Earned Income Credit

Earned Income Credit

Asked Tuesday, February 07, 2012 by an anonymous user

CPA Answer:

The Earned Income Tax Credit is a refundable federal income tax credit for low to moderate income working individuals and families.
Individuals may receive refunds more than what was withheld in federal withholding taxes from their wages.
For the 2016 Tax Year
Earned Income and adjusted gross income (AGI) must each be less than:
$47,955 ($53,505 married filing jointly) with three or more qualifying children $44,648 ($50,198 married filing jointly) with two qualifying children $39,296 ($44,846 married filing jointly) with one qualifying child $14,880 ($20,430 married filing jointly) with no qualifying children
Tax Year 2016 maximum credit: $6,269 with three or more qualifying children $5,572 with two qualifying children $3,373 with one qualifying child $506 with no qualifying children
Investment income must be $3,400 or less for the year.
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Moving Costs

What moving costs are deductible as an employee?

Asked Monday, February 06, 2012 by an anonymous user

CPA Answer:

If you meet certain tests- the distance test ( your new job location is 50 miles or more from your old home) and time test ( you work full time as an employee for at least 39 weeks at the new location) :

1.Traveling related costs incurred by you or your family, moving from the old home to the new location are deductible. This includes lodging, your auto expenses if you drive, airfare, parking and tolls. Family members may move on separate dates and they are all deductible
2. Costs of moving your household items like furniture, shipping your personal goods are deductible.
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Taxes - My Tax Return

Who must file a return - (not children)

Asked Thursday, February 02, 2012 by an anonymous user

CPA Answer:

Your filing status and gross income determine if you have to file a 2016 tax return. In the year 2016 if your filing status is single and under age 65 then the gross income must be more than $10,350 If 65 or older than the gross income must be more than $11,900 .
If your filing status is Married and living with your spouse as of the last day of the year and both people are under age 65 then the gross income must be more than $20,700 If one over 65 and one 65 or older then the gross income amount must be more than $21,950 . If both people are 65 or older then the gross income must be more than $23,200
If your filing status is Head of Household and under age 65 then the gross income must be more than $13,350 If 65 or older than the gross income must be more than $14,900 . If your filing status is Widow(er)and under age 65 then the gross income must be more than $16,650.if 65 or older than the gross income must be more than $17,900.
If your filing status is Married filing a separate return the the gross income must be more than $4,050 regardless of the age.
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Taxes - My Tax Return

Do I have to file a Tax Return (children and other dependents)

Asked Thursday, February 02, 2012 by an anonymous user

CPA Answer:

SINGLE and under age 65 then the Earned income must be more than $5,800 or Unearned Income greater than $950 or Gross Income greater than the larger of $950 or Earned income up to $5,500 plus $300.
SINGLE and age 65 or older or blind then the Earned income must be more than $7,250 or Unearned Income greater than $2,400 or Gross Income greater than the larger of $2,400 or Earned income up to $5,500 plus $1,750.
SINGLE and age 65 or older AND blind then the Earned income must be more than $8,700 or Unearned Income greater than $3,850 or Gross Income greater than the larger of $3,850 or Earned income up to $5,500 plus $3,200.
MARRIED and both people are under age 65 then the Earned income must be more than $5,800 or Unearned Income greater than $950 or Gross Income greater than the larger of $950 or Earned income up to $5,500 plus $300.
MARRIED and both people are over age 65 then the Earned income must be more than $6,950 or Unearned Income greater than $2,100 or Gross Income greater than the larger of $2,100 or Earned income up to $5,500 plus $1450.
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Social Security

Social Security - Your Calculated Payment

Asked Thursday, February 02, 2012 by an anonymous user

CPA Answer:

Your Social Security payment is figured using a complex calculation based on a 35-year average of your covered wages. Each year's wages are adjusted for inflation before being averaged.
If you worked longer than 35 years, the government will use the highest 35 years.
If you worked for less than 35 years, they'll average in zeros for the years you are lacking.
If you can avoid zeros by working a couple of years longer, you'll increase your Social Security payment.
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Social Security

Social Security - Widower Info

Asked Thursday, February 02, 2012 by an anonymous user

CPA Answer:

A widow can begin drawing the full amount of her late husband's Social Security when she is as young as 60. Then she can choose to leave her own Social Security alone, allowing it to grow in value until her full retirement age or age 70.
A widow/widower can begin benefits based on his or her own earnings record and later switch to survivors benefits or begin with survivors benefits and later switch to benefits based on his or her own record.
This is true even if the surviving spouse is filing before full retirement age. You can't do that with spousal benefits.
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Social Security

Social Security - Spouse Deceased - Your Options

Asked Thursday, February 02, 2012 by an anonymous user

CPA Answer:

Once an ex-spouse passes away, you'll be treated just like a widow or widower. If you are at least 60, you'll be able to collect your late-spouse's benefit and allow your own benefit to grow unclaimed until you reach age 70, when you can switch if your own is higher,
The longer your ex-spouse delays claiming Social Security, the better it is for you. You will get to claim half of his or her maximum Social Security. Or once you and your ex-spouse reach full retirement age (66-68) you can claim half your ex's benefit and let your own grow untouched until you're 70.
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Social Security

Social Security - Divorce & 10 Year Rule

Asked Thursday, February 02, 2012 by an anonymous user

CPA Answer:

To stake a claim to your ex-spouse's Social Security benefits you must be married for at least 10 years.
If you make it for 10 years, you can collect a Social Security benefit based on up to half of your ex's earnings or on the basis of your own earnings whichever is higher.
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Miscellaneous Itemized Deductions

Deductions in excess of 2% of AGI floor

Asked Tuesday, January 31, 2012 by an anonymous user

CPA Answer:

Common deductions are:
Employee business expenses including travel, 50% of meals & entertainment, phone, small tools, supplies, professional subscriptions and books, home office deductions, depreciation on business use of auto's and equipment, small tools
Safety equipment such as hard hats, gloves, steel tipped boots, goggles,
Educational expenses not claimed as a credit
Educational expenses not claimed as a credit
Tax preparation and tax assistance fees
Union and professional dues
Job hunting
Tax preparation and tax assistance fees
Educational expenses not claimed as a credit
Seminar and Conferences that are business related
Appraisal fees on charitable donations
Credit card convenience fee for maintaining investments
Investment expenses
SEP,Simple,IRA custodial fees paid with funds outside the account
Legal fees for collecting taxable income
Loss on deposits in a bankrupt financial institution
Medical exams required by employers
Safe deposit box fees
Trust administration fees
Uniform purchase and maintenance if required and not suitable for street wear
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Miscellaneous Itemized Deductions

Nondeductible expenses

Asked Tuesday, January 31, 2012 by an anonymous user

CPA Answer:

Common expenses are:
Work clothes suitable for street wear
Commuting expenses
Credit card fees or Interest
Club dues
Divorce Legal fees
Political contributions
Cost of entertaining friends
Telephone expenses of first main line
Tax exempt income expenses
Funeral expenses
Gambling losses in excess of gambling winnings
Hobby expenses in excess of hobby income
Homeowner's association assessments
Pet and animal expenses
Residence repairs and improvements
Residence Loss on Sale
Life Insurance
Parking tickets and fines
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