Tax Documents Checklist

Who Can Take the Credit for the Elderly or Disabled (Schedule R)?

If you are over the age of 65 at the end of the tax year or if you are totally and permanently disabled, you may be eligible to claim the Credit for the Elderly or the Disabled.  Many taxpayers who are over 65 or disabled qualify for a tax credit worth between $3,750 and $7,500, but not everyone who experiences disability or meets the age requirement is eligible to claim it. To qualify for the credit for the elderly or disabled, you must: Have reached age 65 on or before the last day of the tax year (As a practical

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Did you collect unemployment compensation from a state or local government assistance program?

Unemployment compensation can provide valuable relief when taxpayers are experiencing temporary job loss, but there’s often an unpleasant surprise that follows these payments: This income is taxable at the federal level. If you don’t have taxes withheld from the payments, you may owe a big tax bill when you file your return. If you received unemployment payments during the year you should receive Form 1099G, Certain Government Payments. The amount of unemployment compensation you received from all sources, including federal, state and local government assistance programs, will be shown in Box 1 of this form; the amount of federal tax that

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What is the Recovery Rebate Credit?

Many taxpayers received Economic Impact Payments during 2020 and 2021  in response to difficult economic conditions caused by the COVID-19 pandemic. If you have not yet received the first or second stimulus payments from 2020, you may be eligible to claim the Recovery Rebate Credit on your 2020 tax return. Additionally, if you did not receive the third payment from the 2021 stimulus, you should be able to claim it on your 2021 tax return. Due to the coronavirus epidemic, the U.S. Treasury Department issued an Economic Impact Payment (EIP) to eligible taxpayers twice during the 2020 tax year. The amount

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How to file for a state income tax extension

Client figuring out how to file for a state extension

Please note, provides software to prepare federal tax extensions. However, we do not provide software for state/local tax extensions. With every purchase of our extension software we include free software to prepare and file a tax return once the taxpayer is ready to file.  Most states, which require taxpayers to file an income tax return, use the federal deadline of April 15th (unless the 15th falls on a weekend or a holiday.) If your state requires that you file a return and you believe you will not be able to complete your return by the deadline, you may be able to file a request for an

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Taxpayer COVID-19 FAQ

Many users have questions regarding the change of the tax filing deadline and the economic stimulus payments the U.S. government is sending to American taxpayers. The following is being provided to help answer some of the most frequently asked questions. Please keep in mind, this situation is evolving and some information/guidelines will change. REGARDING THE THIRD STIMULUS CHECK : The third stimulus check under President Biden’s American Rescue Plan provides up to $1,400 per eligible taxpayer, plus $1,400 for each eligible dependent.  According to information provided in the IRS press release the “official payment date” when taxpayers may start to see payments

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The New Simplified 1040 Tax Form

Simplified 1040

Several versions of the 1040 tax form have been consolidated into one simpler version that all taxpayers can use. Previously, there were three versions of the 1040 form. The redesigned 1040 form from the IRS is only half a page long on two sides.

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Are my alimony payments considered earned or taxable income?

The IRS considers payments to a spouse or former spouse forms of alimony (for tax purposes this includes all payments made under divorce decree, maintenance decree, or separation agreement).

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Using an AGI, Self-Select or IP PIN to verify a taxpayer’s ID

AGI or IP Pin for ID

AGI stands for Adjusted Gross Income. This is a calculation that the IRS uses which translates to roughly what you have left after deductions or adjustments have been made to your gross or total income. It is the figure that will be used in the final calculation on your form 1040 and helps determine what your tax bill will be.  Your prior year AGI (the number provided to the IRS on your return last year) is the most common way to verify your identity, sign your return and to e-file your taxes electronically. The IRS considers this important piece of information a key

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Do I pay taxes on my unemployment benefits from when I was out of work?

Unemployment benefits come from an insurance fund worked out between the federal, state and local governments. When you file for your unemployment benefits, you should be able to choose to have your federal taxes withheld.

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At what point should my dependent file his/her own tax return?

ou have a child under the age of 19 or under the age of 24 and a full-time student, you should be able to claim the dependent if certain criteria are satisfied. However, the dependent must not provide more than half of their own financial support.

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