Taxes 2014: What You Should Know To File

The tax filing season starts at the end of Jan. The IRS said that people can start filing their taxes 2014 returns on January 20.

Despite a last minute tax law that was passed by Congress, the tax-filing season will still start on schedule, according to the IRS.

Congress passed a bill that extended more than 50 tax breaks, which were due to expire next year. Under the new law, the breaks will not expire anytime soon, which allows taxpayers to claim them when they go and file their taxes. The law was signed by the president on December 19.

Taxes 2014 photo
Photo by mleinet

In the past, when tax laws were passed at the last minute, the filing season was delayed. However, that is not the case this time around, according to the IRS Commissioner.

The Commissioner said that the agency has reviewed all of the changes and they feel as if there is nothing that can prevent them from updating their systems and testing it out.

Many returns are filed during the first few weeks of the season, and this is mainly due to the fact that taxpayers want their refunds as soon as possible.

The IRS said that most refunds were issued within 21 days, if those returns were electronically filed. In the past, the agency said that filing taxes this way is the quickest way to receive a refund.

Refunds average around $2,800, and taxpayers should use TurboTax to file their tax returns, as they are a reputable service that has helped many taxpayers.

TurboTax Continues To Grow In Popularity

TurboTax Continues To Grow In Popularity

Millions of people utilize TurboTax in order to file their income taxes annually. In fact, Intuit recently reported that sales for its products have increased since last year. Motley Fool pegs that increase around 30%, which is an incredible figure. Without a doubt, more and more taxpayers will continue to use this software in the coming years. This includes free TurboTax 2013 and its paid variants that are available today.

TurboTax: Why ask if you already know?
TurboTax: Why ask if you already know? (Photo credit: stevegarfield)

Currently, TurboTax is so popular because it offers incredible features at an affordable price. Individuals unfamiliar with the tax system can follow the software’s step-by-step guide. More confident tax filers can go through each section at their leisure. Plus, Intuit offers free tax advice from knowledgeable professionals with each product. Tax audit assistance is available at a low fee, too. Undoubtedly, very few tax products offer such useful and affordable features.

Free TurboTax 2013 stands as Intuit’s most popular tax preparation software. With this particular product, taxpayers can file simple income returns without paying a penny. The free version of TurboTax comes with the same great features as other variations. Luckily, most taxpayers can utilize this option without needing to pay for another. Most people file simple returns each year, and they are the most common type by far.

For more complicated returns, various versions of TurboTax are available. This includes Deluxe, Small Business, and a handful of other products. Each one suits the needs of a different type of taxpayer. These products range in price from $19.99 to $89.99 under normal circumstances. With that in mind, thousands of people purchase these software. They come with a few added benefits in comparison to free TurboTax 2013.

In the end, TurboTax will likely see its sales increase year-over-year in 2014, too. Intuit provides a very necessary product that outshines most of the competition. For that reason, the company sells millions of units each year. This holds true even with the existence of the free version, which doesn’t suit everyone’s needs. TurboTax won’t slow down any time soon because most Americans file their taxes through preparation software rather than doing them themselves.

Important News On The Tax Deadline

The 2012 tax deadline has been extended until April 17.

The IRS has kicked off the 2012 tax filing season by revealing that taxpayers can now file their taxes up until April 17.  The Internal Revenue Service is recommending that taxpayers e-file their returns in order to ensure accuracy and to receive  refunds more rapidly.

It has additionally been announced by the IRS that new information and navigation features have been made available on IRS.gov.  They have also revealed the addition of a pilot that allows taxpayers to receive assistance with their tax issues through the use of interactive video.

The IRS Commissioner, Doug Shulman, has stated that the agency is hard at work to make filing taxes as simple as possible.  He also stated that one of the top priorities of the IRS is providing people with quality service as this reduces taxpayer burden and helps people to file their taxes accurately.

2011 tax returns can be filed as late as April 17, 2012 which is Tuesday.  They will not need to pay late fees due to the fact that April 15 of 2012 will fall on Sunday and April 16 is Emancipation Day which is celebrated by District of Columbia.  The holidays of District of Columbia affect tax deadlines in the same manner as federal holidays, as per federal law.  Thus, taxpayers will all have an additional two days for filing in 2012.  Those who will be requesting extensions for their 2011 filings will have until October 15.

Free File and e-file returns will be accepted by the IRS starting January 17.  Free File by the IRS affords taxpayers with options in brand-name tax software at no cost or free forms that can be completed online plus electronic filing for free.  Free File for preparing a federal tax return can be used by anyone.

Why Everyone Should Use IRS Efile

E-filing the fastest way and easiest way to submit a tax return. Everyone is doing it. 99 million people in 2010 transmitted their tax returns electronically to the Internal Revenue Service. These 70% of the taxpayers know everyone should use this fast, easy service.

Starting in 2011 both the people who pay taxes and those who prepare taxes will see an important change. As of January 1, 2011 people who are paid to process 1040s must be qualified to submit these returns by e-file. Volunteers are exempt. Anyone requiring more information can find it at the IRS website.

Taxpayers should try electronic filing. Fewer people mail their tax returns or prepare paper 1040s every year for a good reason.

Electronic filing is safer and protected. Within two days the IRS notifies the taxpayer the documents had been received. If there is an error, the 1040s returned for corrections.

E-filing= Quicker Money & More Ways To Get It

By combining e-filing and direct deposit, taxpayers can get their refund in as little as 10 days. Almost 75% of the returns have refunds. $2900 was the average amount overpaid.

Taxpayers can choose the option they want with e-filed returns. Those who file early can pick a withdrawal date up to April 15. Taxpayers can pay by a mailing a check with a voucher or by credit card.

E-file Gets It Done

There are three ways to e-file. Tax preparers can do it for their clients. Commercial software for preparing tax returns can automatically send it. A free tax preparation and filing service called Free File is available online. Or at the IRS website.

As the number of people preparing taxes on their own computers is growing, there are a number of software programs designed to assist. One of these is Free File which asks simple, clear questions and helps people navigate through complex issues by the answers provided. However the return is prepared, E-file is the way to go.