The Internal Revenue Service and community partners nationwide have launched their annual outreach campaign aimed at helping millions of Americans who earned $49,078 or less take advantage of the Earned Income Tax Credit (EITC).

The outreach campaign is necessary because one-third of the eligible population changes annually as their financial, marital and parental statuses change. Although an estimated four out of five eligible workers and families get the credit, one in five still miss out on it, either because they don’t claim it, or don’t file a return at all.

“The EITC provides a financial boost for millions of hard-working Americans. But people can easily overlook this important credit, especially if their financial situation has changed. The IRS reminds taxpayers to look into this valuable credit to see if they qualify,” said IRS Commissioner Doug Shulman.

The EITC varies by income, family size and filing status. People can see if they qualify by visiting IRS.gov and answering a few questions using the EITC Assistant. In tax year 2010, almost 26.8 million eligible workers and families received over $59.5 billion total in EITC. The average EITC amount last year was around $2,200.

Workers who earned $49,078 or less from wages, self-employment or farm income last year could receive larger refunds if they qualify for the EITC. That could mean up to $464 in EITC for people without children, and a maximum credit of up to $5,751 for those with three or more qualifying children. Unlike most deductions and credits, the EITC is refundable. In other words, eligible people may get a refund from the IRS even if they owe no tax.

How to Claim the EITC

To get the EITC, workers must file a tax return, even if they are not required to file, and specifically claim the credit. Those eligible for the EITC have free options to file a tax return to claim the credit:

Free File on IRS.gov: Free brand-name tax software walks people through a question and answer format to help them prepare their returns and claim every credit and deduction for which they are eligible. The program also allows people to file electronically for free, giving them access to all their money often in as little as ten days.

Free tax preparation sites: EITC-eligible workers can seek free tax preparation at more than 12,000 Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) sites. To locate the nearest VITA site, people can call the IRS at 800-906-9887. Taxpayers can also find VITA/TCE sites by calling their community’s 211 or 311 line for local services.

IRS Taxpayer Assistance Centers: EITC-eligible workers can seek free assistance in IRS locations across the country. Locations are listed online at www.IRS.gov. Hours and services offered vary by location and should be checked before visiting.

More information on EITC and detailed eligibility rules are available at www.irs.gov/eitc.

Determining your filing status is one of the first steps to filing your federal income tax return. There are five filing statuses: Single, Married Filing Jointly, Married Filing Separately, Head of Household and Qualifying Widow(er) with Dependent Child. Your filing status is used to determine your filing requirements, standard deduction, eligibility for certain credits and deductions, and your correct tax.Some people may qualify for more than one filing status. Here are eight facts about filing status that the IRS wants you to know so you can choose the best option for your situation.
1. Your marital status on the last day of the year determines your marital status for the entire year.
2. If more than one filing status applies to you, choose the one that gives you the lowest tax obligation.
3. Single filing status generally applies to anyone who is unmarried, divorced or legally separated according to state law.
4. A married couple may file a joint return together. The couple’s filing status would be Married Filing Jointly.
5. If your spouse died during the year and you did not remarry during 2011, usually you may still file a joint return with that spouse for the year of death.
6. A married couple may elect to file their returns separately. Each person’s filing status would generally be Married Filing Separately.
7. Head of Household generally applies to taxpayers who are unmarried. You must also have paid more than half the cost of maintaining a home for you and a qualifying person to qualify for this filing status.
8. You may be able to choose Qualifying Widow(er) with Dependent Child as your filing status if your spouse died during 2009 or 2010, you have a dependent child, have not remarried and you meet certain other conditions.
There’s much more information about determining your filing status in IRS Publication 501, Exemptions, Standard Deduction, and Filing Information. Publication 501 is available at www.irs.gov or by calling 800-TAX-FORM (800-829-3676). You can also use the Interactive Tax Assistant on the IRS website to determine your filing status. The ITA tool is a tax law resource on the IRS website that takes you through a series of questions and provides you with responses to tax law questions.

