New Tax Relief For Education

New Tax Relief For Education

The Lifetime Learning Credit 2010 gives a tax credit of up to $2,000 dollars for types of higher learning. It differs from the American Opportunity Tax Credit because it can be claimed for part-time students  and even for courses that don’t count towards a degree. This credit has been made available through 2011, 2012, and again this year. Eligible Expenses include Tuition but not room and board, Books, Equipment, and fees that may be required by the University. The Lifetime Earning Credit isn’t eligible with tuition paid fro by a scholarship, employer funds or a grant. Even if multiple students are eligible the Lifetime Learning Credit can only be claimed once a year per household. The tax credit reduces taxes by 20% for non qualified expenses for up to $10,000 dollars for a total of up to $2,000.

A construction project to repair and update th...
A construction project to repair and update the building façade at the Department of Education headquarters in 2002 resulted in the installation of structures at all of the entrances to protect employees and visitors from falling debris. ED redesigned these protective structures to promote the “No Child Left Behind Act”. The structures were temporary and were removed in 2008. Source: U.S. Department of Education, (Photo credit: Wikipedia)

You may claim the credit if you, a dependent or your spouse attends an eligible university or educational institution. even if only one class is taken, the tax credit may be claimed. All accredited colleges and universities are eligible as well as vocational schools as long as their also eligible for the US Department of Education’s Federal Student Aid Programs. Single head of households and qualifying widows earning between $53,000 and $63,000 have been phased out for 2013. If you’re married and filing jointly, the phase amount is $107,000 to $127,000. This amount is up from 2012’s phase out range of $52,000 to $62,000 for qualifying widows and single, head of household and a range of $104,000 to $124,000 for Married couples filing jointly.

Tax Carnival Ecstasy – June 18, 2013

Welcome to the June 18, 2013 edition of Tax Carnival Ecstasy. In this edition we start with an article by Jason Hull on tax accountants for your business. John Schmoll has a great post on retirement planning and saving for college together. Bill Smith takes a look at the online sales tax proposals that have been made. And we have an article on fake charities popping up after the recent events in Boston and how to protect yourself. Hope you like all the articles, bookmark, share, tweet, and like on Facebook.

Bill Smith's gold medal
Bill Smith’s gold medal (Photo credit: Waikiki Natatorium)

filing

Jason Hull presents Tax Accounts for Your Business posted at Hull Financial Planning, saying, “Don’t forget that if you own a business which is treated as a partnership for tax purposes, you’ll be personally liable for the taxes at the end of the year!”

retirement

John Schmoll presents Retirement Planning and Saving For College: Can They Co-exist? posted at Frugal Rules, saying, “Retirement planning and saving for college are both items that take years to save for. While it may not always be easy to balance the two, it can be possible to do so without sacrificing the other.”

John Schmoll presents How to Invest in Stocks When You Do Not Know Where to Start posted at Frugal Rules, saying, “Investing in stocks, or anything in the market, can be overwhelming for many. The key to overcoming that fear is knowing where to start and educating yourself so that you can set up an investment portfolio that’ll help you grow your wealth and reach your long-term retirement goals.”

tax law

Bill Smith presents Implications Of Passing A Senate Bill Enacting An Online Sales Tax posted at 2011 Tax, saying, “Congress is currently moving forward with a Senate bill that could place sales taxes on buyers who place orders for items housed out of state.”

taxes

Bill Smith presents TaxCaster: The Mobile Tax Calculator For Taxpayers posted at 2009 Tax, saying, “Tax calculators are popular tools for consumers these days. Before filing one’s taxes, a person can take advantage of a calculator.”

Bill Smith presents After The Events In Boston And Texas, Charity Scams Are Common posted at 2009 Taxes, saying, “When you use TurboTax to file your taxes, you may notice that you can write off the money that you gave to charities.”

tips

Cherry Liu presents 30 Blogs Featuring the Most Reliable Tips for Estate Shoppers posted at House Sitting Jobs, saying, “Real estate laws, taxes and investment options constantly change to reflect the state of the economy, which is why the smartest investors know stay ahead of the game.”

That concludes this edition. Submit your blog article to the next edition of tax carnival ecstasy using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

More Sharing ServicesShare | Share on facebook Share on myspace Share on google Share on twitter

Technorati tags: tax carnival ecstasy, blog carnival.

Arizona Tax Attorney Aims To Save Customers Money

Seal of the United States Internal Revenue Ser...
Seal of the United States Internal Revenue Service. The design is the same as the Treasury seal with an IRS inscription. (Photo credit: Wikipedia)

Tax payers often seek out tax lawyers so they don’t have to deal with the Internal Revenue Service alone. In turn, an Arizona tax attorney offer expert tax resolution services that often helps clients save money.

For instance, one satisfied customer said his Phoenix tax attorney offer detailed recommendations about how to deal with the IRS at a time when “we really needed help.”

The customer went on to explain how he relied on these tax lawyers experience to both resolve current tax bill issues; while also avoiding problems with the IRS in the future.

