Federal tax return

You receive your federal tax return refund check, you cash the check, and you think you are safe, right? Careful. There is no such thing as being safe when it comes to Uncle Sam. Anything related to federal tax return can be inspected either before or after you get your claim. Your federal tax return refund can be inspected before Uncle Sam sends you your check, and they also have the right to inspect your figures retroactively.

Federal tax return claim for refund may be examined

It is important to be cautious of what you are making a claim for on your federal tax return.

Various credits are all potential areas for additional scrutiny from IRS. Deductions taken on a Schedule A, dependents claimed, and also the Head of Household filing status are all reasons to get checked out by the IRS.

Federal tax return liability

It is also important to remember that no matter who prepares your federal return, you are ultimately responsible for what goes on each line.

Earned Income credit on the federal tax return

One of the credits that often gets denied is the Earned Income Tax Credit (EITC). The EITC credit is available for lower income families or individuals. The amount you are eligible for increases if you have qualifying children. The bad news is that there are a number of requirements that must be met before you can take this credit. Federal tax return is no fun game.