TurboTax Helps Users Get More Accurate Tax Returns

TurboTax Accurate Tax Returns

Each year, Americans are forced to go through last year’s financial information and prepare a tax return.  For some people, this is a happy time because they will be getting a tax refund, which can mean several thousand dollars in their bank account.  But for others, they will own more money to the Internal Revenue Service.

Day 093/365 - Tax Time Phat Cash!
Day 093/365 – Tax Time Phat Cash! (Photo credit: Great Beyond)

The Internal Revenue Service can not look at every single tax return because there are simply too many filed each year.  They do audit some returns, but it is only equal to one percent of all tax returns.  Most people will never have to worry about being audited by the IRS in their life time.  People cheat on their taxes to avoid paying more taxes each year or to try to get a bigger refund from the government.

The good news is that the majority of people do not cheat on their taxes.  Perhaps this peer pressure will deter other people from cheat on theirs.

Recently, the IRS Oversight board conducted a telephone survey that found that 87 percent of Americans felt that is is not acceptable to cheat on your taxes.  The main reason they were against cheating on taxes is due to personal integrity and not the possible punishment.  Just over 10 percent of people polled said it was acceptable to cheat a little bit on their taxes.

Some people cheat on their taxes without even realizing it.  They may omit important financial information or deduct something that should not be deducted.  These errors are not made intentionally, but they can mean big trouble if they get caught.

Using free Turbo Tax 2013 can help people prepare their taxes and increase the odds that their taxes will be accurate.

Sometimes an error or omission helps the individual by reducing the amount of tax they owe.  But sometimes it helps the government by raising their tax amount.  When this happens, you may not get as big of a refund as you normally would.

TurboTax is an easy to use program that many people use by themselves without hiring a tax professional.  It is less expensive than hiring a tax preparer, and you can use it at any time.

The computer program walks users through each step of preparing their taxes.  It asks questions and offers advice for every item that you need to enter, and it makes it easy for users to file their taxes.

Not only can free Turbo Tax 2013 help make your tax return more accurate, but it can also increase your refund.  Some people find they are eligible for more tax credits if they use a program to help them prepare their return.  When your tax return is accurate, you reduce the risk of an Internal Revenue Service audit.

Tax Credits For Your Home

2010 Tax Credits For Your Home

For those of you thinking of buying a new home but are not sure about the 2010 tax credits, maybe this will help you. If you are buying a home and your modified gross income is less than $245,000, the house costs less than $800,000, and you’re a first time home buyer, you can receive full credit. If your modified adjusted income is more than $125,000, you will receive a reduced credit. If your MAI is more than $245,000, you will receive no credit. Also, for those of you who are remodeling, you can also receive tax credits for your home.

2010 Guide To Home Buying Tax Credits

How Tax Law Changes Change Your Life

Tax law changes tend to happen at least once a year. An obscure loophole may be closed, or the tax rate on a specific type of profit may be increased or decreased. In either case, it is important to make sure that you have the right income tax advice before dealing with your own taxes. Rather than trying to go it alone, the help of a professional can aid you in making sure that all your forms are filled out correctly and that all the correct deductions have been made. Even with this in mind, though, you may still wonder if tax changes will actually have any bearing on your own situation.

Now, the truth of the matter is that most tax law changes will not actually do much to change the tax returns of most individuals. The bulk of the changes in any given year will only actually cause an effect on the taxes of a select few, but you may never actually know that these changes have gone into effect unless you actually consult with a tax professional. Unfortunately, lack of knowledge about these changes is no excuse when you file, and if you are audited you may actually face rather stiff penalties for failing to adhere to laws that were only recently passed.

There are, of course, many tax law changes that will cause major changes for more tax payers. The IRS is generally quite vocal in announcing these changes, and most are incorporated into even simple tax return programs. However, if you need to feel reassured about what effect these changes will have on your taxes or you simply wish to play it safe, it may be wise to seek out professional income tax advice. It may cost a bit more, but the associated costs are nothing when compared to the fines that may be incurred by those that file incorrectly.

The author has spent a lot of time learning about tax law changes and other related topics. Read more about income tax advice at the author’s website.

Changes For Tax Filing

Tax season is upon us and even though the filing deadline is months away we all need to be prepared ahead of time. The required documents for each of us will arrive in the mail in the month of January so everyone who plans to file taxes needs to start preparing files and documents that have tax implications.

New for 2012 is the fact that the The Internal Revenue Service (IRS) gave taxpayers an extra two days to file taxes this year. April 15th falls on a Sunday and the 16th is Emancipation Day (an observed District of Colombia holiday) so April 17 is the last day that regular tax forms will be received as “on time”. Individuls who are unable or unwilling to file by April 17th may file for an extension and in that case the deadline is October 15th. This extension date is for filing purposes ONLY and is not applicable for individuals who must PAY taxes. If one does not meet the respective deadline then penalties and interest may result as a consequence.

Some people elect to pay their taxes quarterly and in this case the next payment is due on January 16th. The remaining dates for quarterly payments are April 17, June 15 and September 17.

Brokerage firms are now required to report proceeds from the sale of stocks and mutual funds as well as the complete cost basis of investments that have been sold. Individuals and businesses who need to report capital gains should use the new Form 8949 to file such reports.

The rates for calculating business mileage has also changed due to gas prices and inflation. Use a rate of 51 cents per mile up to June 30, 2011 and change to a rate of 55.5 cents per mile from July 1 through December 31. This is the business rate alone; moving and medical mileage is 23 cents per mile and charities can deduct 14 cents per mile.

Individuals making a 2011 tax filing should be aware that the tax credit for first-time home buyers has expired for everyone except those who serve in the military or Foreign Service. The Making Work Pay credit has been eliminated as well, so the $400 single/$800 joint credit against liabilities is no longer valid. For a full list of changes visit irs.gov.