According to Tax Policy Center, a Washington based research organization, around 47% of the American households have no federal income tax obligations for the financial year 2009. They have either very low incomes, or deductions, exemptions and credits, which have made their tax liability zero. [Read more…]
Making Work Pay Tax Credit Leads to Confusion
The tax credit scheme Making Work Pay is a part of the American Recovery and Reinvestment Act of 2009, signed into law by President Obama in February last year.
This scheme affects 95% of the American population and has been undertaken by the Obama government in an effort to credit a few extra dollars in to the accounts of Americans to increase their disposable income. This will lead to a multiplier effect, which is expected to infuse as much as $65 billion in the economy and act as yet another stimulus for economic recovery. [Read more…]
Don’t Forget Your Medical Expenses when Filing Taxes
When filing taxes, you should take advantage of all possible deductions and tax credits to minimize your liability. An important deduction that many people tend to ignore is medical expenses.
First of all, it is important to understand what is included and what is excluded from the IRA’s definition of ‘medical expenses”. Anything that you pay for doctors or dentists qualifies as a medical expense. If you had to spend some time in a hospital or if you paid for medical equipment and prescription medication, then you can add these expenses too. [Read more…]
