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What taxpayers need to know about claiming the credit for other dependents

Taxpayers with dependents who don’t qualify for the child tax credit may be able to claim the credit for other dependents. The maximum credit amount is $500 for each dependent who meets certain conditions. These include: Dependents who are age 17 or older. Dependents who have individual taxpayer identification numbers. Dependent parents or other qualifying […]

Guidance to taxpayers on identity theft involving unemployment benefits

The Internal Revenue Service today urged taxpayers who receive Forms 1099-G for unemployment benefits they did not actually get because of identity theft to contact their appropriate state agency for a corrected form. States issue Forms 1099-G to the taxpayer and to the IRS to report what taxable income, such as refunds or unemployment benefits, […]

All taxpayers now eligible for Identity Protection PINs

The Internal Revenue Service today expanded the Identity Protection PIN Opt-In Program to all taxpayers who can verify their identities. The Identity Protection PIN (IP PIN) is a six-digit code known only to the taxpayer and to the IRS. It helps prevent identity thieves from filing fraudulent tax returns using a taxpayers’ personally identifiable information. […]

New things taxpayers should consider as you get ready to file taxes in 2021

New things taxpayers should consider as you get ready to file taxes in 2021 Here are some new key things people should consider when filing their 2020 tax return: 1. Recovery rebate credit: If you did not receive Economic Impact Payment in 2020 2. Single and received less than $1200 3. Married, filing jointly for […]

National Tax Security Awareness Week opens with warnings

The Internal Revenue Service and the Security Summit today issued warnings to all taxpayers to beware of scams and identity theft schemes by criminals taking advantage of the combination of holiday shopping, the approaching tax season and coronavirus concerns. The holiday shopping season combined with the impending tax season and an increased trend toward working […]

How the CARES Act changes deducting charitable contributions

Previously, charitable contributions could only be deducted if taxpayers itemized their deductions. However, taxpayers who don’t itemize deductions may take a charitable deduction of up to $300 for cash contributions made in 2020 to qualifying organizations. The law changed in his area due to the Coronavirus Aid, Relief, and Economic Security Act. The CARES Act […]

Security Summit partners warn taxpayers of new COVID-related text scam

The Internal Revenue Service, state tax agencies and the tax industry today warned of a new text scam created by thieves that trick people into disclosing bank account information under the guise of receiving the $1,200 Economic Impact Payment. The IRS, states and industry, working together as the Security Summit, remind taxpayers that neither the […]

Federal beneficiaries have more time to register for an Economic Impact Payment

Federal beneficiaries who got their Economic Impact Payment but did not register to receive a $500 supplemental payment per qualifying child can still register before 3 p.m. Eastern November 21, 2020. Those eligible include people with qualifying children who receive Social Security retirement, survivor or disability benefits, Supplemental Security Income (SSI), Railroad Retirement benefits and […]

IRS makes it easier to set up payment agreements

The Internal Revenue Service today announced a number of changes designed to help struggling taxpayers impacted by COVID-19 more easily settle their tax debts with the IRS. The revised COVID- related procedures will be helpful, especially to those who have a record of filing their returns and paying their taxes on time. Among the highlights […]

What taxpayers need to know about filing an amended tax return

If taxpayers discover a mistake on their tax return, most common errors can be fixed by filing Form 1040X. Some reasons people may need to file an amended return: Entering income incorrectly Not claiming credits for which they are eligible Claiming deductions incorrectly Incorrect filing status The IRS may correct math or clerical errors on […]