People may think that the mileage tax deduction is only for employer expenses, such as traveling for your own business or using your personal car to travel for an employer. Both of these scenarios make you potentially eligible to claim the mileage tax deduction on your taxes. However, there are several other scenarios where you [...]
Earned Income Tax Credit (EITC)
Posted byWhat is the Earned Income Tax Credit? The earned income tax credit (EITC) is an incentive to work for low to moderate income individuals and families. The earned income credit is refundable, which means that even if you don’t owe any taxes, you can still get a refund. 2012 Earned Income Tax Credit Income Limits [...]
What is a Form 1099?
Posted by2012 Form 1099s are in the mail. You should receive your form 1099s shortly. Here’s what to expect. What is a 1099 Form? A 1099 is a form that is used to report taxable income you earn aside from your regular salary or wages. A few examples of income types that a 1099 may report [...]
Form 8863 for Education Credits
Posted byWhat is Form 8863 Education Credits? Form 8863 allows you to claim your education credits. You may be eligible for these credits for any expenses from your post-secondary or college costs. There are two credits available: the American Opportunity Credit and the Lifetime Learning Credit. What is the difference between the American Opportunity and Lifetime [...]
What is a 1040 Form?
Posted byWhat is a 1040 Form? A 1040 form is the basic tax form which individuals use to file their tax returns. The 1040 form summarizes information about an individual’s income and deductions and calculates whether the individual owes the government money or receives a tax refund. Tax forms 1040 must be filed by the tax [...]
What is Modified Adjusted Gross Income?
Posted bySo you want to contribute to a retirement plan, and you’re trying to find out if you are eligible? Then you arrive at the eligibility for IRAs and Roth IRAs and find they’re based on your modified adjusted gross income. What is that exactly? Let’s take a look! What is Modified Adjusted Gross Income? Modified [...]
Adoption Tax Credit
Posted byWhat is the Adoption Credit? If you adopted a child recently, qualified expenses related to the adoption have reverted back to being a nonrefundable tax credit. The credit was refundable for tax years 2010 and 2011. The tax adoption credit is a maximum of $12,650 per child for tax year 2012. What Expenses Qualify? Qualified [...]
Standard Deduction
Posted byWhat is a standard deduction? How much is your standard deduction? When you fill out your tax return, you report your gross income. But before you calculate your taxes owed, you reduce your income by claiming deductions. Each year, the government publishes a standard deduction amount that is indexed to inflation. Tax payers can choose [...]
When is the Tax Deadline?
Posted byThe 2013 tax deadline for your 2012 tax return is back to the traditional April 15 deadline. Last year, the 2012 tax deadline for your 2011 tax return was April 17, 2012. The deadline to file taxes last year was due to the Emancipation Day holiday. The 2012 tax deadline was extended for everyone even [...]
How to File a Schedule A Form
Posted byIf you choose to itemize your deductions, you must fill out the Schedule A and submit it with your Form 1040. How to Fill Out Schedule A Before you complete the Schedule A you should gather all documentation of your deductions – receipts, forms provided to you by financial or governmental institutions, etc. You must [...]
