The Good Tax Guide » Tax Tips http://goodtaxguide.net Free Information and Tips on Tax Issues Sun, 02 May 2010 14:08:55 +0000 en hourly 1 http://wordpress.org/?v=3.0 Deduction of long term care cost on tax returns http://goodtaxguide.net/deduction-of-long-term-care-cost-on-tax-returns/ http://goodtaxguide.net/deduction-of-long-term-care-cost-on-tax-returns/#comments Sat, 17 Jan 2009 08:47:57 +0000 Tax Guide http://goodtaxguide.net/?p=69 It is possible to deduct long term care cost on tax returns. It is applicable to the person, his/her spouse or to his dependent if they are affected by chronic illness. According to the rules the reimbursed expenses that are above the 7 and a half percentage of Adjusted Gross Income can be deducted from one’s tax returned. Thus some amount of money can be saved by a person. But the deducted amount must be reimbursed by any reimbursement. It is also necessary to bring the required documents to show that the person is really sick. This document should be of the appropriate type as it has got a legal value. It should also mention the disabilities in doing any of the following things like toileting, bathing, dressing, continence or transferring. The deductions made should be genuine. Otherwise you will have to face the penalties charged by the respective authorities. So the supporting proof or the document should be strong and a valid one. Also there is a limit in amount which is deductible from the tax. So amounts above that will be taxable. So make sure that the amount remains within the limit so that you can enjoy the benefits provided.

]]> http://goodtaxguide.net/deduction-of-long-term-care-cost-on-tax-returns/feed/ 0 Is it necessary to pay tax on wages and salaries? http://goodtaxguide.net/is-it-necessary-to-pay-tax-on-wages-and-salaries/ http://goodtaxguide.net/is-it-necessary-to-pay-tax-on-wages-and-salaries/#comments Mon, 10 Nov 2008 08:20:59 +0000 Tax Guide http://goodtaxguide.net/?p=54 Wages and salary belong to the taxable income. They are taxable because they are the payments received by the person for doing services for an employer. But there will be exemption in certain cases also. It include social security tax, Medicare tax, pensions, insurance and union dues. These things must be included in the gross taxable income on one’s tax return in that particular year. The items which are taxable income include commissions, royalties, salaries, tips, vacation pay, dismissal pay, sick pay, wages, back pay and bonuses. In case if the employer pays you social security tax and Medicare tax without making any tax deductions then they have to be included in the gross taxable income. All the wages and salaries obtained through all the means should be mentioned in the tax form. Failure to mention anyone may risk you to pay penalties. So before filing the tax form ensure that all the salaries or wages are properly mentioned in the form at appropriate places. In certain cases you may receive another tax form after filing the first original tax form. The new form sent has to be filled with the changes if any and should be filed.

]]> http://goodtaxguide.net/is-it-necessary-to-pay-tax-on-wages-and-salaries/feed/ 0 Is it possible to deduct the lifetime learning credit for college expenses on tax return? http://goodtaxguide.net/is-it-possible-to-deduct-the-lifetime-learning-credit-for-college-expenses-on-tax-return/ http://goodtaxguide.net/is-it-possible-to-deduct-the-lifetime-learning-credit-for-college-expenses-on-tax-return/#comments Fri, 10 Oct 2008 02:54:30 +0000 Tax Guide http://goodtaxguide.net/?p=39 As everyone knows the cost of education is increasing day by day. So, nowadays more money is required to meet the educational expenses. So parents are trying to save more money to put their children through college. The cost will be double if the chosen college is a private one. The cost includes different things like tuition fee, cost of the study books, travel expenses and hostel expenses if he is staying in hostel. But the Lifetime Learning credit is available for the tuition only. Other related expense like the travel charge will not be included in that. There is also a limit for this amount. Deductions can be availed only up to that limit and not beyond that. This facility is available for both graduates as well as for under graduates also. But there are certain exemptions also in this case. The loan expenses paid related to the studies are eligible for Lifetime Learning credit. If your income level is above a certain specified limit then you won’t be eligible to receive this facility. Also this Lifetime Learning credit cannot be claimed by both the father and the student son simultaneously. This condition is applicable if the student is dependent.

]]> http://goodtaxguide.net/is-it-possible-to-deduct-the-lifetime-learning-credit-for-college-expenses-on-tax-return/feed/ 0 How to avoid errors in common tax returns? http://goodtaxguide.net/avoid-errors-in-common-tax-returns/ http://goodtaxguide.net/avoid-errors-in-common-tax-returns/#comments Wed, 24 Sep 2008 04:13:41 +0000 Tax Guide http://goodtaxguide.net/?p=10 The first and foremost thing is to make sure that you use the correct tax form. Make sure that you print the name, social security number, address and zip code correctly on the tax return. In case if you have to make any changes in the entries contact the security administrator. Make sure that the social security number is entered on all the schedules and statements related to tax. Make sure that you file the correct tax status. Also ensure that the name and social security numbers are entered correctly in to the form as it is written on the social security cards.

Always put the negative amount on your tax return in brackets. Make sure that you use the correct base amount on tax filing status in case of taxable social security. Do a comparison between itemized tax deduction and standard tax deduction, So that you can take the larger of two errors. Make sure that you don not make any mistake while doing calculations in the tax form. Always keep the copy of the signed tax returns and all other schedules on tax in your records. In case if you have got any tax withheld make sure that you attach The Form 1990s.

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