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Taxes Articles

How Corporations Get Out of Paying Taxes

May 13, 2011 | Taxes | No Comments

Have you ever wondered how corporations get out of paying taxes?  See interesting description below:

Where Your Tax Dollars Go

April 16, 2011 | Taxes | 2 Comments

If you are curious of where your tax dollars go, Yahoo! Politics created the chart below highlighting 2010 Federal Tax Receipt for a married couple with 2 dependents making $69,800 with a federal tax bill of $6,993.  The top 5 entities where your tax dollars go are Social Security, Defense, Medicare, Low-Income Assistance and Medicaid.

Free Federal Return, Simple or Complex, with TaxAct

February 24, 2010 | Taxes | No Comments
Tax ACT

This is cool.  TaxAct is offering free IRS (Federal) Return for everyone no matter if its a simple or complex tax return.   All e-fileable forms are available for every situation and TaxAct guarantees a maximum refund.

The service also comes with free e-mail and audit support.

To file your federal tax return for free visit TaxActOnline.com.

Do Your Taxes Online for Free with H&R Block

February 9, 2010 | Taxes | No Comments

 

 

If you have a simple tax return, where you normally use the 1040EZ then you can do your taxes for free with H&R Block Online.  Some people are paying at least $50 to do have someone do their returns when it’s easy to do it online.

H&R Block is also offering federal efile which also saves you the cost of paper, stamp and envelope.

If you have a simple tax return, H&R Block Onlinex Free Edition is the easy way to do your taxes and get your maximum tax refund. 

Of course if the free version doesn’t fit your needs, H&R Block offers very affordable online tax software which comes with free live tax advice.  To learn more visit H&RBlock.com.

Where’s My Federal Tax Refund?

April 15, 2009 | Taxes | No Comments
taxrefund

So you filed your federal income taxes and you are wondering “where is my tax refund?”  Well did you know that you can visit the IRS.gov website to find out the status of your refund?  

If you filed electronically you will have to wait 72 hours for the IRS to receive your information.  If you filed by mail you may have to wait 3 to 4 weeks to get a status of your refund.

To get your refund status, when you visit the IRS.gov website you’ll be asked to enter the following information:

  1. Your social security number.
  2. Your filing status (single, married-filing joint return, married-filing separate return, head of household, qualifying widow(er).
  3. The refund amount shown on your tax return. You must enter the exact whole dollar amount shown on your tax return for you to receive the correct response from the IRS.

Click HERE to check the status of your tax refund.

What’s In the 2009 Stimulus Package for You?

March 17, 2009 | Taxes | No Comments
uncle-sam-giving-money

President Obama signed the American Recovery and Reinvestment Act into law February 17, 2008. The good news is that the stimulus bill gives tax breaks to a large portion of Americans of all ages and income levels, as well as to businesses.

According to the White House, the new American Recovery and Reinvestment Act will give tax breaks to 95 percent of workers and their families through the Making Work Pay Credit.

The law contains many other tax breaks that should provide a financial boost to everyone from the unemployed and low-income, to families with children and children in college, to first-time homebuyers, and taxpayers buying new cars.

Below is who will cash in on the stimulus package:

Workers

Workers and the self-employed will get a payroll tax credit for 2009 and 2010 of up to $400 a year for single taxpayers and up to $800 for couples filing jointly.

Unemployed

The new bill makes the first $2,400 of unemployment income nontaxable.

First-time homebuyers

First-time homebuyer increases from $7,500 to $8,000 for primary residences purchased between January 1, 2009 and November 30, 2009, and eliminate the requirement that the credit be repaid, as long as the house isn’t sold within three years.

College students

The Hope Credit for college costs is increased to $2,500 for 2009 and 2010, covering 100 percent of the first $2,000 of tuition and related expenses per year and 25 percent of the next $2,000.

The credit is available for all four years of college, up from only two years, and covers the cost of books. It is 40 percent refundable, and begins to phase out at $80,000 of Adjusted Gross Income for singles and $160,000 of Adjusted Gross Income for married couples.

New car buyers

Buyers of new cars, light trucks, SUVs, motorcycles and motor homes during 2009 can deduct the state sales or excise tax they pay, even if they don’t itemize their deductions.

This break starts phasing out for single taxpayers with Adjusted Gross Income over $125,000 and couples with AGI over $250,000.

Families

More couples who file jointly and have children will qualify for the Earned Income Credit. The tax package starts the phase-out range at $21,420, an increase of $1,880. Also in 2009, the credit increases for families with three or more children to 45 percent of the first $12,570 of earned income, up from 40 percent.

Plus, the Child Tax Credit will cover more low-income earners: For 2008, the credit is refundable to the extent of 15 percent of an individual’s earned income in excess of $8,500; for 2009 and 2010, that floor drops to $3,000.

Retirees, veterans and the disabled

Because the payroll tax credit only goes to employees and the self-employed, the bill adds something for others as well: a one-time payment of $250 to recipients of Social Security benefits, Railroad Retirement benefits, Supplemental Security Income payments, and pension and disability benefits from the Veterans Administration.  Government retirees who don’t get Social Security will also get a one-time refundable tax credit of $250 in 2009.

Homeowners

The 10 percent tax credit for energy-saving home improvements climbs to 30 percent and is extended through 2010. Improvements that qualify for the credit include energy-efficient skylights, windows and outer doors, along with energy-saving water heaters, central air conditioners and biomass stoves.

The bill also eliminates individual credit caps for the different types of property, and instead imposes a $1,500 cap on all qualifying property.

Middle-income taxpayers

To keep millions of middle-income taxpayers from being forced to pay the Alternative Minimum Tax (AMT) for 2009, the measure increases the minimum tax exemptions to $70,950 for couples filing jointly and $46,700 for single filers. Otherwise, the exemptions would top out at just $45,000 for couples and $33,750 for singles.

Small businesses

Special 50 percent, first-year bonus depreciation is revived for assets bought and placed in service during 2009. Businesses that averaged $15 million or less in gross receipts over the past three years will be allowed to carry back losses for five years instead of two. The easing applies only to 2008 losses.

Related Articles:

The 11 Most Overlooked Tax Deductions

March 17, 2009 | Taxes | No Comments
tax_deduction

According to Kiplinger, every year United States taxpayers overlook tax deductions that could save them money. Below are the 11 most common overlooked tax deductions.

The great thing about doing your taxes using a computer program, such as Turbo Tax, is that it can help you to avoid these mistakes. TurboTax ensures that you find tax deductions you may have missed or even consider.  If you miss claiming tax breaks, you are overpaying the IRS, which we all do not want.

The 11 Most Overlooked Tax Deductions are as follows:

1.  State sales taxes
2.  Reinvested dividends
3.  Out-of-pocket charitable contributions
4.  Student loan interest paid by Mom and Dad
5.  Moving expense to take first job
6.  Military reservists’ travel expenses
7.  Child care credit
8.  Estate tax on income in respect of a decedent
9.  State tax you paid last spring
10. Refinancing points
11. Jury pay paid to employer

For more information visit Turbotax.Intuit.com.