So your going to receive a refund

Once getting through the harrowing act of filing one's taxes, the reward...is the refund. With the proper withholdings and the receipt of any refundable credits, one could end up with a very rather large sum of money.

This year for the first time in many years, as I've mentioned in an earlier post, you can purchase US savings bonds in $50 increments, with all of your refund or some of it. In order to participate, you must use the direct deposit option. The funds not used for bond purchase will be directly deposited into your banking account, credit union, or other financial institution. The bonds will be received by mail.

Do you know that you can apply any refund you are to receive to next year's taxes. If you know that your income is going to change, taking you into a higher tax bracket granting you a higher tax liability; any refund you are to receive, can be applied to next year's estimated taxes. You can apply all, or a portion of.

Just in case you didn't know. Any tax liability owed from a prior tax year, will be recaptured by any refund you are to receive. If there is any refund left, it will be surrendered to you.

Of course you can receive your check by snail mail; however it takes longer; 21-28 days (sometimes 6-8 weeks. Some situations call for that amount of time). With direct deposit, you could receive your refund in as fast as 10-14 days.

I look forward to being your tax professional. Always affordable tax preparation, and always free e-file and direct deposit. Call or e-mail me your tax questions.

Blessings
Wanda (Ui)
323.898.2330 Cell
818.763.7813 Business
wandaegreen@yahoo.com

Earned Income Tax Credit - EITC

The earned income tax credit aka EITC is a tax credit for people who work and have less than 48,279 of earned income. The EITC is a refundable credit. That means anything left over after your tax liability has been eliminated, you may receive as a part of your refund.

There are 7 rules that everyone must meet in order to qualify for the credit:

1. Your adjusted gross income must be less than $43,279 ($48,279 for married filing jointly)if you have three or more qualifying children.

* $40,295 ($45,295 for married filing jointly) if you have two qualifying children.

* $35,463 ($40,463 for married filing jointly) if you have one qualifying child.

* $13,440 ($18,440 for married filing jointly) if you do not have a qualifying child.

2. You must have a valid social security number.

3. Your filing status cannot be Married Filing Separately.

4. You must be a U.S. citizen, or a resident alien all year.

5. You cannot file form 2555 or form 2555-ez (relating to foreign earned income)

6. Your investment income must be $3,100 or less.

7. You must have earned income.


The above seven points must be met. If not you will not qualify.


There is really nothing that you need to do except have all proper information in regards to your children, or dependents that will qualify you for the credit. IE: social security numbers and full birth date information...month, day and year.

This is a fantastic credit. For instance if your AGI (adjusted gross income) is at least $27,450 but less than $27,500 and you have one child, you may be able to receive up to $1,276 and if you have two children up to $2,700 and three children up to $3,328.

****Disclaimer****All tax situations are unique. Information offered here is for general knowledge, and should not be used to apply to any one's personal tax story. The outcome of your tax situation can only be determined with the proper input and analysis by a tax professional, or even by yourself if that is your choice****


Contact me for affordable tax preparation. Virtual preparation is easy and secure.

I look forward to being your tax professional. Always affordable, and always free efile.

Peace
Wanda E Green
323.898.2330
818.763.7813
wandaegreen@yahoo.com