This week’s blog focuses on the Child and Dependent Care Tax Credit (CDCTC). This credit reduces your tax liability based on a percentage of the amount of money spent on child or dependent care for the year. The requirements to qualify for the CDCTC are as follows:
If you were due a refund from your federal return, chances are that you have already received it. According to the IRS, 9 out of 10 refunds are issued within 21 days after the IRS receives your return. If, however, you were due a refund this year, timely filed your return, and still have not… Read more
On April 6, 2011, IRS Commissioner Doug Shulman addressed the National Press Club and offered suggestions on improving tax return reporting. The goal of his proposal is to allow for more accurate reporting and a decrease in the number of audits due to mismatched information.
Tax returns are audited for several reasons, but the methods by which the IRS flags a return for audit are more limited. There are essentially two main ways an audit is triggered – (1) selection based on a closely guarded IRS computer scoring system and (2) selection based on mismatched information filings (i.e., W-2’s and… Read more
A couple of weeks ago I received a call from a single mother who needed some help. This mother had no filing requirement, so she had decided to let the father of her child claim the child on his tax return. When the father went to file his taxes, however, the return was rejected. The… Read more
Due to a heavy case-load this week and with Thanksgiving tomorrow, this post will be more information than analysis, but hopefully useful for those looking for information on deductible business expenses. One might initially think it unfortunate that a comprehensive list detailing all the potential deductible expenses does not exist. Keep in mind, however, that businesses vary, so business expenses will vary as… Read more
