Home » Posts tagged 'Earned Income Tax Credit'

Tag Archives: Earned Income Tax Credit

Be Sure To Get Your Refund

October 5, 2011 6:16 am / Leave a comment

Cash

Refund Refund Refund

By Stacie Kitts, CPA

Unbelievably, there are people who never bother to check up on their tax refunds.  Really.

If you move be sure to complete a change of address Form 8822 and check out this info from the IRS

Unclaimed Refunds

Some people earn income and may have taxes withheld from their wages but are not required to file a tax return because they have too little income. In this case, you can claim a refund for the tax that was withheld from your pay. Other workers may not have had any tax withheld but would be eligible for the refundable Earned Income Tax Credit, but must file a return to claim it.

  • To collect this money a return must be filed with the IRS no later than three years from the due date of the return.
  • If no return is filed to claim the refund within three years, the money becomes the property of the U.S. Treasury.
  • There is no penalty assessed by the IRS for filing a late return qualifying for a refund.
  • Current and prior year tax forms and instructions are available on the Forms and Publications page of www.irs.gov or by calling 800-TAX-FORM (800-829-3676).
  • Information about the Earned Income Tax Credit and how to claim it is also available on www.irs.gov.

Undeliverable Refunds

Were you expecting a refund check but didn’t get it?

  • Refund checks are mailed to your last known address. Checks are returned to the IRS if you move without notifying the IRS or the U.S. Postal Service.
  • You may be able to update your address with the IRS on the “Where’s My Refund?” feature available on IRS.gov. You will be prompted to provide an updated address if there is an undeliverable check outstanding within the last 12 months.
  • You can also ensure the IRS has your correct address by filing Form 8822, Change of Address, which is available on www.irs.gov or can be ordered by calling 800-TAX-FORM (800-829-3676).
  • If you do not have access to the Internet and think you may be missing a refund, you should first check your records or contact your tax preparer. If your refund information appears correct, call the IRS toll-free assistance line at 800-829-1040 to check the status of your refund and confirm your address.

Summer Camp and Taxes

September 20, 2011 6:06 am / Leave a comment

By Stacie Kitts, CPA

Pampered Camper

This summer I had the privilege of being included in the first ever Pampered Camper Event sponsored by the Girl Scouts of Orange County.

This grown up girl event organized to raise money for the benefit of girls in Orange County included a catered gourmet meal, wine tasting, a massage, arts and crafts, horseback riding, rock climbing, archery, hiking, boating, swimming and climate controlled cabins.  Undoubtedly one of the greatest weekends ever!!!!!

Now that summer is over, I want to remind taxpayers to tell your tax preparer if you paid for the cost of day camp (sorry, overnight camp isn’t deductible) for your kids.   Below is some helpful information for parents who are working or looking for work and have children under 13.

Pampered Camper

Here are five facts the IRS wants you to know about a tax credit available for child care expenses. The Child and Dependent Care Credit is available for expenses incurred during the summer and throughout the rest of the year.

  1. The cost of day camp may count as an expense towards the child and dependent care credit. [check with your tax preparer – there are some nuances related to the type of camp]
  2. Expenses for overnight camps do not qualify.
  3. Whether your childcare provider is a sitter at your home or a daycare facility outside the home, you’ll get some tax benefit if you qualify for the credit.
  4. The credit can be up to 35 percent of your qualifying expenses, depending on your income.
  5. You may use up to $3,000 of the unreimbursed expenses paid in a year for one qualifying individual or $6,000 for two or more qualifying individuals to figure the credit.

For more information check out IRS Publication 503, Child and Dependent Care Expenses. This publication is available at www.irs.gov or by calling 800-TAX-FORM (800-829-3676).
Links:

IRS Publication 503, Child and Dependent Care Expenses
YouTube Videos:

Summer Day Camp Expenses – English  | Spanish | ASL

The IRS on Your IPhone – Really-Really? When Did They Find The Time?

January 25, 2011 10:19 am / Leave a comment

Image representing iPhone as depicted in Crunc...

Image via CrunchBase

By Stacie Clifford Kitts, CPA

I’ll say it.  The IRS on your IPhone – Really – Really?  Everybody’s got an app so I shouldn’t be surprised about the IRS’s latest announcement of their new app IRS2Go.

But really, Schedule A filers must wait until Feb 14 to file their returns because the IRS’s computer programmers wont have the software ready until then.

But no worries, they have their priorities straight – they found the time and resources to create an IPhone app which is released 20 days before many taxpayers can file their returns.  Really?????

