Created by President Franklin D. Roosevelt in 1935 as one of his "New Deal" programs, Social Security is one of the most important government programs in American history. This social insurance program was established to provide pensions to retired workers age 65 and older that might otherwise have no source of income. Qualification The Old Age and Survivors Insurance and Disability Insurance is the division of the Social Security Administration that provides benefits to children who survive their parents. According to the Social Security Administration's 2010 Fast Facts and Figures, more than 1.25 million children receive benefits as the result of their parent's death. To qualify, the child must be your biological or adopted child, or your dependent step child. The parent must have worked at least 10 years and paid some Social Security tax in their lifetime. The child must also be unmarried.The child must be under the age of 18 or up to age 19 if still in high school. Children with disabilities--physical, mental or developmental--can receive survivor benefits as long as the disability was diagnosed before his or her 22nd birthday. Application Families seeking to obtain the benefit on behalf of the child must provide a series of verification documents. The application requires the Social Security numbers of both the deceased parent and the child, as well as the child's birth certificate. The guardian must also present proof of the parent's death, usually in the form of a government-issued death certificate. Monthly Benefits Social Security direct deposits monthly payments into checking accounts or offers a government-issued debit card. The child's benefits are based on the parent's earnings and future benefit. A child is entitled to 75 percent of the parent's basic Social Security payment. The payments from the deceased family member's account can benefit multiple children and spouses, as long as the total family benefit does not exceed 150 to 180 percent of what the parent would have received if he were still alive. Lump Sum In addition to the monthly payment to the child, a lump sum may also be paid out. In the event that the child is orphaned and awarded to a guardian, the child may receive what is known as the Social Security death benefit, which is a payment of $255, as of August 2010. The payment is made as long as there is no surviving spouse and the child meets the survivor benefit eligibility requirements during the month of the parent's death.
Viewpoint
Patrick Kowalskl
lawyer
2019-12-10 21:15:03
Children are expensive, but come tax preparation time, those little angels can save you a pretty penny or two on your tax bill. In addition to claiming a standard exemption for your dependents, you can also save taxes by claiming tax deductions and credits because of your children. 1.Credits and Deductions Generally Children can provide tax benefits in the form of both deductions and credits.A tax deduction is a reduction in your taxable income, while a credit is a dollar-for-dollar reduction in your tax liability. For example, if you have a $3,000 tax deduction and a $3,000 tax credit, based on a 20 percent tax rate, your $3,000 tax deduction will save you $600 ($3,000 x 20 percent), and your tax credit will save you a full $3,000. If you have $50,000 of income, you will subtract the deduction first, giving you $47,000 in taxable income. With a 20 percent tax rate, you owe $9,400 in taxes ($47,000 x 20 percent). Then, you subtract your $3,000 credit, which leaves you owing $6,400 in total taxes. 2.Child Tax Credit The Child Tax Credit is available to married spouses filing jointly if their combined income is less than $110,000. For single taxpayers, the credit is available for income less than $55,000. The Child Tax Credit is worth $1,000, but it is not refundable, meaning it cannot take you below zero (unlike the earned income tax credit, which is refundable, meaning you can receive a rebate even if you pay zero taxes). Generally, the Child Tax Credit is available for each child younger than 17 years old that lived with you for more than half of the year. 3.Child and Dependent Care Tax Credit If you are a working parent and you pay a daycare or nanny to watch your younger-than-13-kids while you work, you can claim a tax credit up to $3,000 (or $6,000 if you have more than one child). The amount you claim cannot exceed either $3,000 or $6,000 or the amount you actually spent on child care costs, whichever is less. So if you spent $600 during the year on child care, you can claim $600. But if you spent $3,200 on one child, you can only claim $3,000. If you are married, you and your spouse must have earned income during the year or you don't qualify for the credit. 4.Personal Exemptions If you are married filing jointly, you and your spouse each can claim a personal exemption, which is basically the equivalent of a deduction. As of 2009, the personal exemption equals $3,650 per person. Additionally, you can claim a similar exemption for each dependent that is either (a) 19 years old or younger or (b) 24 or younger and a full-time student. 5.Other Deductions and Credits If your child goes to college, you can claim either the Hope or Lifetime Learning Credit up to a certain amount of your child's tuition and expenses. Additionally, you might be able to deduct other costs exceeding the credits, including interest paid on student loans. If your child runs up massive medical bills, you can deduct a certain portion of those medical costs. The formula for deducting medical costs is complex, and the amount you can deduct depends on a percentage of your income, but you should keep this in mind if your child has surgery, visits the ER or has other medical needs.
