower your taxable income through tax credits then visit the web site today. You could have thousands of dollars in your pocket with a couple clicks of the mouse!