What You Need to Know About Claiming Your Dependent Relative

Posted by Tax Advisor on February 26th, 2015
Last modified: February 26, 2015

Taking care of an aging parent or relative can be hard, not to mention expensive. The good news is that you may be able to claim them on your tax return and get a bigger refund.

Supporting a relative can impact many areas of your life.  The most obvious are the changes to your living situation, amount of free time you have,  and your finances.

To help relieve the financial strain of caring for a relative, you can report these relatives as dependents on your tax return. Doing so can save you thousands of dollars in taxes, because for every qualified dependent you claim your taxable income is reduced by $3,950.

Your dependent will belong to either one of the two following categories:

  • qualifying child 
  • qualifying relative

To learn more about claiming a qualifying child, refer to this RapidTax post.

Who Can I Claim as a Qualifying Relative Dependent?

The term “relative” may be unclear. For example, is your cousin’s wife considered your relative? How about his ex-wife? Read the rest of this entry »

What You Need to Know About Claiming Your Dependent Child

Posted by Tax Advisor on February 25th, 2015
Last modified: February 25, 2015

Here’s what you should know about claiming a dependent child on your taxes…

When filing your taxes, you’ll want to report the expenses that come along with the responsibilities of raising a child.

One way to do this is by claiming your child as a dependent. Each dependent you claim on your tax return will lower your total taxable income by one exemption. That means you’ll end up receiving a larger tax refund!

Keep in mind however, each dependent can only be claimed by one tax filer. Additionally, the dependent you’re claiming must qualify as either of the following:

  1. a qualifying child
  2. a qualifying relative

Who is considered a Qualifying Child Dependent?

In order to claim someone as your qualifying child, he or she must meet the following criteria:

  • Be your biological or adopted child, stepchild, foster child, sibling, half sibling, stepsibling, or a descendant of one of these
  • Be under the age of 19 or,  if he or she is a full-time student, under age 24 (There is no age limit if the child is permanently disabled.)
  • Be a U.S. citizen or U.S. resident, or a resident of Canada or Mexico
  • Be unmarried, or married but not filing a joint return
  • Have lived with you for at least half the year, unless absent due to illness, education, business, vacation, or military service
  • Have not provided more than half of his or her own support Read the rest of this entry »

The 2014 Tax Tables

Posted by Tax Advisor on February 24th, 2015
Last modified: February 24, 2015

Find your 2014 Tax Rate with the 2014 Tax Tables!

Have you filed your 2014 Tax Return yet?

If you’ve already filed, congratulations! If not, you may be wondering what the 2014 tax rates are.

Here at RapidTax, we’ve designed  the 2014 tax tables just for you. In fact, you can save these tax tables to your computer and refer back to the tax rates as needed.

Keep in mind that these tax tables are based on your filing status and total income earned throughout the year. You’ll need to know each in order to find your 2014 tax rate.

Read the rest of this entry »

How To Report Insurance If Covered Under Parent’s Plan

Posted by Tax Advisor on February 4th, 2015
Last modified: February 24, 2015

If you’re covered under your parent’s health insurance plan, you won’t face tax penalties when filing your 2014 Taxes 

If you’re in your early twenties and recently entered the “real world”, you know first hand how overwhelming it can be.

Not only do you feel the pressure to succeed in your first job, but you’ve also been slammed with bills you’ve never seen before. From paying student loans to coughing up rent and everything in between, you’ve got a lot on your plate.

Thanks to the Affordable Care Act aka Obamacare, paying for health insurance isn’t yet on your list of concerns. Keep in mind however,  you’ll need to report your insurance coverage on your 2014 Tax Return. RapidTax is here to help!

Who is Eligible for Coverage under Parent’s Plan?

You may be unsure if you qualify to be covered under your parent’s health insurance plan. Here’s what you should know:

  • you can stay on your parent’s health insurance policy until you turn 26 years old
  • if you don’t have insurance, you’ll have to pay a fee for being uninsured when filing your taxes Read the rest of this entry »

What You Should Know About Arizona Retirement Taxes

Posted by Tax Advisor on January 26th, 2015
Last modified: January 26, 2015

Wondering About Arizona Retirement Taxes? RapidTax is here to help.

If you live in or plan on moving to Arizona, you should know that the state has more to offer than just great weather.

Not only is Arizona home to the very famous Grand Canyon, it’s also a tax-friendly state for retirees.

Rather than sorting through Arizona’s Department of Revenue website, you can quickly learn why Arizona has become a popular destination for retirees.

Social Security is Not Taxed

Arizona is a destination to many retirees thanks to the state not taxing Social Security benefits.

That right, Social Security checks aren’t subject to taxation in Arizona. Read the rest of this entry »

Can I Claim the Child Tax Credit 2014?

Posted by Tax Advisor on January 26th, 2015
Last modified: January 28, 2015

If you meet the requirements to claim the Child Tax Credit 2014, expect to see a larger tax refund in 2015

If you have a child, you know first hand that being a parent changes your life.

Along with the new responsibility comes the expenses of having a child, such as food, clothing, classes, pictures, day care and so much more. Luckily, the IRS offers a few tax advantages to help with the never ending costs. One in particular is the Child Tax Credit.

Keep in mind however, just because you have a child, it does not automatically qualify you to claim the Child Tax Credit on your 2014 Taxes.

