Inheritance Planning Takes Careful Consideration

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When someone inherits a sum of money from a loved one, there is a certain level of healthy stress that is created. It can be exciting to know that you’re about to receive an amount of money, no matter how large it is, but it’s important to contain the stress and use it for good reasons. This energy should be put toward inheritance planning in order to ensure that only smart moves are made with the money. If you have a list in your mind of what you’ll spend it on, it helps to write it down and evaluate the significance of your financial planning ideas. Seeking out professional advice is the best thing to do at this point to make sure that the financial decisions you’re making are smart.

If the inheritance doesn’t come with a specific purpose set up by the deceased, there should be careful consideration for it. Sometimes loved ones want to make sure that the money is spent wisely so they assign certain expenses, such as education, mortgages, or business purposes to the money so that their heir’s future will be secure. Inheritance planning is still required for this type of inheritance because the details need to be ironed out.

A financial adviser or attorney will be able to point out the best ways to invest the money if that’s what you decide to do. Inheritance tax planner may also help out a lot so try to find one. Reaching the best conclusion will only come about if you carry out inheritance planning with a professional and follow their advice. They may suggest investing the money in something that will pay off even more in the future, whether it’s a business venture or other investment. That’s a move that you loved one would be proud of and definitely falls in the category of why it was handed down to you in the first place.

Tax Refund Advance

Tax Refund Advance

Tax season comes but once a year, and there are many options available to the taxpayer for handling their tax returns. Those who wish to prepare their own returns, there are on-line resources and various software programs available.  Others may have more detailed and difficult paperwork to complete during tax time, and may hire a personal accountant, or CPA, to handle the chore.  One of the more popular choices seems to be to use one of the commercial tax services like H and R Block or Jackson Hewitt.  The reason for their popularity generally is associated with the promise of a quick tax refund when one is anticipated.

Tax laws are constantly changing, so there are numerous ways for individuals and families to qualify for various tax refunds.  For many people the anticipation of a refund brings about much excitement, as well as impatience.  For  those who prepares their own taxes, they must file and wait a matter of weeks for their funds to arrive.  Yet for those individuals who have taxes prepared by a commercial preparation service, they can get money back in a matter of days, or even hours.

In order to receive a rapid return, commercial tax services offer what is called an “anticipated refund tax advance loan”.  This service actually issues a loan from a participating lender in the amount of the anticipated refund.  In actuality the taxpayer is taking out a personal loan which is secured by what their refund is supposed to be, meaning that there are costs attached to that privilege.  The fees for this service are quite high, and most people do not actually realize just how much money they are loosing in this process.

Tax preparers will generally charge inflated fees simply for the act of preparing tax paperwork.  This service is considered to be worth the headache for many people, and in those cases seem acceptable.  It seems that those who select the option to get their money back faster are also not bothered by the tax preparation fees, or the extra “minimal loan” fees, added for the speedy refund.  In most cases, the refund amount seems to be a substantial enough amount, that those people might not immediately miss the several hundred dollars they spend to receive it.

On average, a minimal loan fee might be as little as $30 dollars, but can become as high as several hundred dollars, depending on how much the actual return is worth.  For example, if an expected return would be as much as $1000, the taxpayer then might then be charged a $200 fee for the benefit of preparation and quick return.  This fee of course depends on the service provider, but in this example the fee amounts to loosing as much as 20% of the given tax return.

Most people are anxious to get their anticipated monies back at the end of the year.  For some it is a necessity as economic times are still hard for so many.  For others it is the result of a large scheduled project such as a home remodeling, a shopping spree, buying a new car, or any need that requires a substantial chunk of money. It is important to first understand what choices are available to handle tax returns and refund options, know what the benefits and costs are, and then choose wisely according to what the individual needs might be. Smart choices will make tax time less stressful and costly for the taxpayer.

Simplifying Monthly Business Accounting With Tax Software

When ever tax time rolls around, our eyes glaze over with questions about business expenses and deductions: Can she write off this short sleeved shirt? What about that business lunch a couple months ago? And then there’s the question of his XXXL shirts you put the company logos on. This it the point at which the need for some good business technology becomes obvious.

Various software programs are available for download for businesses to use.  Bookkeeping and tax software makes monthly business accounting easy.  This software will aid the bookkeeper or accountant in recording the businesses various financial transactions in the correct ledger, including payments, revenues, sales, and purchases.

A company has the choice of high-cost, low-cost, or even free software for their accounting and bookkeeping management.  The software chosen needs to have all the basic functions businesses will need and should incorporate the utilities needed for accounting, business taxes, and payroll. The program should include modules to assist businesses in creating monthly budgets, follow the progress of projects or jobs, and help with scheduling recurring payments.

