Are you reaching the age of retirement?

Workers born in 1943 to 1954 can retire with full benefits at the age of 66 years. Workers born in 1960 and after have to wait until they are 67 years old. You may request to receive your benefits at age 62. However, your benefit will be reduced by almost 20%.

If you retire at your normal retirement age, i.e. 66 and start getting your full benefits and then go back work, you will not be subject to the social security test for working seniors between the age of 65 and 69. This test was eliminated in January 1, 2000.

However, you are subject to withholding for social security and medicare taxes on your wages. Social security benefits may become taxable if the retiree has other income besides his social security benefit. Please go to mztaxservice.com and click on Tax Info page to go to the IRS site for more information or contact us for any questions you may have.

 

Are you eligible for a $1000 child tax credit?

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You might be eligible for a child tax credit. This credit is up $1000 per each eligible child. There are seven qualifying tests that have to be met according to IRS. 

  1. Age test – The child must be under 17 by the end of 2011 
  2. Relationship test – The child must be your child or adopted child, stepchild, foster child, brother, sister, stepbrother, stepsister or a descendant of the above child such your grandchild, niece or nephew.
  3. Support test – You must have provided at least 50% of support of the child.
  4. Dependent test – The child must be your dependent on your tax return
  5. Joint Return test – The child can not file a joint return for that year
  6. Citizenship test – The child must be a US citizen or a legal permanent resident
  7. Income Limitation test – The credit is limited if your modified adjusted gross income is above a certain amount.

Married Taxpayers return  $110,000

Married filing separate      $55,000

Other taxpayers                 $75,000

This credit is generally limited by the amount of tax you owe.

Meals and Entertainment Receipts for IRS

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What type of receipts you need to keep for IRS for your Meals and Entertainment?

Make sure that you keep the detailed and itemized receipt of the restaurants instead of your credit card receipts.

Also keep the itemized receipt of your hotel bill while travelling for your business instead of just your credit card receipts.

Six most common Tax documents

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Six most common documents needed for preparing your Tax Return

1. W-2 form from your current employer and W-2 forms from all the other employers that you might have had in 2017.

2. 1099-Misc forms issued to you as an independent contractor.

3. 1099 Interest and 1099- Div from any bank or broker for accounts such as Saving accounts or Investments.

4. 1099-R form for any distribution you might have had from your retirement accounts such as IRA or 401K.

5. 1098 form for the interest you paid for your mortgage if you owned a house.

6. 1098-T from your school for any tuition paid or grants received if you are a student.

How to avoid paying late tax filing penalties

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File your tax returns before the Tax Return Deadlines

September 15th is the deadline for filing your business tax returns. This date applies to all Corporations, S Corporations and LLC’s.

October 15th is the last date for filing your personal tax returns. This date is for the individual tax return extensions.

Please visit us at mztaxservice.com or call us at (714) 784-6488 for more information.