Federal Income Tax Questions for 2011, 2012
72Federal Income Tax Questions
In order to answer some basic Federal income tax questions, we will begin with filing status and take it from there. Your filing status determines the rate at which your income is taxed.
There are five different filing statuses:
1. Single
2. Married filing jointly
3. Married filing separately
4. Head of Household
5. Qualifying Widow (er) with dependent child
Once you have determined your filing status, you are then ready to think about claiming dependents, tax deductions, and tax credits. Here’s an interesting tax tip. Married filing jointly offers the lowest tax rate.
Qualifying Child Test
Having the ability to claim a dependent is a huge tax deduction. Ask yourself these questions to test the ability to claim a dependent.
- Relationship - The child has to be the taxpayer’s child or stepchild, (by blood or adoption), foster child, sibling or stepsibling, or a descendant of one of these.
- Residence – Must have the same main home as the taxpayer for more than half of the year. Exceptions do apply to this particular item.
- Age – Children must be under the age of 19 at the end of the tax year. The child can also be under the age of 24 if he or she is a full-time college student for more than five months of the year. The child can be permanently or totally disabled at any time during the year.
- Support – The child did not provide one half of his or her support for the year.
Alright, we have covered the filing status and qualifying children. A qualifying relative is a whole different category but, you should look into that exemption if you think you qualify for it. If you have a child you may qualify for, The Child Tax Credit, Credit for Child and Dependent Care Expenses, and the Earned Income Credit. You would be surprised how many taxpayers miss out on these credits they deserve to claim.
Deductions and Credits
The big question is, “Should I take the standard deduction or itemize?” Well, that depends on your particular situation in life. The standard deduction amount is based on your filing status. The amounts increase each year to keep up with inflation.
Filing as single will allow you to deduct more than $5,000. Married filing jointly will allow you to deduct more than $10,000. The big question is, “Do my deductible expenses add up to more than the standard deduction?” That is the big question you have to ask yourself. Medical care, mortgage interest, taxes, charitable contributions, casualty losses, and miscellaneous deductions can add up to more than the standard deduction.
Just the Tip of the Iceberg
I’m sure you still have questions about your federal income tax return. We’re off to a strong start now why don’t you visit TurboTax Online to see what they can do for you?
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i have a brother that is disabled he is only geting ssi but has back pay for child suport.so if i claim hem on my income tax would they take my income tax away.
My brother's daughter and her two children moved in with me last year,she had no income, i pay for all the electric, gas, house payments and food, the children are 2 and 7 she is single and 24 can i claim them on my taxes? i have always claimed single
Ok I need to know how to file my 2011 tax return since I have not had any income, my husband is on disability and we have custody of 2 grand-daughters one of which is disabled.
Can I do my taxes at the end of Dec with the last pay check that I have.
If I purchased a TV for $5000.00 in 2006, what would my charitable donation be valued in 2011. Will give to Goodwill.
I had a loss pursuant to IRC Sec 172 (b) (3)and I elected to relinquish the entire carryback period with respect to any regular tax and AMT net operating losses.
How will that effect any future filings?
I file my mother on my taxes but she passed away jan of 2011 can i still file her this year
i receive approx.$21,000.00 per year s.s. $14,000.00 per year for veterans compensation from viet-nam. i receive $6,000.00 per year for retirement from my union. i will be 68 years in dec. of this year. what of this total is taxable income? thank you
I get about $18,000 in SSDI and no other income, so I haven't benn filing any fed tax forms for a number of years now. Last year I paid ~$4,100 in property tax interest as I bought a home in 2009. Would there be any benefit for me to file a return, applying the mortgage interst, and would I get any refund from this interst (I'm single)?
Thanks.
I have a fried who is an illegal inmigrant. He generates income working by himself. He would like to pay federal and state income taxes, but he is afraid to do it because of his status. Can he file a tax return even if he is not a legal resident?
My spouse and I are both on SS part A& B. Can we deduct what we pay for health ins? Does it have to be over a certain ammount?
When cashing in savings bonds do you claim all or just the interest on Federal income tax
If I move a traditional IRA from one bank to another without touching the amount where do I list this on the 1040 or 1040A?
can married couples file jointly living apart
Can i file married filing separtaly, i was told that i couldnt. we didnt get married until sept 2010 and i had a grandchild that i kept for 9 months. and my husband didnt move with me until sept(latter part).Or will it be better to file married filing jointly?
I lost my gmhouse and received a 1099 for the remainder of the loan. How does affect my tax refund.
what is the per diem amount for 2010 over the road truck drivers
I am paying an installment plan too the IRS already for year 2008 which is a balance of 756.00 now owed my payments are 60.00 a month, I worked as a indepentant contractor and did not know that they were not taking federal taxes out on me, I will not make that mistake again anways my question is can I get a refund this year or will my refund go the the year I owe??
does the age matter on the child credit.my kids are 18 and 19 do i still get the same child credit
I would like to know if I can claim my child born at the end of 2007, but I did not claim him for 2008. He was born in July of 2007, and I did not claim him for 2007 or 2008. So How could I claim him now is there a form to fill out??
please email me at castdcas@aol.com
thank you very much
d e bartley
I would need further information to give you an accurate answer. According to the IRS here is the ruling:
Deduction Allowed in Year Paid
You can fully deduct points in the year paid if you meet all the following tests. (You can use Figure B as a quick guide to see whether your points are fully deductible in the year paid.)
Your loan is secured by your main home. (Your main home is the one you ordinarily live in most of the time.)
Paying points is an established business practice in the area where the loan was made.
The points paid were not more than the points generally charged in that area.
You use the cash method of accounting. This means you report income in the year you receive it and deduct expenses in the year you pay them. Most individuals use this method.
The points were not paid in place of amounts that ordinarily are stated separately on the settlement statement, such as appraisal fees, inspection fees, title fees, attorney fees, and property taxes.
The funds you provided at or before closing, plus any points the seller paid, were at least as much as the points charged. The funds you provided do not have to have been applied to the points. They can include a down payment, an escrow deposit, earnest money, and other funds you paid at or before closing for any purpose. You cannot have borrowed these funds from your lender or mortgage broker.
You use your loan to buy or build your main home.
The points were computed as a percentage of the principal amount of the mortgage.
The amount is clearly shown on the settlement statement (such as the Settlement Statement, Form HUD-1) as points charged for the mortgage. The points may be shown as paid from either your funds or the seller's.
Note.
If you meet all of these tests, you can choose to either fully deduct the points in the year paid, or deduct them over the life of the loan.
Home improvement loan. You can also fully deduct in the year paid points paid on a loan to improve your main home, if tests (1) through (6) are met.
I hope this helps.
I just refinanced my Home to get a lower interest in October 2010. Can I clam the settlement closing charges on my Federal tax return?
Probably not.
I live in Florida and my only income is Social Security Disability.....I am a widow and live off of $1,250 a month.....I have $127.50 taken out of my SS check for Medicare part B.........I do not own property or a home...I do not have CD's or a money market........I live from paycheck to paycheck.........I qualify for proverty level income...I did not have any Federal Tax taken out of my check this year, and Florida does not have a State tax.........Do I have to file this year???? My total income for the year was less then $16,000.........Please advise........Do I have to file and pay Federal Income Tax?????
Jim 4 days ago
My son took a year off from college. He is 20 and loved with me the entire year, He worked part time earned and earned 14,800. I paid his tuition for the spring semester on Dec 31,2011. Can I claim my son for 2011 and is his tuition deductible?