Archive for 2009


Midwestern Disaster Area Tax Impacts

If you live in the Midwestern Disaster areas and were affected by the storms of 2008, there are various tax law changes for you to consider when filing your taxes this year.
The Midwestern Disaster areas include Arkansas, Illinois, Indiana, Iowa, Missouri, Nebraska, and Wisconsin. Specific counties are listed in Publication 4492-B.
Tax Changes
Here are highlights [...]


Earned Income Tax Credit

The earned income tax credit (EITC) is intended to help low to moderate income individuals and families and provide an incentive to work. The earned income tax credit is refundable, which means that even if the credit is more than the tax owed, you can still get a refund.
Earned Income Tax Credit Requirements
The maximum [...]


Tax Tip of the Day

Looking for tax tips in small doses? The IRS counts down to April 15 with a daily tax tip posted on their website.
Recent tips that caught my eye included:

Ten Things You May Not Know About the Earned Income Tax Credit
Tips for Recently Married or Divorced Taxpayers
Top Five Facts about Dependents and Exemptions


Kiddie Tax

Children who earn investment income, including interest and dividends, usually pay a lower tax rate than their parents.
However, once the child’s investment income exceeds $1,800, the child’s income will be subject to the kiddie tax. When the kiddie tax applies, part of the child’s income will be taxed at the parent’s tax rate.
The [...]


Saver’s Credit for Retirement Contributions

Update: For current year information, see Retirement Saver’s Tax Credit.
The Saver’s Credit (which used to be called the Retirement Savings Contributions Credit), is a tax credit up to $1,000 ($2,000 if filing jointly). The credit is for contributions to 401ks, IRAs, and other retirement plans.
Who can claim the Saver’s Credit:

Individuals (and married filing separately) [...]


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