Income tax

Tax

Credit For The Elderly or Disabled

You may be able to take the Credit for the Elderly or the Disabled if you are age 65 or older, or if you are retired on permanent and total disability, according to the IRS. Like any other tax credit, it's a dollar-for-dollar reduction of your tax bill.
Tax

Child and Dependent Care Credit

If you paid someone to care for a child or a dependent so you could work, you may be able to reduce your tax by claiming the credit for child and dependent care expenses on your federal income tax return, according to the IRS. This credit is available to people who, in order to work or to look for work, have to pay for child care services for dependents under age 13.
Tax

Child Tax Credit

With the Child Tax Credit, you may be able to reduce the federal tax you owe by $600 for each qualifying child under the age of 17, according to the IRS. A qualifying child for this credit is someone who:– Is claimed as your dependent,– Was under age 17 at the end of 2001,– Is your son, daughter, adopted child, grandchild, stepchild, or eligible foster child, and– Is a U.S. citizen or resident.The credit is limited if your modified adjusted gross income is above a certain amount.
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Dependents

So your daughter is off to college and you're wondering if you can still claim her as a dependent? To be claimed as a dependent, a person must meet the following five tests, according to the IRS:Member of Household/Relationship Test — the person must be a relative or live in your household all year.Joint Return Test — the person can't file a joint tax return with someone else except to claim a refund of tax withheld.Citizenship Test — the person must be:– a U.S.
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Rate Reduction Credit And Rebate

The IRS says there's a new line on the federal income tax form this year, but many people won't have to use it. This line - line 47 on the Form 1040, line 30 on the 1040A and line 7 on the 1040 EZ - is for the Rate Reduction Credit.Use this line to claim any additional amount you qualify for if you did not receive last summer's Advance Payment (sometimes called the "rebate") in the maximum amount for your filing status.
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Alimony Payments Have Tax Implications

When the end of matrimony leads to the start of alimony, how does it affect your taxes? Alimony payments you receive are taxable to you in the year received, according to the IRS.The amount is reported on line 11 of Form 1040. You cannot use Form 1040A or Form 1040EZ. The person making the payment may claim a deduction in the year paid on Form 1040. You must give the person who paid the alimony your Social Security number or you may have to pay a $50 penalty.If your decree or agreement calls for both alimony and child support and specifies amounts for each, only the alimony is taxable.
Tax

Recently Married or Divorced? Check Social Security Records

If you are a newlywed or recently divorced, make sure the names on your tax returns match those registered with the Social Security Agency (SSA). A mismatch between a name on the tax return and a Social Security number (SSN) could unexpectedly increase a tax bill and reduce the size of any refund.For newlyweds, the tax scenario can begin when the bride says "I do" and takes her husband's surname, but doesn't tell the SSA about the name change.
Tax

Reservists, New Enlistees May Gain Deferral For Back Taxes

The IRS reminds reservists called to active duty and new enlistees in the armed forces that they might qualify for a deferral of taxes owed if they can show that their ability to pay taxes is impaired because of their military service. The Soldiers and Sailors Civil Relief Act provides this benefit.The Act covers active duty members of the military services — Army, Navy, Air Force, Marine Corps and Coast Guard. Reservists must be placed on active duty to qualify.
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Charitable Donations to Victims of Terrorist Attacks

If you made a charitable donation to a qualified organization providing disaster relief to victims of the September 11, 2001 terrorist attacks, include the amount with your other contributions listed on Schedule A of Form 1040.According to the IRS, for each contribution of $250 or more, you must obtain a written statement from the charity acknowledging the contribution amount and stating whether or not the charity provided you with goods or services in return for your contribution.For contributions of less than $250, cancelled checks or credit card receipts are the best evidence.Your
Tax

EFTPS-Online: Pay Your Taxes Over The Internet

If you’re going to owe taxes when you file your federal tax return, consider paying over the Internet through the Electronic Federal Tax Payment System (EFTPS). EFTPS-OnLine is fast, easy, convenient, and secure. The government does not charge for this service. You can enroll in EFTPS-OnLine via an official government site on the Internet, using a user-friendly Web interface. After enrollment, you will receive a confirmation kit by mail with instructions for obtaining an Internet password. For added security, a unique Personal Identification Number (PIN) will be mailed to you.
Tax

