For the upcoming tax season, the IRS Form 1040 has changed forever. This goes back to the Tax Cuts and Jobs Act (TCJA), where Americans with simple tax affairs can file their taxes on a form that’s the size of a large postcard.
However, it should be said that online tax filers may not notice any changes at all, so they won’t need to do anything different.
The IRS has worked in collaboration with many tax preparation partners and brands to ensure these changes go through as easily as possible.… Read the rest
Millions of Americans don’t care when the tax season begins or ends because they don’t have to file taxes. If you are someone who has little to no income, you’re under no obligation to file a Federal tax return.
On the other hand, you can still file your taxes if you want to. There’s nothing illegal about filing a Federal tax return displaying zero income. In some cases, this is a smart idea.
As with any tax credit, refund or deduction, there are a few rules that will influence the amount that eligible applicants will receive.
Here is a breakdown of everything you need to know about the Child Tax Credit and Additional Child Tax Credit
How Much do You Get Back in Taxes for a Child?
The child tax credit for 2019, 2020, is worth up to $2,000 per child that is under the age of 17. To be eligible to claim the child tax credit, your child or dependent must first pass all of the eligibility tests:
Must be 16 or younger on the last day of the year
Must be a US citizen, US national, or a resident alien
Must be claimed by you as a dependent
Must be related to you by blood, or step relationship, or legally adopted child/foster child
Must have resided with you for more than half of the year (special rules apply for special circumstances such as divorce)
You must have provided them with more than half of their support
What is the New Child Tax Credit Amount After Tax Reform Changes?
The Social Security Administration released several figures pertinent to both workers and retirees. These statistics reveal there’s been a large increase in the worker wage base and a modest boost to retirement benefits.
These figures demonstrate the continuing strength of the US economy. But the social security cap will be changing as a result.
An Increasing Wage Base
The social security cap for 2020 will rise by 3.6% in 2020 to $137,700. This is the amount of earnings subject to the Social Security tax.… Read the rest
What makes a corporation special is it’s a distinct legal entity separated from its owners. That means it pays its own income taxes. The owners are not responsible for paying the income taxes of the corporation.
The way a corporation pays income taxes is through filing IRS Form 1120 to figure out how much they need to pay. Corporations also have a separate income tax rate, so they don’t pay the same taxes as an individual.
Taxpayers can use TurboTax to get their W-2s online and import it into the platform. It’s a simple system that automatically inserts the important information on your W-2 into your latest tax return.
How to Import Your W-2 Into TurboTax
The first step to login to TurboTax, click on ‘Work on My W-2 Now’ in TurboTax. From here, you’ll need to enter your Employer Identification Number (EIN). If you don’t have it, you can ask your employer’s accounting department for it.… Read the rest