Viewpoint
Gella Klausner
lawyer
2019-12-09 17:51:56
If your child has a job, it won't affect your ability to claim him as a dependent, but there are other factors you need to consider. If your child works, she made need to file her own income tax return, and if she provides more than half of her own support, she no longer qualifies as a dependent. Even if your child had a job last year, you can still claim her as a dependent on your income taxes, provided the child is still considered a qualifying child based on IRS guidelines. However, depending on how much income your child earned, she may have to file her own tax return, too. Before you can claim a child as a dependent, she must meet either the qualifying child test or the qualifying relative test. To be a qualifying child, she must be either younger than 19 years old, or be a student younger than 24 years old at the end of the calendar year. Children who are permanently and totally disabled do not need to meet the age requirement. Additionally, your child cannot have provided more than half of her own support for the tax year. Further, your child must have lived in your home as her principal residence for more than half the year, with some exceptions, such as divorced or separated parents. If your child lives away from home because of school, you can still count your home as her principal residence. Children who earned an income of more than $6,350 in 2018 must file their own personal income tax returns and may have to pay taxes to the IRS. Earned income includes wages the child earned working for an employer, such as a summer job or part-time job. Even if your child earned less than $6,350, it might be wise to have her file a tax return because she may be eligible for a refund. A child who is blind has a higher minimum threshold of $7,900. Unearned income – such as dividends and interest earned from savings and investments – is treated differently by the IRS than earned income. If your child earned more than $1,050 of unearned income for the 2018 tax year ($2,600 if she's blind), she can file her own return, or you can claim the amount on your own taxes. Either way, this unearned income must be reported to the IRS. If your child is capable of filing her own tax return, it is her responsibility to do so. If she isn't old enough to prepare her own tax return, then it's the parent's responsibility to file it on the child's behalf. If you are signing your child's tax return, sign the child's name followed by the words “By (your signature), parent for minor child."
Viewpoint
Ulysses
lawyer
2019-12-06 20:45:28
A real estate appraisal is usually required by a bank or lender to make sure that the value of a property is at least as much as the value of the loan. Appraisals are usually based on a sales comparison approach--comparing the subject property to similar properties nearby--or by a cost approach, wereby the appraiser determines how much it would cost to replace a structure if it were damaged or destroyed. When questions arise as to the value of the property at a specific date in the past, however, a retroactive or historical appraisal will need to be obtained. Determine the purpose of your retroactive appraisal. For instance, the IRS may require an appraisal to determine the value of a real estate asset as of the date of death or date of marriage dissolution of an owner. You may also need to obtain a retroactive appraisal to determine a decline in value if you sell a property at a loss in order to determine a loss for tax purposes. Contact a licensed real estate appraiser for your state (each state has its own qualifying and licensing requirements). See Resources below to locate an appraiser. Explain to the real estate appraiser the purpose of your retroactive appraisal, and provide access to the subject property if possible. Also provide whatever documentation you hold (deeds, inspection reports, photographs) as to the condition of the property on the date in question. The appraiser will examine the subject property, your documentation, and historic real estate and construction data for the date in question. Review the retrospective appraisal with the real estate appraiser. Make sure all comparable sales fall before historic date of the appraisal, since subsequent changes in market value of comps can ruin the accuracy of your retrospective appraisal.
Viewpoint
Felix Mitzner
lawyer
2019-12-05 21:04:10
Determine your type of plea. If you are a defendant and must write a plea letter to a judge, you must first determine how you will plead. There are several different ways to plead, depending on the crime, the evidence and other factors of the case. Address the letter. Most letters to judges should be addressed "Your Honor," which shows respect to the judge.Introduce yourself. Begin the plea letter with a short introduction of yourself.State your plea. Be very clear about how you are pleading. If you are pleading not guilty by reason of insanity, be sure to include those words.Describe any extenuating factors that might persuade the judge. If this is a first-time offence and you have no other charges on your record, indicate this within the letter. Do not try to downplay the severity of the crime that was committed. Instead, if you are pleading guilty, express remorse and regret. Plead with the judge. Judges often partially base their sentencing decision on this letter and its contents. Ask the judge to be lenient on your sentencing. Describe your reasons for this request. For example, if you have children, explain that you have always been a responsible parent and it would be in the children's best interest to have you present in their lives. Close the letter. Thank the judge for his or her time, and sign your name after closing with "Sincerely."
