Tag Archives: taxes

Tax Time Questions by Deborah Ritz, Independent Tax Preparer

Can I still claim my older children as dependents?

Is there an age limit on claiming my children as dependents? There are two types of dependents, a qualifying child and a qualifying relative.

A “qualifying child” may enable a taxpayer to claim several tax benefits, such as head of household filing status, the exemption for a dependent, the child tax credit, the child and dependent care credit and the earned income tax credit.

In general, to be a taxpayer’s qualifying child, a person must satisfy four tests: Relationship, Residence, Age & Support. Continue reading

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Tax Time Questions: Is direct deposit of tax refunds the way to go?

by Deborah Ritz, Independent Tax Preparer

QUESTION: Is Direct Deposit a Safe Way to Get a Tax Refund? How safe is the direct deposit feature for having tax refunds issued directly to a checking or savings account?

What happens if there’s a mistake in the bank account number or routing number?

What can be done if there’s a mistake with the direct deposit information?

The IRS and New York State prefer to issue refunds via direct deposit.

This is faster and generally speaking, direct deposit is a relatively safe way to receive your tax refund.

That’s because there’s no check to get lost in the mail and the IRS can send out refunds faster than by mailing a check. But taxpayers should exercise extreme diligence with their direct deposit information. Continue reading

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Tax Time Questions by Deborah Ritz, Independent Tax Preparer

Health Savings Plans & their effect on taxes

What is a Health Savings Plan and how would it affect my income taxes?

A HSA basically work like this:

You and/or an employer put money into your HSA account (the account can be set-up through your employer as a benefit or you set up an account through a private company like an insurance company).

The amount of money that you contribute to your health savings account is deducted from your total income for the year.

When this is done, your taxable income for the year is lowered.

This lowers your overall tax liability and it could potentially put you in a lower tax bracket.

You might get a bigger refund or have to pay less taxes, depending on your situation.

If you want to use this type of account, you have to follow the rules associated with it. Continue reading

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Tax Time Questions by Deborah Ritz, Independent Tax Preparer

How do I determine if I have to file tax return

As an individual taxpayer the requirement to file depends in part on your filing status, age, and gross income.

If you are single, you must file a tax return if your gross income was at least $9,500 ($19,000 if married and filing jointly).

If you are over 65 the gross income requirement raises to $10,950 (if married and filing jointly $20,150 one spouse 65+, $21,300 both spouses 65+).

There are also income requirements for Head of Household and Qualifying widow(er). Continue reading

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Independent Tax Preparer by Deborah Ritz Answers Some Tax Time Questions

Getting set to start the new tax filing season

How soon can I file my income tax return?

As soon as you receive the information you need to file (W-2, Unemployment 1099G, bank interest etc.) you may fill out both the federal and state income tax forms and mail them in.

However if you want to e-file the first date your return will be accepted is January 17th.

If accepted between January 17th and January 20th (before 11 AM) by the IRS (and here I must assume you are receiving a refund, why else would you file early) the projected send date for a federal direct deposit is January 25th OR a US Treasury check projected mailed date will be January 27th. Continue reading

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Tax payments: Town of Webb council pulls plug on irksome $2 mailing fee

The Town of Webb board has agreed to drop a two dollar fee the local tax collector had previously charged to property owners who required the mailing of a second tax collection notice.

According to tax collector Kelly Hunkins, who was elected to her first term last November, she has already had numerous complaints from property owners who were confused by the form and angered when their tax payments were returned due to failure to include the $2 fee.

Supervisor Robert Moore said the fee, which had been implemented to offset the costs of additional mailings, has been unpopular with every Webb tax collector since its inception by resolution in the mid-1980s.

The theory behind the fee was sound, but it never functioned properly in actual practice, he said.

Kelly Hunkins said the confusion seems to stem from the fact that the fee was located on the form in a spot that was easily unnoticed.

She asked Herkimer County if they could move the fee payment line to a more conspicuous spot on the form, but the county said they are not able.

Then, when the tax collector receives an incomplete tax payment—one that is effectively two dollars shy—she is required to return the entire amount and request that the property owner resubmit their payment.

Hunkins noted that the fee is not mandatory and that German Flatts is the only other township in the county that utilizes it.

On a vote of 5 to 0, the board resolved to rescind the fee.

“Thank you,” the tax collector said.

 

 

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