Winter 2009
Volume 6, Number 1

1.

Be sure to claim the tax benefits you have earned. The following credits can reduce the amount of income taxes you owe and even workers who owe no taxes can qualify.

Earned Income Tax Credit – if you were married and earned less than $37,000 in 2008, you may be eligible for up to $2,917 (up to $4,824 if you earned less than $41,700 and raised more than one child). Attach Schedule EIC.

Child Tax Credit can be worth up to $1,000 per child. Attach Form 8812.

The Child and Dependent Care Credit is a percentage, based upon your adjusted gross income, of the expenses you paid for care for a dependent child 13 years or younger so you could work or look for work. Complete Form 1040A or Form 2441 with Form 1040.

Qualifying children include foster children and grandchildren that have lived with you for more than half of the year. The child must also have a valid Social Security number. In some cases, you may need to be able to claim the child on your tax return.

Note: If you were eligible in the past but did not claim the credits, you can file for them up to three years back and get the money you missed out on.

If you pay the costs to maintain a home lived in for over half the year by a qualifying child and were unmarried at the end of the year, you may qualify for head of household status.

Get your taxes prepared for free by IRS certified volunteers. Visit http://extension.
missouri.edu/hes/taxed/vitasites.htm to see if there is a Volunteer Income Tax
Assistance (VITA) or a Tax Counseling for the Elderly (TCE) site near you.
 

File your Federal tax return free by using Free File. Free File is a Federal income tax preparation and electronic
filing program for eligible taxpayers, developed through a partnership between the
Internal Revenue Service (IRS) and a group of private sector tax software companies. Start at the IRS.gov website. Income guidelines apply.
 

File your Federal tax return free by using Free File. Free File is a Federal income tax preparation and electronic filing program for eligible taxpayers, developed through a partnership between the Internal Revenue Service (IRS) and a group of private sector tax software companies. Start at the IRS.gov website. Income guidelines apply.

Avoid costly extras -
Refund Anticipation Loans (RAL), are often advertised as “fast cash refunds” or “instant refunds.” When you get a RAL, you’re borrowing against your refund, not getting your refund earlier. RALs are expensive and can cost up to $100. Ask for a list of fees up front.

Refund Debit Cards are available for receiving and using a tax refund or refund anticipation loan. The card can be used for purchases, bill payments and ATM withdrawals anywhere debit cards are accepted. You can add money to your card through payroll direct deposit or at participating retail reloading locations. This convenience comes at a price – watch for the numerous fees involved. For more information, go to: http://extension.missouri.edu/ecregion/grandparent/Tax_refund.pdf

Use E-File and direct deposit to get your refund quickly and safely.