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Yates Hirschi
lawyer
2019-12-03 18:26:47
If you think you might have a personal injury claim, you might be wondering what goes on in a typical case, and how long it takes. This article will walk you through the standard events and timeline of a personal injury claim and lawsuit. Get Medical Treatment The first thing that you should do after getting injured in an accident is to get medical treatment. If you are hurt, go to the hospital or see a doctor. Not only is this the right thing to do for your health, but, if you don’t see a doctor for some time after an accident, the insurance adjuster and the jury will assume that you weren’t all that hurt. Choose a Lawyer The next thing that you will have to do for anything more than a minor claim is to choose a lawyer. You should choose the lawyer soon after the injury. You can certainly settle a small personal injury claim yourself (although a lawyer is generally useful even for smaller claims), but you will absolutely need a lawyer for any personal injury claim where you suffered significant injury or other losses. Where do you draw the line between a small claim in which you don’t necessarily need a lawyer and a larger claim where you will need a lawyer? In general, if you are out of work for more than a couple of days, if you break a bone, or if your medical bills total more than a couple of thousand dollars, you should hire a lawyer. You should certainly talk to a number of lawyers, and you might want to meet several of them. After you choose a lawyer and sign a fee agreement, he/she will start working on your case. Lawyer Investigates Claim and Reviews Medical Records The first thing that the lawyer will do is thoroughly interview you about how the accident happened, your background, and your medical condition and medical treatment. The lawyer wants to know everything that you know about the accident and your injury and treatment. Lawyers don’t want to be surprised, so make sure to answer all questions as completely as you can. Then, the lawyer will get all of your medical records and bills relating to the injury and will probably also get your medical records for any treatment that you have ever had relating to the condition at issue in the case. This can take months. After all of the medical records come in, the lawyer will review them to see if, in their opinion, there is a possible case. Many times the lawyer can determine that there is no case and will deliver the bad news to the client very early on in the representation. Lawyer Considers Making Demand and Negotiating Many smaller personal injury claims are settled before a lawsuit is ever filed. If the lawyer thinks that the case can be settled, they will make a demand to the other attorney or the other side's insurance company. Otherwise, your lawyer will file the lawsuit. In general, if your claim involves a claim of permanent injury or impairment, a good lawyer will not settle it before filing suit. A good lawyer will also not make a demand until the plaintiff has reached a point of maximum medical improvement (MMI). MMI is when the plaintiff has ended his/her medical treatment and is as recovered as he/she is going to get. This is because, until the plaintiff has reached MMI, the lawyer does not know how much the case is worth. The lawyer should also not file a lawsuit until MMI. This is because, if the plaintiff is not at MMI by the time that the case goes to trial, the jury might undervalue the case. It could take months or years for the plaintiff to reach MMI, but a good lawyer will just wait, if the plaintiff can financially afford to wait. Obviously, if the plaintiff needs money, then the lawyer should put the case in suit as soon as possible. The Lawsuit is Filed The filing of the lawsuit starts the clock running on when the case might get to trial. Every state’s pretrial procedures are different, but generally it will take one to two years for a personal injury case to get to trial. Keep in mind that a lawsuit needs to be filed within strict time limits that every state has set by passing a law called a statute of limitations. The Discovery Process The discovery process is the procedure in which each party investigates what the adversary’s legal claims and defenses are. They send interrogatories (a fancy word for questions) and document requests to each other, and take depositions of all of the relevant witnesses in the case, generally beginning with the plaintiff and defendant. This process can last six months to a year, depending on the court’s deadlines and the complexity of the case. Mediation and Negotiation As the discovery period ends, the lawyers will generally start talking about settlement. Sometimes the lawyers can settle a case just by talking among themselves, but, in other cases, they will go to mediation. Mediation is a process in which both clients and both lawyers go in front of a mediator to try to settle the case. Trial Often mediation works, but, if it doesn’t work, the case is scheduled for trial. A personal injury trial can last a day, a week, or even longer. The length may be increased because, in many states, trials are held for only half a day instead of over a full day. That doubles the length of a trial, but also lets the lawyers and judges get other things done in the afternoon. One important thing to know about trials is that just because a lawsuit is scheduled for trial does not mean that the trial will actually occur on that date. Trials often get rescheduled because of the judge’s schedules. If your trial gets cancelled, you should not automatically assume that the lawyers are conspiring against you or that something unfavorable is happening. Trials are delayed all the time, and for the most innocuous of reasons.
