Many stores in the US will hold tax free shopping days that shoppers can take advantage of. These are at particular times each year and shoppers can get some real bargains during them. Stores will also offer other discounts in order to entice shoppers through the doors. If you want to take advantage of these lower prices you need to know how to get your tax free shopping right.

Get hold of an online state list to find out which products are being sold tax free. If you don’t know this you could find that you have spent more than the permitted limit.

Compare the prices for tax free goods as these will vary from store to store. You might even find that shopping online will enable you to grab the best deals. Flyers from stores are useful to find out more about the prices they will be selling goods for.

Having a pre-prepared list of products that you want is very handy. This will prevent you from going wild and buying anything that you don’t really need. Remember that something is not good value for money if you don’t need it, regardless of how cheap it is.

Some people find they don’t have the time to get to the stores in their lunch break as the stores are too busy. If this is the case why not check out the extended opening hours that a lot of stores host. You could find the ideal time to go shopping this way and beat the crowds of people all hungry for a good deal.

To get the most from tax free shopping take notice of this advice and act on it. Doing this will enable you to grab some great deals which are tax free and save yourself time and money.

Go out for that VAT free shopping. With the tax free shopping times it’s a fantastic way to be able to save cash. So enjoy those times and learn when they happen by heading online.

Taxpayers who have dependent children that are younger than 17 by the end of the tax year may be eligible for a $1,000 Child Tax Credit for each child.

How to Claim the Credit – To claim the Child Tax Credit there are requirements for the qualifying child, requirements for the taxpayer and certain limits on the amount of the credit. In general, a qualifying taxpayer must follow the same rules as claiming a dependency exemption with the exception that the child must be under the age of 17 before December 31, 2009. In order for the child to qualify, the child must not have provided his or her own support during 2009 and child must have lived with the taxpayer for more than half of the year. In addition the child must be the taxpayer’s child, stepchild, adopted child,eligible foster child, grandchild, brother, sister, stepbrother, stepsister, etc. Further, a qualifying child must be a U.S. citizen or resident of the United States.

Income Limits – The Child Tax Credit that you can claim for a Child Tax Credit is dependent upon the your tax liability, filing status and your modified adjusted gross income. The child tax credit starts to phase out when your modified adjusted gross income is equal to $110,000 for joint filers or $75,000 for single taxpayers or $55,000 for married taxpayers who file separately. If the amount of the credit is greater than your tax liability, then the you may be eligible for a refundable credit. This extra credit is known as the “Additional” Child Tax Credit and is discussed below.

Increased Eligibility for 2009 – The 2009 Recovery Act increased the eligibility for claiming the credit by reducing the earned income threshold from $12,550 to $3,000. In the past, to be eligible for the refundable portion of the Child Tax Credit, the taxpayer was required to have earned income which was greater than $12,550.

Additional Refund – The Child Tax Credit amount cannot exceed your tax liability. For instance, if your tax liability is zero, then the Child Tax Credit is zero because there is no liability to decrease. The good news is that, if you are unable to take the full amount of the Child Tax Credit then you may be entitled another credit called the “Additional” Child Tax Credit.

What Happens If I am Not Eligible for the Child Tax Credit – In you do not qualify for the Child Tax Credit, then you may qualify for the “Additional” Child tax Credit. The amount of the “Additional” Child Tax Credit is up to $1,000 for each qualifying child. What is good about this provision is that the “Additional” Child Tax Credit may be able to lower your tax liability to below zero and you may be able to obtain a refund for this excess. To qualify for this ” Additional” Child tax Credit, you must have a tax liability that is less than the allowable child tax credit, meet the requirements of the regular Child Tax Credit and earn more than $11,750 during 2009. If this event occurs, you may be entitled to receive a refund for the “Additional” Child Tax Credit. In order to compute this Additional Child Tax Credit there are more limitations and requirements that are not within the scope of this article and you should read IRS Publication 972.

Summary – In summary, the Child Tax Credit is a nonrefundable credit that allows taxpayers that qualify to reduce their tax liability. In the event as a taxpayer is not able to use the entire amount of the $1,000 credit then they may be eligible for the “Additional” Child tax Credit which is a refundable tax credit.

Tax laws are complex, change constantly and each situation is unique. This article is not intended to provide legal or accounting advice. The reader should perform his or her own due diligence and consult competent professionals in this area.

Learn more about how we can help you determine if you are eligible for the Child Tax Credit and other available income tax credits and about our competitively priced paperless and internet methodology to tax preparation at affordable prices. Sandor(Sandy) E. Lenner,CPA-MBA has been providing business and accounting services for over 35 years and enjoys working part-time at his wife’s CPA firm

On this year’s tax return, you may be able to claim a credit if you paid another person to take care of your dependent, whose age is under 13, or for their spouse or dependent who was not able to care of him/herself while they were gainfully employed. A disabled spouse is an example of a dependent who was unable to care of himself or herself.

The maximum Dependent Care Credit for one qualifying dependent is $1,050 and for two or more qualifying dependents is $2,100. The maximum amount of the credit can be equal to 35% of a taxpayer’s expenses as defined. The taxpayer must have furnished over one half of the cost of maintaining a home that is also the home of the qualifying person to qualify for the credit. To qualify, a taxpayer must have paid the qualifying expenses so that the taxpayer is able to work or able to find work.

