Posts tagged irs
Tax Law Changes Provide Saving Opportunities for Nearly Everyone
Jan 7th
Source: IRS.gov
In 2009, numerous new and expanded deductions and credits came into being for a broad cross-section of taxpayers: College tax benefits for parents and students; energy credits for homeowners who are going green; and even tax breaks for home buyers and car buyers.
Following is a summary of these and other key changes taxpayers will find when they start preparing their 2009 federal income tax returns. More >
Five Filing Facts for Recently Married or Divorced Taxpayers
Jan 7th
If you were married or divorced recently, there are a couple of things you’ll want to do to ensure the name on your tax return matches the name registered with the Social Security Administration.
Here are five facts from the IRS for recently married or divorced taxpayers. Following these steps will help avoid problems when you file your tax return.
- If you took your spouse’s last name or if both spouses hyphenate their last names, you may run into complications if you don’t notify the SSA. When newlyweds file a tax return using their new last names, IRS computers can’t match the new name with their Social Security Number.
- If you were recently divorced and changed back to your previous last name, you’ll also need to notify the SSA of this name change.
- Informing the SSA of a name change is a snap; you’ll just need to file a Form SS-5, Application for a Social Security Card at your local SSA office.
- Form SS-5 is available on SSA’s Web site at www.socialsecurity.gov, by calling 800-772-1213 or at local offices. It usually takes about two weeks to have the change verified.
- If you adopted your spouse’s children after getting married, you’ll want to make sure the children have an SSN. Taxpayers must provide an SSN for each dependent claimed on a tax return. For adopted children without SSNs, the parents can apply for an Adoption Taxpayer Identification Number – or ATIN – by filing Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions with the IRS. The ATIN is a temporary number used in place of an SSN on the tax return. The W-7A is available on IRS.gov, or by calling 800-TAX-FORM (800-829-3676).
Source: IRS.gov
Most Overlooked Tax Deductions
Jan 6th
Each year, the IRS announces the most common blunders that taxpayers make on their returns. One of the most prevalent – every single year – is forgetting to enter Social Security numbers on the top of returns, so double-check those forms!
Another yearly occurrence done by millions of taxpayers is overpaying their taxes by overlooking money-saving deductions. Don’t give up your hard earned money, make sure you know about the potential deductions available to you:
1. State sales taxes.
2. Reinvested dividends.
3. Out-of-pocket charitable contributions.
4. Student-loan interest paid by Mom and Dad.
5. Moving expenses to take your first job.
6. Military reservists’ travel expenses.
7. Child-care credit.
8. Estate tax on income in respect of a decedent.
9. State tax paid last spring.
10. Refinancing points.
11. Jury pay turned over to your employer.
12. Property-tax deduction for nonitemizers.
13. Casualty-loss deduction for nonitemizers.
14. Hope credit for college juniors and seniors.
15. Making Work Pay credit.
16. Sales-tax deduction for new vehicles.
17. Credit for energy-saving home improvements.
18. Break on the sale of demutualized stock.
19. Home-buyer credit.
Want more details, check out this article from Kiplinger. Have questions? Contact us at CGP and we’ll be happy to help you ensure your finances are protected.
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