INCOME taxes. For the lower income earner, it is a welcome relief as the government bestows tax credits and benefits. But for the medium to higher income earner, it’s usually dreadful experience as the idea of paying taxes creeps through their pockets and senses. Whether we like it or not, we have to file our annual income tax returns or we face the chance of going to jail or having unclaimed refunds at our fingertips.
Tax season 2012 is a few days away as the IRS and the various states opens tax filing season between January 17 to April 17, 2012.
Do I really need to file? That’s a question some people ask. Probably. There are 3 things to consider whether you need to file or not: your age, your filing status and your income.
For those contemplating not to file because they have a very limited earned income, which is less than the amount of personal exemptions and deductions, and they don’t expect any tax due, check with a tax professional anyway. You might be entitled to credits like the earned income tax credit, the making work pay credit, among others that will entitle you to a tax refund. In 2011 alone, the IRS had $1.1 billion in tax refunds, which remained unclaimed from unsuspecting would-be taxpayers.
The first few weeks of the tax season is usually a busy season for the IRS. Everybody expecting a refund wants to get hold of that long-awaited check from Uncle Sam as soon as possible.
Critical to filing taxes is organization, regardless if you file now or later. Ensure that you have all income records to avoid any future problems. Taxable income includes any of the following:
- Wages (W-2)
- Contractor (1099-Misc)
- Pension/401K/IRA distributions (1099-R)
- Unemployment income (1099-G)
- Investments (1099-INT, 1099-OID, 1099-B, etc)
- Cancelled debt (1099-C- foreclosure, debt settlement, etc)
- Forgiven debt (1099-A- abandonment, etc.)
- Social security pension (SSA -1099 or RRB-1099)
- Gambling winnings (Form W-2G)
- Partnership (K-1)
- Small business (K-1)
- Prizes and awards
- Jury duty
- Alimony received
- Rent income
- Cash income
If you have any questions regarding filing your taxes, our office will be glad to assist. Call to set an appointment.
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Evangeline is a California registered tax preparer, a legal document assistant for the general public, and a freelance paralegal offering assistance to various attorneys. She can be reached at her office at 2451 Colorado Blvd. #2, Eagle Rock, CA 90041 or at her marketing location inside the Eagle Rock Plaza. Her phone number is (323) 550-1869 or you can check her website at: www.evangelinegiron.net. She is a member of the court-endorsed California Association of Legal Document Assistant (CALDA) and an Associate Member (Non-attorney) of the LA County Bar Association (LACBA).
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Note: Evangeline is not an attorney nor does she provide legal advice. She is a bonded and registered Legal Document Assistant and prepares legal documents per the specific direction of clients.
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