Reliable tax assistance

When it comes to the IRS and tax bills, many people hire a professional tax attorney to not only help them with their personal income tax and their business related taxes.

For example, one small business owner said he needed reliable and knowledgeable tax assistance because his business could not function under a cloud of IRS tax issues.

Thus, the business owner consulted with expert tax lawyers to sort out the back taxes that the IRS said he owed.

At the same time, people who hire these experienced and trustworthy tax experts for personal tax help say it really offered them peace of mind because they no longer have to worry about their IRS bills.

Features Of The Federal Free TurboTax

Features Of The Federal Free TurboTax

It is now possible for people to file their Federal taxes free with the help of Free Turbo Tax.  Federal Free Turbo Tax was designed with people having tax returns in mind, in view that they do not require a lot of tax guidance irrespective of their income level. The free edition provides an easy way of getting free tax preparation, by searching for the tax credits that one is eligible for to get the highest possible refund amount.

English: United States Internal Revenue Servic...
English: United States Internal Revenue Service Criminal Investigation Division Badge (Photo credit: Wikipedia)

Federal Free TurboTax has several notable features, including guidance for first time users on how to complete their taxes. It asks questions in plain English then arranges the answers for the filer on the correct forms. It also skips the questions that do not apply the person filing the taxes, enabling him to finish the process faster. Moreover, it guarantees one to get the biggest refund possible.

The feature finds every credit that a person remitting his taxes deserves. Every year, many taxpayers get a lesser refund than they deserve since they fail to capitalize on the entire tax credits for which they qualify. Federal Free Turbo Tax has an audit support center that can be downloaded. It provides the taxpayer with guidance on what he needs to know and do in case the IRS contacts him. A notable feature of it that with it one can pay his taxes as he pleases, any time of the day. One can even access it without having to create a user ID.

Tax Credits For Your Home

2010 Tax Credits For Your Home

For those of you thinking of buying a new home but are not sure about the 2010 tax credits, maybe this will help you. If you are buying a home and your modified gross income is less than $245,000, the house costs less than $800,000, and you’re a first time home buyer, you can receive full credit. If your modified adjusted income is more than $125,000, you will receive a reduced credit. If your MAI is more than $245,000, you will receive no credit. Also, for those of you who are remodeling, you can also receive tax credits for your home.

2010 Guide To Home Buying Tax Credits

Learn about infographics software.

5 Tax Tips for Self-Employed Individuals in Any Field

Self-employment is like ice cream; it comes in a large variety of flavors. You can be a freelance writer, a graphic designer, a landscaper or a dog walker. Some people are self-employed full time, while others work part-time around their “day job”. Whatever your flavor of self-employment is, there are some definite tax tips you need to know.

If You Earn It, You Have to Declare It

If you do work for businesses, they will generally send you a 1099 form that you have to file at the end of the year. However, even if you work for individuals, or a business that does not send you a 1099 form, you still have to declare that income. Do not be fooled by thinking, “If I make less than $600 from one person (or business) during the year then I don’t have to declare it.” That is an often-misunderstood concept. The IRS expects you to declare every penny you earn.

Track Your Income and Expenses

You do not want to hand your accountant envelopes full of unsorted receipts and cashed checks come tax season. The accountant may miss some deductions because he or she could not find the right slip of paper. Even relatively inexpensive programs like Quicken work great. Keep track of all your hard copy paperwork and keep it organized as well. The IRS has very specific rules about business tax deductions and whoever does your tax return will need as clear a picture as possible to maximize your deductions.

Estimate Your Taxes

There are two ways to avoid being hit with a whopping tax debt at the end of the year. Either you have to be frugal enough to put away a certain percentage of every payment you receive, or you have to arrange with the IRS to pay quarterly estimated tax throughout the year. Most people choose the latter in order to avoid yearly penalties for underpayment. It may be tempting to spend all your money as quick as you earn it, but remember that just because no one took taxes out when you earned it, that does not mean you will not have to pay later. Estimating and paying your taxes is one way of avoiding having to file a tax extension form in the future.

Pick Your Name

If you are doing business under your own name, that is great. You just file a Schedule C form with the IRS and life is simple. However, if you are doing business under a company name, then you should have some sort of business license in order to avoid problems with the IRS. It can be a simple DBA (doing business as) license, but you want to make sure that you have all your legal paperwork in order before filing your taxes.

Self-Employment Tax

The IRS does charge a special tax rate for people who are self-employed. You will have to pay the self-employment tax, but you can deduct half of when figuring out your adjusted gross income. Form 1040 Schedule SE, available on the IRS website, will help you figure out exactly how much your self-employment tax will be.

Filing a tax return when you are self-employed is trickier than filing a regular tax return. Many people find that going to a professional tax accountant is well worth the initial fees in order to get the highest possible return they can. Unless you are very knowledgeable about business tax laws, you should keep yourself as organized as possible and seek the help of a reputable professional when it comes time to file your taxes.

About the Author: Annita Grosh is an accountant who specializes in working with self-employed invididuals. She loves watching as an idea becomes a workable and profitable business.