When a renter is unable to obtain a Certificate of Rent Paid (CRP) from their landlord, the Department of Revenue offers an alternative that can be used to file for a Property Tax Refund called the Rent Paid Affidavit (RPA). To use an RPA to apply for the refund, you will need to provide proof of payment in the form of receipts or cancelled checks for the rent you paid to the landlord.
You can order a 2012 RPA beginning March 15, 2013 by calling Taxpayer Assistance at (651) 296-3781. The information you will need to provide to the representative will be the name, address and phone number of the landlord, the dates of your rental, the number of adults who lived there and the total amount of rent paid. We will mail you two copies of the RPA. Using an RPA requires you to file a paper return. You will need to mail your completed M1PR form, one copy of the RPA, and proof of payment.
You can use this link to check whether donations to organizations are tax deductible. It is also useful to make sure vulnerable adults aren't being scammed.
This is major good news that I haven't heard this mentioned in the news so I wanted to highlight it.
Changes are made to the Alternative Minimum Tax to permanently index it to inflation and thus to avoid the annual "patch" that was previously required to prevent it from impacting middle-class families
On January 2, 2013, President Obama signed the American Taxpayer Relief Act of 2012 (H.R. 8). The bill raises tax rates on income above $400,000 for individuals and $450,000 for couples.
In addition, the temporary Social Security payroll tax reduction that was in effect for tax years 2011 and 2012 has expired. For paychecks dated in 2013 the employee Social Security rate returns to 6.2%.
Limitations for Health Savings Accounts for 2013:
Self-only coverage - $3,250
Family coverage - $6,450
Annual deductible of HDHP (high-deductible health plan):
Self-only coverage - not less than $1,250
Family coverage - not less than $2,500
Annual out-of-pocket expenses for HDHP:
Self-only coverage - not more than $6,250
Family coverage - not more than $12,500
Individual Self-Only - $3,250
Family Coverage - $6,250
Minimum Annual Deductible
Individual Self-Only - $1,250
Family Coverage - $2,500
Maximum Annual Out of Pocket:
Individual Self-Only - $6,250
The IRS is giving unemployed people six extra months to pay their 2011 taxes due without penalty. This applies to wage earners who were jobless at least 30 consecutive days in 2011 or in 2012 up to the April 17 filing deadline. Self-employed taxpayers whose income in 2011 was at least 25% lower than in 2010 also get this same break. Couples with incomes over $200,000 and others with incomes exceeding $100,000 don't qualify. Filers owing over $50,000 are out of luck as well. File Form 1127-A with IRS by April 17 to request the extra time to pay. And keep in mind that interest will still be due on any unpaid balance. And more individuals will be able to pay their back taxes in installments without having to supply detailed financial information. IRS is doubling the threshold to $50,000 to use these streamlined installment procedures and is allowing six years for repayment. You'll have to agree to let the IRS debit your bank account monthly.
From Jennings Seminars
If you didn't receive a W-2 from an employer IRS advises the following steps:
1) Contact employer to verify address
2) If the W-2 is not received by February 14, 2012 contact the IRS and provide the employer's information, dates of employment and estimated wages and taxes withheld.
3) File the 1040 by April 17, 2012 and attach Form 4852 Substitute for Form W-2.
4) Prepare an amended 1040 if the W-2 is eventually received and differs from the tax return numbers used.
Following are some tax tips for taxpayers seeking employment:
You can deduct employment and outplacement agency fees paid while looking for a job in your current occupation.
Amounts spent for preparing and mailing copies of resumes to prospective employers are deductible as long as you are looking for a job in your current occupation.
Travel expenses to another location in search of a job in your current occupation are deductible if the primary purpose of the travel is to look for a new job.
You should keep receipts for expenses and documentation of travel to substantiate job search expenses. Qualifying expenses are taken as a miscellaneous itemized deduction on Schedule A (Form 1040), Itemized Deductions, subject to the 2% AGI limitation.
You cannot deduct job search expenses if there is a substantial break between the end of the last job and the time you begin looking for a new job. Also, expenses for taxpayers searching for a job for the first time are not deductible.
Information is from The TaxBook
The Affordable Care Act increased the amount of the credit to as much as $13,170 and made it refundable.
The IRS has indicated that inflation adjustments may be made for 2011 to the phaseout amount, as well as to the maximum credit amount.
Information is from The TaxBook.
Effective for taxable years beginning on or after January 1, 2011, the owner of the account or a person authorized to contribute to the account such as a parent, grandparent, great-grandparent, aunt, or uncle of the beneficiary is allowed the subtraction from income for up to $3,000 of the amount the person contributed to the college savings account or tuition expense program if the beneficiary of the account is the owner's or authorized person's child, grandchild, great-grandchild, niece, or nephew.
Due to a computer processing glitch, the IRS mailed 200,000 CP-14 balance due notices to taxpayers who filed electronically. These notices told the taxpayers that their balance was due by April 15, even if they had already designated automatic withdrawal from their bank accounts.
These notices were not to be processed in the middle of tax season, and instead should have been processed after the database had been updated to account for direct debit payments.
The IRS has stated that if a taxpayer consequently pays twice using direct debit and check, the IRS will automatically issue a refund for any overpayment.
It is important to note that not all taxpayers have received a Notice CP-14 in error. If the bank account listed on the tax return was listed incorrectly, a taxpayer would receive this notice.
Refunds totaling more than $1.1 billion may be waiting for nearly 1.1 million people who did not file a federal income tax return for 2007, the Internal Revenue Service announced. However, to collect the money, a return for 2007 must be filed with the IRS no later than Monday, April 18, 2011.
IRS will begin accepting tax returns with itemized deductions and other delayed forms after 11 am Eastern time next Monday.
A dependent has to file a return if the dependent has:
1) Only earned income (W2s, 1099s etc) and the total is more than $5,700
2) Only unearned income (interest, dividends etc) and the total is more than $950
3) Both earned and unearned income and the totalincome is more than $5700 or the unearned income is more than $300
Following last week's tax law changes, the Internal Revenue Service announced Monday that taxpayers affected by three recently reinstated deductions need to wait until mid- to late February to file their individual tax returns. In addition, taxpayers who itemize deductions on Form 1040 Schedule A will need to wait until mid- to late February to file as well.
You can still bring all your return in and have it prepared at your usual time but we may have to delay the actual e-filing. The IRS will announce specific dates in the near future.