How to Determine the Amount of Credit? – $3,000 is the maximum amount of employment related expenses to which the credit may be applied for one qualifying individual and $6,000 if two or more qualifying individuals are involved. The credit is computed as a percentage as indicated in an IRS table which is based on the taxpayer’s adjusted gross income multiplied by the amount of qualified employment expenses that were paid during 2009. If you have adjusted gross income of $15,000 or less then you may be able to use the highest percentage, which is 35%. If you have adjusted gross income over $15,000 the credit is then reduced by one percentage point as defined. This tax credit is based on a percentage of the qualifying expenses.

What are the Qualifying Expenses – Qualifying expenses may include those expenses paid for household services and for the care of a qualifying individual that enabled the taxpayer to work or to look for work. Unfortunately, if a taxpayer did not find a job and had no earned income during the tax year, the taxpayer is not entitled to the credit.

Qualifying expenses may include (a)day care services for children (b)an adult daytime dependent care center and (c)cleaning services, cook, maid, babysitter, and housekeeper household services.

The following is a partial list of types of expenses that are not allowed:(a)Kindergarten or a higher grade (b) Cost of transportation for the caregiver(c)Overnight camp (d)Generally food, clothing, entertainment education and (e)Child support payments.

Payments to Relatives – Payments to a relative may qualify unless the taxpayer claims a dependency exemption for that relative, or if the relative is the taxpayer’s child and is under the age of 19.

Claiming the Credit – Generally, a married taxpayer must file a joint return to claim the credit. There are special rules for taxpayers who are not married. Also, a divorced or legally separated taxpayer having child custody, whose child is disabled or under the age of 13 is entitled to the credit even if she or he released their right to the dependency exemption for the child. In order to claim the credit a taxpayer must provide a Social Security number for each qualifying individual and Social Security number for each care provider.

Special rules exist for children of divorced or separated parents, the treatment dependent care benefits received ,filing status, prior year carryovers, etc. Please refer to IRS Publication 501 for more information. This article is not intended to be legal or accounting advice. Tax laws are complex, change constantly and each situation is unique. The reader is advised to do his or her own due diligence and consult competent professionals in these areas.

Learn more about how we can help determine if you are eligible for the Child and Dependent Care Credits and other available income tax credits and about our competitively priced paperless and internet based approach to tax preparation at affordable prices . Sandor(Sandy) E. Lenner,M.B.A.-C.P.A. has been providing accounting and business services for over 35 years and enjoys working part-time at his wife’s CPA firm

Countless hard working people may be missing the Earned Income Tax Credit or EITC that might be able to add an additional $5,600 or more to their pocketbooks. This tax credit as the name implies, is for an individual who works but doesn’t make a great deal of money. The tax credit began in 1975 to help offset Social Security taxes and to provide an incentive for work. It is one of the Federal government’s largest benefit programs for working individuals and families. Every dollar saved is a dollar earned, has significantly greater meaning, in today’s economy. For this reason,tax payers should not miss out on this important tax credit.

To Qualify for The Earned Income Tax Credit – To qualify for this credit taxpayers must meet all of the, age, income, dependency and citizenship requirements. Also, to qualify married taxpayers need to file joint return as the earned income credit does not apply to persons who are married, but choose file separately. Further, investment income cannot exceed $3,100 for 2009.

Unfortunately, more people will qualify for the Earned Income Tax Credit for the first time because their income has declined, which may have resulted from pay cuts or a job loss. It is also applicable to those taxpayers who change their marital status or added children to their families during 2009.

If you have a family with three or more children you may be entitled to a larger credit in 2009 as compared to 2009. The reason for the increase is a result of the American Recovery and Reinvestment Act, which temporarily provides an increase in the Earned Income Tax Credit for taxpayers with three or more qualifying children. This new legislation was signed during 2009, and therefore the changes apply to 2009 when you file your income tax return during 2010. The maximum Earned Income Tax Credit for this new category is $5,657.

By filing your federal tax returns is the only way that eligible taxpayers can receive the Earned Income Tax Credit . Tax Tip- If you are not required to file an income tax return, because you tax liability is zero, you should consider filing a tax return this year to claim this credit, providing you are eligible for Earned Income Tax Credit.

The Amounts of the Earned Income Tax Credit – The following shows the amount of EITC under three scenarios. If you are married with 3 children with income from $12,570-$21,420 you may be eligible for the maximum credit of $5,657. The maximum credit for 2009 is as follows:(1)$5,657 with three or more qualifying children (2)$5,028 with two qualifying children (3)$3,043 with one qualifying child and(d) $457 with no qualifying children.

The IRS estimates that there may be an additional 20% to 25% of taxpayers who may qualify for EITC but may not be aware of it. Tax Tip – This information is very important and is worth repeating especially, if you prepare your own tax return. The EITC is a refundable credit which means that, if the EITC reduces your taxable income below zero you get a tax refund for that amount.

This information is complex and you can learn more about the EITC from the Internal Revenue Service by asking for IRS publication 596. Tax laws are complex, change constantly and each situation is unique. This article is not intended to provide legal or accounting advice. The reader should perform his or her own due diligence and consult competent professionals in this area.

Learn more about how we can help determine if you are eligible for the Earned Income Tax Credit and other available tax credits and about our competitively priced paperless and internet based approach to tax preparation at affordable prices. Sandor(Sandy) E. Lenner,C.P.A.-M.B.A. has been providing business and accounting services for over 35 years and works part-time at his wife’s CPA firm.