Missing W-2 form, Employers must provide employees with form W-2 on or before January 31st. If it is after January 31st and you have not received your form W-2, you should contact your employer to find out if and when it was mailed.If your employer has gone out of business and filed bankruptcy, you should contact the bankruptcy court in your area. There may be an attorney assigned to handle the bankruptcy proceedings and the attorney should be able to supply you with a form W-2.
If you did not receive your Form W-2, use your very last paycheck stubs, to obtain your California wage and withholding information. Your tax preparer may complete a Substitute Withholding Statement (form FTB 3525, for California and (form 4852) for Federal. Attach forms to your income tax return when you file it.
Unemployment Compensation 1099G,The Form 1099G is mailed during the last week of January to all claimants who received taxable unemployment compensation benefits during the previous calendar year. The Post Office will return a Form 1099G as undeliverable if a claimant has moved and not reported their new address to the EDD and their local post office. If you would like a copy of your Form 1099G, please contact EDD’s Interactive Voice Response (IVR) system at 1-866-401-2849 and follow the instructions. The IVR system is available 24 hours a day, 7 days a week. A copy of your Form 1099G will be mailed to you within five business days.
EIC- Earned Income Credit,
"Earned" income is any money you were paid for doing work, whether you work for yourself or for someone else. Earned income includes: Salaries, W-2 Wages, Tips, Self-employment net earnings, Union strike pay, Long-term disability benefits (before retirement age).
Earned income does NOT include: Child support and alimony, Unemployment, Social Security benefits, Pension Payments, Investment income: Interest, dividends, and capital gains.
The maximum amount of income you can earn and still get the credit has increased for 2014.You may be able to take the credit if you have:
Earned Income and (AGI) adjusted gross income must each
be less than:
· $47,747 ($53,267 married filing jointly) with three or more qualifying children
· $44,454 ($49,974 married filing jointly) with two qualifying children
· $39,131 ($44,651 married filing jointly) with one qualifying child
· $14,820 ($20,330 married filing jointly) with no qualifying children
Tax Year 2014 maximum credit:
· $6,242 with three or more qualifying children
· $5,548 with two qualifying children
· $3,359 with one qualifying child
· $503 with no qualifying children
Investment income must be $3,400 or less for the year
The American Opportunity Credit
· The AOTC is worth up to $2,500 per eligible student.
· The credit is available for the first four years of higher education at an eligible college, university or vocational school.
· The credit lowers your taxes and is partially refundable. This means you could get a refund of up to $1,000 even if you owe zero tax.
· An eligible student must be working toward a degree, certificate or other recognized credential.
· The student must be enrolled at least half time for at least one academic period that began during the year.
· You generally can claim the costs of tuition and required fees, books and other required course materials. Other expenses, such as room and board, do not qualify.
The Lifetime Learning Credit
· The credit is worth up to $2,000 per tax return per year. The yearly limit applies no matter how many students are eligible for the credit.
· The credit is nonrefundable. This means the amount you can claim is limited to the amount of tax you owe.
· The credit is available for all years of higher education. This includes courses taken to acquire or improve job skills.
· You can claim the costs of tuition and fees required for enrollment or attendance. This includes amounts you were required to pay to the institution for course-related books, supplies and equipment.
You cannot claim either of these credits if someone else claims you as a dependent on his or her tax return. Both credits are subject to income limitations and may be reduced or eliminated depending on your income.
Keep in mind that you can’t claim both credits for the same student in the same year. You may not claim both credits for the same expense. Parents or students claiming either credit should receive a Form 1098-T, Tuition Statement, from their educational institution. You should make sure it is complete and correct.
Exemptions, Personal exemptions reduce the amount of your taxable income. The personal exemption amount for 2014 is $4,000 You can claim your own exemption unless you're eligible to be a dependant on someone else's tax return.
