Tax Center - Tax Guide
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Answers to Frequently Asks Tax Questions:
IRS 2011 tax year Refund Cycle in English & Spanish
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1. Generally, the need to file a federal tax return depends on your filing status and your gross income (all income you received EXCEPT social security benefits UNLESS you are married filing separately and you lived with your spouse during the year). The chart below explains who must file a return: |
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Age at the end of 2011 |
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Gross Income was at least... |
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NOTE: In addition to the requirements listed on the chart, you may also have to file a return if you meet one of these conditions:
- You have at least $400 in net earnings from self-employment
-You owe Social Security and Medicare taxes on tips you did not report to your employer or on wages you received from an employer who did not withhold these taxes.
2. You may want to file a tax return even if you do not meet the conditions above because:
- You may be eligible to receive the Earned Income Credit if you had wages or net earnings from self-employment. Depending on your situation you could get up to $5,751.
- You may be entitled to a refund if taxes were withheld from your wages or other sources of income.
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| 3. The following common types of income do not have to be reported on your income tax return: |
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4. Deductions and credits can decrease the amount of taxes you have to pay. Below are some common types of expenses that you can claim a credit or deduction for on your tax return:
- Child and dependent care expenses
- Educational expenses such as tuition, fees, and student loan interest
- Home related expenses such as mortgage interest or real estate taxes
- Contributions made to retirement accounts such as an IRA or 401(k)
- Gifts to charity (monetary and non-monetary)
- Job related expenses such as travel, union dues, uniforms, equipment, etc.
- Medical and dental expenses
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5. Yes. You (and your spouse, if filing jointly) must have an adjusted gross income of $60,000 or less to use TBB to fill out and file your return.
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6. (a) Locate the nearest TBB site by visiting The Benefit Bank Locator.
(b) Make an appointment.
(c) Gather your income reporting forms and any other documents showing your expenses in order to claim a credit or deduction --bring ALL forms to your appointment!
Reporting forms are the forms received from an employer, banks, schools, and other institutions that are used to show the amount of income received from that source AND the amount of money paid to that institution, which a tax filer can use to claim a deduction or credit. |
| Below is a list of those reporting forms that our program asks about:
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7. When filling out a tax return there are usually other forms and schedules that you have to attach to your return in order to claim credits, deductions, or report a certain type of income. Here are the forms and schedules that you can fill out using our service:
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9. Earned Income Tax Credit |
The income thresholds to receive the Earned Income Credit and the amount of credit have increased to the following:
Earned Income Thresholds
$43,998 ($49,078 married filing jointly) with three or more qualifying children
$40,964 ($46,044 married filing jointly) with two or more qualifying children
$36,052 ($41,132 married filing jointly) with one qualifying child
$13,660($18,740 married filing jointly) with no qualifying children
The total of all interest, dividend, and capital gain income must be $3,100 or less regardless of whether the taxpayers have a qualifying child or not
Maximum Credit Amount
$5,751 with two or more qualifying children
$5,112 with two or more qualifying children
$3,094 with one qualifying child
$464 with no qualifying children
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| Created in 1975, the Earned Income Tax Credit (EITC) helps offset Social Security taxes and provides an incentive for work. It is the federal government’s largest benefits program for working families.
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| More than 60 percent of all tax returns claiming EITC are filed during the month of February.
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| An estimated 20 to 25 percent more people may qualify for EITC but may not be aware of it.
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| The EITC is for people who work and have low to moderate income.
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