| My refund tax preparation facts | | | | In addition, the IRS allows a Standard Deduction which |
| This is probably one of the most frequently asked | | | | is a dollar amount that reduces your taxable income. |
| questions on a taxpayer's mind during tax preparations. | | | | Your standard deduction on your return will be based |
| There are many factors that will help you get your | | | | on the following factors: |
| biggest allowable refund. I will only discuss a few and | | | | Filing Status Age Blindness Dependency Status Real |
| perhaps write a dedicated lens just on this topic. | | | | estate taxes paid |
| A key part of maximizing your tax refund comes from | | | | The standard deductions for most taxpayers is as |
| listing your allowed exemptions on your tax return. An | | | | follows: |
| exemption amount reduces the portion of a taxpayer's | | | | Single or married filing separately - $5,700 Married filing |
| income that is subject to tax. In other words, it reduces | | | | jointly or Qualifying widow(er) - $11,400 Head of |
| the amount of taxes you have to pay to the IRS. Each | | | | household - $8,350 |
| exemption you claim on this year's tax return | | | | There are of course other credits that are either |
| (between now and April 15, 2010) will reduce your tax | | | | Nonrefundable or Refundable Credits. Refundable |
| liability dramatically. | | | | Credits may result in payments that the IRS will send |
| Types of exemptions. There are two types of | | | | you if you have no tax liability (after calculating your |
| exemptions you may be able to take: | | | | exemptions and standard deductions) in the form of a |
| Personal exemptions for yourself and your spouse, | | | | refund. Every taxpayer is a different case so your |
| and Exemptions for dependents (dependency | | | | exact refund will be based on different credits and tax |
| exemptions). | | | | liabilities pertaining to your specific situation. Your |
| While each is worth the same amount ($3,650 for | | | | eligibility will be easily determined by the tax program |
| 2009), different rules apply to each type. | | | | you use or your tax preparer. |