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Every year Millions of Taxpayers miss out on deductions and credits they are entitled to.

Two of the most common Tax Credits missed are the: Child Tax Credit (CTC) & Earned Income Tax Credit (EITC). Most taxpayers miss out on these credits because they don’t realize they qualify for them. Another missed feature of the (CTC) Child Tax Credit that it is partially refundable as long as the taxpayers income is over a certain amount (over $11,750 in 2007). The IRS estimates that 20% of low to middle income taxpayers miss out on these two top credits.

The IRS says that 20% of all returns filed have errors on them.

The most common errors are wrong social security numbers, tax table look ups, worksheets, and math errors. Some of these errors not caught by the IRS could result in a smaller refund. They can also delay your refund.

Find out what you have been missing out on.

If you missed any deductions or credits in prior years we can still go back and claim them for the past three years on an Amended Return.

2013 IRS Publications

Affordable Care Act - Tax Provisions

Health Insurance Premium Tax Credit

Starting in 2014, individuals and families can take a new premium tax credit to help them afford health insurance coverage purchased through an Affordable Insurance Exchange. Exchanges will operate in every state and the District of Columbia. The premium tax credit is refundable so taxpayers who have little or no income tax liability can still benefit. The credit also can be paid in advance to a taxpayer’s insurance company to help cover the cost of premiums. On May 18, 2012, the IRS issued final regulations which provide guidance for individuals who enroll in qualified health plans through Exchanges and claim the premium tax credit, and for Exchanges that make qualified health plans available to individuals and employers.

How does someone apply for an exemption from health insurance so that they don't have to pay the penalty?

You can claim exemptions on your 2014 federal tax return, or you can apply for exemptions on the Health Insurance Marketplace exchanges. (The application is not currently available). Healthcare.gov will provide up-to-date information about how to apply for an exemption.

Who is eligible for such exemptions?

Reporting Employer Provided Health Coverage in Form W-2

The Affordable Care Act requires employers to report the cost of coverage under an employer-sponsored group health plan on an employee’s Form W-2, Wage and Tax Statement, in Box 12, using Code DD. Many employers are eligible for transition relief for tax-year 2012 and beyond, until the IRS issues final guidance for this reporting requirement.

The amount reported does not affect tax liability, as the value of the employer excludible contribution to health coverage continues to be excludible from an employee's income, and it is not taxable. This reporting is for informational purposes only, to show employees the value of their health care benefits so they can be more informed consumers.

More information about the reporting can be found on Form W-2 Reporting of Employer-Sponsored Health Coverage.

Repayment of First-Time Homebuyer Credit

Taxpayers who claimed the first-time homebuyer credit for a home bought in 2008 must generally make the second of 15 annual repayment installments on their 2011 return. Report this repayment on Form 1040 Line 59b.

Separately, a repayment requirement also applies where a taxpayer purchased a home and claimed the credit on a prior year return and then sold it or stopped using it as a main home in 2011. Use Form 5405 to report the repayment.

Though the credit has expired for most homebuyers, certain members of the armed forces and some other taxpayers who bought a home early in 2011 may still qualify for the credit on their 2011 return. See Form 5405 and its instructions for details.

New Way to Report Capital Gains and Losses

In most cases, taxpayers now use new Form 8949 to report capital gain and loss transactions. Schedule D, the form traditionally used to show these individual transactions, is now used as a summary sheet, reporting amounts for total sales price, basis and other adjustments for all individual transactions, and for figuring the tax. For securities both bought and sold in 2011, the Form 1099-B, issued by the broker, normally shows the taxpayer’s basis. The information on this form will help taxpayers correctly fill out Form 8949. See the instructions for Form 8949 and Schedule D for details.

Health Insurance Deduction for Self-Employed People

In 2011, eligible self-employed individuals and S corporation shareholders can use the self-employed health insurance deduction to reduce their income tax liability. Eligible taxpayers still claim this deduction on Form 1040 Line 29. Premiums paid for health insurance covering the taxpayer, spouse and dependents generally qualify for this deduction. In addition, premiums paid to cover an adult child under age 27 at the end of the year, also qualify, even if the child is not the taxpayer’s dependent. However, the deduction from self-employment income for determining self-employment tax, which was available only in tax-year 2010, no longer applies.

As before, the insurance plan must be set up under the taxpayer’s business, and the taxpayer cannot be eligible to participate in an employer-sponsored health plan. For details see Publication 17 and the instructions to Form 1040 (including a worksheet).

Change for HSAs and MSAs

Starting in 2011, the additional tax on distributions from a health savings account (HSA), not used for qualified medical expenses, increases from 10 percent to 20 percent. Report on Form 8889. Similarly, the additional tax on distributions from an Archer medical savings account (MSA), not used for qualified medical expenses, rises from 15 percent to 20 percent. Report on Form 8853.

Making Work Pay

The Tax Relief Act enacted on December 17, 2010 did not extend the Making Work Pay (MWP) credit that had been available for tax years 2009 and 2010. While most workers qualified for the maximum MWP credit, pension recipients did not qualify for any MWP credit unless they also had wages or other earned income.

Free E-file Services

A number of independent companies provide Free E-file Services. Stevens ITP does not promote or endorse any of the following E-file services. Some companies collect information about you. You should read their policy carefully before you choose a Free Efile provider. Rule of thumb is, "Nothing is really Free". What that means is that they are most likely collecting and selling information about you. On the other thumb there could be people who will spend lots of time and money just to provide a free service for you.

By clicking on the following links will take you away from our site. Free providers:  
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Free File is available exclusively at www.irs.gov/freefile. Anyone who makes $58,000 or less can use Free File software. There are no income limits to online fillable forms. Both Free File software and Free File Fillable Forms allow taxpayers to prepare and e-file their federal returns for free.