2010 Tax

Electronic Tax Return Filing Options

Posts Tagged ‘tax’

Turbo Tax Presents Overlooked Tax Deductions

June 14th, 2010

Turbo Tax Presents Overlooked Tax Deductions

Turbo Tax recently listed some common overlooked tax deductions that tax payers should consider when filing their taxes. Some of the often forgotten tax deductions included property taxes, the Child Care Credit, the Earned Income Tax Credit (EITC), and refinancing points. As long as you itemize your tax deductions, you should consider claiming the deductions that apply to your situation.

Property Taxes

The standard deduction can be enhanced if you pay property taxes during the year and do not itemize your deductions on Schedule A. Add an additional $500 to the standard deduction for both 2008 taxes and 2009 taxes.

Child Care Credit

Make sure to claim child tax credits up to $6,000 when you work have your children in child care. Often an employer will provide a plan that will pay for child care pre-tax but not up to the $6,000 limit. If this is the case, take the extra amount up to the limit on your tax return.

Earned Income Tax Credit

Lower to middle income tax payers can claim the Earned Income Tax Credit and receive a tax refund greater than the taxes they paid during the tax year. Many miss out on the tax credit as they do not realize it is available to them. If your income has changed during the past year, make sure to study the EITC to see if you qualify. The tax credit varies depending on your income, filing status and family size. If you find that you are eligible, amend your past returns to claim this very generous tax credit.

Refinancing Points

If you purchased a home during the past tax year and paid mortgage origination points, you can claim all the points when you file your taxes and obtain a very good tax deduction. If you refinanced your home and paid points, you can claim the points you paid as a tax deduction spread out over the life of the loan.

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FreeTaxUSA is Great for Simplifying Those Confusing Tax Returns

April 10th, 2010

FreeTaxUSA is Great for Simplifying Those Confusing Tax Returns

If you dread tax season for the confusing and time consuming process of filling out income tax forms more than you look forward to the refund, you should try FreeTaxUSA. FreeTaxUSA takes all the confusion and hard work out of the process of filing your income taxes with their simple and effective interview process.

The process that you have to pay for with another service is a very similar process to what you will encounter, for free, with FreeTaxUSA. However you can handle these questions from the convenience of your home and at your leisure. If you get halfway through the process and decide you need a break or for whatever reason feel like coming back to it later, FreeTaxUSA saves all of your information. This way when you sign back in at a later time, you can pick back up right where you left off. This is also true from one year to the next. If all of your personal information such as filing status, address, etc. is the same, you will not have to fill it out again.

FreeTaxUSA does not just handle simplified tax returns. Even if you have complicated tax returns involving marriage or divorce, buying or selling a house, IRAs, Earned Income Tax Credits, or a myriad of other complex tax scenarios, FreeTaxUSA can handle it and make it very simple in the process. The fact that FreeTaxUSA also has computer programs that automatically search for deductions, credits, exemptions, and write offs for you will be very useful for the more complex tax returns. You can be sure FreeTaxUSA will not miss any opportunities to increase your return.

Not only is FreeTaxUSA’s service cheaper (free) and more effective by guaranteeing you will get the largest return possible, but the whole process is made much simpler for you as a customer. The simple interview style questionnaire does all the work for you while you can just sit back and collect the money. Take a break this next tax season and let FreeTaxUSA do all the work of tax returns for you.

Rating: 9.5/10 (2 votes cast)

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QuickTax Is Canada’s #1 Tax Software

April 8th, 2010

QuickTax Is Canada’s #1 Tax Software

QuickTax is the best choice for filing your taxes. QuickTax has been around for over 11 years, offers the most thorough tax programs with up to date Canadian tax rules, is preferred by 4.3 out of 5 for ease of use, and even comes with a money back guarantee.

Quick Tax will cover all possible areas of filing your tax returns to be sure you will receive the maximum refund possible. To do that QuickTax uses the A-to-Z List of Deductions, of which there are over 400 available to Canadians. QuickTax can also handle all sorts of issues that life brings such as adoption, marriage, rental properties and mutual fund shares. By handling complicated scenarios in a methodical way so as to catch every possible deduction or write off you can be sure to have the biggest return possible.

QuickTax offers a full money back guarantee on their product. You have a full two months to test drive QuickTax and if it does not live up to your expectations and you are not completely satisfied, you simply return the product with a receipt to receive your money. Additionally, in the event that you are able to get a larger refund from any other tax service QuickTax will again offer you your money back. That is an absolute guarantee.

