The Earned Income Tax Credit and How to Claim it 2018, 2019

Dating as far back as the mid-70s, the Earned Income Tax Credit (EITC) was introduced to help low and middle-income families reduce poverty and encourage the earning of income. Today it is perhaps the most impactful tax credit available in the IRS tax code. In a new post, National Tax Reports gives an overview of how this tax credit works, what the qualifications are, and how any American can claim it.

There are a variety of criteria that must be met in order to qualify for the Earned Income Tax Credit (EITC). Top on the list is earning a taxable income. In this case, the higher number between your adjusted gross income and your earned income is used for the purposes of assessing the EITC. The others are:

  • Numbers of qualifying children
  • You and qualifying children must have a social security number valid for the purposes of employment
  • Having an investment income not more than $3,450 for the tax year.
  • Your filing status cannot be that of a ‘married filing separately’.
  • Not filing using the Form 2555 and Form 2555-EZ.

The amount of dependent taxx credit that can be received from the EITC also depends on factors like the number of children that qualify, one’s taxable income, and tax filing status. There are strict income thresholds that influence how much the credit might be worth with the highest threshold for the 2018 tax year set at $6,431 for families with three or more qualifying children. Tax filers with no qualifying children can still earn as much as $519.

National Tax Report recommends using TurboTax to file the Earned Income Credit. The online tax platform will help you find out your filing status, if your child is a qualifying child, if you are eligible, and estimate the amount of the credit you may get. And all you have to do is answer simple, plain-English questions about your family.

For more information about the Earned Income Tax Credit and how to take advantage of the best tax benefit available, please visit, https://nationaltaxreports.com/what-is-earned-income-tax-credit-how-to-claim/

All there is to Know about the Energy Tax Credit 2018, 2019

Using renewable energy or energy efficient equipment in the home has a number of advantages, but one that isn’t widely publicized is the tax credit advantage. Homeowners who improve their homes in order to make them more energy efficient qualify for a federal residential energy tax credit. Although, there is a lot of misinformation as to whether the energy tax credit still exists; the good news is it still does. An online tax information and advice blog, File My Taxes Online just published a post shedding more light into the residential energy tax credit, how to claim it and what to do to qualify for it.

The Residential Energy Efficiency Property Credit is designed for solar energy, wind energy, and geothermal home improvements. It also applies to furnaces, energy efficient windows, and air conditioning systems but there are important restrictions on these systems. The residential energy tax credit will be available in its entirety until 2019. After 2019, its value is expected to rise until 2021, when it will need to be renewed or discontinued by Congress.

Like any other tax credit, the amount taxpayers can get back is still at 30%, with a decline until the tax credit expires after 2021. There is also no upper ceiling for how much homeowners can get back, but the credit for fuel cells is capped at $1,000 per kilowatt of power capacity. This implies that homeowners that install fuel cells with a power capacity of six kilowatts will get a tax credit worth $6,000.

Homeowners who would like to take advantage of the energy tax credit will need to add up their various energy credits on IRS Form 5965. After which they can now add it to the conventional Form 1040. File My Taxes Online recommends using the TurboTax taxcaster to calculate the energy tax credit. TurboTax simplifies the process of filing Form 5695 as it only requires homeowners to fill in some numbers. It will then be able to provide at a glance how much can be claimed back from the government. TurboTax guarantees 100% accuracy and provides access to professional tax preparers who will personally review your tax return.

For more information about the federal residential energy tax credit, please read the full post on File My Taxes Online here – Energy tax credit

The New Accelerated Filing Deadlines for 1099s and W-2s in 2018, 2019

The Protecting Americans From Tax Hikes Act (PATH Act) from 2015 was introduced with the sole aim of reducing the amount of tax fraud in the United States. It was becoming somewhat of a disturbing trend for identity thieves to file very early into the tax season so they could receive refunds from the IRS before any data can be verified from the employers involved. In order to combat this trend, the IRS has accelerated the filing deadlines for the 1099s and W-2 forms as part of new changes to the PATH Act. Internet Tax Connection sheds more light on what the new accelerated filing deadlines are and what impact it has on taxpayers filing form 1099s and W-2s.

For the W-2 form, the new due date for paper copy A, which is sent to the Social Security Administration is now January 31. This new due date also applies to the electronic version which used to be due by March 31. Also, the due filing date for the 1099-MISC forms has been accelerated to the 31st of January regardless of whether they are filed on paper or electronically.

