Your Income Tax March 17, 2010 Sarah Gustafson VITA Volunteer

Your Income Tax Why? Where? How?

Introduction to Tax You are taxed on your income. If you have a paycheck, you will see Federal Income Tax (~10%, 15%, 25%..) California - State Income Tax (~1%, 2%, 4%) Social Security (6,2%) Medicare (1,45%)

Why do we need to file? The US Government makes laws about things that can change your taxes. For example, you may have children you support. So you don’t need to pay as much tax. Every April 15 Americans report their living situation to the government. Sometimes people get money returned. Sometimes they have to pay more. Javhlan will explain more about the US Tax System.

Who Must File? (Federal) Single >$9,350 Head of Household >$12,000 Married Filing Jointly >$18,700 Any person who made more than $400 Self- Employed Examples: Many Home Workers and Cooks Any person who did not pay taxes on tips Examples: Waiters, Drivers, Valets

Who must file? (CA State) Single > $14,622 Married Filing Jointly > $29,245 (different if you have dependents)

Why File Taxes? Newcomers to the United States have good reasons to file taxes. 3 reasons First, you need to file taxes if you want to apply for an ITIN. W-7 Form

ITIN Individual Taxpayer Identification Number Sometimes used to open bank account Build credit history A number that belongs to YOU. Help build future in USA

Applying for a ITIN Javhlan will explain more! Must send in Tax Return and ITIN Application (W-7) at same time. Must have Federal Filing Requirement to apply. Can apply for children, spouse as well.

Taxes and Immigration Status Many immigrants file taxes because it may help with immigration issues. If you apply for Residency, Green Card -- Immigration Authorities will ask if you paid taxes properly. Filing taxes is “good moral character”

Tax Refunds Money (check) from the government W-2 Withholding Many children or other dependents

Za… Where do I file taxes? Many places. Here are two. 1) If you have complicated taxes, or would prefer to work with a native Mongolian speaker, in Koreatown… Javhlan CPA

Free Tax Assistance You can get your taxes filed FREE. The IRS (Tax Authority) trains volunteers to prepare taxes for free. I am an IRS Volunteer Preparer. Glendale College 1500 N. Verdugo - Glendale, CA San Rafael Building Saturdays 9 am - 2 pm

Glendale College directions Take “2” Freeway North Exit (left) at Mountain Street Turn right on Verdugo Rd. About 12 miles San Rafael Building Ask for Sarah

What do I bring? Common Sources of Income W-2 (withholding) 1099’s 1099-MISC - Self Employed Tips

Self-Employed Income How much money did you make? 1099-MISC Copies of checks to you. Hand-written document is OK. You are taxed on your profit. Expenses Mileage record (where, when, why?) Car insurance, registration Tools, materials, supplies

Other sources of income Non-US income (if citizen or resident alien) Non-US taxes Interest (1099-INT) Gambling (1099-G) Government Benefits Rental Income Expenses: repairs, cleaning, ads Partnerships

Family Information Need information about you and your family members who live with you Name, Date of Birth Address SSN or ITIN (if available) If SSN, must be valid. Non-Resident Alien, Resident Alien, Citizen?

Dependents You may pay less tax if you have dependents. Do you support children, parents, or family? Be able to say: Names, Date of Birth, Relationship SSN or ITIN (if available) Whether they live with you or not How much support you give Disabled?

Children and Education Child Tax Credits Student Loan Interest Deduction Education Credits Bring “1098-T” Bring receipts or records of school books, computers paid.

Housing Records Renter’s Credit Bring Name, Phone Number, Address of Landlord How long did you live in home? Property Taxes Mortgage Interest Payments Purchase or Sell Home

Other items to bring Other expenses New car receipts Medical receipts Last year’s Taxes (1040 for 2008) Ask Javhlan and Uyanga what else…

Questions… I can try to help!

The End I hope that this helps you get “ТӨГС ТАКС”