[Summit] 2010 tax tip to friends- Uncle Sam gives $$ again- but you must do form to get it....

[Hope for Health]

Here are some more tax thoughts from my husband, Paul Klinkman,
who has been working as a Tax Preparer for the last few years.

Blessings,

Liberty G
More reasons to file taxes if you were low income in 2010
        	Tuesday, December 28, 2010 2:31 PM
        	
            
            
            From: 
            "Paul Klinkman" <psychware at yahoo.com>
            	
            	
            	
Even if you had little income, you should consider filing a federal income tax form if you are over 25 as of January 1.  

1. 
If your waitressing job or newspaper route brought in less than $13,460
if filing as single, or less than $18,470 if married and filing
jointly, and if you are now between 25 and 64, you may qualify for an
earned income credit.  No, very low-income people don't need a kid to
qualify.  Collecting unemployment might mess with your final refund. 
If you do have kids and you don't know about the EIC, ask!!

2. 
If you're over 65 and if your household's total income was under
$30,000 in 2010, you can often file a form Rhode Island 1040-H for a
$300 refundable tax credit.  You have to be either a homeowner or a
renter in Rhode Island.  As an absolute rule the RI1040-H must be filed
by April 15 or you will get nothing -- I believe that you don't get a
do-over so don't file for an extension, be prompt or be poor.

3. 
Even if you're under 65, if you're not claimed as a dependent by
someone else and if your household's total income was under $30,000 in
2010, you can often file the same form Rhode Island 1040-H for a
refundable tax credit.  You won't get as much.  As a matter of fact I
can't tell you what you'll get!  Professional tax preparers regularly
don't like to file the RI1040-H when they can't promise their clients
that their tax prep fee will be less than the taxpayer's refund. 
However, this uncertainty shouldn't stop you from filing your own
federal taxes and state RI1040-H with two 44 cent stamps, getting a
small refund check and spending it.  Courage!

4.  If any federal
or state taxes were withheld and you don't owe any taxes, I expect that
you want your own money back.  A few people will want to claim their
own backlogged withholdings from the last three years.

If you
are low income and already don't owe any taxes but you just want some
money back, my advice would be to file it yourself.  Make all the math
errors you want -- the IRS computer will redo your math and spit out
the correct answer.  However, you are advised to be quite truthful
about everything that you earned.  Don't be tempted to cheat on tips
because the IRS makes pretty good estimates.  

I once was doing
free tax returns at the International Institute on Elmwood Ave.  One
client said that he had one child but no income at all.  For his own
good, I weaseled out of him that he had an extremely small business. 
His income tax was still zero but with this income, his Earned Income
Credit went up $1000.  Then he confessed to getting some Christmas tips
too.  He paid a little more into Social Security (which he will get
back someday we hope) but his bottom line cash refund went up again. 
Moral #1:  don't be so clever that you cheat yourself.  Moral #2:  If
you don't have much cash, call and set up an appointment with a
volunteer who will do your taxes for free.

Yours off Hope,
--Paul Klinkman


--- On Mon, 12/27/10, Breslers <breslerfamily at gmail.com> wrote:

From: Breslers <breslerfamily at gmail.com>
Subject: [Summit] 2010 tax tip to friends- Uncle Sam gives $$ again- but you must do form to get it....
To: "Summit Neighborhood" <Summit at sna.providence.ri.us>
Date: Monday, December 27, 2010, 11:00 PM

You (or your tax preparer) HAVE to fill out the schedule M, this year as well as last year to benefit. Don't loose the up to $400 or $800 !!

www.irs.gov/app/picklist/list/formsInstructions.html?indexOfFirstRow=25&sortColumn=sortOrder&value=1040&criteria=formNumber&resultsPerPage=25&isDescending=false


Just found out this personally helpful GOOD tax news -that the "stimulous grant" applies this year-2010 also.
So if you do your own taxes- make 
SURE you do a "form 1040 (Schedule M)" & that you (or your preparer)
 did it for last year. Up to $400 individual/$800 per couple.Doubt 
it's good for the national debt- but WE sure can use the help!!And it does not matter if you already got the tax break in your take home pay... If you do not do what schedule M says (this year 
or last) you will actually return to Uncle Sam any "stimulous tax break 
$$" your employer may have given you during the year.  For real.  I have met many 
people who do not realize this.  Check it out.   It is also called the 
"Making Work Pay Credit".

Mrs B






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