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2012 Income Tax Deadlines

Mind these tax deadlines as the new year begins

2012 will soon be here. Before you ring in the new year, take a look at the IRS tax calendar to remind yourself of the upcoming tax deadlines.

January 10, 2012 – Those who earned more than $20 in tips during December must report tips to their employers with Form 4070: Employee’s Report of Tips to Employer.

January 17, 2012 – E-filing begins for 2011 returns.

Also, if you did not pay 2011 income tax through withholding you must pay your final installment of 2011 estimated tax with Form 1040-ES: Estimated Tax for Individuals. If you plan on filing your return and paying the tax due by January 31, you can disregard this deadline.

January 31, 2012 – Individuals who must make estimated tax payments can opt to file their return and pay any tax due by this date, thus preventing penalties for missing the January 17 deadline. Continue reading “2012 Income Tax Deadlines”

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A Number of Income Tax Deductions and Credits Set to Expire

You can save money on your 2011 taxes with these soon-to-be-extinct tax breaks!

Think it’s too late to save on your 2011 taxes? Think again! Here are six deductions and tax credits that will be gone by the end of the year:

  • Energy Efficiency Tax Credit

Making energy-efficient upgrades to your home isn’t just a great way to cut down on heating and cooling costs, it can get you a tax credit too.

If you add more insulation to your attic or buy an energy-efficient appliance, among other possible improvements, you can apply for a tax credit. For a full list of qualifying improvements, refer to the Energy Star website.

The tax credit is worth 10% of the cost of these improvements.

But note that there is a $500 lifetime limit on this credit, so if you’ve taken advantage in previous years, you may not be able to do so again.

Congress has made some changes to the rules governing these credits for 2011. Go here for a full summary of the changes. Continue reading “A Number of Income Tax Deductions and Credits Set to Expire”

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The 2011 Earned Income Tax Credit: What is it?

Before you file 2011 taxes, make sure you’re familiar with all the credits that could save you money.

Basically, the Earned Income Credit is a tax credit designed to put money in the pockets of moderate to low income individuals. It can reduce the amount of tax you owe and even give you a refund.

One of the ways you could potentially save money on your taxes is through the Earned Income Credit (EIC).

You may be eligible to take the 2011 Earned Income Credit if

  • You earn less than $43,998 ($49,078 if married) and have 3 or more children
  • You earn less than $40,964 ($46,044 if married) and have 2 children
  • You earn less than $36,052 ($41,132 if married) and have 1 child
  • You earn less than $13,660 ($18,740 if married) and have no children Continue reading “The 2011 Earned Income Tax Credit: What is it?”