IRS Tax Information

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Don’t give the IRS more than their fair share. Take advantage of J. Renea’s tax professional experience.

Filing Status
Single, married filing jointly, married filing separately, head of household…all these and more explained.

Individual Retirement Arrangement (IRA)
No contributions are allowed to a traditional IRA in and after the year you turn age 70 1/2. At that age, there is a required minimum distribution (RMD) that must be withdrawn each year.

Life changes have tax consequences, from birth through death
During your lifetime, you may get a job, go to school, get married, start a business, change jobs, have children, send children to college, buy and/or sell a home, get divorced, contribute to a retirement plan, or draw money out of a retirement plan.

• New Marriages - If you are married as of December 31st of a year, you are considered married for the whole year. Your filing status depends on your marital status.
• Births - Your child born on December 31 is assumed, for tax purposes, to have lived with you the entire year. For each qualifying child, you can claim a dependent's exemption of $3,500.
• Deaths - The same filing requirements that apply to individuals determine if a final income tax return must be filed for the decedent.
• Divorce - If you are divorced or legally separated as of December 31, for tax purposes you are considered to be unmarried for the entire year.
• College Attendance - You may be able to claim the Hope credit of up to $1,800 for qualified tuition and related expenses for each eligible student in the first 2 years of postsecondary education at a qualified institution.
• New Job - If job expenses are incurred and not reimbursed by your employer, you may be able to claim them as employee business expenses.
• Retirement - Pensions and annuities are generally taxable when distributed. You must start withdrawing from a traditional IRA by April 1 of the year following the year you reach age 70 1/2.
• Owning A Home - Points paid when you purchase your home are generally deductible in that year. Mortgage interest and real estate taxes paid on your home are deductible.

Rental Income & Expenses
Owning rental property is often a good way to increase your net worth.

Taxable VS Nontaxable Income
Knowing how to report it properly helps reduce the tax liability.

Earned Income Credit
The Earned Income Credit (EIC) is a tax credit for certain people who work and have less than $41,646 of earned income.

How to Avoid Common Problems
Mathematical errors, forgetting to sign your return and more.

Mileage Deductions
Keep track of your deductible mileage on your vehicle and you could see big savings on your tax return. Remember that you MUST keep accurate records in order for the deductions to be allowed.

What Should You Bring To Your Tax Interview?
Personal information for each family member, income and tax information, deductions and credits.

Deductions
Most taxpayers have a choice of either taking a standard deduction or itemizing their deductions.
Avoid paying more tax than necessary. Your J. Renea Financial professional will probe to make sure that you claim all the tax deductions that you are eligible to claim.

Tax Changes
There's nothing as certain as an ever-changing tax code. Besides the usual increases in exemption amounts, standard deductions, and qualifying income levels for the earned income credit, there are several impactful changes for filing Tax Year 2008 returns.