In the past, the IRS has warned consumers about sophisticated phone schemes targeting taxpayers. If you know you don’t owe any taxes, call the Treasury Inspector General for Tax Administration at 1-800-366-4484.
Tracey Scott received an unexpected phone call with some troubling demands. The voice on the other side of the phone claimed to be working with the Internal Revenue Service (IRS). In a voice recording, the voice informed Scott her home is under federal investigation and there is a warrant for her arrest.
ndiana Senate Democrats say a budget session is all about prioritizing, and their priority is to help working class Hoosiers. The top item on the Senate Democrats’ agenda is what they call “giving Hoosier families a raise.” Sen. Karen Tallian, D-Portage, says that begins with increasing the state’s minimum wage. She notes 29 states have a higher minimum wage than Indiana. “If you work 40 hours a week, you should not be below the federal poverty level. Indiana has a household income problem,” she says.
In addition to making end-of-year charitable contributions of goods or cash, Indiana taxpayers should consider making extra tax-deductible contributions to their retirement accounts. "Maybe you haven’t gotten that last pay check. See if you can up that amount and make a final contribution." she explained. Contributions to a child’s or grandchild’s College Choice 529 saving plan can also substantially cut a tax bill. Indiana offers a 20 percent tax credit on contributions for education.
As taxpayers prepare their 2014 returns, the Internal Revenue Service is wrestling with congressionally mandated budget cuts, outmoded technology, Obamacare enforcement, attacks from identity thieves and hackers, and an absurdly complex tax code.
Q. How is this tax season shaping up?
Some 47 million of the 145 million annual tax returns filed to the IRS are self-prepared. But that self-reliance can spell trouble for tax-filers. To prevent the costly consequences of mistakes wrought by independent and budget-minded filers, experts advise avoiding certain pitfalls, because one misstep could cost hundreds of dollars in potential return money or could lead to possible fines and jail time. Too Virtuous? Presenting yourself as overly altruistic can tip the IRS off to possible tax fraud.
If you received the benefit of advance credit payments, you must file a federal tax return and reconcile the advance credit payments with the actual premium tax credit you are eligible to claim on your return. You will use IRS Form 8962, Premium Tax Credit (PTC) to make this comparison and to claim the credit. If your advance credit payments are in excess of the amount of the premium tax credit you are eligible for, based on your actual income, you must repay some or all of the excess when you file your return, subject to certain caps.
You may be able to deduct certain miscellaneous costs you pay during the year. Examples include employee expenses and fees you pay for tax advice. If you itemize, these deductions could lower your tax bill.
Here are some things the IRS wants you to know about miscellaneous deductions:
Deductions Subject to the Two Percent Limit. You can deduct most miscellaneous costs only if their total is more than two percent of your adjusted gross income. These include expenses such as:
This year, there are some changes to tax forms related to the Affordable Care Act. Along with a few new lines on existing forms, there will also be two new forms that will need to be included with some tax returns. While most taxpayers will simply need to check a box on their tax return to indicate they had health coverage for all of 2014, there are also new lines on Forms 1040, 1040A, and 1040EZ related to the health care law.
Your children may help you qualify for valuable tax benefits. Here are eight tax benefits parents should look out for when filing their federal tax returns this year.
1. Dependents. In most cases, you can claim your child as a dependent. This applies even if your child was born anytime in 2013. For more details, see Publication 501, Exemptions, Standard Deduction and Filing Information.
Following the passage of the extenders legislation, the Internal Revenue Service announced today it anticipates opening the 2015 filing season as scheduled in January.
The IRS will begin accepting tax returns electronically on Jan. 20. Paper tax returns will begin processing at the same time.
The decision follows Congress renewing a number of "extender" provisions of the tax law that expired at the end of 2013. These provisions were renewed by Congress through the end of 2014. The final legislation was signed into law Dec 19, 2014.