Tax Topics Simplified
Do I need to file a tax return?
Most people file a tax return because they have to, but even if you do not, you might be eligible for a tax refund. Here are some general rules that will help you determine if you need and should file a tax return: the amount of you income, filling status and your age. Here is an example: if you are single and 24 years old, you must file if your income is at least $12,950. If you are 65 or older, income threshold is higher $14,700. If you are a student and can be claimed by your parents but you worked and made some money, even though you may not be required to file, you may consider doing it because you could expect a refund of some if not all federal and state taxes that were withheld from your paychecks.
Taxable vs Nontaxable Income
All income is taxable unless the law specifically excludes it. Taxable income includes any money you receive such as wages, tips, and unemployment compensation. It can also include noncash income from property or services. Here are some types of income that are usually not taxable: gifts and inheritance, child support payments, welfare benefits, damages award for physical injury or sickness, cash rebates from a dealer or manufacturer for an item you buy. Some types of income are nontaxable except under certain conditions: life insurance proceeds paid to you are usually nontaxable, but if you redeem a life insurance policy for a cash, any amount that is more than the cost of the policy is taxable. Income from a qualified scholarship is normally not taxable, that is, amount you use for certain costs, such as tuition and required books. However, amounts used for room and board are taxable.
Can I deduct Gambling Losses?
Gambling losses can be deducted only up to the amount of gambling winnings. Gambling losses are reported on schedule A. An individual must be able to itemize for gambling losses to count. Here is an example: if you won $20,000 in 2022 and had $30,000 in losses, only $20,000 can be claimed as gambling loss on schedule A. If you file as single (standard deduction is $12,950) you would be able to itemize and deduct full $20,000 against your income (additional deduction of $7,050 over standard deduction).
Earned Income Tax Credit (EITC)
To claim the Earned Income Tax Credit, you must have what qualifies as earned income and meet certain adjusted gross income. Earned income includes all the taxable income and wages you get from working for someone else, yourself or from a business or farm you own. Earned income does not include pension and annuities, interest and dividends, social security, unemployment benefits, alimony and child support. For the maximum AGI, investment income limit and credit amounts for tax year 2022 click on the link below.
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Bolar Bear Pickleball Tournament Shreveport - February 11-12, 2023
I have participated in a Polar Bear pickleball tournament this past weekend which was organized at Southern Hills Tennis Center in Shreveport, and I had a blast. I have met some great people/players. I participated in 3.5 Women’s Doubles and 3.5 Mixed Doubles where I played 12 matches all together and won Gold for both. Shoutout to my partners Stacy Haren (Shreveport, LA) & Ben Judice (Longview, TX). Looking forward to a next tournament.