Huey Harden offers the following royalty-free article for you to publish online or in print. Feel free to use this article in your newsletter, website, ezine, blog, or forum. ----------- PUBLICATION GUIDELINES - You have permission to publish this article for free providing the "About the Author" box is included in its entirety. - Do not post/reprint this article in any site or publication that contains hate, violence, porn, warez, or supports illegal activity. - Do not use this article in violation of the US CAN-SPAM Act. If sent by email, this article must be delivered to opt-in subscribers only. - If you publish this article in a format that supports linking, please ensure that all URLs and email addresses are active links. - Please send a copy of the publication, or an email indicating the URL to [email protected] - DistributeYourArticles (www.DistributeYourArticles.com) has distributed this article on behalf of the author. DistributeYourArticles does not own this article, please respect the author's copyright and publication guidelines. If you do not agree to these terms, please do not use this article. ----------- Article Title: 10 Forgotten Tax Tips For A Federal Tax Refund Author: Huey Harden Category: Taxes, Finance Word Count: 780 Keywords: tax refund, tax credits, income tax, income tax return, unemployment, jobless Author's Email Address: [email protected] Article Source: http://www.distributeyourarticles.com ------------------ ARTICLE START ------------------
There are still 15 million people in the United States left jobless in the wake of the recent recession. And at tax time, stress, worries and misinformation about taxes among the recently unemployed may be one reason IRS statistics show returns are lower this year by 3%. While some unemployed workers may think they don't have to file if they didn't work throughout 2009, other in deep debt may have put off filing their tax returns, fearing they owe taxes with no money in their pocket. What most people don't know is that unemployment benefits are taxable income, and must be reported. If you owe taxes and neglect to file, a higher penalty charge will burden you on top of what you were avoiding to pay in the first place. Who knows? That loss in income can make it possible for you to claim credits and deductions that were unavailable before, and could lead to a bigger refund than you expect. Here are some tips for filing a return when you're out of work: 1. The first $2,400 Dollars in Unemployment Claims Is Free According to the 2009 stimulus bill, jobless citizens are exempted from the first few unemployment checks from taxes. Look into your Form 1099-G to see what benefits are listed. Subtract $2,400 from the total to figure out the taxable balance. If both members of a married couple filing a joint return are out of work, the tax-free amount doubles to $4,800. 2. Make the Calculations For Both Standard and Itemizing Options to See Which Saves More Most taxpayers can choose whether to itemize. The standard deduction is easier, but not always the best choice, especially if you have a mortgage, high medical bills or other deductions. It's worth the time to calculate whether the standard deduction or itemizing will save you more. 3. Expenses Incurred In Job Hunting Are Deductible According to Melissa Labant, a tax manager with the American Institute of Certified Public Accountants, "You don't actually have to get the new job in order to deduct those expenses." Included with the job hunting expenses that are deductible include job coaches and headhunts, job enhancement programs, resume preparation and expenses incurred travelling to and from interviews. Make sure you have receipts and records to back up your claims, so take the time to gather the paperwork before you start on your return. 4. Charity Money Isn't Taxable If a good Samaritan or a family member gave you money to help pay your bills, you don't have to report that as income. Although charity money may be taxable to the giver, the recipient is in the clear. 5. Forgiven Debt May Cause A Tax Issue In normal circumstances, debt that a bank or other lender has written off is considered taxable income. Take not though, that a 2007 law exempts up to $2 million of debt written off on your home through a restructuring or foreclosure. That debt must have been used for a primary home - any proceeds used to pay credit card bills, second homes, rental property or car loans. 6. You May Want To Consider Filing As Self-Employed It's not often well-known, but you don't have to work full time to be considered self-employed. Self-employment tax covers Social Security and Medicare for individuals who work for themselves, similar to what's withheld from paychecks. 7. You May Also Qualify For Earned Income Tax Credit This credit system works in brackets: For no children, you may claim it if you earned $13,440 or less. For three or more children, the income limit jumps to $43,279. Much food for thought, even if you didn't qualify for the credit in years past, it's worth checking out during a period of unemployment. 8. You Have To Pay Taxes If You Liquidate A Retirement Fund Early Here's what most people may have missed reading in the fine print: Money saved tax-free in a 401(k) plan or Individual Retirement Account is not only taxable when you take it out, you may also have to pay a 10 percent penalty if you're not at least 59 1/2 years old. 9. File Your Taxes Online - It's Free Check if your adjusted gross income is $57,000 or less. If it is, you can file your taxes online and get your refund faster - for free. The IRS Free File program provides the software through a partnership tax software companies. 10. File Your Taxes Online Even If You Can't Pay For It Not filing your return will make matters worse. You don't ever want a penalty that can waste up to 25% more of you owe - and you will rack up interest charges as well. It's worth asking the IRS for more time to pay. The IRS offers installment plans and sources say the agency is being more lenient with unemployment so high. Huey Harden is your typical guy from Maine who's fired up and well on his way to developing multiple income streams online. Get Paid For Your Opinion Using Free Paid Surveys. For more information, visit his content and FAQ site at: Get Paid For Your Opinion (http://www.getpaidforyouropinion.net) ------------------ ARTICLE END ------------------ [Non-text portions of this message have been removed]
