October 12, 2016

Help Your Community by Becoming a Tax Volunteer

If you have some free time and want to pitch in and help out in your community, think about becoming a tax volunteer. The Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs need volunteers for next year’s tax season. Volunteers help prepare tax returns for low-income and elderly taxpayers. Here’s what you should know: Volunteer hours are flexible and volunteers usually spend about three to five hours each week between January and April helping out. Volunteer sites are available in communities around the country and are usually in neighborhood centers, libraries, schools, shopping malls, and other similar places. You can request to work specifically with military families and help those who serve our country. The IRS provides specialized training and materials and will teach you how to prepare basic tax returns. To learn more about volunteering, contact our office or visit IRS.gov and type “tax volunteer” in the search box. Tip courtesy of IRS.gov
August 31, 2016
Tax Goof

Make a Tax Goof? Here’s How to Amend Your Return

Make a Tax Goof? Here’s How to Amend Your Return. It’s very common to make a mistake when filling out tax forms. Fortunately, the IRS makes it easy to file an amended tax return. Here’s what you need to know: Make a Tax Goof? Here is How to Amend Your Return The IRS says that you should amend your federal tax return if you need to correct your filing status, the number of dependents you claimed, or your total income. Deciding to claim additional deductions or tax credits that you left off of your original return also calls for an amendment. In some cases, you may not need to file an amended return. The IRS usually catches and corrects simple math mistakes when processing your return, so realizing you made a simple arithmetic error shouldn’t be a cause for worry. The IRS will also mail a request for any missing information they may need to process your original return. If you need to file an amendment, you’ll need to use Form 1040X and indicate which year’s return you’re amending. Unfortunately, there’s no way to complete this form online, so you’ll have to fill it out in paper form. If you […]
August 24, 2016

Back-to-College Tax Tips – Financially Simple

“Back-to-College Tax Tips”If you, your spouse, or a dependent is heading off to college, there are some important tax-saving tips you should know about. Here’s what the IRS says: Back-to-College Tax Tips You can claim only one type of education credit per student on your tax return each year. If you have multiple eligible students, you could claim a different credit for each student. To qualify, education expenses must be for tuition, fees, and “related expenses” for an eligible student. Expenses must be paid for attendance at eligible higher education institutions, including most colleges and universities. Ask the school whether they are an eligible institution or check the school’s accreditation status in the U.S. Department of Education’s Accreditation Database. The American Opportunity Tax Credit: The AOTC is worth up to $2,500 per year, per eligible student. You may claim this credit only for the first four years of higher education. 40% of the AOTC is refundable, which means if you are eligible, you can get up to $1,000 of the credit as a refund, even if you do not owe any taxes. The Lifetime Learning Credit: The LLC is worth up to $2,000 on your tax return. There is no […]
May 19, 2016
Tips for Gift Taxes

Need to Amend Your Return? Here’s How.

“Need to Amend Your Return? “, If you discover that you’ve made an error on your tax return, you may need to file an amended return. Though you don’t need to file if you’ve made a simple math error or left out forms (the IRS corrects for those automatically), you should file an amended return for any missed credits, deductions, filing status, or income. Need to Amend Your Return?  Here’s How. Use form 1040X to file an amended return. You’ll need to fill out a paper form and mail it to the IRS. You’ll need to use separate forms for each year you need to amend. If you use any other forms or need to submit new documentation, attach them to the 1040X form. If you need to claim an additional refund, wait until you receive your original refund before filing an amended return. Pay any additional tax you owe as soon as possible to avoid accruing additional interest and penalties. Tip courtesy of IRS.gov