QuickTax also makes sure that your taxes are as easy as possible. With their EasyStep interview process you simply answer normal questions which are then used to fill out the complicated tax forms saving you time and hassle. You also receive support by email and phone in case any questions do occur. QuickTax will even import your previous year’s tax information for your convenience.

QuickTax is Canada’s #1 selling software for all of these reasons. If you want to look forward to the money you will receive this tax season and take comfort in knowing that getting your hands on that money will be easy and assured, you need to try QuickTax.

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Tax Brain Makes Filing Taxes Online Simple

April 6th, 2010

Tax Brain Makes Filing Taxes Online Simple

Filing yearly taxes in the US is a costly and time consuming event. Every citizen and business in the United States has to perform this duty. While accountants make money from preparing taxes, even they will say it’s not always the most enjoyable thing to do. Using online tax software such as Tax Brain won’t make preparing your taxes anymore fun, but it can help to make them hassle free and maybe a bit less painful.

The continued expansion of the Internet has made it possible for millions of people in the country to file their taxes electronically. The IRS reported that 76.7 million Americans filed their paperwork online in 2007. This is a growing trend among people that enjoy the convenience that online filing offers them.

Software such as Tax Brain takes a lot of the work out of filing your taxes. The easy to use program they have makes it quick and easy to use. The site offers live customer support that can answer any tax questions that you may have. They will also help you to decide which of the products they offer is best for your needs.

It’s not only that families are using online software anymore. Many small businesses and self-employed people have discovered the benefits of Tax Brain. As you begin entering your information the software will automatically determine which tax forms you will need to fill out. It will also calculate all of your taxes as you go through the process. If you are self-employed this includes the amount of Social Security and Medicare taxes that you have to pay. This is a great benefit for anyone that has a small business from home. These taxes can be easily missed, but with Tax Brain you don’t have a choice but to include them.

The automatic checks that the software performs while processing the return make it a lot less likely that mistakes will be made. The fewer mistakes that are made decrease the chances that you will be audited in the future. No one wants to be audited. Using Tax Brain you can be assured that your tax return will be correct the first time you file.

Rating: 9.0/10 (1 vote cast)

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Tax Benefits for Education

February 24th, 2010

Tax Benefits for Education

The IRS has a number of different tax credits that you can take to help pay for college tuition and expenses. The first is the Tuition and Fees deduction. This deduction reduces your taxable income up to $4,000 and is usually taken when a family does not qualify for the other tax credits available.

The American Opportunity Credit, this credit will pay for a student during the first four years of college. The credit was developed last year and expanded the Hope Credit. $1,000 or the $2,500 tax credit is refundable. Therefore, you can receive a refund when you did not owe taxes during the year.

The Lifetime Learning Credit is available to older students including job training classes, undergraduate, and post-graduate coursework. The credit is for $2,000. There is an enhancement of an additional $2,000 if you reside in a Midwest disaster area. One of the fun changes to the tax code congress has given us.

The Hope Credit is for only the first two years of college is phased out after 2008 except for a Midwestern disaster area. Those attending college in this designated area can take up to $3,600 in tax credits to help pay for tuition and fees.

529 College Savings Plans have been expanded to include computer equipment and Internet access. Non of the credits can be claimed at the same time for the same student. And students cannot claim the credits if they are dependents of their parents for the year.

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First Time Home Buyers Credit

February 23rd, 2010

First Time Home Buyers Credit

There are home buyer tax credits available to first time homebuyers and long-term home owners who are moving residences. Some important facts about the credits will help you determine if you are eligible and how much you can claim.

Beginning in February of 2009 up until the end of April 2010, if you enter into a contract to purchase a home in the US the purchase could be qualified for a credit with the IRS. To be a first-time homebuyer, you could not have owned a primary residence for the past three years. This also applies to your spouse.

Long-time homebuyers is a newer category that includes anyone that has lived in the same home for five years that is now purchasing a new primary residence. The credits are different for the two types of homebuyers, $8,000 for first time and $6,500 for long-term.

To claim the tax credit you have to file a paper return and attach the IRS Form 5405 to your return. Some additional documents will also need to be attached to provide proof of your home purchase during the required time period.

For the long-term home buyers, some proof of ownership is also needed. This could include a 1098 mortgage interest statement for the previous 5 years in which you lived in the home you sold. The credit is worth the extra paperwork, so get into contract prior to the deadline and receive a great tax credit on your 2009 tax return.

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Income Tax Returns: Top 7 Reasons For Filing Them On Time

February 15th, 2010

Income Tax Returns: Top 7 Reasons For Filing Them On Time

The top 7 reasons why you should not be late to file your income tax returns are discussed here.