This implies that there is now no time to file corrections before the due date. As a result, the PATH Act has implemented a safe harbor rule. For minor changes, there’s no penalty for filing an error and it can be corrected later on.

The tax blog also notes that there are now new penalties for taxpayers who file late or fail to file at all. Taxpayers who file up to 30 days late will now have to pay a $50 fine per form while those that file later than 30 days will pay a $100 fine per form. Defaulters or filers that submit their forms after August 1st will pay the heaviest fine and will be subjected to a $260 fine per form.

In order to avoid incurring such penalties, taxpayers should make note of the new due dates immediately and ensure that they send their forms for tax filing with the SSA or IRS on or before January 31.

For additional information about the new Accelerated Filing Deadlines for 1099s and W-2s please visit, https://internettaxconnection.com/filing-deadlines-for-1099s-w-2s/

The Low-down on the Child and Dependent Care Credit 2018, 2019

Taxpayers looking for some relief as regards their child care expenses should look no further than the Child and Dependent Care Credit. The credit involves a variety of things, but the main reason to claim this credit is to cover the cost of childcare. In a recent post, Internet Tax Connection details the rules revolving around this tax credit and how much it’s worth.

There are only a few basic conditions to be met in order to qualify for the Child and Dependent Care Credit. One important condition is the Age Limit. The child must be 13 years or younger at the end of the year to be eligible for the credit. The credit can also be claimed on adults older than 13 years as long as they are unable to care for themselves and must have stayed at home for at least six months of the year.

Another condition is the Child Care Credit Income Limit, and it helps determine the amount of child care credit that can be claimed by taxpayers. When compared to other tax credits, the child care credit has no maximum income ceiling cap. However, the more taxpayers earn, the lesser they will get. The lowest earners will be able to claim back 35% of their total expenses, minus any employer-provided benefits. While those at the higher end of the spectrum will be able to get 20% of their total childcare cost after deducting employer-provided benefits.

Taxpayers who would like to calculate how much the child care credit will be worth to them can use the Child Care Credit Calculator. The handy calculator will help to find out how much they may be entitled to in seconds. All they need provide is some relevant information about their financial affairs. They can then go ahead and file their taxes with TurboTax.

For more information about the Child Care Tax credit, please read the original post on Internet Tax Connection here, https://internettaxconnection.com/what-is-child-dependent-care-credit/

Important Things to Note about the New IRS 1040 for 2018, 2019

Recently, the IRS released a draft of the new IRS 1040 Form – A sleek, simplified tax form the size of an average postcard. The new draft may seem a bit confusing as it is significantly different from the previous one. So to help taxpayers across the country get a better understanding of the new IRS form 1040, the American Tax Service has revealed five important things all Americans should know about the new IRS Form 1040.

The American Tax Service reveals that the first and most conspicuous change with the new IRS 1040 Form is the size. The new Form 1040 is about half the size of the old form as it contains just 23 lines, a sharp reduction from the 79 lines contained in the previous form. To compensate for all the content that has been cut-off, the IRS has added 6 more schedules alongside the already existing schedules. While some aspects of the old form were moved into these new schedules, other aspects like the Deductions for alimony and a few others were completely removed.

The Form 1040-EZ and Form 1040-A will no longer exist and every taxpayer will now have to use the Form 1040. All relevant identifying information will be filled on the front side of the card while all tax calculations will be performed on the backside. Taxpayers with more complex tax affairs will require the relevant schedules to be attached to the form. Also, worthy of note is that the new schedules are now numbered, rather than lettered.

Finally, the American Tax Service sums it up with the opinion that the Average American taxpayer might find the new form simpler to use but Americans who have more complex tax affairs might tend to find it a lot more confusing. As a result, the tax blog recommends that all taxpayers file their taxes online with the H&R Block. The H&R Block is up to date with tax reform calculator, the latest IRS tax forms, including the new tax deductions and credits.

To find out more about the New IRS 1040 Form and how you can get a 35% discount filing your taxes online with the H&R Block, please visit, https://americantaxservice.org/what-is-the-new-irs-1040-form/

New Tax Credits and Deductions for 2018, 2019

Tax credits and deductions are meant to help taxpayers easily reduce their tax bills and maximize on savings. While tax credits can be more advantageous as they are subtracted from ones tax liabilities and reduces ones tax bill dollar-for-dollar.