If your pay from work involves compensation through tips, then the IRS would like you to be aware of a few facts about tip income. Here are four key points to keep in mind:
1. Tips are taxable Tips are subject to federal income, Social Security and Medicare taxes.  The value of non-cash tips, such as tickets, passes or other items of value, is also considered income and subject to tax.
2. Include tips on your tax return You must include in gross income all cash tips you receive directly from customers, tips added to credit cards, and your share of any tips you receive under a tip-splitting arrangement with fellow employees.
3. Report tips to your employer If you receive $20 or more in tips in any one month, you should report all of your tips to your employer. Your employer is required to withhold federal income, Social Security and Medicare taxes.
4. Keep a running daily log of your tip income. You can use IRS Publication 1244, Employee’s Daily Record of Tips and Report to Employer, to record your tip income.
For more information see IRS Publication 531, Reporting Tip Income, and Publication 1244 which are available at www.irs.gov. Both can be ordered by calling 800-TAX-FORM (800-829-3676).

Barnes Tax Services

If you are looking for a new tax preparer this year, you might want to check out Barnes Tax Services, LLC. Owner Wendi Barnes opened up her bookkeeping services in November 2005, and has now expanded to include tax preparation as well.
“I provide tax preparation for individuals (including those with a Schedule C) and offer bookkeeping services to small businesses that may require assistance with their accounts payable, receivables, bank reconciliations, and monthly reporting,” explained Barnes.
Barnes has experience locally as well as nationally. She has been the offsite business manager for a church in Maryland since 2005. During those six years, she has also assisted the church’s daycare center and Christian school in the same capacity, and has created and maintained websites for them also.
Barnes says she offers her services at affordable prices, and plans to add on payroll services in the future.
Barnes Tax Services is located at 7119 Cedar Highlands, west off Myers Lake Avenue. Business hours are M-Th 9:30-5:30 p.m, Friday 9-4 p.m., Saturday 9:30-noon (by appointment), Sunday-closed. Evenings (after 5:30 p.m.) by appointment only.

CN Sawdust and Feed

A local source for animal bedding and feed has moved to a new location.
CN Sawdust and Feed, owned by Joel Nyenhuis, is now located at 4700 14 Mile Road, near NorthStar Cinema. They offer equine, beef, dairy, chicken, rabbit, pet and exotic animal feeds, as well as pine shavings, pelleted animal bedding and paper shavings. They also offer bulk sawdust, kiln-dried pine and dried softweed shavings.
Drop in and see them at their new location. Store hours are Thursday and Friday 9 a.m. to 6 p.m., and Saturday 9 a.m. to 2 p.m. They make deliveries Monday through Wednesday. Or visit their online store at www.cnsawdust.com.
For more info, call (616) 430-1958.

Pro Auto Works

If you’re looking to try out a new repair shop with experienced mechanics, check out Pro Auto Works, at 15670 Northland Drive, next door to J&R Auto.
Owners Carl and Rich Straub opened the shop in July 2011. They make repairs on both foreign and domestic cars, and also work on diesel vehicles. Muscle car restoration is one of their specialties.
Because they know how hard it is to sometimes get to a repair shop when you work full time, they are open seven days a week, and stay open until 8 p.m. each evening. Hours are Monday through Friday, from 8 a.m. to 8 p.m., and Saturday and Sundays 10 a.m. to 8 p.m.
For more information, give them a call at 616-696-TUNE (8863).

