Tehachapi's Online Community News & Entertainment Guide
Tehachapi's Online Community News & Entertainment Guide
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Tax-related identity theft occurs when someone uses a taxpayer's stolen Social Security number and name to file a tax return to claim a fraudulent refund. Often the taxpayer doesn't know this has occurred until they try to file a legitimate tax return and have their return rejected with an error code stating that a return has already been filed using that name and Social Security number. This article discusses the steps to take when a taxpayer's identity has been stolen, along with helpful sugge...
Trusts have been used as an integral part of sophisticated tax and financial arrangements for centuries. Exactly how they are used depends on a person's particular goals, current tax rules, and other factors. Hopefully this article helps you to understand some ways a trust may help you. A trust is an arrangement in which title to property is held by someone for another's benefit. The trust can be established to benefit the person creating it (the grantor), or to benefit another (the...
Taxpayers with one or more qualifying children may be able to claim a tax credit of up to $2,000 per qualifying child. The childcare credit is generally a nonrefundable credit that is limited to regular tax liability plus alternative minimum tax liability. However, a portion of the credit is refundable for certain taxpayers. The refundable portion of the additional tax credit for any qualifying child cannot exceed $1,500. The additional childcare credit is the smaller of: 1) The amount of the...
Proving tax deductions without cancelled checks There is a growing trend toward remote deposit of checks. Because of the increasing sophistication of smart phones, you can now photograph a check written out to you and digitally send it to your bank for deposit. Most banks discontinued the practice of retaining a paper version or copy of your checks. Banks are allowed to truncate each of your checks, create a new electronic negotiable instrument called a substitute check and then destroy the...
Do I need to file a tax return? The answer depends on your filing status, your age and the type of income you earn. Each person is allowed to earn a certain amount of income before they are required to file a tax return. For 2023 tax returns, individuals are not allowed a personal exemption deduction, but are still entitled to a standard deduction of $13,850 for a single file. Hence, an individual can have $13,850 of taxable income before being taxed if under age 65. If age is 65 or over, an...
