IRS Tax Tips
According to IRS:
You might be eligible for a child tax credit. This credit is up $1000 per each eligible child. There are seven qualifying tests that have to be met according to IRS.
- Age test – The child must be under 17 by the end of 2011
- Relationship test – The child must be your child or adopted child, stepchild, foster child, brother, sister, stepbrother, stepsister or a descendant of the above child such your grandchild, niece or nephew.
- Support test – You must have provided at least 50% of support of the child.
- Dependent test – The child must be your dependent on your tax return
- Joint Return test – The child can not file a joint return for that year
- Citizenship test – The child must be a US citizen or a legal permanent resident
- Income Limitation test – The credit is limited if your modified adjusted gross income is above a certain amount.
Married Taxpayers return $110,000
Married filing separate $55,000
Other taxpayers $75,000
This credit is generally limited by the amount of tax you owe.
According to IRS publications and this article listed below:
Seven Tips to Help You Determine if Your Social Security Benefits are Taxable
Many people may not realize the Social Security benefits they received in 2011 may be taxable. All Social Security recipients should receive a Form SSA-1099 from the Social Security Administration which shows the total amount of their benefits. You can use this information to help you determine if your benefits are taxable. Here are seven tips from the IRS to help you:
1. How much – if any – of your Social Security benefits are taxable depends on your total income and marital status.
2. Generally, if Social Security benefits were your only income for 2011, your benefits are not taxable and you probably do not need to file a federal income tax return.
3. If you received income from other sources, your benefits will not be taxed unless your modified adjusted gross income is more than the base amount for your filing status (see below).
4. Your taxable benefits and modified adjusted gross income are figured on a worksheet in the Form 1040A or Form 1040 Instruction booklet. Your tax software program will also figure this for you.
5. You can do the following quick computation to determine whether some of your benefits may be taxable:
• First, add one-half of the total Social Security benefits you received to all your other income, including any tax-exempt interest and other exclusions from income.
• Then, compare this total to the base amount for your filing status. If the total is more than your base amount, some of your benefits may be taxable.
6. The 2011 base amounts are:
• $32,000 for married couples filing jointly.
• $25,000 for single, head of household, qualifying widow/widower with a dependent child, or married individuals filing separately who did not live with their spouse at any time during the year.
• $0 for married persons filing separately who lived together during the year.
7. For additional information on the taxability of Social Security benefits, see IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits. You can get a copy of Publication 915 at www.irs.gov or by calling 800-TAX-FORM (800-829-3676).