Credits Feed

Every year, the Internal Revenue Service makes a concerted effort to hand out more Earned Income Tax Credit (EITC) money. The reason, says the tax agency, is that around 20 percent of eligible filers consistently fail to file for this refundable tax credit. But what about those who do claim the EITC? The IRS says that nationwide last year, 27 million U.S. workers and their families got $67 billion thanks to this tax credit for lower- and middle-income workers. Where EITC money goes: Not surprisingly, the most populated states account for the most EITC claims and actual dollars returned to... Read more →


The Earned Income Tax Credit, or EITC, is one of the filing claims that is delaying federal (and in some cases, state) tax refunds this year. But even if you have to wait a few extra weeks to get your refund from Uncle Sam (or your state tax office), filing for the EITC is usually worth it. It's worth more than $6,000 for some filers. And all or some of that money could be as a tax refund. Why credits rule: Like all tax credits, the EITC is a dollar-for-dollar offset of any tax you owe. Let's say your tax... Read more →


We're in the midst of an Arctic cold spell here in Central Texas. Yes, it's nothing compared to many other parts of the country, but it's ours. Three days of sub-freezing temperatures have made it clear that the hubby and I are no longer equipped to live in colder climes! We're just glad our backyard waterfall was able to deal with a bit of frost. This cold snap got me thinking about how glad I am that we were able to make some easy energy efficiency upgrades to our home and get a federal tax credit for them. Most energy... Read more →


With Republicans soon to be in control of Congress and the White House, the tax focus has shifted to a major rewrite of the Internal Revenue Code. But this legislative approach means that more than 30 temporary tax provisions will disappear from the tax code on Jan. 1, 2017. Whether they are resurrected in any new tax overhaul depends on how persuasive the various laws' lobbyists are, how committed Senators and Representatives are to streamlining the tax code and how much tax revenue is gained or lost by their continued absence or revival. Extenders usually long lives: These tax laws,... Read more →


Small business owners are hoping that their shops are filled with lots of paying customers this annual Small Business Saturday. The first Small Business Saturday was Nov. 27, 2010. That initial year, it was the creation of the financial company American Express. In 2011, the U.S. Senate unanimously made the day official. The day celebrates small businesses and encourages supporting them and how they impact communities. They also are hoping that by this time next year, their top tax rate will be just 15 percent. More business tax breaks ahead? That lower business tax rate, a 20 percentage point drop... Read more →


This post was reviewed and updated June 7, 2017. Canadians celebrate their Thanksgiving in October. I like that timing. It doesn't force folks into attending two annual family gatherings within a month of each other. Not that I don't love my family, but like many things, a little goes a long way. And don't worry. I know which relatives (and there are plenty!) are thinking, if not saying, the same about me. Canada and the United States share many things, but the same Thanksgiving holiday isn't one of them. But during this week that we Americans are preparing to say... Read more →


Taxes are about dollar amounts and dates. April 15 obviously is the biggie. But Dec. 31 is almost as important. The end of a tax year is, for the most part, the last time you can make tax moves that could help lower your coming tax bill. While we all wish we could have Homer Simpson's to-do list, when it comes to taxes, most of us need to take care of some potentially money saving tax tasks by Dec. 31. With the days rapidly dwindling (the countdown clock over there in the ol' blog's right column is tracking them), here... Read more →


We call it Veterans Day here in the United States. An Army veteran salutes the colors being carried in the Veterans Day parade in downtown Pittsburgh, Pennsylvania, on Nov. 11, 2011. (Photo courtesy U.S. Army via Flickr) That Nov. 11 is such an important date is evidenced by the fact that federal holiday has escaped conversion into a Monday that wraps up a long weekend that's usually more focused on consumer spending than actual commemoration. End of the Great War: Each November we mark what originally was the official, formal end of World War I at the 11th hour of... Read more →


Welcome to Part 4 of the ol' blog's series on 2017 inflation adjustments. You can find links to all 2017 inflation posts in the first item: Income Tax Brackets and Rates. Today we look at changes to some popular credits and deductions. Note: The 2017 figures apply to 2017 returns that are due in 2018. For comparison purposes, you'll also find 2016 amounts to be used in filing 2016 returns due next April. You can jump for joy like these youngsters if you can claim some of these popular inflation-adjusted credits and deductions. The key to paying the least tax... Read more →


It's almost here, the Oct. 17 tax extension filing deadline. Since the regular 15th due date is Saturday, procrastinating filers get a couple of extra days to do their tax jobs. Don't waste them. UPDATE: Some filers in states where major natural disasters were declared also get time beyond 10/17. Details in Oct. 17 is final filing deadline for most, but is extended further for folks in FL, LA, NC and WVA disaster areas IRS grants more tax relief for Hurricane Matthew filers in Florida, Georgia and North and South Carolina But also don't be in such a last-minute panic... Read more →


