Be an informed consumer when selecting a tax preparer. Going to an inexperienced or unethical return preparer can hit you in your pocket book. Filing returns with inflated deductions or credits can result in you owing back taxes, interest and penalties.
The Earned Income Credit (EIC) is a federal tax credit for low and moderate income working people. The EIC is available to workers who do not have children living in their homes, as well as working parents. You can get a refund even if you do not owe federal income tax. If you do owe federal income tax, the EIC decreases your federal tax.
Who can get qualifying child and qualifying relative dependency exemptions.
Suppose the IRS sent you a letter a couple of years back indicating you owed money. At the time, you didn't know what to do and missed the deadline. This year you are entitled to a refund but the IRS is going to take it. You were going to fix your car or maybe catch up on utility bills with the refund. Is there anything you can do?
Every tax return or other tax document must have an identification number on it. Taxpayers who are legal residents of the United States use their social security number. Taxpayers whose status does not allow them to get a social security number need to apply for an Individual Taxpayer Identification Number (ITIN).