Disabled Americans Able to Get Tax Deductions

People with disabilities can be prevented from working and have can a limited income. To help, Uncle Sam has certain tax benefits in place. Here’s a look at some tax benefits for taxpayers with disabilities.

• Elderly and Disabled Tax Credit: To qualify for this tax credit you have to be at least 65 years old or retired on a permanent or total disability with taxable disability income. Your adjusted gross income has to be less than $17,500 if you’re single, a head of household or qualifying widow or widower; $20,000 if you’re married filing jointly and one spouse is eligible, or $25,000 if both spouses are eligible; or $12,500 if you’re married filing separately. Claim this credit by attaching a Schedule R to your return.
• Increased standard deduction: Taxpayers who are legally or partially blind may be eligible to claim a higher standard deduction on your return. You’ll need to provide a statement from your doctor explaining your visual impairment, but it can be worth it.
• Earned Income Tax Credit: The EITC is available to taxpayers with disabilities and to parents of a disabled child. If you’re disabled but able to work, don’t have a qualifying child, and are between the ages of 25 and 65, chances are you may qualify for the EITC. The age limit is waived if your child has a disability, and the income you receive because of it doesn’t count when you’re being considered for Medicaid and Supplemental Security Income.
• Impairment-related work expenses: If you’re an employee with work-related limitations due to a physical or mental disability, you may be able to claim certain business-related expenses you need to make in order for you to remain employed. You’ll have to prove that the expenses are in fact necessary for you to be employable when you claim the credit.

But whether are not you have a disability, the IRS doesn’t give mercy on those who don’t pay their back taxes. If you have an old tax debt, consider hiring a tax attorney or skilled tax professional to intercede. With the right amount of elbow grease, they can help resolve your tax debt quickly and help you avoid ‘financial’ disability along the way.

Tax debt accumulates in a variety of ways, but when taxpayer actions, or in this case, inaction, results in a levy, one thing all taxpayers can agree on is that the result can be crippling.

To be clear, levies are not the same as liens. A lien is a claim used as security for the tax debt. A levy legally seizes and sells your property including houses, cars, boats, wages, retirement accounts and bank accounts to satisfy the tax debt, however wage and bank levies or most common.

A levy results only after a taxpayer has neglected to pay their tax and disregarded a “Notice and Demand for Payment” and the “Final Notice of Intent to Levy and Notice of Your Right to a Hearing”. After receipt of the final levy notice, response must take place within 30 days. The levy will end if the levy is released, the tax debt is paid, or the time expires or legally collecting the tax.

To avoid a levy, it is important to pay taxes, remain in compliance with the IRS, or to respond to IRS notices promptly. People who have ignored their tax debt only to find themselves impacted by a levy quickly realize they are in over their heads. At this point, a safe choice is to contact tax professionals such as StopIRSDebt.com who are familiar with solutions to bring taxpayers into compliance to reverse the levy as quickly as possible.

Taxpayers have rights when it comes to tax levies. Finding an aggressive tax professional to fight for your rights with the IRS can be a time-saving and stress-reducing option.

Innocent Spouse Relief by the IRS May Be An Option

With Valentine’s Day coming up in just a few days, it’s another reminder for married taxpayers about not just the joy of tying the knot but about the responsibilities – and liabilities – you take on when you do.

Once you’re married, filing joint tax returns with your better half can open up a host of tax benefits. But it also exposes you to the liabilities they bring on. Chances are you’ll be paying taxes in a higher bracket, and the financial responsibility borne by one is now shared by both.

So if your Valentine’s Day is ruined by a IRS wage garnishment because of a joint tax return including fraudulent information by your current or former spouse, filing for innocent spouse relief may be an option.

As soon as you learn that you may be on the hook for your spouse’s fraudulent financial activity, it’s recommended you apply for innocent spouse relief by filing IRS form 8857 (you’ll need to attach a personal statement, too).

