Archives for January 2010 | Small Office Home Office (SOHO) Tax Tips

Need a Transcript of Your Past Tax Information?


For Tax Return/Account TranscriptsYou can obtain past tax return transcripts from the IRS. If you need copies there are two ways to obtain free copies – tax return transcripts and tax account transcripts. There is no charge for transcripts which are available for the current and past three years. A tax return transcript shows most of the line items from your tax return as they were originally filed BUT they will not look the same; they are not printed on the familiar looking 1040/1040A/1040EZ forms. Also note that it does not show any changes you, your tax preparer, or the IRS may have made since the original filing. A return transcript will in most cases satisfy requirements of lending institutions involved in mortgages or student loans.

Payment methods and distribution of the Making Work Pay Tax Credit


Payment Methods Making Work Pay tax creditMaking Work Pay Credit (MWPC) as noted in a previous blog post is a refundable credit available in 2009 and 2010 worth 6.2% of earned income up to $400 ($800, MFJ) for taxpayers with a valid for work social security number. You cannot be a dependent of another taxpayer or identified as a non-resident alien. If you receive earned income as an employee you more than likely began receiving this credit beginning in April, 2009 as a reduction in the amount of federal income tax withheld from your paycheck; though not large, an amount was proportionally reduced so that your net pay was greater than what it had been at the beginning of the calendar year. If you completed the IRS Form W-4 in 2009 using single withholding status, the total tax withholding for 2009 would have been reduced by $400 (those using a married withholding status, $600).

The comments and opinions expressed in SOHOTaxTips are intended for informational purposes only and do not constitute tax or financial advice. Due to the changing nature of the tax code, these blog posts may contain dated material. For an update on the current IRS tax code and the application of the code to your particular facts and circumstances, consult a professional advisor. The information contained herein is not a substitute for obtaining tax or financial advice from a qualified professional in your state.

IRS CIRCULAR 230 DISCLOSURE: IRS regulations require that we inform you that any U.S. federal tax advice contained in this blog is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

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