The Child Tax Credit is available to eligible taxpayers with qualifying children under age 17. The IRS would like you to know these eleven facts about the child tax credit:

1. Amount. With the Child Tax Credit, you may be able to reduce your federal income tax by up to $1,000 for each qualifying child under age 17.

2. Qualification. A qualifying child for this credit is someone who meets the qualifying criteria of seven tests: age, relationship, support, dependent, joint return, citizenship and residence.

3. Age test. To qualify, a child must have been under age 17 – age 16 or younger – at the end of 2011.

4. Relationship test. To claim a child for purposes of the Child Tax Credit, the child must be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister or a descendant of any of these individuals, which includes your grandchild, niece or nephew. An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption.

5. Support test. In order to claim a child for this credit, the child must not have provided more than half of his/her own support.

6. Dependent test. You must claim the child as a dependent on your federal tax return.

7. Joint return test. The qualifying child can not file a joint return for the year (or files it only as a claim for refund).

8. Citizenship test. To meet the citizenship test, the child must be a U.S. citizen, U.S. national or U.S. resident alien.

9. Residence test. The child must have lived with you for more than half of 2011. There are some exceptions to the residence test, found on ir.gov in IRS Publication 972, Child Tax Credit.

10. Limitations. The credit is limited if your modified adjusted gross income is above a certain amount. The amount at which this phase-out begins varies by filing status. For married taxpayers filing a joint return, the phase-out begins at $110,000. For married taxpayers filing a separate return, it begins at $55,000. For all other taxpayers, the phase-out begins at $75,000. In addition, the Child Tax Credit is generally limited by the amount of the income tax and any alternative minimum tax you owe.

11. Additional Child Tax Credit. If the amount of your Child Tax Credit is greater than the amount of income tax you owe, you may be able to claim the Additional Child Tax Credit [according to Investopedia: A refundable credit that can be claimed by taxpayers who are ineligible to claim the full non-refundable child tax credit, because it exceeds their total tax liability. The additional child tax credit was created to reimburse taxpayers for the non-refundable portion of their child tax credit. The additional child tax credit is available to families with three or more qualified children].

Source: IRS Newswire

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A Dunia Magazine article

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E-file. Last year, 112 million people, an estimated 78% of all individual taxpayers used IRS e-file to electronically transmit their tax returns to the IRS. According to the Internal Revenue Service (IRS), more than 1 billion individual tax returns have been safely and securely processed since the nationwide debut of electronic filing in 1990. This number has been rising consistently every year because this method (unlike paper returns) ensures accurate returns, it’s easy, safe and secure, refunds are faster and tax payers who owe the government have more payment options. About three of four taxpayers received a refund last year, the average refund was approximately $2,900.

When? The IRS began accepting e-file returns on Jan. 17, 2012. This year, taxpayers have until Tuesday, April 17 to file their 2011 tax returns and pay any taxes due because April 15 falls on a Sunday, and Emancipation Day, a holiday observed in the District of Columbia, falls this year on Monday, April 16.

Know your options. Tax payers can e-file their taxes themselves or through a tax professional. In general, for people concerned about security, e-file is a safe option as software vendors and paid tax return preparers use the latest encryption technology. Within 48 hours of filing a return, an electronic acknowledgement is issued that the return has been received by the IRS and either accepted or rejected.

Guard your identity. Identity thieves get your personal information by many different means, including stealing your wallet or purse, posing as someone who needs information about you through a phone call or e-mail, looking through your trash for personal information, accessing information you provide to an unsecured Internet site. Victims of identity theft may face several difficulties where their situation is concerned such as:

• Identity thieves may then use a taxpayer’s identity to fraudulently file a tax return and claim a refund.
  
• In other cases, the identity thief uses the taxpayer’s personal information in order to get a job.
  
• That person’s employer may report income earned by them to the IRS using your Social Security number, thus making it appear that you did not report all of your income on your tax return.
  
• The legitimate taxpayer may be unaware that anything has happened until they file their return later in the filing season and it is discovered that two returns have been filed using the same Social Security number.
  
• When this occurs, you should contact the IRS to show that the income is not yours. Your record will be updated to reflect only your information. You will also be asked to submit substantiating documentation to authenticate yourself. That information will be used to minimize this occurrence in future years.
  

Don’t wait, start early. Round up any documents you’ll need when filing your taxes such as receipts, canceled checks and other documents that support income or deductions you’re claiming on your return. Put your records together and be on the lookout for W-2s (Employers are supposed to mail out or deliver the Form W-2 by January 31st), 1099s and other important tax documents from mortgage servicers, bank interest, student loan interest, etc.

What’s on the table? This year, you should take advantage of a wide range of tax-saving opportunities, such as the American opportunity credit for parents and college students, and the child tax credit and expanded earned income tax credit for low- and moderate-income workers. Consult with a tax professional to ensure you receive all exemptions, credits and deductions you may qualify for.

Take stock of last year’s situation. In November 2011, the Internal Revenue Service announced that it is looking to return $153.3 million in undelivered tax refund checks. In all, 99,123 taxpayers were due refund checks last year averaging $1,547 that could not be delivered because of mailing address errors. Taxpayers who believe their refund check may have been returned to the IRS as undelivered should use the “Where’s My Refund?” tool on IRS.gov. The tool will provide the status of their refund and, in some cases, instructions on how to resolve delivery problems. Taxpayers checking on a refund over the phone will receive instructions on how to update their addresses. Taxpayers can access a telephone version of “Where’s My Refund?” by calling 1-800-829-1954. While only a small percentage of checks mailed out by the IRS are returned as undelivered, taxpayers can put an end to lost, stolen or undelivered checks by choosing direct deposit when they file either paper or electronic returns. Last year, more than 78.4 million taxpayers chose to receive their refund through direct deposit.

