January 31, 2012 by msquaredlaw
It is tax season and some of us may be itching to file our tax returns in order to get back some much needed refund money. Others not so much.
Either way, it is your duty to file your returns and pay your taxes correctly. Failure to do so may result in the assessment of penalties and interest.
Why not consult the newly revised annual tax guide published by the IRS?
Publication 17, titled Your Federal Income Tax, includes basic tax-filing information and tips on what income is required to be reported and how to report it, computing capital gains and losses, claiming dependents, choosing the standard deduction versus itemizing deductions, and using IRAs to save for retirement.
Moreover, Publication 17 features details on taking 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.