It should have a section to help manage the bank transactions and credit card transactions.  There needs to be a component for tracking and paying bills along with a module for payroll management that assists with federal and state tax calculations.  It might include an element devoted to accounts receivables that help in creating invoices and estimations, calculating sales taxes and automatically calculate the full amounts due.

A reporting function would disclose to the business owner all financial transactions. The program chosen by any business should support both of the two major forms of accounting that businesses can use.  There is the Cash Basis and Accrual Method.  Service businesses generally operate on the Cash Basis Method and Manufacturing or Inventory businesses usually operate on the Accrual Method.

The software should also help a business in establishing internal controls to establish procedures for tracking all income and payments to prevent fraud, waste, or carelessness.  Making the right choice in the bookkeeping and tax software is essential and can help the business to function successfully.

QuickTax Can Make Your Taxes so Much Simpler

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QuickTax Can Make Your Taxes so Much Simpler

QuickTax has perfected the art of maximizing your tax returns while also making it as simple as possible. There is no need to deal with all that confusing tax jargon, fill out a bunch of different (also confusing) tax forms, and put yourself through unnecessary stress- not to mention wasting a whole lot of time.

QuickTax uses to-the-moment CRA tax laws and very comprehensive programs to ensure you get the most for your refund as possible. But that is all done on the back end of the software programs. All you have … Read more at 2011 Taxes.

turbotax

QuickTax Can Make Your Taxes so Much Simpler

QuickTax has perfected the art of maximizing your tax returns while also making it as simple as possible. There is no need to deal with all that confusing tax jargon, fill out a bunch of different (also confusing) tax forms, and put yourself through unnecessary stress- not to mention wasting a whole lot of time.

QuickTax uses to-the-moment CRA tax laws and very comprehensive programs to ensure you get the most for your refund as possible. But that is all done on the back end of the software programs. All you have to do is answer some simple questions in QuickTax’s EasyStep Interview and you no longer have to worry about becoming confused by all the tax jargon and many different forms. QuickTax takes your information from the answers and runs it through their programs which then fill out all the forms for you. It is as simple as that.

You also have access to plenty of customer support. Whether you just need email support, or if you want to talk to someone via phone or maybe you just need to review the FAQs, QuickTax has you covered. Tax analysts and experts are there to help out no matter what the situation.

QuickTax is so confident you will agree that they offer a full money back guarantee, giving you a full 60 days to try out the program to see for yourself. It is no coincidence that 4.3 out of every 5 people who use QuickTax gave it a maximum rating.

QuickTax can make the impending tax season seem more like the anticipated tax season. If it is a simple matter of collecting the money for your rebate after answering a few simple questions, you will never have to dread doing your taxes again.

What to Look for in Online Tax Prep and Filing Software

What to Look for in Online Tax Prep and Filing Software

This April, you may reduce your time it takes to file your taxes by utilizing computer software designed for filing your returns online.

You are not alone. Many people file tax returns online; according to last year’s record from IRS, the total electronically filed tax returns was more than 68 million, out of which around 17 million taxpayers filed their returns online themselves.

Debra Gray said that e-filing of your returns and online tax preparation offer lot of benefits but it require some homework on the part of the … Read more at 2011 Taxes.

What to Look for in Online Tax Prep and Filing Software

This April, you may reduce your time it takes to file your taxes by utilizing computer software designed for filing your returns online.

You are not alone. Many people file tax returns online; according to last year’s record from IRS, the total electronically filed tax returns was more than 68 million, out of which around 17 million taxpayers filed their returns online themselves.

Debra Gray said that e-filing of your returns and online tax preparation offer lot of benefits but it require some homework on the part of the individual.

Gray points out certain questions worth looking asking:

Is the software secured and easy to work with?

As there is no need for downloading, it saves time to work with internet-based software. But certain things that you should make sure of in the beginning are whether the program is easy to use, whether the information can be organized properly, whether it provides complete support resources for the process, and most importantly whether it has proper security standard to encrypt your data.

Is it comfortable for you to work with it?

Normally the online tax prep sites password-protect your work. Also see whether the program can automatically check for certain minor errors and is able to provide suggestive corrections for some major mistakes.

After you’ve filed, what happens to your return?

You should also make certain that the program can maintain previous year’s record of your return filing so that you can go back there and check for some useful information.

Does it show clearly the cost of your tax preparations and filing?

Sometimes it is not so easy to navigate the pricing structure of many tax software providers; some of them offer free filing and others have a price tag mentioned, but normally they do not clearly indicate the added costs for the completion of a state tax return. As Gray points out, it’s better to find out a good do-it-yourself tax program in order to prepare your taxes yourself, and it should be available for below $40 which includes costs for both federal and state tax return preparation and filing.

Is there any payment and refund option?

There are some web sites that allow you to directly deposit the refund amount to your bank account after deducting the costs of using the software.

