Be proactive in your tax planning and take the help of an experienced tax professional who can provide expert guidance and also help in determining how changes in the tax laws will affect you and what is necessary to reduce future tax liability.
A Quick Glance At Who Must File 2012 Returns Anyone who received an income of any sort in the year 2012, would essentially need to file a tax return in 2013. The amount of income, filing status, age and the type of income received will determine whether one is required to file. There are also instances of getting a refund when there is too much federal income tax withheld from your pay or qualify for certain tax credits. There is also instances b when you don’t need to file a tax return this year, but may still want to file, and here are a few reasons that may be so: ● In an instance when the federal income tax is withheld If you are due for a refund in case your employer has withheld federal income tax from your pay, or if you made estimated tax payments, or if you had a prior year overpayment applied to this year’s tax, you could file a return to claim any excess tax paid during the year. ● Earned Income Tax Credit. Anyone who has worked but earned less than $50,270 last year, would qualify for EITC. EITC is a refundable tax credit; which means that if you are eligible you could receive EITC as a tax refund. Families with qualifying children may qualify to get up to $5,891 dollars, and it is not possible to get the credit unless you file a return and claim it. It makes good sense to use the EITC Assistant to find out if you qualify. ● Additional Child Tax Credit If you have at least one eligible child and you don’t get the full amount of the Child Tax Credit, you may qualify for this additional refundable credit. It would be essential to file and use new Schedule 8812, Child Tax Credit, to claim the credit. ● American Opportunity Credit. Anyone who is a student or supports a student may be eligible for this credit. Students in their first four years of postsecondary education can qualify for as much as $2,500 through this partially refundable credit. Even those who owe no tax can get up to $1,000 of the credit as cash back for each eligible student. It would be essential to file Form 8863, Education Credits, and submit it with your tax return to claim the credit. ● Health Coverage Tax Credit. Anyone receiving Trade Adjustment Assistance, Reemployment Trade Adjustment Assistance, Alternative Trade Adjustment Assistance or pension benefit payments from the Pension Benefit Guaranty Corporation, may be eligible for a 2012 Health Coverage Tax Credit. Spouses and dependents could also be eligible and if eligible, can receive a 72.5 percent tax credit for payments made for qualified health insurance premiums. A well thought-out tax planning strategy is usually the best thing that can legally minimize tax liabilities. Be proactive in your tax planning and take the help of an experienced tax professional who can provide expert guidance and also help in determining how changes in the tax laws will affect you and what is necessary to reduce future tax liability. Read More About: Foreign Bank Account, FBAR, IRS Amnesty, Entity Formation
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