Winter and spring are prime months for ocean cruises, but the Better Business Bureau of Western Michigan (BBB) advises consumers to read all of the fine print before signing up for a special cruise deal.
The BBB urges consumers to be especially cautious of unsolicited mail with offers of free or discounted cruises. In 2011, the BBB received more than 1,300 complaints against cruise companies. While legitimate cruise companies do offer specials periodically, there are always those sneaky few that end up leaving consumers on the hook for thousands of dollars.
Many times, scammers will send numerous e-mails, postcards, and other mailings trying to get you to call them in order to claim your “free cruise.” Don’t be fooled by professional looking websites. Gather as much information as you can about the business, and ask a lot of questions before signing on the dotted line.
The BBB and CruiseCritic.com recommend the following tips to consumers who are looking to book a cruise getaway:
· Don’t be a victim. Oftentimes, vacation scammers will use high-pressure sales tactics and make you feel coerced to buy the limited-time deal on the spot. A reputable business or travel agent will provide any information that you request, and give you time to consider your options before booking a vacation.
· Always check the business first. If an offer sounds too good to be true, it usually is. Before giving a business any personal information, check out their BBB Business Review at www.bbb.org/search. Consumers can also contact the Cruise Lines International Association (CLIA) for information on finding a reputable travel agent.
· Pay with a credit card. For your best protection against a dishonest cruise provider, always pay for your cruise fare — both the initial deposit and the final payment—with a major credit card such as MasterCard, Visa or American Express. If problems arise, you may be able to dispute the charges with your credit card company. This same protection may not apply to those using debit or check cards; it’s important to confirm policies with your issuing bank before you charge.
· Ensure your money is in the right hands. After you’ve made a payment, review your credit card or bank statement and make sure that any applicable charges originate directly with the cruise line, not with the travel agency. That way, you’ll know that the cruise line has definitely received your money. If you must pay by check or money order, it should be made payable to the cruise line — not to the agency or to an individual.
· Get proper confirmation of your booking. Insist on getting the actual  cruise line’s confirmation numbers, not just a confirmation number from your agency. Not only will you then know that your information and money is in the right hands, but you’ll also be able to pre-reserve shore excursions, restaurant reservations and spa appointments (where available) on the cruise line’s website.
· Don’t be afraid to ask lots of questions. Before signing on the dotted line make sure all of the details have been clearly outlined and the pricing has been thoroughly explained. Double check whether there are hidden cancellation fees, port charges, or insurance processing fees that haven’t been covered.
· Consider investing in travel insurance. Travel insurance can provide protection in the event of an accident, an illness, lost luggage, or a canceled or interrupted trip, among other things. Follow the same steps outlined here when buying travel insurance.
· For more consumer tips you can trust, visit www.bbb.org/us/bbb-news.

Grand Rapids a leader in improving markets

Lansing, MI — Grand Rapids, Lansing and Monroe, Michigan are among leaders in the latest National Association of Home Builders/First American Improving Markets Index (IMI). The index identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months.  This is the second consecutive month that local markets in Michigan qualified for the IMI.  Ann Arbor and Muskegon were listed on the IMI index in December.
“There is a growing sense of momentum in the housing market across Michigan which is reflected in the trends the Improving Markets Index has identified,” said Robert Filka, CEO of the Michigan Association of Home Builders.  “We were seeing some pockets of success here and there, but now we are beginning to experience more consistent, sustained improvement in markets such as Grand Rapids, Lansing and Monroe.”
“More consumers are looking more favorably at a home purchase in light of today’s historically low interest rates and attractive prices,” said Bill Roersma, president of the Home Builders Association of Greater Grand Rapids.  “As the general economy continues to improve, there is good reason for optimism as we look forward to the next few months in homebuilding.”
“After many years of low building activity and a corresponding decline in inventory, we are beginning to experience increased building activity,” said David Swartout, president of the Home Builders and Remodelers Association of Monroe County.  “The housing industry is critical to Michigan’s success, and our homebuilders are eager to do their part to help lead the state back to greatness.”
The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health. The index measures three sets of independent monthly data to get a mark on the top improving Metropolitan Statistical Areas.
The three indicators that are analyzed are employment growth from the Bureau of Labor Statistics, house price appreciation from Freddie Mac, and single-family housing permit growth from the U.S. Census Bureau. NAHB uses the latest available data from these sources to generate a list of improving markets. A metro area must see improvement in all three areas for at least six months following their respective troughs before being included on the improving markets list.

