FOR BREAKING NEWS VISIT www.queenscourier.com january 31, 2013 • THE QUEENS COURIER 29 tax tips Key tax exemption and dependent details Some tax rules affect every person who may have to file a federal income tax return. These rules include exemptions Photo courtesy THEWHO.com s and dependents. Here are important facts the IRS wants you to know about dependents and exemptions that will help you file your 2012 tax return. 1. You and your spouse are considered personal exemptions. On a joint return, you may claim one exemption for yourself and one for your spouse. If your spouse died during the year and you file a joint return, you can still claim your spouse’s exemption. If you obtained a final decree of divorce or separate maintenance by the end of the year, you cannot take your spouse’s exemption. 2. Exemptions reduce your taxable income. There are two types of exemptions: personal exemptions and exemptions for dependents. For each exemption you can deduct $3,800 on your 2012 tax return. 3. A dependent is your qualifying child or qualifying relative. You must list the social security number of any dependent whom you claim an exemption or your tax return will not be processed. Being able to claim a dependent on a tax return is tied to a number of related tax benefits. Taxpayers with dependents may be eligible to claim the child tax credit, the child and dependent care credit, and the earned income credit. 4. The IRS will always audit tax returns where two or more taxpayers attempt to claim the same dependent. Only one taxpayer will win. To protect yourself, you should make sure that you are eligible to claim the dependent. 5. Qualifying children must live with you more than half the year and the child must be under 19 (under 24, if full-time student). 6. Qualifying relative rules are stricter and have income requirements. Domestic partners may fall under this category. 7. If someone else claims you as a dependent, you may still be required to file your own tax return. Whether you must file a return depends on several factors including the amount of your unearned (interest and dividends), earned (wages) or gross income and your marital status. 8. If you are a dependent, you may not claim a personal exemption on your individual tax return. That is a common mistake made by self-preparers. 9. Some people cannot be claimed as your dependent. Generally, you may not claim a married person as a dependent if they file a joint return with their spouse. Also, to claim someone as a dependent, that person must be a U.S. citizen, U.S. resident alien, national or resident of Canada or Mexico. Late news: A federal judge has overturned the IRS right to implement minimum credentials for tax preparers, such as testing and continuing education. The Registered Tax Return Preparer (RTRP) program has been put on hold. “Two Decades Of Personalized Service” [email protected] At Gilman Ciocia, you’ll receive 25% OFF* whatever you paid your accountant last year. And that’s only the beginning. We like saving people money on their taxes - and we’d like to help you. With the economy the way it is, there’s never been a better time to take control of your taxes. Call to schedule an appointment Queens Office: 35-30 Francis Lewis Blvd. Flushing, NY 11358 718-304-2035 www.gtax.com Jim Ciocia, Founder and Chairman *$99 minimum tax preparation fee. Please bring your invoice from last years tax preparation fees. Offer available for 2012 tax returns only. Not to be combined with any other offer. Non-negotiable. No cash value. If you had your taxes prepared by Gilman Ciocia in 2012, you do not qualify for this promotion. This discount must be requested at time of service, no credits will be issued after the tax return has been filed. Offer expires March 31, 2013. H&R Block is offering special discount at Main Street Flushing Office. OR Federal Form 1040EZ FREE Through March 15th only, after March 15th - $25.00 Federal Forms 1040 & 1040A $15 off* tax preparation Coupon Code: 2013001315 This offer is only valid at 40-13 Main St., Ste 2B, Flushing, NY 11354 • Toll Free: 1-877-282-1133 The type of form filed is determined by your personal tax situation and IRS rules and regulations. Form 1040EZ is generally used by single and married taxpayers who do not have dependents and do not itemize deductions. Taxable income must be less than $100,000 (including wages, salaries, tips, taxable scholarships or fellowship grants and unemployment compensation). Fees and special pricing noted above are valid only at participating U.S. offices and through Block Live for an original 2012 personal income tax return. Additional fees for Earned Income Credit and state tax returns may apply. *Void if sold, purchased or transferred, and where prohibited. Coupon must be presented prior to completion of initial tax office interview or through Block Live and may not be combined with any other offer, discount or special promotion or pricing program. Discount valid only for tax prep fees for an original 2012 personal income tax return for employees of sponsoring company listed above. Current tax year W-2 or other proof acceptable to H&R Block of current employment from the sponsoring company listed above (or its participating subsidiaries) must be presented to be eligible for discount. Expires 4/30/13. ©2012 Allstate Tax and Accounting Inc. is a independent owned “H&R Block” Franchisee. TAX INFO CORNER How can the credits may contribute to your refund! By: Javier N. Solis There are only eight days for the Internal Revenue Service (IRS) starts processing individual claims nationwide. No person is free of this tax liability and that is why you dear reader should be well informed to tackle this process, which in most cases will bring money to your pocket. This year, the IRS has many credits and deductions to help taxpayers. One of these credits is the Earned Income Credit. This benefit is for families and people in general who has low incomes. Table of 2012 shows that a family with three or more qualifying children can receive up to $ 5.891 U.S. dollars as repayment of this credit. The Child Credit is another benefit of which you can take advantage as long as you meet all the requirements that the IRS requires for this credit. Generally, each child under age 17 is eligible for $ 1,000. The child may be the son, daughter, Advertorial stepchild, adopted child, brother, sister, nephew or grandchild of the taxpayer. The child must have lived more than six months with the person. These benefits that the IRS is giving are not just for parents. Singles taxpaying students can also apply for student loans. The American Opportunity Credit is once again available in this tax year. Students can receive up to $ 2,500 refundable credit as long as the taxpayer's spouse or dependents are enrolled in an accredited university in the first four years of study. This appropriation is started giving in 2009 and possibly this is the last year available. Of course, to access each of these credits and deductions, taxpayers must meet the requirements established by the IRS. Visit our office and we will give you a free estimate to bring the past three years for a review of Taxes totally free! Javier N. Solis is the President and Founder of Los Taxes Network, the First and Only Latino Network of Tax Preparation in America. You may contact Javier directly at [email protected] or 718-645-0690. His main office is located at 2812 Fulton Street, Brooklyn, NY 11207
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