Tax Tips

 

The 2014 permanent fund dividend was $1,884. This is taxable income and should be reported on your tax return. Even if your PFD was garnished you must report it as income.

You may be required to file a return due to the requirements of the Affordable Care Act. If you can be excluded from the requirements due to an exemption you must file a return to claim the exemption. For more information regarding the Affordable Care Act check out the IRS website Affordable Care Act Tax Provisions for Individuals and Families.

You may be able to claim an individual as a dependent on your return regardless of age or relationship. Ask your preparer for guidance on claiming a dependent or check out the IRS website Who Can I Claim as a Dependent?

If you can be claimed as a dependent on another person’s return you are required to report the PFD income to the IRS even if it was your only income.

If you can be claimed as a dependent on another person’s return do not claim your own exemption if you file a return on your own. Claiming your own exemption will result in complications for the rightful claimant of your exemption and may result in the IRS asking you to return to them any refund paid in addition to fines and penalties.

If you are not married you cannot file Married Filing Jointly.

Most of the income you receive has already been reported to the IRS by they payer. The IRS knows what you have made. File a properly completed tax return to minimize your tax burden.

It’s not too late to file. If you are due a refund you may be able to collect the amount due for three years after the due date of the return.

If you receive a notice from the IRS respond. Call the number on the notice. They won’t go away.

If you owe you can’t avoid owing by not filing. File before the due date to avoid the failure to file penalty. Consider a short term extension of time to pay or an installment agreement.

An extension of time to file is not an extension of time to pay.

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