Tax Center - Tax Guide
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Answers to Frequently Asks Tax Questions:
IRS 2010 Refund Cycle in English & Spanish
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1. Generally, the need to file a federal tax return depends on your filing status and your gross income (all income you received EXCEPT social security benefits UNLESS you are married filing separately and you lived with your spouse during the year). The chart below explains who must file a return: |
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Age at the end of 2009 |
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Gross Income was at least... |
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NOTE: In addition to the requirements listed on the chart, you may also have to file a return if you meet one of these conditions:
- You have at least $400 in net earnings from self-employment
- You received Advanced Earned Income Credit (EIC) payments from your employer (reported in box 9 of your Form W-2)
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2. You may want to file a tax return even if you do not meet the conditions above because:
- You may be eligible to receive the Earned Income Credit if you had wages or net earnings from self-employment. Depending on your situation you could get up to $5,657.
- You may be entitled to a refund if taxes were withheld from your wages or other sources of income |
| 3. The following common types of income do not have to be reported on your income tax return: |
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4. Deductions and credits can decrease the amount of taxes you have to pay. Below are some common types of expenses that you can claim a credit or deduction for on your tax return:
- Child and dependent care expenses
- Educational expenses such as tuition, fees, and student loan interest
- Home related expenses such as mortgage interest or real estate taxes
- Contributions made to retirement accounts such as an IRA or 401(k)
- Gifts to charity (monetary and non-monetary)
- Job related expenses such as travel, union dues, uniforms, equipment, etc.
- Medical and dental expenses
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5. Yes. You (and your spouse, if filing jointly) must have an adjusted gross income of $57,000 or less to use TBB to fill out and file your return.
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6. (a) Locate the nearest TBB site by calling 1-866-887-6060 or visiting www.thebenefitbank.com and clicking on The Benefit Bank Locator.
(b) Make an appointment.
(c) Gather your income reporting forms and any other documents showing your expenses in order to claim a credit or deduction --bring ALL forms to your appointment!
Reporting forms are the forms you receive from your employer, banks, schools, and other institutions that are used to show you the amount of income you received from that source AND the amount of money you paid to that institution, which you can use to claim a deduction or credit. |
| Below is a list of those reporting forms that our program asks about:
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7. When filling out a tax return there are usually other forms and schedules that you have to attach to your return in order to claim credits, deductions, or report a certain type of income. Here are the forms and schedules that you can fill out using our program:
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9. Earned Income Tax Credit |
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The new maximum credit for tax year 2009 is $5,657 for a family with three or more children; $5,028 for a family with two children; $3,043 for a family with one child and $457 if there are no children. |
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The new income limits are $43,279 ($48,279 if married filing jointly) for families with three or more children; $40,295 ($45,295 if married filing jointly) for families with two children; $35,463 ($40,463 if married filing jointly) if there is one child and $13,440 ($18,440 if married filing jointly) for no children. Investment income must be $3,100 or less. Children must meet certain relationship and residency requirements.
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| Created in 1975, the Earned Income Tax Credit (EITC) helps offset Social Security taxes and provides an incentive for work. It is the federal government’s largest benefits program for working families.
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| More than 60 percent of all tax returns claiming EITC are filed during the month of February.
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| An estimated 20 to 25 percent more people may qualify for EITC but may not be aware of it.
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| The EITC is for people who work and have low to moderate income.
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| The audience includes people with limited English skills, rural residents, Native Americans, people with disabilities and nontraditional families, such as a grandparent raising a grandchild.
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| The IRS works with over 65 National partners, 300 Community Based Coalitions and thousands of local partners. These partnerships provide free tax assistance and educate people about available tax credits.
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There are more than 12,000 free tax preparation sites nationwide. Approximately 4,500 sites were Volunteer Income Tax Assistance sites that provide free services to people who make approximately $49,000 a year or less. Approximately 8,000 sites were Tax Counseling for the Elderly locations operated by AARP and free for low-income people who are age 60 or older.
source: IRS http://www.eitc.irs.gov/ptoolkit/awarenessday/resources/
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