The conservative approach, and our recommendation, is to keep your tax documents for seven years. The rule of thumb is to add a year to the statute of limitations period. This period three years, but changes with certain circumstances. If you under-reported gross income by 25% or more on your tax return, the statute of limitations increases to six years. …
The earned income tax credit is available to working Americans with low incomes. It is designed to keep families out of poverty, while still encouraging taxpayers to work. According to the Internal Revenue Service, in 2010 the EITC was credited with keeping 6.6 million Americans above the poverty line, which is more than any other US anti-poverty program. The credit …
Depending on your filing status and the amount of income you made during the year, you may not be required by law to file a return with the IRS. However, even if you do not have to file it may be in your best interest to submit a tax return. If your taxable income is below your standard deduction amount, …
Money you inherit is taxable to you. ● While this is a very complicated area of taxation, in most cases the person receiving the inheritance is not liable for tax associated with the gift. You cannot claim your parents as dependents if they live in the nursing home. ● If you provide over 50% of support for a relative, you …
