Tax Brain Makes Filing Taxes Online Simple

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 … Read more at 2010 Tax.

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.

Tax Benefits for Education

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 … Read more at 2010 Tax.

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

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 … Read more at 2010 Tax.

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 That is Not Taxed!

Income That is Not Taxed!

While preparing your taxes this year you might notice that some forms of income are not taxed at all while other kinds of income are only partially taxed. You can save thousands of dollars in taxes each year by having non-taxable income compared to taxable income. The IRS has provided a list of incomes that are not taxed.

Included in the list of non-taxable income is adoption expense reimbursements, cash rebates for manufacturers, child support that you received, welfare, gifts, inheritance, compensatory damage awards, workers compensation, and meals and lodging reimbursed by your employer.

Examples … Read more at 2010 Tax.

Income That is Not Taxed!

While preparing your taxes this year you might notice that some forms of income are not taxed at all while other kinds of income are only partially taxed. You can save thousands of dollars in taxes each year by having non-taxable income compared to taxable income. The IRS has provided a list of incomes that are not taxed.

Included in the list of non-taxable income is adoption expense reimbursements, cash rebates for manufacturers, child support that you received, welfare, gifts, inheritance, compensatory damage awards, workers compensation, and meals and lodging reimbursed by your employer.

Examples of income that is partially taxed or taxed based on the circumstances are life insurance, college scholarships, college grants, and non-cash income. Non-cash items are taxable to the fair market value of the items exchanged in a barter situation. Sometimes income tax is avoided through the exchange of items instead of paying for services, but this is not a legal form of non-taxable income.

For more examples of income that is not taxable, take a look at IRS Publication 525 on the IRS website.

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What to Do With Your Taxes In Case You Can’t Pay Them?

What to Do With Your Taxes In Case You Can’t Pay Them?

The extension on filing your taxes is almost coming to an end. Is there anything you can do in case you can’t pay your taxes? It is important for you to pay whatever you can and do your return filing by the scheduled date. We discuss some additional steps here which might be helpful for you.

Credit Cards

The taxes can be charged on your MasterCard, American Express card, Discover card, or Visa card. Going in this direction, you can use one out of two sources mentioned below:… Read more at 2010 Tax.

What to Do With Your Taxes In Case You Can’t Pay Them?

The extension on filing your taxes is almost coming to an end. Is there anything you can do in case you can’t pay your taxes? It is important for you to pay whatever you can and do your return filing by the scheduled date. We discuss some additional steps here which might be helpful for you.

Credit Cards

The taxes can be charged on your MasterCard, American Express card, Discover card, or Visa card. Going in this direction, you can use one out of two sources mentioned below:

Official Payments Corporation

Pay tax by calling 1-800-2PAY-TAX (toll free: 1-800-272-9829)

Visit the web site: www.officialpayments.com

Link2Gov Corporation

Pay tax by calling 1-888-PAY-1040 (toll free: 1-888-729-1040)

Visit the web site: www.pay1040.com

In case you can’t pay using your credit card, then you can make an installment agreement, in which you can pay the balance in the form of monthly installments. There is also the option of reducing your tax amount by participating in a compromise program offered.

Form 9465 needs to be filled and attached with your return filing if you want the installment option of paying your taxes. For total taxes not exceeding $ 25,000 excluding interest and penalties and which can be paid within 5 years, the process of approval has been streamlined by the IRS. The proposed amount of monthly installment and the payment date should be specified correctly beforehand. You also must guarantee that the payments will be made.

For an installment agreement, a fee of $ 43 is charged by the IRS. On unpaid taxes, there will be an interest as well as a late payment charge. Normally 0.5 percent per month on unpaid tax is charged as late payment penalty but it is not fixed. This rate may be reduced to 0.25 percent for any month while your installment agreement is applicable and you file your returns on time taking your extensions into consideration. You may need to pay up to a maximum of 25 percent of penalty for late payment.

If you fail to file your returns by the due date after taking an extension, will result in a late payment charge being levied upon you. This charge is normally around 5 percent of the total unpaid tax per month. You may have to pay a maximum of 25 percent of penalty charges in case of failure to file your returns or pay taxes on time.

Summary

Even if you lack funds, the IRS expects you to adhere to the rules. You should file your returns on time by any means. If you’ve filed, the IRS will take care of the payment issues. You don’t worry. Remember that the majority of Americans face the same problem.

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

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 … Read more at 2010 Tax.

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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