Is there any help and support system?

Ideally, the program needs to be straightforward; but for your own convenience, you should make sure that it provides live help and support through chatting or e-mail.

Gray said, "Taxpayers should have a look at the new features coming with the latest tax software this year as they might have become frustrated by filing their tax returns on paper or using the old online tax programs." He also added, "It’s not the way many people like to spend time by preparing for taxes, but if they are accessed to the right tools, then online return filing could be easy as well as time-saving. Moreover, they might even learn new tips for saving money on taxes."

The 52 Cent Mistake: Will You Do It Again?

The 52 Cent Mistake: Will You Do It Again?

With regard to your tax return filing, it could be the big mistake you would ever spend 52 cents on. Many people send their income tax return through general mail by sticking a 52-cent stamp on the envelope. And every year many taxpayers are committing this mistake. Why am I saying it is a mistake to put your tax return in a mailbox? I will explain. It’s a fact that every year, a fraction of the mail goes undelivered. Even though the postal service does not admit it, this is … Read more at 2011 Taxes.

The 52 Cent Mistake: Will You Do It Again?

With regard to your tax return filing, it could be the big mistake you would ever spend 52 cents on. Many people send their income tax return through general mail by sticking a 52-cent stamp on the envelope. And every year many taxpayers are committing this mistake. Why am I saying it is a mistake to put your tax return in a mailbox? I will explain. It’s a fact that every year, a fraction of the mail goes undelivered. Even though the postal service does not admit it, this is true. Moreover, in case your return thus sent is delivered, still there is the chance that your tax return might get misplaced by the IRS; the IRS loses a fraction of the paper tax returns every year. What, you don’t trust me? I can never forget one client of mine showing me a letter one day from the IRS which stated the following:

“We deeply regret the loss of your return…even though we received it…”

Whether you believe or not, it’s a fact!

My question is very simple: If it happens to you, what will you do?

In case your tax return does not reach the IRS, or even if it reaches, and then gets lost out there somehow, will you be able to prove later that you actually filed your return and mailed it to them?

You can call the IRS and say that you filed on time and sent the return for sure, but that hardly proves anything, right? It will remain a burden for you to prove that you actually mailed your returns to the IRS.

This dangerous problem can be solved in two ways:

(A) Go for electronic filing.

The benefits of e-filing are as follows:

  • Accuracy: It reduces a lot of human error when you e-file your return, your document has to pass many accuracy tests for security reasons. The returns that are e-filed are subject to this type of scrutiny at the very initial stage.
  • Security: As it is a paperless transaction, a unique electronic signature of the owner is created.
  • Speed: It normally takes around 6 to 8 weeks for a refund in case of a paper return. But in case of an e-filed return, refund can be expected within 10 working days.
  • Acceptance proof: You should definitely focus on this benefit. Within just 48 hours of e-filing your returns, the IRS sends you an electronic acknowledgement of the acceptance of your return.

Great! You’ve received the proof of filing your return. I think it’s enough!

E-filing has nowadays become a preferred method to file your returns. But as most people are still using the paper way of filing returns, this second method of avoiding the problem of “lost return” becomes important.

(B) In case you prefer paper filing, then spend around $ 4.25 in the post office and send your mail through certified mail, requesting for a return receipt.

This will serve two important purposes:

(i) The certified mail costing $ 2.40 provides you proof of mailing the return, as well as proof of date sent.

The IRS considers a paper return to be filed legitimately in cases where it is mailed on time in an envelope properly addressed and which has a postmark dated earlier than the due date. In the case of certified mail, you always receive a receipt that is postmarked by the post office. So, in case of any mishap, like the return getting lost, or at any time if IRS asks whether it was mailed on time or not, you will be able to show documentation to prove it was. Moreover certified mail is easily tracked.

(ii) Another insurance will be your return receipt. For another $ 1.85, the IRS is prompted to sign a receipt at the time of delivery of the letter. Then this receipt will be mailed back to you which will become further proof that IRS received your returns.

Certified mail is enough to prove that the return was mailed. The return receipt gives you an added insurance that the IRS actually received the mail. It will also tell you the exact date of receipt. This means you have the proof of delivery.

Why should you take the risk of your tax return getting lost on the way? Also it is advisable not to take on the risk of your tax return getting lost under piles of papers at the IRS. This is something worth thinking about. There are more than 100 million income tax returns filed each year that are prepared on paper and mailed to the IRS through the post office.

The IRS and the post office staff are only hard-working human beings. And they are always prone to making mistakes. If you don’t want a mistake to be made with your returns, it is advisable not to put your valuable tax returns in the uncertain mailbox.

The best way is to e-file it; otherwise you should send it through a certified mail, request a return receipt. You definitely won’t regret it later.