EIC fraud

**If you take the EIC even though you are not eligible and it is determined that your error is due to reckless or intentional disregard of the EIC rules, you will not be allowed to take the credit for 2 years even if you are otherwise eligible to do so. If you fraudulently take the EIC, you will not be allowed to take the credit for 10 years. You may also have to pay penalties. A qualifying [...]

EIC Earned Income Credit

Earned income credit (EIC) is a credit for certain people who work. You may receive this credit even if you do not have a tax liability. Our site will determine if you are eligible for EIC based on your answers to the interview. If you qualify, we figure it for you. See the Form 1040 instructions for more [...]

What are qualified educator expenses?

Deduction for Educator Expenses If you're an eligible educator, you can deduct up to $250 ($500 if married filing jointly and both spouses are eligible educators, but not more than $250 each) of unreimbursed trade or business expenses. Qualified expenses are amounts you paid or incurred for participation in professional development courses, books, supplies, computer equipment (including [...]

Distribution From a Foreign Trust

If you received a distribution from a foreign trust, you must provide additional information. For this purpose, a loan of cash or marketable securities generally is considered to be a distribution. See Instructions for Form 3520 for details. If you were the grantor of, or transferor to, a foreign trust that existed during the current tax year, you may have to file Form 3520. **Please note that [...]

Dependents Relationship Test

To meet this test, a person must either: Live with you for the entire year as a member of your household, AND Be related to you in one of the ways listed under Relatives who do not have to live with you. If at any time during the year the person was your spouse, that person cannot be your dependent. Temporary Absences A person lives with you as a member of your household even if either [...]