Grants From The IRS
The IRS Will Send 3.5 Million Families a Check for Up To $4,716, If They Only Ask*
It’s not really a grant, but it looks like a grant, it walks like a grant and it even smells like a grant. They are called tax credits. It’s extra money the IRS will give you that’s better than a refund because they will give it to you even if you don’t pay any taxes. You just have to have some income and the less income. You have the bigger the check you get. You can make up to $39,783 and still be eligible.
Free Tax Services
Don’t pay professional tax preparers money when you can have an income up to $35,000 or even more and get your taxes prepared for free. No matter what your income, check if the services in your area can help you. The service is called Volunteer Income Tax Assistance (VITA). To find your local VITA program contact your local public library or your Congressman’s office at www.congress.org
. You can also try the IRS hotline at 1-800-TAX-1040. Also see http://www.irs.gov/individuals/article/0,,id=119845,00.html
More Free Help For Club Members
Free Legal Help With Tax Problems
Families can have incomes up to $50,000, or more even, and get free layers to solve your tax problem. There are over 115 Low Income Taxpayer Clinics (LITC) that will help you with legal problems for free. You should check the availability of services in your area no matter what your income is. To find a clinic near you contact your local public library or your Congressman’s office at www.congress.org
. You can also try the IRS hotline at 1-800-TAX-1040. See also http://www.irs.gov/pub/irs-utl/pub._4134-04.pdf
Free Tax Help For Seniors
With a grant from the IRS, the AARP organizes over 8,000 “Tax Counseling For The Elderly” sites around the country that specialize in providing free tax help for people 60 and over. They may also provide free help for others, so it can’t hurt to ask. To find a site near you, call the TCE hotline at 1-800-829-1040 or the AARP Tax Aide hotline at 1-888-227-7669 or visit http://www.irs.gov/pub/irs-utl/pub._4134-04.pdf
. You can also contact your local public library or your Congressman’s office at www.congress.org
Government Will Fight The IRS For Yours
If you have attempted to deal with an IRS problem unsuccessfully, you should contact your Taxpayer Advocate. They will represent your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels. They can clear-up problems that resulted form previous contacts and ensure that your case is given a complete and impartial review. Call 1-877-774778 or www.irs.gov/advocate
More Grants From The IRS
$600 Per Person Special Gift
The IRS will start sending out the economic stimulus payments in May 2008, and all you have to do is file a tax return. The IRS will use the information to determine eligibility and calculate the amount. Payments will continue over several weeks during the spring and summer. A payment schedule for taxpayers will be announced in the near future. In most cases, the payment will equal the amount of tax liability on the tax return, with a maximum amount of $600 for individuals ($1,200 for taxpayers who file a joint return). The law also allows for payments for select taxpayers who have no tax liability, such as low-income workers or those who receive Social Security benefits or veterans’ disability compensation, pension or survivors’ benefits received from the Department of Veterans Affairs in 2007. These taxpayers will be eligible to receive a payment of $300 ($600 on a joint return) if they had at least $3,000 of qualifying income. Qualifying income includes Social Security benefits, certain Railroad Retirement benefits, certain veterans’ benefits and earned income, such as income from wages, salaries, tips and self-employment. While these people may not be normally required to file a tax return because they do not meet the filing requirement, the IRS emphasizes they must file a 2007 return in order to receive a payment.