(i) To avoid penalties for late filing

Delinquent taxes attract substantial penalties. These are in addition to the interest due for you.

(ii) To receive a better service from the accountant

The accountant will be able to begin your tax preparations sooner, if you can get all your paper work done earlier. Moreover, you can find lot of opportunities to implement strategies for saving on your taxes. But if you are already late, then your accountant won’t be much help to you regarding this. Suppose there are some profits in your corporation subject to huge penalties; in such cases for late filing, the accountant might be hesitant retaining those profits.

(iii) To avoid criminal charges

In cases of not filing tax returns for many years, there may be criminal charges against you including tax evasion.

(iv) To prevent bankruptcy

In general, people who are unable to file tax returns regularly have poor business management. They are not up to date with their own accounting and bookkeeping; they just think that they know their financial position and how they’re performing. It’s the beginning of a financial calamity.

(v) To have a better relation with the tax authorities

The people who continuously file late come into the notice of the department of taxation. Disobedience might lead to audits, forcefully collecting taxes, or other legal activities. Moreover, in case you have a clean history of compliance and cooperation with the income tax department, then at times of need the tax department won’t hesitate to give extraordinary consideration to your matter and provide leniency.

(vi) To obtain finance

If you are unable to show your proper income portfolio, then it becomes difficult for you to obtain financing. The assessment notices provided by the tax department give more assurance to the banks regarding your income claims. Moreover, if you are not filing your present income tax returns, then how is it possible to know about your hidden tax liabilities? What is your own record-keeping state? Without good financial information, how are you running your business? In case you are asking for a loan, the bank might hesitate to offer it under these circumstances.

(vii) To lighten stress and worry

Most people feel guilty about filing the tax returns late. They are actually afraid of getting contacted by the tax authorities, auditing, seizing of properties, criminal prosecution, interests and penalties, etc. Whatever be the actual situation, these worries might worsen the matter. So file your income tax returns in a timely manner and save yourself some unwanted stress and worry.

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The ABC of Filing Tax Returns for the Deceased

February 14th, 2010

The ABC of Filing Tax Returns for the Deceased

Death is an inevitable part of a human life. When a person dies, he leaves his mortal body but taxes may also remain attached to him or her. In fact after death, one final tax return needs to be filed for the deceased person.

After death, a person’s finances are immediately converted into something which is called an estate. The estate then has the responsibility of filing a tax return after covering the finances that include income and distributions to the heirs and other beneficiaries of the deceased.

When someone passes away, an executor or trustee takes charge of the estate of that person. The exact designation depends on the type of estate they are intended to plan for. The executor or trustee will sign the tax return on behalf of the deceased person and will declare him or her as deceased.

For a deceased person, the final personal tax return is filed in Form 1040. Yes, the same tax form that is used for any personal tax return will work for filing a return for a deceased person.

The day of death of the deceased person is taken as the cut-off date to ascertain how much taxes are actually due by him or her. Whatever income the person may have made in that year before the date of his or her death is covered in the personal tax return. And, the income earned after the death is to be filed as the estate tax return, which is the responsibility of the estate.

In most cases deductions are certainly going to give a joy in case of tax returns for the deceased. You can claim a full deduction and any other expenses for the year that precedes the tax payer’s death not including the date on which the person passed away. In other words, you don’t have to worry about any calculations that are based off the days that come after death. For example, if a person passes away in the month of February, you are eligible for full write-offs for the rest of the year.

When the deceased is supposed to get tax refund, the IRS will consider releasing a refund if the deceased is reported as being married prior to his or her death. If the person was married, the spouse is entitled to receive the refund. If the person was not married, you need to file a Form 1310 to be eligible for the refund. This form is basically a declaration that states – you have the right to claim the refund and absolve the IRS of any involvement in any disputes that may arise in future.

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The Process of Electronic Tax Preparation and Filing

February 11th, 2010

The Process of Electronic Tax Preparation and Filing

Just when you are faced with the tax season, you may come across the latest editions of popular tax preparation programs claiming to make tax filing as easy as can be for any layman. It is important to know which one is the most suitable for you and which electronic tax filing solutions are the most popular. This write-up provides you with valuable information on tax preparation options and the popularity of electronic tax filing.

What is it that you pay attention to while choosing a tax preparation solution? Beginners should opt for tax software that provides step by step guidance through the digital tax preparation interview and also includes interview topics which would not be difficult too understand or answer.

What makes the tax preparation software so useful is the fact that it allows the user to try out figures and hypothetical situations. Several of these programs are equipped with importing features that provides the scope for importing data from other programs into the tax preparation software directly.