In order to claim the credit on your 2014 Tax Return, you’ll have to meet the 7 IRS Child Tax Credit requirements

1. Relationship

In order to claim the child tax credit, the child must be one of the following;

  • your child
  • your stepchild
  • a foster child placed with you by a court or authorized agency
  • an adopted child (even if the adoption is not final by the end of the tax year)
  • your brother
  • your sister
  • your stepbrother
  • your stepsister
  • your niece
  • your nephew Read the rest of this entry »

Estimate Your 2013 Taxes With a 2013 Tax Calculator

Posted by Tax Advisor on January 19th, 2015
Last modified: January 19, 2015

Use a 2013 Tax Calculator To Estimate your 2013 Taxes

Do you still need to file your 2013 tax return? If so, you may be curious to know how much your 2013 tax refund or tax due total will be.

Luckily, you can use a  tax calculator 2013 to view your tax situation before filing your late 2013 tax return.

Free Tax Calculator 2013

In order for a tax calculator to estimate your 2013 taxes, you’ll need to enter at the very least your filing status, income, taxes withheld, and any possible deductions.

Rather than wasting time re-entering the same information later on when preparing your tax return, you can do it all at once. Here’s how;

  1. Create a RapidTax Account: When creating an account, be sure to select the 2013 Tax Year (don’t worry, it doesn’t cost anything to create an account)
  2. Enter your tax information: Enter your basic information, income, and deductions or credits your claiming,
  3. View your Tax Refund or Tax Due: Once your tax information is entered, the RapidTax application will instantly calculate your 2013 taxes. In the upper right hand corner, you’ll see your refund or tax due total appear.
  4. File Your 2013 Return or Log Out: If you’re not ready to file your 2013 taxes or just wanted to calculate your taxes, log out of your account. If instead, you want to continue on and file your 2013 tax return, you can continue on with the RapidTax application and submit (and pay) for your tax return. Read the rest of this entry »

Help! I Still Need to File My 2013 Taxes!

Posted by Tax Advisor on January 15th, 2015
Last modified: February 25, 2015

Still need to file 2013 taxes? Luckily, you can file a late 2013 tax return online with RapidTax!

The 2015 Tax Season is here and it’s time to file your 2014 tax return. There’s only one problem- you still haven’t filed your 2013 tax return.

You desperately need to file your 2013 taxes but somehow continue to put it off.

Sound familiar? You’re not alone. Filing taxes, especially late taxes can seem overwhelming, time consuming and draining.

Rather than trying to file your late 2013 tax return yourself , you can pay an accountant outrageous fees to do it for you. Don’t waste your time or money. Instead, file your 2013 taxes online with RapidTax and have it completed within 15 minutes.

Will I Have To Pay Late Fees for Filing My 2013 Taxes Late?

If the IRS owes you a refund from your 2013 tax return, you won’t have to pay any late fees.

However, you will be penalized if you have tax due. There’s two IRS late fees you could end up facing;

  • Late-Filing Penalty: For every month your tax return has gone un-filed, there’s a penalty of 5% of your tax bill amount, up to a maximum of 25% (the minimum penalty is $135).

  • Late-Payment Penalty: For every month your tax bill goes unpaid, there’s a fee totalling .5% (½ of 1%) of your tax bill.

That’s a lot of extra money you’re giving away to the IRS. Read the rest of this entry »

Do I Need To File a 2014 Tax Return?

Posted by Tax Advisor on January 5th, 2015
Last modified: January 22, 2015

Learn if you’re required to file a 2014 Tax Return…

Tax Season 2015 is here. As of January 20, 2015  you can e-file your 2014 Tax Return on RapidTax!

However, you may be unsure whether or not you need to go to the effort of filing a 2014 Tax Return. You should first know that the requirement to file a federal tax return depends on your;

  • filing status
  • age
  • income
  • dependency status
  • other unique circumstances

2014 Tax Return Coupon

 

Does Your Income Require Your To File a 2014 Tax Return?

If you’re under 65 and you earned the following income (or more), you’re required to file a 2014 Tax Return;

  • Single: $10,150
  • Head of Household: $13,050
  • Married Filing Jointly: $20,300
  • Married Filing Separately: $3,950
  • Qualifying Widow(er): $16,350

If you are 65 or older and you earned the following income (or more), you’re required to file a 2014 Tax Return:

  • Single: $11,700
  • Head of Household: $14,600
  • Married Filing Jointly: $21,500
  • Married Filing Separately: $3,950
  • Qualifying Widow(er): $17,550

If you are being claimed as a dependent and you earned more than $6,100 in 2014, then you’ll need to file a tax return. Read the rest of this entry »

When Is My Tax Return Free on RapidTax?

Posted by Tax Advisor on December 19th, 2014
Last modified: February 25, 2015

Wondering how to file your tax return free this year? Look no further. You might be eligible to file taxes online free with RapidTax!

If you’re like the majority of us, you most likely dread filing taxes. Even if you’re filing online, there’s something obnoxiously annoying about the annual IRS filing requirement.

Even worse than being forced to file your taxes is being forced to overpay to file your 2014 taxes.

Luckily, RapidTax offers online tax filing free for some filers. Depending on your filing status and what information your reporting will determine whether or not you’ll face a small (we promise) fee.

Who Qualifies for Free Tax Filing on RapidTax?

You may be able to file your taxes online free with RapidTax! You’ll be able to file free if:

  • your filing status is single or married filing separately
  • you have no dependents to report
  • you’re taking the standard deduction
  • you aren’t reporting any above-the-line deductions
  • the only credit you’re claiming is the Earned Income Credit (without a qualifying child) or you’re not claiming any credits at all Read the rest of this entry »