Eligible taxpayers who qualify for a payment will receive an additional $300 for each child who qualifies for the child tax credit. Payments to higher income taxpayers will be reduced by 5 percent of the amount of adjusted gross income above $75,000 for individuals and $150,000 for those filing jointly. For more information check out http://www.irs.gov/newsroom/article/0,,id=179094,00.html
Get a $2,000 Check From Your State
You can claim anywhere from an additional 5% to 50% of what you get from the federal Earned Income Tax Credit from your state government. About 18 states currently offer this credit as well as a hand full of local jurisdictions. Make sure you get this money, too. Contact one of the free tax services described above or you state tax office located in your state capital. You can call 411 and ask for this number of go to www.govengine.com
and click on your state. You can also contact your local public library or your Congressman’s office at www.congress.org
Also see: http://www.cbpp.org/5-14-04sfp.pdf
$1,000 Check From Each Child
Get a Check For Child Care
This federal Child and Dependent Care Tax Credit if for child care for kids under 13 or for caring for dependents mentally or physically incapable of self-support. The credit can be up to 35% of your expenses. To qualify, you must pay these expenses so you can work or look for work. Unlike the Child Tax Credit and Earned Income Tax Credit, you get this check only if you are paying taxes. Use the free tax sources above or call 1-800-TAX-1040. Or go to: http://www.irs.gov/newsroom/article/0,,id=106189,00.html
$2,310 Check From Your State For Child Care
Twenty-seven states offer Child and Dependent Care Tax Credit on your state tax returns. About 14 of these states do not require you to pay any taxes in order to get a check. Contact one of the free tax services described above or your state tax office located in your state capital. You can call 411 and ask for this number of go to www.govengine.com
and click on your state. You can also contact your local public library or your Congressman’s office at www.congress.org
. Also see: http://www.nwlc.org/pdf/NWLCTaxCreditsOutreachCampaignToolkit2005.pdf
$1,650 Check For Going To College
A study done by the U.S. Government Accountability Office (http://www.gao.gov/new.items/d05684.pdf
) shows that as many as 374,000 taxpayers are eligible to receive a tax credit, but do not apply for the program. The programs are the Hope and Lifetime Learning tax credits and the tuition tax deduction. These are programs for people continuing their higher education. The maximum Hope credit rises to $1,650 (100% of the first $1,100 of eligible expenses and 50% of the next $1,100 of expenses). These dollar amounts are doubled for students attending an eligible educational institution in the Gulf Opportunity Zone. The Hope and Lifetime Learning credits are phased out if a taxpayer’s modified adjusted gross income (MAGI) is between $47,000 and $57,000 ($94,000 and $114,000 if filing a joint return). For information about tax credits, see: http://www.irs.gov/faqs/faq-kw85.html
For details on the tuition deduction, see: http://www.irs.gov/faqs/faq7-4.html
, call 1-800-TAX-1040 or go to: http://www.irs.gov/publications/p970/index.html
$2,000 Check For Taking A Course Or Class
Almost any kind of course that will improve your job skills are eligible under the federal Lifetime Learning Tax Credit. You can make up to $100,000 and still get this credit, but you have to be paying taxes to get the money. Use the free tax sources above, or call 1-800-TAX-1040 or go to http://www.irs.gov/individuals/article/0,,id=96273,00.html
$5,000 Check To Pay For Health Insurance
The federal Health Coverage Tax Credit is a bit more complicated, but it will pay 65% of health care insurance for people who lost their job because of imports or are receiving certain retirement benefits. Use the free tax sources above, or call 1-800-TAX-1040 or go to http://www.irs.gov/individuals/article/0,,id=109960,00.html
Up to $7,500 Credit For Seniors Or Disabled
The Tax Credit for Elderly and Disabled is for citizens who are older than 65 or disabled. Your eligibility is based upon your income. Use the free tax sources above, or call 1-800-TAX-1040 or go to http://www.irs.gov/pub/irs-pdf/p524.pdf
$11,390 Check For Adoptions
As an adoptive parent you may be able to receive a tax credit up to $11,390. The income limits on this go up to $210,820. Use the free tax sources above, or call 1-800-TAX-1040 or go to http://www.irs.gov/taxtopics/tc607.html
$30,000 Check From Your State
Free TAX Help and 1% Chance of IRS Audit
Nothing sends fear through the hearts of man than the words “You are being Audited by the IRS.” But relax. Less than one percent of tax returns are audited. To put your mind at ease, it is best to be as truthful as possible. In order to better serve you, the IRS has improved their telephone answering service accuracy rating to a resounding 91%! An outside source hired to evaluate customer satisfaction found that 94% of the callers were satisfied with the IRS service. In 2005, the toll-free hotline received 59,098,251 calls. According to headquarters, it is best to call later in the week and in the evening to have shorter wait times. You can call the IRS Tax Help Line for Individuals at 800-829-1040 to get answers to your federal tax questions.
If you decide to have someone else prepare your return, make sure you go with a reputable person. Last year close to 200 investigations were begun on suspected abusive return preparers. You are responsible for the accuracy of your returns. Some tips on choosing a tax preparer include:
- Avoid return preparers who claim they can obtain larger refunds than others.
- Avoid preparers who base their fee on a percentage of the amount of the refund.
- Make sure the tax professional signs your return and provides copies for you.
- Consider whether this individual or firm will be around to answer question about your tax return after your return has been filed (could be after three years).
- Never sign a blank tax form.
