The clock is ticking... If youre just getting ready to file this years taxes, an article from www.purewow.com explains 10 Confusing 2015 Tax Form Questions that you may need when your trying to finish your taxes by April 15, 2015.
PureWow credits Lisa Lewis, CPA and editor atTurboTax, who cleared up some of the most confusing lines on this years 1040 form. Sure, the 1040 form is technically in English, but the IRS seems to be a big fan of perplexing jargon."
Take the net premium tax credit, for instance. While it may sound posh, its (sadly) not a deduction for shopping at luxury boutiques. It has to do with your health insurance.
Read on to score an even bigger refund this year. We trimmed the fat but you can read the entire article here.
Line 8a: Taxable Interest - If you earned more than $10 in interest on bank accounts, money markets or insurance dividends, youll need to fess up when filing your taxes. (Your bank or financial institution will send you a 1099-INT or 1099-OID form with the relevant numbers.)
Line 20a & 20b: Social Security Benefits - Sure, you may have a few decades beforeretirement, but if you receive survivor or disability benefits, and have other sources of income (including that jam profit from your home-based business), then your Social Security income may be taxed based onallof this incoming cash flow.
Line 45: Alternative Minimum Tax - This tax was originally created because some extremely wealthy people were skippingout on paying the tax man. What this means for you? Before you start to worry, check out the IRSsAMT Assistant to see if you actually have to pay extra.
Line 49: Child and Dependent Care Credit - Consider this your babysitting cash. The purpose of this credit is so you can put your kids (12 years old and under; no age limit if disabled) in child care while you work or look for work.
Line 50: Education Credits fromForm8863 - That masters degree in creative photography--even if youre taking it one course at a time--can save you up to $2,000 per tax return (courtesy of the Lifetime Learning credit) as long as your adjusted gross income is $90,000 or less ($180,000 if married and filing jointly). Click through TurboTaxsEducation Credits & Deductions Calculatorto check your eligibility.
Line 51: Retirement Savings Contributions credit - Hooray! The government will reward you up to $2,000 ($4,000 if married and filing jointly) for contributing to your retirement plan. Your credit rate is based on your income and can reach as much as 50 percent of that contribution.
Line 53: Residential Energy Credit - Going green can save you green. Major energy-efficiency measures--like installingEnergy Starsolar panels and water heaters or geothermal heat pumps--can be written off. To calculate, multiply the cost by 0.3.
Line 66a: Earned Income Credit - One out of five people will miss this credit because theyre newlyeligible and just don't know it. The EIC aims to benefit low- to moderate-income families who earn between $14,590 and $52,427 (based on the number of children in the household).
Line 69: Net Premium Tax Credit - Folks enrolled in the Health Insurance Marketplace who also receive an advancepremium tax credit may be eligible to claim an additional credit (to help pay for this health-insurance initiative). Just be sure to check yourHealthCare.govaccount for eligibility before filing this years return.