Introduction to EITC

For the tax year 2010, the Earned Income Tax Credit is going to be adding another to their vast list of approved US Citizens who may claim this credit. When the amount of the Earned Income Tax Credit covers any payments that you might owe to the US Government. Some tax payers can qualify for almost 5,000.00 dollars in refunds with the Earned Income Tax Credit.

In previous years, the Internal Revenue Service had a qualifying Earned Income Tax Credit category for lower income citizens without kids, for citizens with one child living under their roof for longer than 6 months during the tax year, and a category for citizens with 2 or more kids in their homes. For tax year 2010, citizens who have 3 or more kids under their care for longer than 6 months out of the year can file for a larger credit than previous years.

Taxpayers with kids living in their homes do not have to be the natural parents to the kids. Earned Income Tax Credit is for qualifying grandparents helping their children by caring for their offspring, uncles who have taken their siblings kids to help during our rough financials times, or even an older sister or brother with their siblings in their care.

Foster care parents with kids placed into their houses by an approved agency are also eligible to claim a Federal earned income tax credit if the children steadily for longer than 6 months out of the income tax year. Any time that children spends exactly 6 months in each of two homes, the person who claims the Earned Income Tax Credit is the taxpayer most closely related to the child. Whenever a question of who is filing comes up, the parent is favored.

Foreign born people working in the United States of America with a child or children in their home for more than 6 months out of the tax year also normally qualify to take their Earned Income Tax Credit money. One requirement is that the person claiming this Earned Income Tax Credit and all children involved must have the valid Social Security #’s that are required of all taxpayers in this country the US. Other Earned Income Tax Credit rules may also apply to those who are born in other countries.

Where Is My Income Tax Refund?

If you are missing a Income Tax Return check in the mail, or one that should have been deposited into your bank account, go to the IRS Website called, “Where’s My Refund”. Simply type those words into your Internet search bar to get started. The IRS keeps the site open all year long to allow tax filers to trace refunds.

The IRS often hears the question, “Where is my federal tax refund?” The crooks are always working hard around tax time to try to trick you out of your tax refund payments. If you have a missing federal tax refund check, do not wait in hopes that it might show up someday, go straight to the IRS Website “Where’s My Refund” and find out where it is.

The program on the IRS Website is very simple to use. It requires that the tax payer identify themselves with a social security number), the exact amount of person making out the tax papers would know. You and your tax preparer both have had access to this information.

It’s never smart to use a tax service to prepare your taxes that are offering tax return refunds that seem too high to be real, or ones that offer other tricks that go above simply filling in your paperwork for a fee. It is too easy for everybody that would like to become a tax preparation criminal to open their own fancy looking URL.

The IRS puts out a document each year of the biggest scams and frauds that are going around that involved federal tax refund checks. Some of the scams on the list are things that they are seeing in house, and ways that filers try to cheat on their federal income taxes. Other things on the list are ways that tax preparation or tax refund checks are ending up being used in frauds.

If your IRS tax refund check is gone, and it cannot be found inside of the IRS, “Where’s My Refund” program, then you might have been a victim to one of the various frauds or scams that are going around. Instantly get in touch with the IRS for a determination of your tax return standing, and then follow their directions exactly.

Income Rate Brackets Need To Be Monitored By Those Nearing The Upper Tax Levels

Income Rate Brackets Need To Be Monitored By Those Nearing The Upper Tax Levels

Tax rate charts are often confusing to tax payers because income is taxed at a rate that is based on filing status so that it’s possible for two people to earn the same amount of money and be taxed completely different. Married couples who make jointly, and not taxed at the same amount as a single tax payer earning the money, or a married single person filing at the level of income.

In the United State of America, over the last nine years, Income rate charts have had had the upper level of rates moving down so that some taxpayers who make more money end up not paying any income taxes at all after deductions. This situation with the Income tax rate charts will be fixed starting in year 2011 with the upper two tax brackets going back to the higher levels that were appropriate during tax year 1993.

By year 2010, taxpayers with a income over $200,000 either jointly or by themselves, will be in the upper two Income rate brackets for payments. This is something to consider for everybody who lives in a high expense area of the country where incomes in this $200,000 + range are necessary to make ends meet. These citizens may want to start looking into other ways to beef up reductions before tax year 2011 hits.

One way that the IRS does not want taxpayers to try to reduce their Income tax bracket with is business at home that are just being used paper to reduce household expenses or to otherwise write off of the house as a business write-off. By going to the IRS site, you can read about the IRS beginning to take action against individuals who try to get away with claiming home business expenses to lower their Income Brackets.

Smart ways to lower Income Brackets can happen by giving up any online sales or additional activities that will push incomes into higher. Another way is to adopt a charity that is approved as a deduction area to help during our current economic crisis. The charities will appreciate the help, and US Government will keep your taxes lower if you do not go above that golden $200,000 Income Brackets.

It is easy to keep track of how your income is affecting your Income bracket over the course of a year with an internet based preparation site. Start you income taxes early, and enter the tax information weekly for your situation, which makes it possible to see how close to the Income rate bracket line you are getting before the 2011 tax season. This method of predicting sometimes gives citizens a heads-up a few months before the end of the tax year so that they have time to rearrange their plans to accommodate reductions.