$10,000 To Turn In Your Tax Cheat Neighbor
Now, the IRS takes your money every year, but you can actually get some back if you turn in a tax cheat. Obviously some proof is required or the IRS would spend months investigating mothers-in-law across the country. But if you do know of someone not paying their fair share, you can receive up to 15% of the money recovered – up to $10 million if you were wondering and they have a minimum pay out of $100. Just complete Form 211 Application for Reward for Original Information. You can also call 800-829-0433 to make a report of a tax cheat. For more information check out Publication 733: http://www.irs.gov/pub/irs-pdf/p733.pdf
Tax Breaks For Hybrids, Alternative Fuels and Donations
Things not to miss this year include the Hybrid Cars and Alternative Motor Vehicles which provide a nice tax credit for vehicles purchased or placed in service on or after January 1, 2006. Also there are new rules regarding gifts to charity. To be deductible, clothing and household items donated to charity after Aug. 17, 2006, must be in good used condition or better. However, a taxpayer may claim a deduction of more than $500 for any single item, regardless of its condition, if the taxpayer includes a qualified appraisal of the item with the return. Household items include furniture, furnishings, electronics, appliances, and linens.
Energy-Saving Tax Credits
You can take a credit based on what you spend on various energy-saving improvements made to your main home. New energy-efficient improvements qualify, including insulation, exterior windows, exterior doors, water heaters, heat pumps, central air conditioners, furnaces and hot water boilers. The overall credit is limited to $500 and further dollar limits apply to specific components –– for example, $200 for windows. If you took the full $500 credit in 2006, you cannot claim the credit in 2007, even if you made qualifying energy-saving improvements. Separately, there is a 30 percent credit for the cost of photovoltaic property, solar water heating property and fuel cell property.
These credits are claimed on Form 5695
. Check out http://www.irs.gov/pub/irs-pdf/f5695.pdf
Mortgage Insurance Premiums May be Deductible
Some borrowers may be able to deduct mortgage insurance premiums paid on mortgages taken out or refinanced during 2007. A borrower who prepays premiums for later years may deduct only the premiums that relate to 2007, except for prepayments for guarantees made by the Department of Veterans Affairs or the Rural Housing Service. Only mortgage insurance contracts issued during 2007, 2008, 2009 or 2010 qualify for this new itemized deduction. Proceeds of the mortgage, secured by a first or second home, must be used exclusively to buy, build or improve these homes, or alternatively, to refinance a mortgage, secured by the home and used for these purposes. Home-equity loans used for other purposes are not eligible. The deduction for mortgage insurance premiums is phased out for taxpayers with adjusted gross incomes exceeding $100,000 ($50,000, if married filing separately). Claim this deduction on Schedule A, Line 13. Further details are in Publication 936
. Check out http://www.irs.gov/pub/irs-pdf/p936.pdf
Find Your Refund
You filed your tax return and you're expecting a refund. You have just one question and you want the answer now - Where's My Refund?
Whether you split your refund among several accounts, opted for direct deposit to one account or asked IRS to mail you a check, you can track your refund through this secure website. You can get refund information even if you filed just to request the telephone excise tax refund.
To get to your personal refund information, be ready to enter your:
Social Security Number (or IRS Individual Taxpayer Identification Number)
Filing status (Single, Married Filing Joint Return, Married Filing Separate Return, Head of Household, or Qualifying Widow(er))
Exact refund amount shown on your return
If you don’t receive your refund within 28 days from the original IRS mailing date shown on Where’s My Refund
, you can start a refund trace online. If Where’s My Refund?
shows that the IRS was unable to deliver your refund, you can change your address online. Where’s My Refund?
will prompt you when these features are available for your situation. Check it out online at: https://sa2.www4.irs.gov/irfof/lang/en/irfofgetstatus.jsp
Check If You Have Missing Money At IRS
Don’t miss out. The IRS is currently sitting on 95,746 checks worth of $92.2 million dollars. The average check is worth $963. Call 800-829-1954 if you think one of those lonely checks may be yours!
Taxes are due this year on APRIL 15th. If you need help completing forms or have questions, be sure to contact the IRS at 800-829-1040 or go online to www.irs.gov
Even MORE Help…
NO FEAR Audits: Get Copies of In-House IRS Auditing Manuals...
