Zion Tax Service
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| Tax News |
File electronically
One of the main reasons many people file electronically is to get their tax
refunds faster. Makes sense, doesn’t it? If you file your tax return
electronically, it is usually processed in a day or two. If it is accepted and
you are due a refund, the IRS will process your tax refund on a weekly
schedule.
State refund schedules, however, are different for different States, but filing
with your state electronically will still probably save you lots of time.
refunds faster. Makes sense, doesn’t it? If you file your tax return
electronically, it is usually processed in a day or two. If it is accepted and
you are due a refund, the IRS will process your tax refund on a weekly
schedule.
State refund schedules, however, are different for different States, but filing
with your state electronically will still probably save you lots of time.
2010 Changes
Amount of credit increased. The maximum amount of the credit has
increased. The most you can get for 2010 is
$3,050 if you have one qualifying child,
$5,036 if you have two qualifying children,
$5,666 if you have three or more qualifying children, or
$457 if you do not have a qualifying child.
Earned income amount increased. The maximum amount of income you can
earn and still get the credit has increased for 2010. You may be able to take
the credit if:
You have three or more qualifying children and you earn less than $43,352
($48,362 if married filing jointly),
You have two qualifying children and you earn less than $40,363 ($45,373 is
married filing jointly),
You have one qualifying child and you earn less than $35,535 ($40,545 if
married filing jointly), or
You do not have a qualifying child and you earn less than $13,460 ($18,470
if married filing jointly).
increased. The most you can get for 2010 is
$3,050 if you have one qualifying child,
$5,036 if you have two qualifying children,
$5,666 if you have three or more qualifying children, or
$457 if you do not have a qualifying child.
Earned income amount increased. The maximum amount of income you can
earn and still get the credit has increased for 2010. You may be able to take
the credit if:
You have three or more qualifying children and you earn less than $43,352
($48,362 if married filing jointly),
You have two qualifying children and you earn less than $40,363 ($45,373 is
married filing jointly),
You have one qualifying child and you earn less than $35,535 ($40,545 if
married filing jointly), or
You do not have a qualifying child and you earn less than $13,460 ($18,470
if married filing jointly).
Can't Afford To Pay Your Taxes
If you can’t afford to pay your taxes, you should still file your return on time
and pay as much as you can to avoid penalties and interest, the I.R.S. said.
But call the I.R.S. to see whether you can get an extension, a payment plan
or other relief.
and pay as much as you can to avoid penalties and interest, the I.R.S. said.
But call the I.R.S. to see whether you can get an extension, a payment plan
or other relief.
| Breaking News |
| Who Must Wait to File For most taxpayers, the 2011 tax filing season starts on schedule. However, tax law changes enacted by Congress and signed by President Obama in December mean some people need to wait until mid- to late February to file their tax returns in order to give the IRS time to reprogram its processing systems. Some taxpayers – including those who itemize deductions on Form 1040 Schedule A – will need to wait to file. This includes taxpayers impacted by any of three tax provisions that expired at the end of 2009 and were renewed by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act Of 2010 enacted Dec. 17. Those who need to wait to file include: Taxpayers Claiming Itemized Deductions on Schedule A. Itemized deductions include mortgage interest, charitable deductions, medical and dental expenses as well as state and local taxes. In addition, itemized deductions include the state and local general sales tax deduction that was also extended and which primarily benefits people living in areas without state and local income taxes. Because of late Congressional action to enact tax law changes, anyone who itemizes and files a Schedule A will need to wait to file until mid- to late February. Taxpayers Claiming the Higher Education Tuition and Fees Deduction. This deduction for parents and students – covering up to $4,000 of tuition and fees paid to a post-secondary institution – is claimed on Form 8917. However, the IRS emphasized that there will be no delays for millions of parents and students who claim other education credits, including the American Opportunity Tax Credit extended last month and the Lifetime Learning Credit. Taxpayers Claiming the Educator Expense Deduction. This deduction is for kindergarten through grade 12 educators with out-of-pocket classroom expenses of up to $250. The educator expense deduction is claimed on Form 1040, Line 23 and Form 1040A, Line 16. In addition to extending those tax deductions for 2010, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act also extended those deductions for 2011 and a number of other tax deductions and credits for 2011 and 2012 such as the American Opportunity Tax Credit and the modified Child Tax Credit, which help families pay for college and other child-related expenses. The Act also provides various job creation and investment incentives including 100 percent expensing and a two-percent payroll tax reduction for 2011. Those changes have no effect on the 2011 filing season. The IRS will announce a specific date in the near future when it can start processing tax returns impacted by the recent tax law changes. In the interim, taxpayers affected by these tax law changes can start working on their tax returns, but they should not submit their returns until IRS systems are ready to process the new tax law changes. Additional information will be available at www.IRS.gov. For taxpayers who must wait before filing, the delay affects both paper filers and electronic filers. The IRS urges taxpayers to use e-file instead of paper tax forms to minimize confusion over the recent tax law changes and ensure accurate tax returns. Except for those facing a delay, the IRS will begin accepting e-file and Free File returns on Jan. 14. Additional details about e-file and Free File will be announced later this month. |