Making Work Pay Tax Credit

Many working taxpayers are eligible for the Making Work Pay Tax Credit, a provision created by the American Recovery and Reinvestment Act in early 2009. Here are 10 things the IRS wants you to know about this tax credit to ensure you receive the entire amount for which you are eligible. In 2009 and 2010,…

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Everyone Can Use Free File

The IRS Free File service provides free federal income tax return preparation and electronic filing for all taxpayers. All you need is access to a computer and the Internet and you can prepare and e-file your federal tax return for free. Free File is offered through a partnership between the IRS and the Free File…

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Converting IRA to a Roth IRA

If you have been saving for retirement in a traditional IRA, you can convert some or all of your traditional IRA funds into a Roth IRA. Beginning in the year 2010, all restrictions on converting to a Roth IRA have been removed. Prior to 2010, individuals were not allowed to convert to a Roth IRA…

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Martin Luther King and tax

In honor of Martin Luther King, Jr. Day: reports on how some southern officials tried to use state tax laws to stop King and the nascent civil rights movement: “In Alabama, … Governor John Patterson in early 1960 directed state revenue authorities to charge Martin Luther King, Jr., with tax evasion and perjury in completing…

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Buy Savings Bonds with your Federal Tax Refund

If you are receiving a federal tax refund from the Internal Revenue Service, you can choose to use that money to purchase U.S. savings bonds. You may use a portion of your refund to purchase up to $5,000 in U.S. Series I Savings Bonds. The total amount of saving bonds purchased must be a multiple…

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Tax Credit for Higher Education Expenses

The American Recovery and Reinvestment Act was passed in early 2009 and created the American Opportunity Credit. This educational tax credit – which expanded the existing Hope credit – helps parents and students pay for college and college-related expenses. Here are facts the Internal Revenue Service wants you to know about this valuable credit and…

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How to Obtain a Transcript of Your Past Tax Information

Taxpayers who need their past tax return information can obtain it from the IRS. There are two easy and convenient options for obtaining free copies of your federal tax return information — tax return transcripts and tax account transcripts. The IRS does not charge a fee for transcripts, which are available for the current year…

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Questions to ask your tax preparer

The tax industry is constantly changing and tax professionals are subject to various federal and state regulations. Here are some questions you can ask to help ensure you find an experienced, trustworthy relationship with a tax adviser: What licenses or designations do you have? How long have you been in the tax business? What tax…

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Choosing the right tax preparer

The IRS urges people to use care and caution when choosing a tax preparer. Remember, you are legally responsible for what’s on your tax return even if it was prepared by an another individual or firm. Most tax return preparers are professional, honest and provide excellent service to their clients. However, unscrupulous tax return preparers…

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