File Tax Return Online 3192017 Dell Internal Use

Tax Forms • 1040 EZ • File form 1040 EZ BY APRIL 18 TH,

1040 A – Who Can Use Form 1040 A • You can use Form

EIC – Earned Income Credit • EIC is a benefit for working people who

Child Tax Credit • 10 Facts about the child tax credit: 1. Amount –

Child Tax Credit • 10 Facts about the child tax credit: 7. Citizenship Test

Education Credits • American Opportunity Credit and Lifetime Learning Credit • AOC – is

Education Credits • LLC – is worth up to $2000, you must meet all

Actions to Avoid Audit • Do not claim a dependent that’s doesn’t qualify as

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File Tax Return Online 3/19/2017 Dell - Internal Use - Confidential

Tax Forms • 1040 EZ • File form 1040 EZ BY APRIL 18 TH, 2017 • Do Not File Form 1040 EZ if You Are Claiming the Premium Tax Credit or You Are Required To Reconcile Advance Payments of the Premium Tax Credit • If you are claiming the premium tax credit, file Form 8962 with Form 1040, 1040 A, or 1040 NR. DO NOT use Form 1040 EZ. • If you must reconcile advance payments of the premium tax credit, file Form 8962 with Form 1040, 1040 A, or 1040 NR. DO NOT use Form 1040 EZ. See Requirement To Reconcile Advance Payments of the Premium Tax Credit below.

1040 A – Who Can Use Form 1040 A • You can use Form 1040 A if all six of the following apply. • You only had income from wages, salaries, tips, interest and ordinary dividends, and capital gain distributions, taxable scholarship and fellowship grants, pensions, annuities, and IRAs, unemployment compensation, taxable soc security and railroad retirement benefits • The only adjustments to income you can claim are: • • Educator expenses, IRA deduction, student loan interest deduction, and tuition and fees deduction. You don’t itemize deductions. Your taxable income(line 27) is less than $100, 000 The only tax credits you can claim are for credit for child and dependent care expenses, credit for elderly or the disabled, education credits, retirement savings contributions credit, child tax credit, earned income credit, additional child tax credit, and premium tax credit. You didn’t have an alternative minimum tax adjustment on stock you acquired from the exercise of an incentive stock option.

Filing Status

EIC – Earned Income Credit • EIC is a benefit for working people who have low to moderate income. A tax credit means more money in your pocket. It reduces the amount of tax you owe and may also give you a refund. • Must have a SSN that is valid for employment and is issued before the due date of the return including extensions. • You must have earned income from working for someone else or owning or running a farm or business. • Your filing status cannot be married filing separately. • Must be a US citizen or resident alien all year. • You cannot be a qualifying child of another person. • You cannot file Form 2555 or 2555 EZ – related to foreign earned income. • You must meet the EITC Income Limits for the tax year amounts • Must meet one of the following: • Be age 25 but under 65 at the end of the year, live in the US for more than half the year, and not qualify as a dependent of another person

Child Tax Credit • 10 Facts about the child tax credit: 1. Amount – up to $1000 for each qualifying child under age 17. 2. Qualification – a qualifying child for this credit must meet the qualifying criteria of six tests: age, relationship, support, dependent, citizenship, and residence. 3. Age Test – must be under age 17 – age 16 or younger at the end of tax year. 4. Relationship Test – child must be your son, daughter, stepchild, foster child, brother, sister, step-siblings, niece or nephews. 5. Support Test – child must not have provided more than half of their own support. 6. Dependent Test – child must be a dependent on your tax return.

Child Tax Credit • 10 Facts about the child tax credit: 7. Citizenship Test – U. S. citizen, U. S. National, or U. S. resident. 8. Residence Test – Child must live with you more than half of the tax year. 9. Limitation – The credit is limited if you modified adjusted gross income is above a certain amount: - MFJ – the phase-out begins at $110, 000 - MFS – the phase-out begins at $55, 000 - All other taxpayers, it starts at $75, 000 10. Additional Child Tax Credit – if the amount of your Child Tax Credit is greater than the amount of income tax you owe, you may be able to claim the Additional Child Tax Credit.

Education Credits • American Opportunity Credit and Lifetime Learning Credit • AOC – is worth up to $2500 Qualifications for a student • Was enrolled at least half time in a program leading toward a degree, certificate or other recognized educational credential for at least one academic period during the tax year, • Has not completed the first four years of post-secondary (education after high school) at the beginning of the tax year, • Has not claimed (or someone else has not claimed) the Hope Credit or AOTC for the student for more than four years, and • Was not convicted of a federal or state felony drug offense at the end of the tax year

Education Credits • LLC – is worth up to $2000, you must meet all three requirements: • You, your dependent or a third party pay qualified education expenses for higher education • You, your dependent or a third party pay the education expenses for an eligible student enrolled at an eligible educational institution • The eligible student is yourself, your spouse or a dependent you listed on your tax return

Actions to Avoid Audit • Do not claim a dependent that’s doesn’t qualify as a qualifying child for you and must meet all the requirements as dependent. • Must use the FMV or the thrift store prices for your charitable donations such as appliances, clothes, etc. Best thing to do is to use the IRS amount on the software. • Always keep receipts/document for your record • Don’t make up numbers in order to reduce your tax liability • When in doubt, seek professional help! • Don’t Cheat and be truthful!

Sources: https: //www. irs. gov