You’ll need to meet certain conditions, but if you do you can be relieved of the responsibility for paying the taxes, interest and penalties as a result of your spouse including fraudulent tax info in your joint returns. The IRS will do the math for you as to what you owe, or don’t owe.

The IRS mandates that a taxpayer meets all of these conditions (and there are more rules that govern these rules):

• You filed a joint return with your current or former spouse that has an understatement of tax due to false information, such as unreported income or an incorrect deduction, basis or tax credit.
• You didn’t know and had no reason to know that when you signed the joint return that there was an understatement of tax.
• It would be unfair for you to be held liable.
• There were no fraudulent schemes involved

Determining the fairness issue is important. If you received what the IRS deems as a “significant benefit,” then you may still be liable. You’ll want to hire a tax attorney to help make your case to the IRS on that one.

Some Valentine’s Days are better than others. If the spark in your love life is gone because you were unknowingly included your ex’s financial scheme, you may have options that a tax attorney can help you with.

Those who owe back tax debt to the IRS also have options. Even if you think you’re liable for paying that tax debt, the IRS may be willing to hear your case and settle your debt for a fraction of what you owe. If you’re in that situation, give us a call. While we may not be available to carry the heavy grocery bags from the car, you can bet we know how to do the heavy lifting with the IRS.

What resolution will you make this year?

The start of every New Year gives us an amazing opportunity to recharge our batteries and begin something in earnest we’ve been putting off, whether it’s following through on a new idea or quitting a bad habit. And while most people may never live up to their New Year’s resolutions, they still provide a fresh opportunity to make a positive change in our lives.

Do these resolutions sound familiar?

• I’m going to get in better shape
• I’m going to eat healthier
• I’m going to spend more time with my family
• I’m going to finally stop smoking
• I’m going to get organized
• I’m going to volunteer or give to charity
• I’m going to find a better job or start a new business

For many, these seven resolutions are repeated year in and year out, and most of the time are abandoned well before they’ve materialized. It’s not because you don’t want them to happen, it’s just that things tend to get in the way. And nothing gets in the way more than having debt.

If you’re burdened with bills, you may not have the time to exercise, volunteer or spend time with your family because of the need to work more hours and make more money. If your finances have you stressed and in a mental straightjacket, you’d probably find yourself smoking and eating unhealthy food more and more often. And if your debt load is too high and you owe back taxes to the state or to the IRS, you could probably forget about opening your own business and being your own boss. Moreso than any other debt, tax debt can grow incredibly quickly, sometimes tripling the original amount owed, and if left unpaid wages can be garnished and bank accounts frozen to pay off the obligation. Definitely not a good start to the year!

This year, make a resolution that really counts and commit to resolving your tax debt. Promise yourself you won’t throw more money down the drain on needless IRS penalties and interest, and that you will invest that money somewhere else. A new car? A new business? The options are endless once you take control of your financial future. And that’s one New Year’s resolution we’re happy to help you with.

Attorneys, CPA’s, & Enrolled Agents are here to help!

The IRS has one goal in mind, and that is to collect the taxes you owe in full, through whatever means necessary. If you owe back taxes to the IRS or state, and have been ignoring your debt, not only will penalties and interest increase the amount you owe two, three, even four times the original balance, but the IRS and state collection agencies can eventually collect what’s owed to them through the process of forced collections, wherein they can attach wages, bank accounts, property, even equipment to satisfy the debt. Forced collections are one of the most debilitating forms of debt as they compromise either an individual or businesses ability to both earn and sustain income. If you owe more than $10,000 to either the IRS or state, our expert staff of tax attorneys, CPA’s, enrolled agents, and tax professionals can step in and help stop forced collections quickly.

Our Tax Attorneys and Professionals Will Protect You!

Working with StopIRSDebt.com allows you to be fairly represented by tax attorneys and tax professionals that have extensive knowledge of current tax laws and can protect your legal rights for tax relief. Whether it’s to structure a favorable repayment option, stop wage or bank levies, remove unfair penalties, or even settle your tax debt, we are confident our service will exceed your expectations and bring you a fresh start.