As electronic tax preparation and filing are capable of carrying out extensive calculations and associated automatic checks, it has a negligible error rate, less than 1 percent. This implies that if you use the electronic tax preparation software, you can be almost fully ensure that you will have an error-free and complete tax return.

As high speed internet connections are becoming widespread and internet security is advancing at a tremendous speed, the number of tax preparations being done online is going up. This system of filing has been agreed unanimously to be safe, easy and error-free. With an overwhelming amount of online resources readily available, there is hardly any difference between the capabilities of the taxpayer and a professional.

Whatever it is, this much is certain that electronic tax preparation is the word of the day in terms of efficiency and popularity. It is owing to this popularity and reliability that taxpayers would resort to the use of tax software to file their tax returns. What a lot of taxpayers don’t know is that they can prepare and e-file their taxes every time they access the internet. The IRS Free File program has been designed to help those taxpayers who file their returns independently and still resort to filing paper returns. However, it should be noted that electronic filing is not allowed in the case of filing taxes for previous years.

Online tax filing allows you to prepare and e-file your income tax returns. And the process is wonderfully easy, speedy, error-free and safe, not very different from net banking. It might be a good idea to try out the electronic filing this year if you are willing to give it a shot. Being able to manage and file your taxes would definitely make you feel good and self sufficient.

It is very common for people to be scared of the idea of filing your taxes and you are probably wishing it would be easier this year. It is actually possible, with a fair amount of planning, to make tax preparation much easier and not be faced with any harsh surprises.

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Using Tax Credit To Save For Retirement

February 10th, 2010

Using Tax Credit To Save For Retirement

The reasons why Americans are not efficient at saving for retirement is not unknown. To rectify this scenario, the government has come up with tax credit offers.

As baby boomers enter retirement, social security is likely to go under siege. Luckily, a lot of baby boomers have invested considerable sums in 401ks and IRAs. Even than, a sad fact remains that people refrain from putting in their best efforts where retirement is concerned. The American Government is focusing on encouraging taxpayers to save a considerable amount for retirement and using the tax credits strategy to accomplish this goal.

The tax credit being discussed here is the Retirement Savings Contributions Credit. Those who are eligible for it would be entitled to a credit of $1000 in case of singles and $2000 in case of joint filing. Those individuals who contribute to 401ks and retirement vehicles are eligible for this tax credit. The amount of credit you are entitled for would depend on your income and contribution.

The following categories of people are eligible to claim the retirement savings tax credit:

Individual taxpayers who earn $25,000 or less.
Individual taxpayers who are head members of their homes and have an income of $37,500 or less.
Married couples with a total income of $50,000 or less and filing jointly.

Some small restrictions apply to the eligibility for claiming tax credits. To begin with, only those who are 18 or more of age are eligible to apply for tax credits. Full time students are outside the gamut of tax credits. Also, a second dependent is not allowed to claim you as a dependent on their tax returns.

It is a significant fact that the aforementioned tax credit is over and above other tax advantages you acquire from investing in a retirement account. For example, in the context of a 401k, though you can pound in pre-tax income, it eats into your gross income for the tax year. Once the taxpayer has calculated their taxes, they can deduct another $1000 on account of the tax credit. In other words, it doesn’t take a lot to save up for your retirement.

The Federal Government is strongly urging taxpayers to save money for retirement period. With the tax credit by the government in place, that shouldn’t be a difficult task for individuals either.

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2010 Tax

Posts Tagged ‘tax’

Turbo Tax Presents Overlooked Tax Deductions

Turbo Tax Presents Overlooked Tax Deductions

Related Posts:

FreeTaxUSA is Great for Simplifying Those Confusing Tax Returns

FreeTaxUSA is Great for Simplifying Those Confusing Tax Returns

Related Posts:

QuickTax Is Canada’s #1 Tax Software

QuickTax Is Canada’s #1 Tax Software

Related Posts:

Tax Benefits for Education

Tax Benefits for Education

Related Posts:

First Time Home Buyers Credit

First Time Home Buyers Credit

Related Posts:

Income Tax Returns: Top 7 Reasons For Filing Them On Time

Income Tax Returns: Top 7 Reasons For Filing Them On Time

Related Posts:

The ABC of Filing Tax Returns for the Deceased

The ABC of Filing Tax Returns for the Deceased

Related Posts:

The Process of Electronic Tax Preparation and Filing

The Process of Electronic Tax Preparation and Filing

Related Posts:

Using Tax Credit To Save For Retirement

Using Tax Credit To Save For Retirement

Related Posts:

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