November 2011, Legal and Financial Brief

Taxes Made Easy

Wed, Dec 14, 2011

Sometimes it’s easier to untangle five miles of Christmas tree lights than to answer tax-related questions.
 
The following are some of the questions and answers you should know when filing your tax returns:

Q: Who needs to file a tax return? When is the deadline?
A: Anyone who had taxable income (such as wages) in 2011 is required to file a tax return. Also, taxpayers who have experienced a life change may now be required to file a return or may benefit from filing a return, even if they haven’t in the past. Such changes include:

• starting a new job
• getting married
• having a baby or adopting a child
• divorcing or separating from a spouse

April 17, 2012 is the deadline for filing a 2011 tax return.

Q: Why should taxpayers file a tax return?
A: There are several credits and deductions that taxpayers can benefit from but often miss because they do not file. One of the most commonly missed credits is the Earned Income Tax Credit (EITC). Qualifying taxpayers could receive an EITC up to $5,751 depending on their income and number of qualifying children. The Child Tax Credit is another way that qualifying taxpayers can claim a credit of up to $1,000 per qualifying child. Taxpayers may also be able to claim a refund of some or all of their federal income tax withholding. A qualified tax professional can help navigate through all the available credits and deductions to determine what a taxpayer legally qualifies for.

Q: I do not have a social security number. Do I still have to file a tax return?
A: The IRS (Internal Revenue Service) requires an individual who has taxable income (such as wages) to file a tax return. Taxpayers who do not file returns could also be missing out on important tax credits or deductions they are legally entitled to claim.

Q: How do I file my tax return without a social security number?
A: Taxpayers can file a tax return using an ITIN (individual tax identification number). In order to obtain an ITIN, taxpayers must complete the appropriate paperwork and submit the paperwork to the IRS. The IRS is a separate government agency not related to the immigration agencies. H&R Block will prepare an ITIN application for free as a part of our commitment to serving and educating our community about tax obligations.

Q: My spouse has a social security number but I do not. In the past he has filed a tax return without me. I don’t work or have any other income. Do I need to file?
A: You should speak with a qualified tax professional about your situation. You may be eligible to apply for and receive a social security number. If you are not eligible for a social security number, you can apply for an ITIN because you are the spouse of a taxpayer.
 
A spouse or a dependent of a taxpayer can still be included on a tax return. Taxpayers could be missing out on important tax credits or deductions by not filing with their spouse or claiming their dependents.
 
Q: What documents do I need to apply for an ITIN number?
A: There are several documents needed to process an ITIN application. Adults generally need to provide a photo identification card and a birth certificate or a passport. For children, a birth certificate is an acceptable form of identification, in addition to medical and school records.
 
H&R Block is committed to educating taxpayers and helping assist them in any way possible to help them fulfill their legal tax filing obligations. We take the time to understand each taxpayers unique situation. We look forward to seeing you this tax filing season.

This annual event can be confusing and difficult to navigate, but H&R Block is excited to provide taxpayers with the information they need to file a complete an accurate tax return.
 
H&R Block’s Alexis Ashley and Alejandra Cerna, District Managers in the San Fernando Valley, are eager to provide you with more information or to arrange a free consultation please call 1-800-HRBLOCK for the office nearest you.