Introduction to EITC

For the tax year 2010, the EITC is going to be adding a new category to their vast list of approved tax payer who may claim this refundable credit. When the amount of the EITC covers any payments that you owe to the IRS. Some tax payers can qualify for almost 5,000.00 dollars in refunds with the EITC.

In previous years, the US Government had a qualifying EITC category for lower income people without children, for people with one child living under their roof for longer than 6 months during the tax year, and a category for people with two or more children in their care. For tax year 2010, people who have 3 or more children under their care for longer than 6 months out of the year can file for a larger credit than before.

People with kids living in their house do not have to be the parents to the children. EITC is for qualifying grandparents helping their kids by caring for their kids, uncles who have taken their siblings children to help during our difficult times, or even an older brother or sister with their younger siblings in their care.

Foster parents with children placed into their care by an approved agency are also eligible to claim a Earned Income Tax Credit if the children steadily for longer than 6 months out of the income tax year. Any time that children spends exactly 6 months in each of two homes, the person who claims the EITC is the tax payer most closely related to the child. Whenever a question of who is filing taxes comes up, the parent is favored.

Foreign born people working in the United States of America with a child or children in their home for more than 6 months out of the tax year also normally qualify to take their EITC money. One requirement is that the person claiming this EITC and all children involved must have the valid Social Security #’s that are required of all workers in the USA. Other EITC rules may also apply to those who are born in other countries.

Where Is My Tax Refund?

If you are missing a Federal Tax Refund payment in the mail, or one that was electronically deposited into your bank account, go to the Internal Revenue Service Website called, “Where’s My Refund”. Simply type those words into your Internet search bar to get started. The US government keeps the site open all year long to allow taxpayers to trace federal refunds.

The US government often hears the question, “Where is my federal refund?” The crooks are always working hard around tax return time to try to trick you out of your tax refund payments. If you have a missing federal refund check, do not wait in hopes that it might show up someday, go straight to the Internal Revenue Service Website “Where’s My Refund” and find out where it is.

The program on the Internal Revenue Service Website is very simple to use. It requires that the US citizen identify themselves with a social security number), the exact amount of filer making out the tax papers would know. You and your tax filer both have had access to this information.

It’s never smart to use a tax service to prepare and file your income taxes that are offering refunds that seem too large to be real, or ones that offer other tricks that go above simply filling in your paperwork for a fee. It is too easy for everybody that would like to become a tax preparation criminal to open their own professional looking website.

The US government puts out a list each year of the biggest scams and frauds that are going around that involved federal refund checks. Some of the scams on the list are things that they are seeing internally, and ways that taxpayers try to cheat on their taxes. Other things on the list are ways that tax preparation or tax refund checks are ending up being used in frauds.

If your US government tax refund payment is gone, and it cannot be found inside of the US government, “Where’s My Refund” program, then you might have been a victim to one of the various frauds or scams that are going around. Instantly call the US government for a determination of your tax return standing, and then follow their directions exactly.

Income Tax Brackets Need To Be Watched By Those Nearing The Upper Tax Levels

Tax rate charts are often hard to understand to US citizens because income is taxed at a rate that is based on individual filing status so that it is possible for 2 people to earn the same amount and be taxed differently. Married couples who make $145,000, and not taxed at the same amount as a single tax payer making the same amount of money, or a single married filing at the same level of income.

In the United States, over the last 10 years, Income rates have slowly had the upper level of rates moving downward so that some taxpayers who make more money end up not paying any income taxes at all after deductions. This situation with the Income tax rate charts will be fixed starting in year 2010 with the upper 2 tax brackets going back to the higher levels that were appropriate during tax year 1993.

By year 2010, taxpayers with a income greater than $200,000 either jointly or by themselves, will be in the upper 2 Income rate brackets for payments. This is something to consider for everybody who lives in a high expense area of the country where incomes in this $200,000 plus range are necessary to make ends meet. These citizens may want to look into other ways to beef up reductions before tax year 2010 hits.

One way that the IRS does not want taxpayers to try to reduce their Income tax rate bracket with is working from home that are just being used paper to reduce expense or to otherwise write off of the house as a business write off. By going to the IRS site, you can learn about the IRS starting to take action against individuals who try to get away with claiming unnecessary home business expenses to reduce their Income Brackets.

Legitimate ways to reduce Income Brackets can happen through giving up any online sales or additional activities that will push incomes into higher. Another way is to adopt a charity that is approved as a deduction area to help during our current economic crisis. The charity will appreciate the help, and US Government will keep your taxes lower if you do not go above that two hundred thousand Income Brackets.

It is easy to keep track of how your income is affecting your Income bracket over the course of a year with an site. Start you income taxes early, and enter the information monthly for your situation, which makes it possible to see how close to the Income rate bracket line you are getting before the 2011 tax season. This method of gauging sometimes gives taxpayers a heads-up a few months before the end of the tax year so that they have time to rearrange their plans to accommodate reductions.