Are there tax implications in withdrawing money early from a retirement account?
Yes, withdrawing money early from a retirement account comes with a 10% tax penalty plus regular income tax on the amount withdrawn.
I owe money on my last year’s tax return, Can I still get a refund this year?
- If you owe any federal tax, state tax, student loans, or child support, your refund may be withheld. However, the IRS will most likely automatically apply your refund to any past due amounts.
How can I save more money on taxes or get a bigger refund?
- The two things that immediately come to mind are either purchasing a home or having children. Of course while these are all personal preferences, you must logically take into account the difference in tax benefits regarding each. With a home you ...
Do I still need to file my taxes even though I didn’t make enough money?
- Even if you are NOT REQUIRED to file, you SHOULD file especially if you had income tax withheld from your pay or if you qualify for the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit. Since many people don’t think they need to ...
Should I still file even if I did not make much money last year?
You should file your tax return even if your total income is below the filing requirement so that you can get a refund on any withheld federal income tax.
Can I claim my parents as dependent because I’m sending money to them overseas?
Unfortunately, you cannot claim your parents if they did not reside in United States, Mexico or Canada even if you provided more than half of their support.