Viewpoint
Terrance Gwiriri
lawyer
2019-12-02 20:40:28
If you donate to charity, it can be good for you as well as the people you help. If you itemize your tax deductions, you can deduct the donations you make to qualified organizations from your taxable income. The IRS sets limits on how much you can deduct, a limit that varies with your income and the type of organization you gave to. Even if you can afford to give most of what you earn to charity, the IRS won't let you deduct it. The maximum you can deduct in a given year is 50 percent of what you made, the IRS states; if your income rises above a certain level -- $166,800 in 2009, for instance -- the percentage you can deduct will be lowered. The IRS may limit the size of your deduction further depending on what classification of charitable organization you donated to. "50 percent limit organizations," according to the IRS, include churches, schools, hospitals and charitable groups; veterans organizations, fraternal societies and private cemeteries, on the other hand, are "30 percent" groups. That means the maximum deduction you can claim is 30 percent of your income. The IRS website provides formulas for calculating the deduction if you give money to both kinds of organizations during the year. You can claim a deduction for more things than just the checks you write to qualified groups, the Kiplinger financial website states. If you bake cookies for a school fund-raiser, for instance, you can deduct the cost of the ingredients; if you donate clothing, furniture, a car or other kinds of property, you can claim a deduction for the value of the donation. You can also deduct any mileage you spend driving to make a donation. The IRS will not, however, allow you to claim any deductions for time or services that you donate other than mileage. The IRS website provides guidelines for setting the value of property donations. Old clothing is usually worth no more than the charity sells it for; cars are worth roughly the sale price you find in a used-car guide, reduced for any major defects or problems; real estate is worth its current fair-market value. To claim full value on some items, such as antiques or jewelry, you might have to get them appraised first.
Viewpoint
Kongove Mathis
lawyer
2019-11-29 18:07:00
It's easy to get into the habit of shredding financial records you don’t need anymore, but it’s wise to keep some paperwork in order to prove a transaction. Requirements vary depending on the type of document. If you maintain records for a solid seven years, you really can’t go wrong. After completing the arduous task of reconciling your bank statement or preparing your tax return, it may be tempting to discard the related financial documents. However, it’s wise to hold on to these records for a few years just in case you’re investigated by the tax man. Even if you don’t normally file a tax return, mortgage lenders usually want to see a decent history of your finances, so holding on to your banking and credit card statements is recommended. When someone dies, her executor or administrator becomes responsible for collecting the deceased’s cash and assets, paying bills, and distributing the estate to beneficiaries. Part of the job involves filing an estate taxes return. Like any other tax return, the IRS can randomly audit the filing up to three years after the filing date. So, you’ll need to keep records for at least that long. In some cases, relatives have an opportunity to challenge a will. They’ll usually have to move fast – in most states, you have to mount a challenge within three or four months after probate – but there are exceptions, and a case could take many years to resolve. It would be sensible to keep the deceased’s documents for at least seven years, plenty of time to resolve disputes. The basic rule here is that you keep all the records that evidence an item of income, credit or deduction shown on your tax return until the limitation period for that tax return runs out. In most cases, the limitation period is three years from the date you filed your tax return or two years from the date you paid the tax, whichever is later. The period bumps up to six or seven years if you misreport your income by 25 percent or more, or you’re filing a claim for bad debt losses and securities that have gone wrong. There’s no limitation period if you forget to file a return, or you file a fraudulent return. The IRS can perform an audit at any time in these situations, so you’ll need to keep your records forever. These documents are updated regularly, so you need to keep your bank, credit card and investment statements only until new ones arrive. Similarly, keep credit card, ATM and bank-deposit receipts until you reconcile them with your latest bank statements. Once you’ve done that, you’re free to shred or securely trash the old papers. The one caveat is a situation in which you’re planning to apply for a mortgage or loan in the near future. Lenders typically ask for at least the last two months’ of bank statements, and often many more, to evaluate your finances. It’s wise to keep at least a solid one-year history to support your loan application. The easiest way to maintain your records is to categorize paperwork by year, and label everything. If the IRS needs to perform an audit, you will have all the documents you need right at your fingertips. Plus, you can see at-a-glance when paperwork falls out of the safekeeping period and can be tossed. Papers can be stored digitally, too – the IRS is fine with digital records as long as they are clearly readable. Cloud storage solutions and mobile apps make it even easier to save important records. It’s a good idea to use a special folder, digital or otherwise, to file important papers, so they don’t get mixed up with your day-to-day documents. Use a fireproof safe for crucial and sensitive bank and investment statements, insurance policies, pension information, pay stubs, tax documents and wills.