Many tax laws might be absurd, but overall, taxes are no laughing matter, especially when it comes to filers who use frivolous tax arguments. Some things crack up even Star Trek's usually stoic Data, but not frivolous tax arguments. The Internal Revenue Service defines frivolous tax arguments as misinterpretations or disregard of tax laws in order to evade paying taxes or claim refunds to which they aren't entitled. To date, the IRS has identified 50 frivolous tax arguments used by taxpayers. And those improper refunds have cost the U.S. Treasury -- and responsible taxpayers -- more than $27.2 million. Millions... Read more →


Have you filed your 2015 tax return yet? Don't feel bad. You are definitely not alone. The Internal Revenue Service on Friday, Oct. 7, noted that fewer than a third of the 13 million taxpayers who requested an automatic six-month extension earlier this year have yet to file. This is what my den floor looked like today as I finished up our 2015 tax return with a week to spare before the Oct. 17 extension deadline. Our taxes are done! I am pleased to say that I am no longer part of that group. I finished up my 2015 Form... Read more →


On lazy Sunday afternoons, my thoughts -- after I'm through cursing the idiotic plays my Dallas Cowboys make -- often turn to retirement. Retired couple enjoying a lazy day outdoors. (Photo by Pug50 courtesy Flickr CC) The hubby and I have been saving for a long time with the goal of making all our days like Sundays, without, of course, the 'Boys' frustrations. The tax code offers many ways to help us save for what we hope will be our golden years. Sen. Ron Wyden, however, thinks Uncle Sam needs to revise some of the retirement related tax provisions. The... Read more →


Personal note, Saturday, June 10, 2017: Batman has always been my favorite comic book superhero. While I love the Caped Crusader's dark history and how it is reflected in his crime-fighting style, when I was a kid Batman was pure fun thanks to the character's TV portrayal by actor Adam West. On this sad day that I learned of Mr. West's passing on June 9, I realize that Batman came with me from those joyful childhood "Bam" and "Ka-Pow" graphic days of diversion into my mostly more serious adult tax world. Thanks for always being there when I needed you,... Read more →


$10,162. That's how much of a federal tax refund that Republican vice presidential nominee Mike Pence and his wife Karen received on their 2015 tax return. Indiana Gov. Mike Pence, GOP vice presidential candidate, campaigning among Ohio State tailgaters during a stop earlier this month in the key Nov. 8 election state. (Photo via @mikepence Twitter account) Since the Pences' refund is almost four times the amount of the average tax refund of $2,732 (per Internal Revenue Service filing data through May 13), the $10,162 that the Pences are getting back from Uncle Sam also earns this week's By the... Read more →


It was a good Summer Olympics in Rio not only for Team USA, which won 121 medals, but also for Nike. A Nike factory store (NikeFactoryStoreVaughanMills_Wikimedia) The Oregon-based athletic apparel and shoe maker got lots of attention for its neon yellow/green shoes that most of the U.S. athletes sported on track and atop assorted medal podiums. Now, however, Nike is in an unwanted tax spotlight. Nike vs. IRS: Nike Inc. is fighting a nearly $223 million tax deficiency notice from the Internal Revenue Service. Uncle Sam's tax collector says the company owes the money after the agency rejected the way... Read more →


Saving soon and often for your or your children's college education is critical. But just as important as putting away higher education money is knowing when to take out that college fund cash. 529 plan benefits, possible pitfalls: This is especially true of the tax-favored 529 plans that states offer. Your deposits to a 529 plan are not tax deductible, but the funds grow tax-free. And when you or your child withdraws the money, there's no tax bill as long as you use the funds to pay for qualifying college costs. Withdrawing 529 money, however, is not as simple as... Read more →


The Republicans still want to repeal Obamacare, or as it's officially known the Affordable Care Act (ACA). They say so every chance they get, be it on Capitol Hill, the campaign trail or in the Party's 2016 official platform. The Democrats want to extend and, according to that Party's platform, move the 44th president's namesake legislation toward even broader universal health care. President Barack Obama meets with doctors at the White House. (Photo by White House photographer Pete Souza) But until either of those comes to pass, we've got to work with what we've got. And that means coverage requirements... Read more →


The Fourth of July is over, but if your neighborhood is anything like mine, you'll be hearing fireworks for another week or so. Yes, my neighbors are pyrotechnic scofflaws. Even if you don't participate in the literal lighting of firecrackers or bottle rockets post-July-4, there are still plenty of metaphorical tax fireworks that you can take advantage of as we head into the heart of summer. Here are five easy tax moves to consider in July. 1. Get storm ready. We've had four named tropical systems so far this Atlantic/Gulf of Mexico hurricane season. So far, thank goodness, there's been... Read more →


Being a parent is tough. Being a single parent is even tougher. Beach-combing with dad. Photo by YoTuT via Flickr. So on this Father's Day 2016, here's a shout out to the millions of dads who are taking care of their kids on their own. There were almost 2 million single fathers across the country in 2015, according to the U.S. Census Bureau. That, according to the nation's official people counters, represents 16 percent of the single parent population. In conjunction with the annual day to honor dads, those 1.9 million single fathers also earn this week's By the Numbers... Read more →