Dependents, An individual must be your qualifying child or qualifying relative for you to receive an exemption for that individual. A person is a qualifying relative if that person is not a qualifying child and meets certain requirements. A qualifying child can be claimed as a dependent by only 1 taxpayer. If more than 1taxpayer is eligible to claim the child,the IRS has a tiebraker rule to determine who gets to claim the qualifying child.
Child Care Or Dependent Care Tax Credit,
Do You Qualify For Child Care Tax Credit Or Dependent Care Credit? You can reduce your tax debt if you qualify for the child care tax credit.The federal government recognizes that caring for children or a dependent can be a financial burden, and may allow you a tax credit on your income tax debt.If you have children or a dependent that you pay someone else to care for while you look for work or while you work, you probably qualify for this tax relief. This child and dependent care tax credit may result in a bigger tax refund!
Your child must be less than 13 years old. You must be paying someone else to care for them, this cannot be a spouse or a child of your own under 19 years of age. The person you pay must not be a dependent of yours. An after school or latch-key program may qualify, but regular school expenses are not allowed.If you are caring for a spouse, or dependent person who cannot care for themselves, they can be any age. For instance, if you care for a disabled parent, or mentally or physically challenged child, they can qualify as long as they live with you for more than six months. You can claim up to 35% of their care expenses, up to $3,000 for one person or $6,000 for two or more.
You can apply for this child or dependent care credit if you are employed and file as a single, head of household, or married filing jointly. If you receive dependent or child care benefits form your employer, this amount will be figured into the formula.
Home Ownership, You can deduct the interest on your home loan and the real estate taxes you pay on the home. Mortgage interest is tax deductible on laons of up to $1 million ($500,000 if married filing seperately) as long as you use the money to buy, build or improve on your home and the loan is secured by your home. Points or origination fees paid when you purchase your home generally are tax deductible in full in the year you pay them.
Schedule C, Profit and Loss from Business
Small Business/Sole Proprietorship, Schedule C of the standard Federal Income Tax form 1040 is used to claim profit or loss from a Sole Proprietorship business. However, Schedule C is also used for other income reporting purposes as well. Learn when you need to file a Schedule C with Tax Form 1040 to the IRS.
The Schedules included as part of the Federal tax form 1040 allow tax payers to properly claim income from a variety of sources under many different situations. Schedule C is a very common form that allows sole proprietors to declare income, losses, and expenses while running a business.
Schedule C is reserved for tax payers who operated a business or who practiced any profession as a sole proprietor during the tax year. Most people who have filed a Doing Business Under an Assumed Name (sometimes called a DBA) document with local or state agencies will, generally, have to file a Schedule C with the IRS. Also, any person required to hold an Employer Identification Number (EIN) as a sole proprietor will probably need to file this schedule. According to the Instructor for Schedule C:
“An activity qualifies as a business if your primary purpose for engaging in the activity is for income or profit and you are involved in the activity with continuity and regularity.”
Regardless of state and local requirements for operating a business, the current Federal Tax Laws stipulate that any significant amount of time spent trying to collect income as sole proprietor is enough to designate the tax payer as a business owner. State and local agencies typically get much more specific about this definition because of sales tax collection purposes, licensing, and other fees associated with running a business.
Husband and Wife business teams are technically not classified as sole proprietors as the very definition of such as business is a business owned by just one person. An unincorporated business run by a husband and wife is considered a partnership even if the formal declaration of a partnership was not made. Partnerships are usually required to file special forms with state and local agencies so as to declare the nature of the partnership and the distribution of assets in case one of the partners dies. However, a husband and wife team who file jointly may qualify as a joint venture rather than a partnership. However, as the instructions state for Schedule C:
“Mere joint ownership of property that is not a trade or business does not qualify for the election [for a joint venture].”
On the Schedule C, lines are available to declare income, expenses, costs of goods sold, information for vehicle use, and other expenses. These lines are used to figure taxable income from operating a business to ultimately be declared on the standard Federal Income tax form 1040.