Am I required to file Income Taxes?

 Not everyone is required to file taxes. If an individual's income does not exceed the standard deduction amount plus one exemption and he/she is not a dependant to another taxpayer, he/she may be exempt from the requirement to file income taxes.

 A person may not be required to file income taxes for 2012 tax year if their income is less than $9750. 

A dependant of another taxpayer is required to file taxes for 2012 if the dependant's  income is more than $5950.


Tax Charm blog is not legal or professional advice.

You are reading Tax Charm blog at your own free will and you are taking the information provided at your own risk.

I am the legal copy righter of this blog, you may not use, reprint or publish information from this blog without my permission.


 

Money today, not tomorrow. Offsetting Payroll Tax Hike.

Paychecks are smaller for most Americans in 2013. The smaller paychecks result from the
expiring of payroll tax holiday. In 2010, we received a break from the government, social security taxes were reduced from 6.2% to 4.2%.  The tax break expired at end of 2012.  Our two year break is up, social security taxes are back up to 6.2%.

One way you can counter the payroll tax hike is to  increase your exemptions on your W-4. I don't know about you, but I would much rather have my money now than later. The present time value of money idea tells us future dollars are not worth as much as dollars today.  Let's say you need gas for your car to get to work this week and you are flat broke, having $50 next week is not going to help you .If you can't get to work this week, you may face termination. I bet anyone much rather have the $50 today , and not next Thursday. By the next Thursday, your employer may have already given you the peace sign! 

Decrease your paycheck tax witholding on your W-4, to have  more money this year, instead of next year. In the current state of the economy, even an  extra $50 in a bi-weekly paycheck can make a great difference. Food is expensive, gas is expensive and everything is going up. Stop giving the government an interest free loan.


Brought to you by Tax Charm.Tax Charm blog is not legal or professional advice.

You are reading Tax Charm blog at your own free will and you are taking the information provided at your own risk.

I am the legal copy righter of this blog, you may not use, reprint or publish information from this blog without my permission.

 

TaxCharm blog: 2012 Tax Year Standard Deduction and Exemptions am...

TaxCharm blog: 2012 Tax Year Standard Deduction and Exemptions am...: Standard Deductions for 2012 tax year  Single: $5,950-an increase from $5,800 Married Filing Separately: $5,950.Tax Charm blog is not legal or professional advice.

You are reading Tax Charm blog at your own free will and you are taking the information provided at your own risk.

I am the legal copy righter of this blog, you may not use, reprint or publish information from this blog without my permission.


 

When is the first day to submit 2012 tax returns to IRS?

The IRS pushed back the day they will begin to accept e-filed and paper 2012 tax returns to January 30, 2013.

Brought to you by Tax Charm.
Tax Charm blog is not legal or professional advice.

You are reading Tax Charm blog at your own free will and you are taking the information provided at your own risk.

I am the legal copy righter of this blog, you may not use, reprint or publish information from this blog without my permission.

 

2012 Tax Year Standard Deduction and Exemptions amount

Standard Deductions for 2012 tax year

 Single: $5,950-an increase from $5,800
Married Filing Separately: $5,950, an increase of $5,800
Head of Household: $8,700, an increase from $8500
Married Taxpayers Filing Jointly and Qualifying Widow(er)s: $11,900, an increase from $11,600

Exemptions

This tax year, you can claim $3,800, up from last year's $3700

Get up to date  on  2012 tax year updates at Tax Charm!Tax Charm blog is not legal or professional advice.

You are reading Tax Charm blog at your own free will and you are taking the information provided at your own risk.

I am the legal copy righter of this blog, you may not use, reprint or publish information from this blog without my permission.


 

Financial Aid and Filing Status

"Will I receive more financial aid if I file Married Filing Separately?"

Married filing separately does not offer an individual more financial aid versus married filing jointly. Once you report you are married on your FAFSA, both incomes of the spouse must be reported on the FAFSA. If you are married and report only one person's income, a red flag will be raised.

If your income is higher than the last time you filled out a FAFSA, you will not  qualify for as much need based aid as the last time or you may not qualify for any need based aid. Pell grants and subsidized loans are some examples of need based aid. Depending on your income, you may only qualify for unsubsidized loans. Unsubsidized loans accumulate interest while you are enrolled in school and become more expensive, subsidized loans do not accumulate interest while in school.

Click on this link to see how much financial aid you may qualify based on your new married
income for more specific information.

https://fafsa.ed.gov/FAFSA/app/f4cForm?execution=e2s1
Tax Charm blog is not legal or professional advice.

You are reading Tax Charm blog at your own free will and you are taking the information provided at your own risk.

I am the legal copy righter of this blog, you may not use, reprint or publish information from this blog without my permission.

Fiscal Cliff deal approved! What does this mean for us ?

 Fiscal Cliff Deal  breakdown

 -We will pay  6.2 percent out of payroll checks towards social security instead of 4.2 percent, payroll tax holiday is over

- Income Taxes will only rise on individuals making over $400, 000 and couples making over $450,000 a year, will increase from 35% to 39.6%.

- Investment tax income increased to 20% for those who make over $400,000 a year

-Emergency unemployment compensation extended for a year

-American Opportunity Credit extended for 5 years

-Earned Income Credit extended for 5 years

-Child Tax Credit of $1000 extended for 5 years

-Mortgage Debt Forgiveness extended for another year. So if you are forced into a short sale or foreclosure, you do not have to pay taxes on the amount of loan forgiven.

Tax Charm blog is not legal or professional advice.

You are reading Tax Charm blog at your own free will and you are taking the information provided at your own risk.

I am the legal copy righter of this blog, you may not use, reprint or publish information from this blog without my permission.