Faster Refunds Through Direct Deposit

Want a faster refund? The IRS says that more taxpayers are choosing direct deposit as the way to get their federal tax refunds. The payment is more secure - there is no check to get lost. And, it's more convenient - no special trip to the bank to deposit a check! To request direct deposit, follow the instructions for "Refund" on your tax return.Nearly 34 million people had their tax refunds deposited directly into their bank accounts during the 2001 filing season, a 15 percent increase from the year before.
Tax

Forms and Publications: How To Order

The Internal Revenue Service has many forms and free publications on a wide variety of topics to help you understand and meet tax filing requirements. These forms and publications are available on the Internet, on CD-ROM, through fax on demand, over the telephone, through the mail, at local IRS offices, at some banks, post offices and libraries, and even at some grocery stores, copycenters and office supply stores.If you know what form or publication you need, call the IRS toll-free order number at 1-800-TAX-FORM (1-800-829-3676).
Tax

Toll-Free Telephone Service

Free tax help from the IRS is just a phone call away. The IRS provides various services through its toll-free telephone numbers. You can order forms and publications, listen to prerecorded tax information, check on the status of your refund, ask questions about your tax return or inquire about a letter or notice you may have received.
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How to Get a Copy of Your Tax Return Information

There may be times when you need a copy of your prior year federal tax return, a transcript of a return or tax account information. A phone call to the IRS or a visit to the IRS Web site may easily solve your problem.There are several different options available depending on how quickly you need the information. If you need a photocopy of a previously processed tax return, complete Form 4506, "Request for Copy or Transcript of Tax Form," and mail it to the IRS address listed on the form for your area.
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Tax Materials and Assistance in Spanish

If you need federal tax information in Spanish, you can find it in the form of recorded tax topics, free tax publications and toll-free telephone assistance from the Internal Revenue Service.TeleTax is a toll-free automated service, in English and Spanish, providing helpful tax topics and refund information. You can find a list of the 151 TeleTax topics in the instructions for Form 1040, 1040A or 1040EZ. TeleTax can also help you if it's been at least four weeks since you filed your return and you want to check on the status of your federal refund.
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Taxpayer Rights and the IRS

The law requires the IRS to protect taxpayer rights, and in its day-to-day operations, the IRS and its employees aim to make taxpayer rights a top priority. This includes explaining those rights to taxpayers, keeping taxpayer information private and confidential and being professional and courteous.Besides what is expected of IRS employees, taxpayers have many other rights. They have the right to have someone represent them before the IRS and to accompany them to any meeting with IRS employees.
Tax

E-File Helps Refunds, Payments

Are you one of the almost 100 million taxpayers who will receive a refund this year? The IRS says that requesting direct deposit and filing your tax return electronically (e-filing) will put that money in your pocket faster and easier.Every year, more taxpayers find out how safe and easy it is to have their tax refund deposited directly into their checking or savings account. This option is available for both e-filers and paper return filers.When you file electronically, your refund will be issued within three weeks, about half the time it would take if you filed a paper return.
Tax

Publication 17 - One Stop for Tax Help

Facing a lot of different tax questions this year? IRS experts have pulled together an overview of common tax issues in one convenient place - Publication 17, "Your Federal Income Tax." This updated publication contains a vast array of helpful information in one guide.From stock sales to student loans, this 280-page publication holds the answers to many of your questions, such as: Need help deciphering the mysteries of the Roth IRA? Try Chapter 18 for retirement accounts. Do you have a new child in the house?
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Free Tax Publications Available

From aardvark to zyzzyva, the IRS has a publication that covers it - free for the asking. The IRS has numerous publications on a variety of tax-related topics available by phone, fax, or the Internet at www.irs.gov .Are you a student seeking knowledge on the lifetime learning credit? Check out Publication 970. Are you a first-time home buyer?
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Point and Click for a Trouble-Free Tax Season

Need a tax form? Have a question about changes to tax law? Want to find the nearest IRS taxpayer assistance center? Now anyone with a personal computer and Internet access can point and click their way to trouble-free tax filing at www.irs.gov.The IRS Web site offers a wealth of resources for making tax time, well, a little less taxing. A user-friendly format allows even novice Web surfers to quickly find the information they need.

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