Tax Interview - FAQs

W2G = Gambling winnings
1099-INT = INTREST
1099-DIV = DIVIDENDS
1099-SSA = SOCIAL SECURITY
1099-G = UNEMPLOYMENT (line1)
1099-G = STATE REFUND (line2)
1099-MISC will turn into a SCH-CEZ! –input the amount and input any expenses in the second line if applicable. Also on the bottom of the Schedule C EZ add in a personal vehicle if it was used for the business. Business codes are available in the assistance/search for box. Type the word BUSINESS CODES, select business codes and open the file attachment.

Found on the Deductions page
1098-T = Payment of qualified post-secondary tuition or expenses for the taxpayer, spouse or dependent children
1098 E Student Loan Interest
1098 Mortgage Interest
Unreimbursed Job Related Expenses
Personal property taxes: Personal property taxes are deductible when they are based only on the value of personal property, such as a boat or car. To be deductible, the tax must be charged to you on a yearly basis, even if it is collected more than once a year or less than once a year. Claimed on the Schedule A, must have enough to itemize to claim this deduction.

Question: Can I claim my girlfriend as a dependent for EIC? No, they must meet the following requirements to be claimed as a dependent for EIC.

Qualifying Child for EIC (Earned Income Tax Credit)

A qualifying child is a child who is:
(1) your son, daughter, adopted child, stepchild, or grandchild
or
(2) your brother, sister, stepbrother, stepsister, or a descendent of your brother, sister, etc.
or
(3) a foster child (any child, placed with you by an authorized placement agency must live with you for the full year).

Warning
If the taxpayer takes the EIC even though they are not eligible and it is determined that it is due to reckless and intentional disregard of the EIC rules, the taxpayer will not be allowed to take the credit for 2 years even if you are otherwise eligible to do so and must file form 8862 with the return for the 3 year after the disallowance. If you fraudulently take the EIC, you will not be allowed to take the credit for 10 years Form 8862 must be file in the 11th year after the disallowance. IRS will most likely charge the taxpayer penalties and interest.

EIC IS ONLY FOR PEOPLE WITH INCOME LESS THAN:
You have more than one qualifying child and you earned less than $38,646 ($41,646 if married filing jointly),
You have one qualifying child and you earned less than $33,995 ($36,995 if married filing jointly), or
You do not have a qualifying child and you earned less than $12,880 ($15,880 if married filing jointly). This numbers change yearly.

Head of Household Filing Status
The taxpayer may qualify for the head of household filing status on their tax return if they are unmarried, legally separated and lived apart from their spouse for the last 6 months of the calendar year and provide at least 50% of the support for their dependent(s).

HOPE CREDIT	VS	LIFETIME LEARNING CREDIT
Available ONLY until the first 2 years of post-secondary education are completed.		Available for all years of postsecondary education and for courses to acquire or improve job skills.
Available ONLY for 2 years per eligible student.		Available for an unlimited number of years.
Student must be pursuing an undergraduate degree or other recognized education credential.		Student does not need to be pursuing a degree or other recognized education credential.
Student must be enrolled at least half time for at least one academic period beginning during the year.		Available for one or more courses.
No felony drug conviction on student's record.		Felony drug conviction rule does not apply.

Our postal address is:

Express Tax Lane Powered by Lopez Tax Service®
1588 Moffett Street, Suite F
Salinas, CA 93905
Telephone: 1.831.422.4888
FAX: 1.831.422.4844

Email: info@expresstaxlane.com