The Federal Tax Credits Blog

Posts Tagged ‘tips’

Question: Education Tax Credit for Volunteer hours- Is there an age limit?

I am 27 and haven’t lived with my mom for years. Is she still able to complete the 100 hours to pass the education credit to me? I would love to be able to afford college. Also are spouses allowed to complete the volunteering to get the credit? Thank you.

Answer: Are you talking about President Obama’s proposed plan to grant tax credits to students who volunteer 100+ hours of service? I hadn’t heard anything about that plan including parents and/or spouses. I thought the whole idea was to get the students *themselves* to do the volunteering.

I also hadn’t heard that this idea was anything more than a proposed plan for the future.

Where are you getting your information?

Estate tax uncertainties pending

THE VILLAGES — Estate planning may become one of the most important tax consequences next year for wealthy Villagers, as Congress decides whether to allow a scheduled repeal of the federal estate tax.

Spouse Tax Payments

Question: As a grandparent, can I open an education savings account for my grandson and take the tax credit/deduction?

I am not sure whether this is a credit or a deduction for income tax. Is this available only to parents?

Answer: 529 plans are usually a good idea and the investment earnings grow free of tax. Some states have credits/deductions for these plans but there are no credits or deductions on your federal return.
May you open the account for a grandchild? Yes. Is it a good idea? Usually. Is it a nice thing to do and does it help the child? Absolutely. Do you get a federal tax break other than tax free growth? Nope.

Decade-long vision for Iowa met some goals, others are works in progress

DES MOINES — Architects of a decade-long vision for Iowa say some goals were met and exceeded while others remain works in progress as 2010 arrives.

Find out about a tax free savings account for education!

Question: Advice for avoiding owing taxes in 2008?

We are sick of owing around $3000 in taxes! The so called tax reform did us absolutely no good – we owed more this year, and our bracket did not change. Taxable income, around 120,000 – standard deduction, no mortgage interest to claim. Each of us claim 0 deductions from work, even though we have 2 kids. We do have interest income from trying to be good savers, which at 25% tax rate would account for some of the taxes owed — but only about 1/2. If we could take the child tax credit, it would look good – but we are over the limit for that. Tax time is a real downer around here – any advice in planning for 2008?

Answer: I had the same problem a couple of years ago, I had my taxes done by professional tax preparers and I thought I would be getting back at least a thousand or more in refunds,I was so very disapointed and aggravated, I actually had to pay in a couple of thousand. I look at it this way, when you go to these type tax preparers, they say” hey ,looks like you have some extra income this year,looks like your gonna have to pay in.These people work for the government, they are just as dishonest as anybody else, they don’t allow you any extra loopholes, to save you money, let alone bothering to tell you about it and any extra monies that you thought or were anticipating getting back, will always end back up in their pockets.
For the last 2 years I do either Turbo tax online or Tax act online, they give you many more options as far as finding and using those loopholes and they walk you right through it, step by step, its so easy, really. Needless to say, I was able to get back a nice sizable refund, as compared to the latter years of having to always pay in.

The whole sad truth here though is that you just can’t ever get ahead, the IRS drains the very essence of your life out of your bank account. And they just don’t care, I know one thing though, now I see why many people choose a second job off the books for cash, or work totally for cash, because the IRS enjoy us supporting their high paying jobs for one and they actually push people to become dishonest for those reasons, mainly because most people are just trying to get by these days and struggling due to inflation of many things like gas prices. Instead or rewarding people for working harder and longer hours trying to do the right thing, the IRS takes it away from you and slaps you on the wrist.
Hope this was helpful, and thanks for letting me vent about the dreaded IRS.

Money insider: Brighter times ahead for housebuyers…

The last 12 months have proved difficult for people looking to move house or buy their first home. However, as we enter 2010 the outlook seems much far brighter. With house prices remaining firm since the summer, and the worst of the banking turmoil hopefully behind us, mortgage lenders have started to regain their appetite to lend.

Retirement Tax Savers Credit