Contract Employees vs. W-2 Employees

The businesses’ need to cut back on costs and achieve higher operating efficiency has made the idea of hiring independent contractors more lucrative with every passing day. While most [...]

Top 5 Tax Tips For students starting a Summer Job!

Summer is just around the corner, which means many students will start their summer jobs for extra cash. Here are some useful tax tips every parent or student should know when starting their summer job! 1. How to complete Form W-4 when starting a New Job – This form is used by employers to determine the taxes that will be withheld from their paycheck. A student who is claimed as a dependent of another with income only from summer and part-time employment can earn as much as $6,100 (the standard deduction amount) without being liable for income tax. 2. Tips – Many students work as a waiter or camp counselor over the summer. With these jobs, the student will likely receive tips as part of their summer income. All tip income received is taxable income and is therefore subject to federal income tax. Employees are required to report tips of $20 or more received while working with any one employer in any given month. The reporting should be made in writing to the employer by the tenth day of the month following the receipt of tips. […]

Education Tax Credit FAQS

Many college students are always caught in a balancing act between studying for their courses, working to pay expenses, and all enjoying the social activities that college life has to offer. This is often stressful and overwhelming to some. Well, 1040Return.com wants to help relieve some of this financial burden by recommending the following tax credits below. 1040Return has helped several students receive their maximum refund because 1040 Return only asks you easy to answer questions so you do not ever have to fill out a complicated tax form on 1040Return. American Opportunity Credit Qualifications: Maximum credit: Up to $2,500 credit per eligible student. Limit on modified adjusted gross  income (MAGI) $180,000 if married filing jointly; $90,000 if single, head of household, or qualifying widow(er) Refundable or nonrefundable 40% of credit may be refundable; the rest is nonrefundable Number of years of postsecondary education: Available ONLY if the student had not completed the first 4 years of postsecondary education before 2013Number of tax years credit available. Available ONLY for 4 tax years per eligible student (including any year(s) Hope Scholarship Credit was claimed) […]

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