Can I have Doug Shulman’s job?  Pleeeeeeeeez

Video: IRS2Go: English

WASHINGTON — The Internal Revenue Service today unveiled IRS2Go, its first smartphone application that lets taxpayers check on their status of their tax refund and obtain helpful tax information.

“This new smart phone app reflects our commitment to modernizing the agency and engaging taxpayers where they want when they want it,” said IRS Commissioner Doug Shulman. “As technology evolves and younger taxpayers get their information in new ways, we will keep innovating to make it easy for all taxpayers to access helpful information.”

The IRS2Go phone app gives people a convenient way of checking on their federal refund. It also gives people a quick way of obtaining easy-to-understand tax tips.

Apple users can download the free IRS2Go application by visiting the Apple App Store. Android users can visit the Android Marketplace to download the free IRS2Go app.

“This phone app is a first step for us,” Shulman said. “We will look for additional ways to expand and refine our use of smartphones and other new technologies to help meet the needs of taxpayers.”

The mobile app, among a handful in the federal government, offers a number of safe and secure ways to help taxpayers. Features of the first release of the IRS2Go app include:

Get Your Refund Status

Taxpayers can check the status of their federal refund through the new phone app with a few basic pieces of information. First, taxpayers enter a Social Security number, which is masked and encrypted for security purposes. Next, taxpayers pick the filing status they used on their tax return. Finally, taxpayers enter the amount of the refund they expect from their 2010 tax return.

For people who e-file, the refund function of the phone app will work within about 72 hours after taxpayers receive an e-mail acknowledgement saying the IRS received their tax return.

For people filing paper tax returns, longer processing times mean they will need to wait three to four weeks before they can check their refund status.

About 70 percent of the 142 million individual tax returns were filed electronically last year.

Get Tax Updates

Phone app users enter their e-mail address to automatically get daily tax tips. Tax Tips are simple, straightforward tips and reminders to help with tax planning and preparation. Tax Tips are issued daily during the tax filing season and periodically during the rest of the year. The plain English updates cover topics such as free tax help, child tax credits, the Earned Income Tax Credit, education credits and other topics.

Follow the IRS

Taxpayers can sign up to follow the IRS Twitter news feed, @IRSnews. IRSnews provides the latest federal tax news and information for taxpayers. The IRSnews tweets provide easy-to-use information, including tax law changes and important IRS programs.

IRS2Go is the latest IRS effort to provide information to taxpayers beyond traditional channels. The IRS also uses tools such as YouTube and Twitter to share the latest information on tax changes, initiatives, products and services through social media channels. For more information on IRS2Go and other new media products, visit www.IRS.gov.

Related Item: IRS Goes Mobile With IRS2Go

Related Articles

Happy Valentines! A Gift of Tax Filing For Your Sweetheart

January 20, 2011 3:22 pm / 1 Comment on Happy Valentines! A Gift of Tax Filing For Your Sweetheart

By Stacie Clifford Kitts, CPA

Feb. 14 is the magic filing date.

Well, I guess the IRS finally figured it out and reprogrammed their computer system to accommodate the new tax changes..  If  you file Schedule A that is you itemize, or you will take the hirer education tuition and fees deduction on Form 8917, or even the educator expenses deduction, you will be able to file your tax return (hopefully) starting on Valentines Day.  How romantic, a gift of tax filing for your sweetheart.

Read on for more info:

WASHINGTON — The Internal Revenue Service plans a Feb. 14 start date for processing tax returns delayed by last month’s tax law changes. The IRS reminded taxpayers affected by the delay they can begin preparing their tax returns immediately because many software providers are ready now to accept these returns.

Beginning Feb. 14, the IRS will start processing both paper and e-filed returns claiming itemized deductions on Schedule A, the higher education tuition and fees deduction on Form 8917 and the educator expenses deduction. Based on filings last year, about nine million tax returns claimed any of these deductions on returns received by the IRS before Feb. 14.

People using e-file for these delayed forms can get a head start because many major software providers have announced they will accept these impacted returns immediately. The software providers will hold onto the returns and then electronically submit them after the IRS systems open on Feb. 14 for the delayed forms.

Taxpayers using commercial software can check with their providers for specific instructions. Those who use a paid tax preparer should check with their preparer, who also may be holding returns until the updates are complete.

Most other returns, including those claiming the Earned Income Tax Credit (EITC), education tax credits, child tax credit and other popular tax breaks, can be filed as normal, immediately.

The IRS needed the extra time to update its systems to accommodate the tax law changes without disrupting other operations tied to the filing season. The delay followed the Dec. 17 enactment of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, which extended a number of expiring provisions including the state and local sales tax deduction, higher education tuition and fees deduction and educator expenses deduction.

Related Articles
%d bloggers like this: