IRS Tax Credits and Deductions to Save on Your Taxes if You Have Kids

These child tax credits and deductions can mean a tax refund for you!

There are many money-saving tax credits and deductions that can reduce the tax burden on families with children. The Child Tax Credit, Child Care Credit and the Earned Income Credit can all mean tax savings for families with one or more children.  Remember, a tax credit is a dollar-for-dollar reduction of the taxes you owe.
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Free H&R Block At Home Online Premium Edition – Giveaway

Have you done your taxes yet? Do you know how you will have them prepared?  Well, I’m here to help (maybe).

Our friends at H&R Block have offered up three (3) codes that can be redeemed for their H&R Block At Home Premium Edition. That means three readers will have a chance to win a copy.

A little about H&R Block At Home Online Premium Edition (from H&R Block):

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Which is More Valuable: Tax Deduction or Tax Credit?

As Tax Day draws closer, many are looking for documentation and trying to figure out whether they are taking a deduction or credit for each item that they hope will bring a tax advantage.  Understanding the difference between a tax deduction and a tax credit is important — especially when you stop to consider that one is more valuable than the other.

Is That a Deduction or a Credit?

The difference between a tax deduction and a tax credit can be expressed by the way it affects your taxes.
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Changes on the 1040 IRS Tax Form this Year…How Does It Affect You?

It’s that time of year again! Sometime in the next few months you may be preparing, or having someone else prepare, a 1040 tax return form for 2010.  First be aware of some changes that have been made since last year, says “the tax guy” from Smart Money.

First of all, in case you haven’t heard, the deadline for filing IRS taxes is a smidgen later this year.  It will be April 18th because Emancipation Day, a holiday celebrated in Washington, D.C., falls on April 15th this year.

Your tax preparer may also file electronically this year.  Congress has passed laws that are pressuring them to e-file, and it’s safe to say this is the direction we are going as a country.  On that note, you may also have noticed that your annual year-end 1040 booklet from the IRS never showed up.  It won’t.  EverAgain.  2009 was the last year it was mailed out.  If you miss it, you can still find it at IRS.gov and at their walk-in taxpayer assistance centers or participating libraries and post offices.
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Love and Taxes – Tax Filing Date Changed to February 14 For Some Tax Filers

Ahh, love is in the air! Valentine’s Day is just around the corner.  What better way to celebrate than by filing your taxes…

What?!?

No, I don’t seriously expect you to celebrate Valentine’s Day by filing your taxes (unless that’s your thing, then hey, by all means).

Due to late changes in the tax laws at the end of 2010 (the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act Of 2010 enacted Dec. 17), the IRS will be delaying the first day to file taxes for some taxpayers to February 14th, 2011.  The IRS needs extra to update some of their systems to accommodate the tax laws.
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Do You Need to Adjust Your Tax Withholding?

With yet another tax season under way, it is time to evaluate your tax withholding and determine whether or not you should adjust it. There are a number of reasons to consider changing your tax withholding:

Life Changes

Major life changes might mean a necessary change in your withholding.  Marriage, divorce, death of a dependent, and the birth of a child are all life changes that can result in a need to change the number of exemptions that you claim on your W-4.  This change will mean a difference in your withholdings.

You Ended Up with a Big Refund

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More Money in Your Paycheck – The Payroll Tax Cut (Social Security Tax Cut)

In late 2010, Congress and President Obama passed new tax laws that take effect in 2011 (Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010).

The Making Work Pay tax credit is gone.

As a result, most people will benefit from a cut in Social Security taxes (also known as Payroll Taxes).

Previously, people paid 6.2% toward Social Security.  Under the new law, people will be paying 4.2%, a reduction of 2% in their Social Security tax withholding rate.

That is good news for many Americans as it essentially means a 2% increase in your paycheck.
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