From the IRS

Even though each individual tax return is different, some tax rules affect every person who may have to file a federal income tax return. These rules include dependents and exemptions. The IRS has six important facts about dependents and exemptions that will help you file your 2011 tax return.
1. Exemptions reduce your taxable income. There are two types of exemptions: personal exemptions and exemptions for dependents. For each exemption you can deduct $3,700 on your 2011 tax return.
2. 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 the exemption for your spouse only if they had no gross income, are not filing a joint return, and were not the dependent of another taxpayer.
3. Exemptions for dependents. You generally can take an exemption for each of your dependents. A dependent is your qualifying child or qualifying relative. You must list the Social Security number of any dependent for whom you claim an exemption.
4. If someone else claims you as a dependent, you may still be required to file your own tax return. Whether you must file a return depends on several factors including the amount of your unearned, earned or gross income, your marital status and any special taxes you owe.
5. If you are a dependent, you may not claim an exemption. If someone else – such as your parent – claims you as a dependent, you may not claim your personal exemption on your own tax return.
6. Some people cannot be claimed as your dependent. Generally, you may not claim a married person as a dependent if they file a joint return with their spouse. Also, to claim someone as a dependent, that person 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. See IRS Publication 501, Exemptions, Standard Deduction, and Filing Information for additional tests to determine who can be claimed as a dependent.
For more information on exemptions, dependents and whether you or your dependent needs to file a tax return, see IRS Publication 501. The publication is available at www.irs.gov or can be ordered by calling 800-TAX-FORM (800-829-3676). You can also use the Interactive Tax Assistant at www.irs.gov to determine who you can claim as a dependent and how much you can deduct for each exemption you claim. The ITA tool is a tax law resource on the IRS website that takes you through a series of questions and provides you with responses to tax law questions.

Many people look for help from professionals when it’s time to file their tax return. If you use a paid tax preparer to file your return this year, the IRS urges you to choose that preparer wisely. Even if a return is prepared by someone else, the taxpayer is legally responsible for what’s on it. So, it’s very important to choose your tax preparer carefully.
This year, the IRS wants to remind taxpayers to use a preparer who will sign the returns they prepare and enter their required Preparer Tax Identification Number (PTIN).
Here are ten tips to keep in mind when choosing a tax return preparer:
1. Check the preparer’s qualifications. New regulations require all paid tax return preparers to have a Preparer Tax Identification Number. In addition to making sure they have a PTIN, ask if the preparer is affiliated with a professional organization and attends continuing education classes. The IRS is also phasing in a new test requirement to make sure those who are not an enrolled agent, CPA, or attorney have met minimal competency requirements. Those subject to the test will become a Registered Tax Return Preparer once they pass it.
2. Check on the preparer’s history. Check to see if the preparer has a questionable history with the Better Business Bureau and check for any disciplinary actions and licensure status through the state boards of accountancy for certified public accountants; the state bar associations for attorneys; and the IRS Office of Enrollment for enrolled agents.
3. Ask about their service fees. Avoid preparers who base their fee on a percentage of your refund or those who claim they can obtain larger refunds than other preparers.  Also, always make sure any refund due is sent to you or deposited into an account in your name.  Under no circumstances should all or part of your refund be directly deposited into a preparer’s bank account.
4. Ask if they offer electronic filing.  Any paid preparer who prepares and files more than 10 returns for clients must file the returns electronically, unless the client opts to file a paper return.  More than 1 billion individual tax returns have been safely and securely processed since the debut of electronic filing in 1990.  Make sure your preparer offers IRS e-file.
5. Make sure the tax preparer is accessible.  Make sure you will be able to contact the tax preparer after the return has been filed, even after the April due date, in case questions arise.
6. Provide all records and receipts needed to prepare your return. Reputable preparers will request to see your records and receipts and will ask you multiple questions to determine your total income and your qualifications for expenses, deductions and other items. Do not use a preparer who is willing to electronically file your return before you receive your Form W-2 using your last pay stub. This is against IRS e-file rules.
7. Never sign a blank return. Avoid tax preparers that ask you to sign a blank tax form.
8. Review the entire return before signing it.  Before you sign your tax return, review it and ask questions. Make sure you understand everything and are comfortable with the accuracy of the return before you sign it.
9. Make sure the preparer signs the form and includes their PTIN.  A paid preparer must sign the return and include their PTIN as required by law. Although the preparer signs the return, you are responsible for the accuracy of every item on your return.  The preparer must also give you a copy of the return.
10. Report abusive tax preparers to the IRS. You can report abusive tax preparers and suspected tax fraud to the IRS on Form 14157, Complaint: Tax Return Preparer. Download Form 14157 from www.irs.gov or order by mail at 800-TAX-FORM (800-829-3676).