Viewpoint
Gella Klausner
lawyer
2019-11-27 20:17:50
Think of a federal ID number (also called an employer identification number or EIN) as the Social Security number for your business. A federal tax identification number is a 9-digit number assigned by the IRS and used by them to identify a business entity for tax purposes. It's easy to get one. You have a Social Security number, a cell phone number, a driver's license number and a passport number. Do you really need a federal ID number, too? Maybe, if you have a business. Think of a federal ID number – also called an employer identification number or EIN – as the Social Security number for your business. You will need it if your business hires employees, opens a business bank account or pays certain types of taxes. If you operate a business, the IRS may require you to get a federal ID number, or EIN. It is the equivalent of a business Social Security number, used by taxing authorities to identify your business. Not every business needs one, but you'll need to get an EIN if you want to: Start a new business Hire employees Use a tax-deferred pension plan Open a business bank account Start a business line of credit Change the legal character of your organization Create a trust, pension plan, corporation, partnership or LLC Represent an estate that operates a business after the owner's death Getting a federal ID number is easier than remembering it afterwards. You can apply online at the IRS website as long as the business is located in the United States or its territories and you have a Social Security number. You'll get your EIN as soon as you submit the application. Or, you can apply by fax using IRS Form SS-4, and you'll get an EIN by return fax within four days. Mailing the SS-4 form is also possible, but you'll have a wait of about four weeks to get the number by mail. The application is one page. Provide the name, address and phone number of the business, and the name and SSN of the responsible party. You must check a box to identify the type of business, such as a partnership, another box to indicate the principal activity of the business, like construction, and then answer a few questions about business activities. There is no fee to get an EIN.
Viewpoint
Jonathan Sherman
lawyer
2019-11-26 20:44:33
Keep tax records until the period of limitations for that tax return has expired. Generally, the period of limitations is three years from the tax return due date. The period is longer if you file a claim for worthless securities or file an inaccurate or fraudulent return. If the only things certain in life are death and taxes, you can't avoid doing your tax return, which can result in a lot of paperwork piling up. Tax records should be kept until the period of limitations runs out, which varies depending on your circumstances. Why Should You Keep a Copy of Your Tax Return? It's good sense to keep a copy of your tax return and all documents that support entries on your return (income, deductions, credit, etc.). This helps you make amendments to your return (for example, to claim a credit or refund) and prepare future tax returns. If the IRS audits your tax return, you must provide records and supporting documents to prove any income, deductions or credits claimed on the return. Generally, the IRS has three years from the due date to perform an audit. If you fail to report more than 25 percent of your gross annual income, the IRS requires you to produce tax records and financial documents for the six years before the due date. If you are accused of committing tax fraud, there is no statute of limitations for performing an audit. How Long Do You Need to Keep Tax Records for a Small Business? The length of time you should keep tax records for a small business depends on the period of limitations. This is the period of time during which you can amend your tax return to claim a credit or refund, or the IRS can assess additional tax. As a general rule, keep income tax returns for small businesses for three years from the due date. If you file a claim for a credit or refund after you file the return, keep tax records for three years from the due date or two years from the date you paid, whichever is later. If you file a claim for a loss from worthless securities or bad debt deduction, keep tax records for seven years. If you fail to report more than 25 percent of your gross annual income, keep records for six years. If you do not file a return or file a fraudulent return, keep records indefinitely. A small business should also keep employment records for at least four years after the date that the tax becomes due or is paid, whichever is later.
Viewpoint
Kongove Mathis
lawyer
2019-11-25 21:25:18
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