Have a fantastic season!

Information source: Internal Revenue Service

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6 EcoChi® Tips for the New Year

Each new year brings the thought of resolutions, many of which last little more than a few weeks. “Life in the new year will be lived the way it is designed,” says Debra Duneier, certified eco-designer, feng shui master practitioner and author of EcoChi: Designing the Human Experience (www.ecochi.com). “Prepare your home, as well as your mind and body, to attract the things you desire in your life,” Duneier says. Where do you start? Follow these simple steps and enjoy a healthy, happy and prosperous year:

Declutter
Clean, declutter and beautify your home. This changes the energy and prepares the space to celebrate the wonderful things that are about to come into your life.

Stop leaks
Seal any air leaks around doorways, windows and ductwork in your home. This simple step will reduce energy usage by up to 20 percent. “One weekend with a tube of caulk will help keep you and your wallet warm,” says Duneier.

Say “no” to plastics
Avoid plastic bottles, especially for drinking water. Some plastics leech bisphenol A (BPA) when exposed to heat. This compound mimics estrogen and has adverse effects on our hormones.

Rethink food
Instead of focusing on diets, create a healthier relationship with food. Healthy food increases your energy level and encourages better choices throughout the day. Diet obsessions keep your mind on a scale rather than on enjoying life.

Red bird
Your home should be your “red bird” so that it reflects your promising future. Introduce the color red to your home through fresh flowers or decorative pillows. This auspicious color is sure to set the atmosphere for a promising new year.

Invite energy in
If you are home when the new year arrives, open your front door to allow this new energy to enter. Fresh air brings with it fresh beginnings.

By making these changes, you’ve set a stage that welcomes new energy. You’ll find enjoyment in the comfort it brings and set the tone for a healthier and happier you. To learn more about the EcoChi philosophy, visit www.ecochi.com.

About the Author: Debra Duneier is the author of EcoChi: Designing the Human Experience, a feng shui master practitioner, an accredited LEED® Green Associate and certified eco-designer.

SOURCE Debra Duneier

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WINSTON-SALEM, N.C, Dec 26, 2011

Photo courtesy Newswise

This year, make sure your New Year’s fitness resolution includes your kids. Doing so could make working out and losing weight a lot more fun, according to fitness expert Michael Berry.

Berry, director of the Human Performance Laboratory at Wake Forest University, said fitness with the kids must include more than a predictable schedule. You must engage the kids and even make exercise a little unusual to get them excited about working out.

“If you say, we’re going to take the kids out for a walk this evening, most kids are going to say, ‘Wait, we have to leave the video games or television?’” Berry said. “Kids like to play games, they like to be engaged, so exercise needs to be something that is sports-oriented or game-oriented.”

Children need at least 60 minutes a day of physical activity, including muscle-strengthening exercises, according to the Centers for Disease Control and Prevention. With that goal in mind, Berry makes these suggestions for getting fit with the kids:

• See the lights. Around the holidays, there are plenty of interesting light displays to see in your neighborhood. Or walk to pay a holiday visit nearby friends.

• Aim for two or three activities a week, which will help you reach your daily adult fitness goal of 30 minutes of moderate activity five times a week.

• Walk to school. That burst of activity in the morning can change your day.

• Replace pizza and a movie night with family fitness night at least once a month. Get the kids excited about it.

• Check out the fitness attractions your city offers. Visit a rock-climbing gym or a trampoline place, for example.

• Make a fitness wish list with the kids. Write down every physical activity they’d like to do, and let them choose at least twice a month.

• Play like a kid. A half-hour of tag or kickball is good exercise for you and your children.

• Use your gaming system to your advantage. Pick a high-energy physical activity that you like (Just Dance for Wii, for instance), and make it a family competition. When the kids get bored, change the game.

• Take it outside. But a simple walk won’t cut it, Berry said. Go to a park or nature preserve and take a hike.

• Make dining out or after-dinner treats a physical activity. Walk to the restaurant from your home, if possible.

• Join a league – kickball, basketball, soccer. They all offer opportunities for you and your kids to have fun getting fit.

Check out guidelines and suggestions at the CDC website: http://www.cdc.gov/physicalactivity/everyone/guidelines/children.html.

No matter how you decide to get fit with your kids, make sure you keep it safe, Berry said. Drink plenty of water while exercising, follow the rules of the fitness attractions you visit, and keep children’s strength training to low or moderate resistance (like monkey bars). High resistance can injure bones.

Berry’s profile and research descriptions can be found here: http://www.wfu.edu/hes/berry.htm.

About Wake Forest University: Wake Forest University combines the best traditions of a small liberal arts college with the resources of a large research university. Founded in 1834, the school is located in Winston-Salem, N.C. The University’s graduate school of arts and sciences, divinity school, and nationally ranked schools of law, medicine and business enrich our intellectual environment. Learn more about Wake Forest University at www.wfu.edu.

SOURCE Wake Forest University

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