IRS allows three Education Credits - American Opportunity Credit, Lifetime Learning Credit, and Tuition & Feed Deduction. Student should choose the credit that provides the maximum tax benefit. Only one credit can be claimed i.e. no double dipping. Any of the three credits are available to a student that is:
1. Enrolled at least half year.
2. The Education Institution has to be accredited.
3. Typically student receives 1098-T from the University.
A) American Opportunity Credit - If a taxpayer pays over $4000 per year in Qualified Expenses this $2500 credit is available for a four year post secondary education. Tution & Books expenses qualify.
B) Tution and Fees Deduction- Varies depending upon the Adjusted Gross Income(AGI). If AGI is less than 130K$ for Married filing Jointly, $4000 Credit is available.
C) Life Time Learning Credit: Limited to 20% of the Education expenses with a maximum of $2000. Many educational requirements are reduced and many taxpayers generally qualify for it.
For Q & A Contact :
Kash, @ Yajnik & Mehta Associates (925) 963 4891
Linked-In : kyajnik@yajnikandmehta.com
Facebook : kash@yajnikandmehta.com
Twitter : Kash_Yajnik@kash_yajnik
Monday, March 25, 2013
Monday, March 18, 2013
" Want a Piece of the 917M$ Tax Refund Pie? " - IRS
Estimated to be 984,000 Taxpayers, who have not claimed their Refund for the Tax Year 2009 Returns. Date date to claim this refund by filing a tax return is April 15, 2013. If the refund is not claimed, IRS will be happy to keep taxpayer's refund check. The average potential refund check is estimated to be around $500.
IRS reminds taxpayers that the 2009 refund checks will be withheld if the 2010 & 2011 Tax returns aren't filed. Also, the refund may be used to Offset any unpaid, State Agency, Unpaid Child Support, or Past due Federal debt such as Student Loan. In addition, many low income families also stand to loose Credits such as Earned Income, Child & Defendant Care, Child Tax Care, and Education.
For Q & A Contact :
Kash, @ Yajnik & Mehta Associates (925) 963 4891
Linked-In : kyajnik@yajnikandmehta.com
Facebook : kash@yajnikandmehta.com
Twitter : Kash_Yajnik@kash_yajnik
IRS reminds taxpayers that the 2009 refund checks will be withheld if the 2010 & 2011 Tax returns aren't filed. Also, the refund may be used to Offset any unpaid, State Agency, Unpaid Child Support, or Past due Federal debt such as Student Loan. In addition, many low income families also stand to loose Credits such as Earned Income, Child & Defendant Care, Child Tax Care, and Education.
For Q & A Contact :
Kash, @ Yajnik & Mehta Associates (925) 963 4891
Linked-In : kyajnik@yajnikandmehta.com
Facebook : kash@yajnikandmehta.com
Twitter : Kash_Yajnik@kash_yajnik
Monday, March 11, 2013
" Do you Barter? " IRS - Know 4 Things..
Businesses Barter Products or Services they Need. Bartering is trading one product or services for another.
Usually there is no Cash Exchange. IRS requires that Tax payers Report Fair Market Value (FMV) of the Product or Service received as Taxable Income. Also, Both Parties must report this Income. Some facts about Bartering :
1. Barter Exchanges - Organized market place for bartering Products and services. They are required to issue Form 1099-B for all Broker & Barter Exchange for transactions.
2. Barter Income - Barter Trade Dollars are same as cash dollars for tax reporting purposes. Report FMV all of the services received.
3. Tax Implications - Barter Income is Taxable in the year of transactions. Barterers may owe Income or Self Employment Tax.
4. Report Bartering Trade or Businesses Income on 1040 Schedule C after deducting Barter costs.
For Q & A Contact :
Kash, @ Yajnik & Mehta Associates (925) 963 4891
Linked-In : kyajnik@yajnikandmehta.com
Facebook : kash@yajnikandmehta.com
Twitter : Kash_Yajnik@kash_yajnik
Usually there is no Cash Exchange. IRS requires that Tax payers Report Fair Market Value (FMV) of the Product or Service received as Taxable Income. Also, Both Parties must report this Income. Some facts about Bartering :
1. Barter Exchanges - Organized market place for bartering Products and services. They are required to issue Form 1099-B for all Broker & Barter Exchange for transactions.
2. Barter Income - Barter Trade Dollars are same as cash dollars for tax reporting purposes. Report FMV all of the services received.
3. Tax Implications - Barter Income is Taxable in the year of transactions. Barterers may owe Income or Self Employment Tax.
4. Report Bartering Trade or Businesses Income on 1040 Schedule C after deducting Barter costs.
For Q & A Contact :
Kash, @ Yajnik & Mehta Associates (925) 963 4891
Linked-In : kyajnik@yajnikandmehta.com
Facebook : kash@yajnikandmehta.com
Twitter : Kash_Yajnik@kash_yajnik
Monday, March 4, 2013
" If You Changed Name..." IRS Suggests...
Because of Marriage, Divorce, or Voluntary Name Change, IRS suggests following Taxpayer Actions:
1. Notify SSA about the Name Change. This way IRS Computers can match your New Name with the Social Security Number.
2. After divorce if you are using your prior last name, notify SSA about name change.
3.To Inform SSA about the name change, File Form SS-5, which is Application For a Social Security Card, at your local SSA office or by mail with a proof of your legal name change - (800) 772 1213
4.Go to SSA website www.ssa.gov for on line From SS-5.Your new card will have the same SS# but with New Name.
5. If you have adopted Spouse's children, you would like to update their Names as well. For adopted children without SSNs, parents can apply for Adoption Taxpayer Identification Number by filing out Form W-7A
For Q & A Contact :
Kash, @ Yajnik & Mehta Associates (925) 963 4891
Linked-In : kyajnik@yajnikandmehta.com
Facebook : kash@yajnikandmehta.com
Twitter : Kash_Yajnik@kash_yajnik
1. Notify SSA about the Name Change. This way IRS Computers can match your New Name with the Social Security Number.
2. After divorce if you are using your prior last name, notify SSA about name change.
3.To Inform SSA about the name change, File Form SS-5, which is Application For a Social Security Card, at your local SSA office or by mail with a proof of your legal name change - (800) 772 1213
4.Go to SSA website www.ssa.gov for on line From SS-5.Your new card will have the same SS# but with New Name.
5. If you have adopted Spouse's children, you would like to update their Names as well. For adopted children without SSNs, parents can apply for Adoption Taxpayer Identification Number by filing out Form W-7A
For Q & A Contact :
Kash, @ Yajnik & Mehta Associates (925) 963 4891
Linked-In : kyajnik@yajnikandmehta.com
Facebook : kash@yajnikandmehta.com
Twitter : Kash_Yajnik@kash_yajnik
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