Tax Credit - WalletPop

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What is a tax credit? Unlike a deduction that only reduces the amount of your taxable income, a tax credit reduces the amount of tax you owe.

IRS has no information on missing stimulus checks

Kelly Phillips Erb Feb 9th 2010 @ 3:00PM EST Filed Under: Tax, Tax - Advice, Tax - Credit

After the popular "stimulus checks" issued as part of efforts to jump start the economy in 2001 and 2008, many taxpayers were again looking forward to a check in 2009. This year, however, checks weren't in the cards for most Americans.

Most of the taxpayer relief for American Recovery and Reinvestment Act of 2009 (ARRA) focused on the Making Work Pay credit. The Making Work Pay credit allows up to $400 per individual worker and $800 per working married couple and is figured on your tax return. Those who did not work during the year are not eligible for the credit.

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The pitfalls of Refund Anticipation Loans

Kelly Phillips Erb Feb 9th 2010 @ 2:45PM EST Filed Under: Tax, Tax - Advice

Anyone fortunate enough to be getting a tax refund will probably want that money sooner rather than later. But don't let your haste cloud your good judgment. There are a number of less-than-scrupulous outfits out there that are waiting to prey on your desire (or need) for quick cash.

One of my clients is a good example.

When she learned she was getting a refund on her taxes this year -- money she desperately needed to pay the oil bill -- it was all she could do to fight back the tears of joy. Last year, it had been a whole different story.

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10 ways to maximize your tax deductions -- without itemizing

Kelly Phillips Erb Feb 9th 2010 @ 6:30AM EST Filed Under: Tax, Tax - Advice, Tax - Deduction

Too often, taxpayers are led to believe that if they don't itemize, then there are no real deductions available to them beyond the standard deduction. In reality, there are a number of deductions that a taxpayer can claim without itemizing.

Here are 10 ways to maximize your tax deductions -- without going through the trouble of itemizing:

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Taxes: Sources of income you might not have thought of

Zac Bissonnette Feb 8th 2010 @ 9:00AM EST Filed Under: Tax

With piles and piles of fine-print, the IRS is here to make understanding tax code easy: just spend a few hours flipping through the booklets, and you're sure to find a reference to the topic you're wondering about.

If you're unsure about what exactly constitutes income, Publication 17 (2009) is your source of information. Here's some sources of income that a lot of people often overlook:

Gambling winnings. You must include your gambling winnings in income on Form 1040, line 21. If you itemize your deductions on Schedule A (Form 1040), you can deduct gambling losses you had during the year, but only up to the amount of your winnings. See chapter 28 for information on recordkeeping.

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Are you an early filer? If so, odds are you're getting a refund

Josh Smith Feb 8th 2010 @ 8:00AM EST Filed Under: Tax, Tax - Basics

There are a few things in life that are clear cut. You like Pepsi or you like Coke, you like Ford or you like Chevy and you file your taxes early or you line up at the post office at 11:58 on April 15th. For most people, choosing when to file your taxes boils down to one thing; will you owe Uncle Sam or will you be paying off the HDTV you bought for the Super Bowl with your refund. The good news is that, statistically, if you do file early you are more likely to receive a refund -- and a generous one at that.

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File your taxes free with the help of Walmart, United Way and others

Josh Smith Feb 5th 2010 @ 12:00PM EST Filed Under: Tax, Video, Tax - Online

Great news for anyone who makes under $58,000. You'll be able to file your taxes for free, including free tax prep, thanks to a $4 million grant from the Walmart Foundation to United Way Worldwide, One Economy and the National Disability Institute. This is the second year for the free tax prep program, which allows Americans who meet the criteria to get free assistance at community locations and online at Myfreetaxes.com.

According to the Walmart Foundation, last year's program provided more than 650,000 people with tax prep, and helped them save over $950 Million in tax preparation fees, refunds and tax credits.

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Your tax questions answered

Kelly Phillips Erb Feb 5th 2010 @ 6:00AM EST Filed Under: Tax, Tax - Advice

It's an annual rite of passage that almost every taxpayer goes through: Interpreting the latest and greatest IRS rules. Of course, that leads to lots of tax questions.

Luckily, we have the answers. Below tax blogger and attorney Kelly Phillips Erb tackles some of your top tax questions.

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What are tax consequences of bartering?

Kelly Phillips Erb Feb 4th 2010 @ 4:30PM EST Filed Under: Tax

Cash is hard to come by these days. So it's not unusual to see barter arrangements between taxpayers.

You've probably even done a little of this yourself: You've designed someone's Web site in exchange for "free" handyman services, or you've done someone's taxes in exchange for a new Coach briefcase. In either case, whether it's the exchange of goods or services for other goods or services, it's a barter.

No money actually changes hands, so it's almost as if the transaction didn't happen, right? Not exactly. The fair market value of goods and services that you receive in exchange for goods or services you provide must be included as income on your tax return even though you don't receive payment in a traditional way.

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10 tax tips for seniors

Kelly Phillips Erb Feb 4th 2010 @ 3:30PM EST Filed Under: Tax, Retirement Advice, Tax - Advice

Every year about this time, I receive a lot of mail from seniors who are confused about whether they should file a tax return. The confusion stems from the fact that many seniors receive income from sources that might not be taxable, such as Social Security and tax-exempt bonds.

Whether you're a retiree or someone helping a senior family member or friend with taxes, here are 10 tax tips to help ease you through the tax season and maximize your deductions:

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