Four Items To Know Before Filing Your Taxes

The deadline for filing your 2008 income tax return is quickly approaching. Each year money saving deductions are left on the table. Make sure you are maximizing your deductions this year.

Earned Income Credit The earned income credit is for a specific group of filers with or without dependents. This credit can garner a bigger income tax refund if you meet the criteria and should not be overlooked.

Criteria Valid Social Security Number Earned income, employer or self Can NOT claim married filing separate US citizen or resident alien for entire year You cannot be the qualifying child of another If you have no children and meet the income guidelines you must be 25 or over and under age 65 at end of filing year Cannot file 2555 or 2555ez Must meet income threshold

The maximum earned income credit is available to those qualified tax filers who have 2 qualifying children. The IRS defines a qualifying child as a dependent who is under age 19 at the end of the year or a full time student under the age of 24. They do not have to be your child they can be:

Son, daughter or qualified foster child or a descendant of any of these

Brother, sister, step brother or sister, half brother or sister, or any descendant of these

Any of these qualify for the EIC if they lived with you in the United States for more than half the year. The residency is not affected by incarceration, school or treatment facility, they are still considered to live with you if they will be returning to your home.

Tax Act Ever hear the saying a penny saved is a penny earned? Well the saying is quite true and applies to taxes in a very important way. Several companies have agreed to work with the IRS to provide free tax filing for certain individuals.

An example is Tax Act, a free online software for individuals which allows them to calculate and even efile that federal income tax return. The software provides a 100% guarantee and even offers you assistance in preparing and filing your taxes on time and online.

Deadline to File If you dont file your taxes on time you could be in for penalty and interest and possibly jail time. Therefore remember every year the tax filing deadline is April 15th unless that day falls on a weekend, then its the Monday if no legal holiday occurred or the 1st business day following the fifteenth.

Stimulus The Recovery Rebate Credit is a one-time benefit available to people who didnt receive the full economic stimulus payment last year and whose circumstances may have changed, making them now eligible for some or all of the unpaid portion. If you are using a tax preparation software or service the amount will be calculated for you and included in your 2008 tax refund or reduce the amount owed on your tax return. Again lets make the most of every available opportunity to save those hard earned dollars.

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