You can take the fear out of any audit by seeing what the auditor is going to look for when they come to audit you. You can get copies of the IRS’ own In-House Auditing Manuals. These are the guidelines that the IRS auditors have to follow when they come to audit you. It’s like getting the test ahead of time. But because of the government’s own Freedom of Information Act, this is now legal. You can receive a listing of all available audit manuals by sending a SASE (self-addressed stamped envelope) to Internal Revenue Service, Attn: Freedom of Information, c/o Ben Franklin Station, P.O. Box 795, Washington, DC 20004, 202-622-5164. If you want to look at some of the non-secret manuals available go to: http://www.irs.gov/businesses/small/article/0,,id=108149,00.html#V
Free Tax Classes
Each fall organizations who provide tax preparation services for the Volunteer Income Tax Assistance and Tax Counseling for the Elderly offer free tax classes to help train new volunteers. Once you have completed the class you are asked to volunteer at the site, but then can prepare taxes on your own. To locate the nearest VITA site, call 1-800-829-1040. You can also take the class online! Link and Learn Taxes, the Volunteer Income Tax Assistance and Tax Counseling for the Elderly (VITA/TCE), e-learning course is designed for individuals and groups who volunteer their time and knowledge to help fellow taxpayers complete their tax returns. You will be guided through the process of assisting taxpayers in preparing and filing 1040EZ, 1040A, and 1040 returns. The course offers several certification tracks, starting with the Basic, and then moving to Intermediate, Advanced, Military, International, Puerto Rico, and Foreigh Student. You can take the class online at http://www.irs.gov/app/vita/index.jsp
You can also request Publication 678, Volunteer Student Guide. This is the text the classes use to prepare you for taking the certification test. For more information contact the IRS at www.irs.gov
on call 800-829-1040.
I need FREE Legal Help to Fight the IRS! ...
If you get the runaround from the IRS or they are banging on your door, saying they are going to put a lock around your house for that 13 cents that you owe them from 1972, or they want hundreds of thousands of dollars from you and you cannot pay all that money, Congress has set up special offices that will fight the IRS for you. They are called tax advocate centers, and they are wonderful. If you have an argument, they can go right into the computers, correct the information, stop you from getting that mail, and can be an advocate for you. You can contact the national office toll-free at 877-777-4778 or your local Taxpayer Advocate office listed in the national listing: www.irs.gov/advocate
IN LOVE? Real Americans Use Their Tax Refund to Pay Off Public Debt!...
Over 16,065 taxpayers contributed over $9.8 million of their tax refunds to go to reducing the public debt. If you wish to do so, make a check payable to “Bureau of the Public Debt.” You can send it to: Bureau of the Public Debt, Department G, P.O. Box 2188, Parkersburg, WV 26106-2188. Or you can enclose the check with your income tax return when you file.
The Dirty Dozen Tax Scams
- Telephone Excise Tax Refund Abuses: Filings show some taxpayers have requested large and apparently improper amounts for the special tax refund.
- Abusive Roth IRAs: Taxpayers should be wary of advisers who encourage them to shift under-valued property to Roth IRAs.
- Phishing is a technique used by identity thieves to acquire personal financial data in order to gain access to the financial accounts of unsuspecting consumers.The IRS does not use emails to contact taxpayers about account issues.
- Disguised Corporate Ownership: Domestic shell corporations and other entities are being formed and operated in certain states for the purpose of disguising the ownership of the business or financial activity.
- Zero Wages: A Form 4852 or a corrected Form 1099 showing zero or little income is submitted with a federal tax return.
- Return Preparer Fraud: Dishonest return preparers can cause many headaches for taxpayers who fall victim to their schemes.
- American Indian Employment Credit: Taxpayers submit returns and claims reducing taxable income by substantial amounts citing an American Indian employment or treaty credit.
- Trust Misuse: Unscrupulous promoters have urged taxpayers to transfer assets into trusts. They promise reduction of income subject to tax, deductions for personal expenses, and reduced estate or gift taxes. Some trusts do not deliver the promised tax benefits.
- Structured Entity Credits: Promoters are setting up partnerships to own and sell state conservation easement credits, federal rehabilitation credits and other credits. The purported credits are the only assets owned by the partnership and once the credits are fully used, an investor receives a K-1 indicating the initial investment is a total loss. Forming such an entity is not a viable business purpose.
- Abuse of Charitable Organizations and Deductions: The IRS continues to observe the use of tax-exempt organizations to improperly shield income or assets from taxation.
- Form 843 Tax Abatement: This scam rests on faulty interpretation of the Internal Revenue Code. It involves the filer requesting abatement of previously filed tax using Form 843.
- Frivolous Arguments: Promoters have been known to make the following claims: the Sixteenth Amendment concerning congressional power to lay and collect income taxes was never ratified; wages are not income; filing a return and paying taxes are merely voluntary; and being required to file Form 1040 violates the Fifth Amendment right against self-incrimination or the Fourth Amendment right to privacy.