Waukesha Tax Preparation | Edith Christian CPA | Earned Income Tax Credit

 The Earned Income Tax Credit is something that should be taken advantage of especially in this economy.  Keep more of what you earn.
Full article from IRS here

EITC, the Earned Income Tax Credit, sometimes called EIC is a tax credit to help you keep more of what you earned. It is a refundable federal income tax credit for low to moderate income working individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit. To qualify, you must meet certain requirements and file a tax return, even if you do not owe any tax or are not required to file.

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EITC Assistant--Find out if you qualify for EITC this year

Find out if you are eligible for EITC by answering questions and providing basic income information. The EITC Assistant also estimates the amount of your EITC. Click here for the English version of the EITC Assistant or o hag click aquí para seleccionar la Versión en Español del Asistente,

Quick Guide to Topics on this Page (please scroll down for the following topics and more) Do You Qualify for EITC? Need Help Preparing Your Return? Find information on EITC and other Public Benefits and Other Child-Related Tax Benefits Other Resources and Tips for Claiming EITC Resources and Tips if You Receive a Notice from IRS or are Audited IRS Reports on EITC Missing Children Link

Guides to Find Everything EITC Online For You, Publication 4935  For Return Preparers, Publication 4933

Find Specific EITC Information for: Tax Professionals Employers Partners Para información en español sobre EITC, vea "Información sobre los límites del Crédito por Ingreso del Trabajo." EITC Central hosts the Partner Toolkit, the Tax Return Preparer Toolkit, Marketing Express and Information for the Press.

Do You Qualify for EITC?

To qualify for EITC you must have earned income from employment, self-employment or another source and meet certain rules. Also, you must either meet the additional rules for workers without a qualifying child or have a child that meets all the qualifying child rules for you.

Earned Income

 

Find out more about what is earned income here.

EITC Rules for Everyone

Find out about the rules you and your spouse, if you file a joint return, must meet to claim EITC.

Qualifying Child Rules

If you and your spouse, if filing a joint return, meet the EITC rules for Everyone and you have a child who lives with you, you may be eligible for EITC. Your child must pass the relationship, age, residency, and joint return tests to be your qualifying child. All four tests must be met for each child you claim. Find the rules for a qualifying child for EITC here.

Rules for those Without a Qualifying Child

If you and your spouse, if filing a joint return, meet the EITC Rules for Everyone and you do not have a qualifying child, you may be eligible for EITC. Find the rules for those without a qualifying child here.

Go to our website for more info on how we can help you with your Waukesha Tax Preparation!

 

Tax Preparation Waukesha | Edith Christian CPA

Still expecting a W-2 from your employer to come in the mail? Now is the time to act if you haven’t received all of them, because by now, you should have received all your W-2s from the jobs you worked at. Employers had up to January 31, 2012 to mail them out.

If you still haven’t received your W-2 yet, here is what you should do:

1. Contact your employer. Inquire if and when the W-2 was mailed out, if any, to you. If it was mailed, it could be that the return was sent to an incorrect/incomplete address. After contacting the employer, allow a reasonable amount of time for them to be resent/reissued.

2. Contact the IRS. If by February 14, 2012, you tried step #1 above but either couldn’t find the employer or the employer failed to cooperate, then contact the IRS for assistance at 1-800-829-1049. When you call, you must provide:

a. Your information such as name, address, city and state, including zip code, Social Security number, and phone number

b. Employer information such as name, address, city and state, zip code, and phone number

c. Dates of employment

d. Estimate of the wages you earned; federal tax withheld, etc. The estimate should be based on your last year-to-date final pay stub if possible.

3. File your return. You still must file your return or request an extension to file by April 17, 2012, even though you haven’t received a W-2. If you have completed steps #1 and #2 above, then you may use Form 4852 (Substitute for Form W-2) and attach it to your return. Please note that you can download the Form 4852 from the IRS website and print it.  There may be a delay in any refund due while the information is verified by the IRS.

4. File Form 1040X. On occasion, you may receive your missing W-2 after you filed your return using Form 4852, and the information may be different from what you reported on your return. If this happens to you, you must amend your return by filing a Form 1040X (Amended US Individual Income Tax Return).

Tax Preparation Tips | Edith Christian CPA

Tax Preparation Tips | Waukesha CPA Edith Christian    

It’s common for people to cash their paychecks month after month without taking the time to review what’s really on them. While you most certainly have withholdings included in your check, make sure everything adds up. Sometimes, even employers make mistakes, and this adjustment can affect you come tax time.

Being ready for your tax preparation can help make the process much more painless.  Its never to early to start planning for April 15th. Waukesha Accountant and tax return specialist Edith Christian CPA has a few tips for you

File Your 2011 Records
It’s a great idea to have everything in its place when it comes time to filing your taxes, so make sure that you file away your 2011 tax returns so you can easily access them come 2013.
Review Your Paycheck Information
Withhold Less from Your Paycheck
It may be nice to get a larger tax refund, but you may want to adjust your withholdings. If you do, you can take away more each month and get less at tax time, something that is welcoming to families on a budget.
Decrease Taxable Income
It’s almost the end of the year, so now is the time where people should look for itemized deductions that can save money come tax time. For example, maybe there is an early property tax payment you can make that will help for itemized deductions come tax time. The goal is to lower your taxable income to lower your liability.
Perfect Your Recordkeeping Skills
From receipts to charity donations, it’s essential that you have everything accounted for and in its place. If you don’t have a system under way, now is the time to make one. You don’t want 12 months of receipts and paperwork lying around, and you want to make the most of your deductions. If you’ve moved away from paper copies, scan important documents into your computer.
Find Your Tax Professional
Finally, find your tax accountant who will be helping you during tax season. You don’t want to rush close to tax season or have to settle for someone you don’t enjoy working with. Instead, use this time to choose a professional you trust today so that you can