Deductions, on the other hand, are subtracted from ones total taxable income and do not provide a dollar-for-dollar figure benefit. American Tax service, a blog dedicated to helping Americans file their taxes right has just published a post highlighting seven of the most-missed tax credits and deductions and why any smart taxpayer should not overlook any one of them.

First on the list is the Earned Income Tax Credit (EITC). It is a refundable tax credit and should be the number one credit any low-income family should take advantage of. The EITC can range from $519 for no qualifying children to $6,431 for three or more children that qualify. Next on the list is the child tax credit which is a non-refundable tax credit that provides up to $2,000 per child this tax season.

The other tax credits listed on the site are:

  • The Non-Child Dependent Credit
  • The Child Tax Credit and Dependent Care Tax Credit
  • Education Tax Credits
  • The Savers Credit – Retirement Savings Contribution Credits
  • The Healthcare Premium Tax Credit (PTC)

While finding out the tax credits and deductions you qualify for is a great thing, knowing how to claim them is surely the most important thing. The American Tax Service recommends using H&R Block online software to discover and claim all the Tax Deductions and Credits you may qualify for. H&R Block is easy to use and will only ask simple questions to ascertain the tax credits and deductions you qualify for therefore ensuring you get the largest refund possible.

For more information about the New Tax Credits and Deductions 2019, please visit, https://americantaxservice.org/new-tax-deductions/

Sign up for TurboTax Discount Alert 2019 at File My Taxes Online.

Interested in putting more money into your pockets this tax season? Then signing up to receive TurboTax discount promo codes alert on File My Taxes Online should be your next move. Intuit Inc., owners of TurboTax America’s No.1-rated best-selling tax software will announce a Discount Coupon Code Offer sometime in late January to early February. The promo code which will be time-limited offers an opportunity for taxpayers across the country to save up to 20% on the cost of filing their tax returns. Taxpayers who do not want to miss out of this promo code are advised to sign up to receive the discount alerts on File My Taxes Online.

The TurboTax Discount Promo Code has to be used with e-filing and is available for all five versions of TurboTax. That means that whether you are filing your taxes using the Basic, Deluxe, Premier or the Home and Business Editions there is a discount for you. Filing taxes online with TurboTax is simple, convenient and easy and the discount code allows you to save money on your tax filing fees.

As an added advantage, when you chose to file your taxes online with TurboTax, you are able to use your federal refund to purchase an Amazon.com Gift Card. TurboTax also offers an additional 5% – 10% bonus when you use your tax refunds to purchase an Amazon Gift Card.

Do not miss out of the TurboTax Discount Promo Code. The special discount will last only for a limited time, so sign-up for TurboTax Discount Alerts and get notified as soon as they become available. To sign up for the TurboTax Discount Promo Code alert, please visit, https://filemytaxesonline.org/turbotax-discount-offer/

Everything you need to know about the New Child Tax Credit 2018, 2019

First introduced in 1997, the child tax credit (CTC) was a simple non-refundable credit for $400 and it applied to each qualifying child below the age of 17. Over the last 20years, a lot has changed with the child tax credit. But what makes the new Child Tax Credit any different from those from the previous years? American Tax service, an online tax information and advice blog recently published a post that reveals everything you need to know about the new 2018 child tax credit.

In the new post, the American Tax service highlights some of the key changes made by The Tax Cuts and Jobs Act (TCJA) as:

  • Higher Amount – Each qualifying child under 17 is now worth $2,000 to families.
  • Refundable – Now the refundable part of the tax credit is limited to just $1,400. Following 2018, this limit will be adjusted according to inflation.
  • Earned Income – This threshold has been limited to $2,500.
  • Credit Phase out – The credit phase out limit now begins at $200,000, or double if filing jointly. It also applies to the additional $500 credit for any other dependents in a household.
  • Social Security Number – Each qualifying child must have a social security number to qualify.

The rules have also changed on taxpayers who could claim both the child’s dependent exemption and the CTC. With the new TCJA legislation, the dependent legislation has been eliminated. This implies that the taxpayer must be related to the child and must live in the taxpayer’s house for at least half of the year and they can’t provide more than half of their own support. All changes made to the child tax credit will be valid until the end of 2025.

Despite all these changes, taxpayers can easily claim the child tax credit if they file using the H&R Block Online. They will only need to make sure that the child is considered a qualifying child and is listed as a dependent on Form 1040.

For more detailed information about the new 2018 Child Tax Credit, please visit, https://americantaxservice.org/new-child-tax-credit/