You are required to file a federal income tax return if your income is above a certain level, which varies depending on your filing status, age and the type of income you receive. However, the Internal Revenue Service reminds taxpayers that some people should file even if they aren’t required to because they may get a refund if they had taxes withheld or they may qualify for refundable credits.
To find out if you need to file, check the Individuals section of the IRS website at www.irs.gov or consult the instructions for Form 1040, 1040A or 1040EZ for specific details that may help you determine if you need to file a tax return with the IRS this year. You can also use the Interactive Tax Assistant available on the IRS website. The ITA tool is a tax law resource that takes you through a series of questions and provides you with responses to tax law questions.
Even if you don’t have to file for 2011, here are six reasons why you may want to:
1. Federal Income Tax Withheld You should file to get money back if your employer withheld federal income tax from your pay, you made estimated tax payments, or had a prior year overpayment applied to this year’s tax.
2. Earned Income Tax Credit You may qualify for EITC if you worked, but did not earn a lot of money. EITC is a refundable tax credit; which means you could qualify for a tax refund. To get the credit you must file a return and claim it.
3. Additional Child Tax Credit This refundable credit may be available if you have at least one qualifying child and you did not get the full amount of the Child Tax Credit.
4. American Opportunity Credit Students in their first four years of postsecondary education may qualify for as much as $2,500 through this credit. Forty percent of the credit is refundable so even those who owe no tax can get up to $1,000 of the credit as cash back for each eligible student.
5. Adoption Credit You may be able to claim a refundable tax credit for qualified expenses you paid to adopt an eligible child.
6. Health Coverage Tax Credit Certain individuals who are receiving Trade Adjustment Assistance, Reemployment Trade Adjustment Assistance, Alternative Trade Adjustment Assistance or pension benefit payments from the Pension Benefit Guaranty Corporation, may be eligible for a 2011 Health Coverage Tax Credit.
Eligible individuals can claim a significant portion of their payments made for qualified health insurance premiums.
For more information about filing requirements and your eligibility to receive tax credits, visit www.irs.gov.

(ARA) – As the old year comes to a close and the new year begins, many people evaluate their current situation and set goals for the future. For some, career goals top the list. If you’re looking for a new job or even a new career, it’s time to roll up your sleeves and get to work, because getting on the path is going to take a lot of work.
If you were planning on scouring the want ads, you may have to adjust your thinking. “If you see an ad for a position posted, it’s almost too late,” says Becky Bates, director of career services at The Art Institutes International Minnesota. Bates suggests you tap into the “hidden job market” and get to that position before it’s posted. That means networking.
“Let anyone and everyone know you’re looking for a position,” advises Heidi Nolta, assistant director of career services at The Illinois Institute of Art – Schaumburg. “Even if it’s your Aunt Sally, you have no idea who knows whom, so don’t be afraid to ask your friends and family.”
“Go to networking functions that cater to your field and go alone, because you won’t be able to hide behind your friends,” adds Grace Shurley, career services advisor at The Art Institute of Las Vegas. Shurley suggests you stand or sit in the middle of the room and get out of your comfort zone, because you’re not likely to make new contacts within it. Nolta advises you to volunteer at those events, checking people in; it guarantees you’ll meet almost everyone who walks through the door. “Your goal should be to get a two-inch stack of business cards,” says Shurley.
Make sure to have business cards wherever you go. If you don’t currently have a job, have a simple business card made with your name, profession and contact information, says Shurley. And while you’re at it, make sure your LinkedIn profile is current and start Tweeting, suggests Nolta. “Follow the companies and industries you are interested in so you can get the latest information about them.”
If you’re not employed, be willing to take something that may not be an ideal fit but gets you out there, advises Shurley. “And don’t be afraid to start at the bottom if you’re launching a new career; that entry-level job can open up a lot of opportunities,” she adds.
Whether you’re employed or not, make sure you’re updating your skills, says Bates. If new software is introduced in your industry, learn that software. Find workshops and tutorials that can help. Nolta cautions that potential employers could test you on new software to make sure that you’re up to speed.
“A job seeker is self-employed and the biggest mistake you can make is not holding yourself accountable,” says Bates. She suggests you make a strategic plan and map out activities for every day of the week, whether it’s a job fair, sending out resumes, researching a company or calling potential employers. “Job seekers should consider getting that job, a job in itself.”