Monthly Archives March 2016

A capital gain or loss is the difference between the basis and the amount of money a tax payer gets when they sell an asset. The tax rate on a capital gain depends on the taxpayer’s income.  The capital gain tax rate varies from 0% to 28%. All capital gains must be included in the taxpayer’s income when they file their income taxes.  If a taxpayer’s income is above a certain level, they may be subject to the 3.8% Net Investment Tax.  If a taxpayer is subject to the Net Investment Tax, they must file Form 8960 with their tax return. Taxpayers can
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The Child Tax Credit may save taxpayers up to $1,000 for each eligible qualifying child. A child must meet several conditions in order to qualify for the child tax credit.  A list of the conditions is below: Age. The child must have been under age 17 at the end of 2015. Relationship. The child must be the taxpayer’s son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, or half sister. The child may also be a descendant of any of these individuals. A qualifying child can also include the taxpayer’s grandchild, niece or nephew. Adopted children always qualify
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Most taxpayers simply need to check a box on their 2015 tax return stating that all family members had qualifying health care coverage every month in 2015 and do not have to pay the Individual Shared Responsibility Payment. Exemptions from the Individual Shared Responsibility Payments may be granted.  To find out who qualifies for an exemption, click here.  If a taxpayer doesn’t qualify for an exemption, they must make an individual shared responsibility payment for every month they don’t have health insurance.  To find out how to report and calculate the payment, click here. Form 8965 needs to be filed with taxpayer returns if
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