Payson Tax

The IRS Reminds Parents of Ten Tax Benefits

1. Dependents In most cases, a child can be claimed as a dependent in the year they were born. For more information see IRS Publication 501, Exemptions, Standard Deduction, and Filing Information.

2. Child Tax Credit You may be able to take this credit for each of your children under age 17. If you do not benefit from the full amount of the Child Tax Credit, you may be eligible for the Additional Child Tax Credit. For more information see IRS Publication 972, Child Tax Credit.

3. Child and Dependent Care Credit You may be able to claim this credit if you pay someone to care for your child or children under age 13 so that you can work or look for work. See IRS Publication 503, Child and Dependent Care Expenses.

4. Earned Income Tax Credit The EITC is a tax benefit for certain people who work and have earned income from wages, self-employment or farming. EITC reduces the amount of tax you owe and may also give you a refund. IRS Publication 596, Earned Income Credit, has more details.

5. Adoption Credit You may be able to take a tax credit for qualifying expenses paid to adopt an eligible child. If you claim the adoption credit, you must file a paper tax return with required adoption-related documents. For details, see the instructions for IRS Form 8839, Qualified Adoption Expenses.

6. Children with earned income If your child has income earned from working, they may be required to file a tax return. For more information, see IRS Publication 501.

7. Children with investment income Under certain circumstances a child’s investment income may be taxed at their parent’s tax rate. For more information, see IRS Publication 929, Tax Rules for Children and Dependents.

8. Higher education credits Education tax credits can help offset the costs of higher education. The American Opportunity and the Lifetime Learning Credits are education credits that can reduce your federal income tax dollar-for-dollar. See IRS Publication 970, Tax Benefits for Education, for details.

9. Student loan interest You may be able to deduct interest paid on a qualified student loan, even if you do not itemize your deductions. For more information, see IRS Publication 970.

10. Self-employed health insurance deduction If you were self-employed and paid for health insurance, you may be able to deduct any premiums you paid for coverage for any child of yours who was under age 27 at the end of the year, even if the child was not your dependent. For more information, see the IRS website.

Forms and publications on these topics are available at www.irs.gov or by calling 800-TAX-FORM (800-829-3676).

Refund Anticipation Loans

Community Kids Coat Drive

Jackson Hewitt Tax Service sponsored a coat drive to benefit the Payson Community Kids. It ended in November and 15 APS boxes of coats, hats, gloves, and clothing were given to the Community Kids to help keep them warm this winter. Thank you to all businesses that had collection boxes: The Apothecary Shop, Charlie’s Old-Fashioned Sausage, Payson Jeweler’s, Payson Barber Shop, The New Ewe, Walmart, Walgreens, Stage, and Mattress Experts. Jackson Hewitt also donated $100 to help purchase needed items. We also want to thank APS for furnishing the boxes, and a special thanks to the generous people that donated items for these great kids.

Denise with some of the clothing boxes

TAXES CAN PAY!

Jackson Hewitt Tax School is available now. Learn to prepare taxes and you could be ready to earn extra income by January. Enroll in the Jackson Hewitt Basic Income Tax Course and learn to prepare individual income tax returns. Call Denise at 928-468-0902, or stop in to our office located in the Safeway Shopping Center.