Tax Time

As tax time approaches, the more prepared you are to file, the better. So I'm giving you 6 facts the IRS wants you to know about dependents and exemptions that will help you file you r 2010 tax return.

Exemptions reduce your taxable income: There are two types of exemptions: personal exemptions and exemptions for dependents. For each one you can deduct $3650 on your 2010 tax return.

Your spouse is never considered your dependent: On a joint return, you may claim one exemption for yourself and one for your spouse. If you're filing a separate return, you may claim spouse only if they had no gross income, are not filing a joint return and were not the dependent of another taxpayer.

Exemptions for dependents: Generally, you can take an exemption for qualifying children or qualifying relative. You must list the social security number of any dependent you claim.

If someone else claims you as a dependent, you may still be required to file your own tax return: This depends on several factors including the amount of your unearned, earned, or gross income, your marital status, and special taxes.

If you are a dependent, you may not claim an exemption: Period.

Some people cannot be claimed as your dependent: They must be a U.S. citizen, U.S. resident alien, U.S. national or resident of Canada or Mexico for some part of the year. There is an exception to this rule for certain adopted children.

For more info on exemptions and dependents, you can call 800-829-3676 or see IRS Publication 501.

Now, that I showed you how you might bring home extra money, why not use that money as a deposit on a new home, whether it's your first home, or you're ready to upgrade or downsize.

I would love to be able to assist you in this. So either give me a call at 443-786-4200, stop by Exit Gold Realty, or visit my website at www.mdeasternshorerealtor.com