2011 Taxes to 2024 Taxes

Tag: income

More IRS Audits Planned
Nobody likes being audited by the IRS, although the chances of being audited are now actually higher as there are more of them planned.

For those filing who had an income of over $200,000, IRS audits were increased by around 34 percent between 2010 and 2011. Despite this hefty increase, audit rates in general are still low, regardless of income amount.

For those earning over $200,000, almost 4 percent were audited for the 2011 year, and for those earning over a million dollars, audits were increased by 24 percent, with around 12.5 percent of those taxpayers being audited. The Washington Post, The Wall Street Journal and Bloomberg all noticed this and commented on it.

In actuality, you have a two percent chance of being audited, although the Treasury Department still requires tax advisers and preparers to assume that all returns will be audited.

Of course, the chance of being audited affects the advice given, and if a tax preparer tells you that something will probably be accepted, he or she has to assume the return may be audited. Although there is no sure way to avoid being audited, take a look at our 10 ways to audit proof your return.

Various things can trigger an audit, in addition to your actual income, including which items are claimed, your deductions and any tax credits. If you claimed the earned income tax credit (EITC) you generally have more chance of being audited.

A large income alone draws attention, but does not necessarily mean that you will be audited. However, for those of us who are lucky enough to be very wealthy, the IRS actually has a special task frce to handle those tax returns.

Related articles
- Top 10 Reasons for a Tax Audit (2010tax.org)
- Top 10 Tax Tips for 2012 (2010taxes.org)
January 14, 2012
Deciding On The Simplest Tax Form To Use
For taxpayers who are planning on e-filing there is no need to worry about choosing the Simplest tax form because the software program chooses the tax form that you will need. However when opting to file the old fashioned way you can still manage this simply by choosing the tax form that matches your situation. A fast and easy way to get the paper forms and the needed instructions is to go online and visit the Internal Revenue Service website at www.irs.gov. It is also possible to obtain forms from an IRS office in the city that you live in. There are also places in the city such as a library or post office that will have the forms available.

Some rules to think about when deciding which form to use and which one will be the simplest tax form to file. You will need to use tax form 1040 EZ when your status of filing is single or married and filing together or when taxable income is under 100,000 dollars. This form will also need to be used when you have interest income that is 1,500 dollars or less, or if no dependents will be claimed by you.

For some taxpayers the Simplest tax form to use will be the 1040 A when income that is taxable is under 100,000 dollars or if they claim specific tax credits or have capital gain distributions. This is also the tax form to use when claiming adjustments for IRA contributions or for student loan interest.

When unable to use the 1040 EZ form as the simplest tax form, it will more than likely be required to file using the 1040. Some reasons taxpayers must use this form is because their taxable income is 100,000 dollars or over or when taxpayers are reporting self employment income. If a taxpayer has made money from selling their property, they must file this form. A 1040 form must also be filed when the taxpayer is claiming itemized deductions.

Interested taxpayers can obtain fast and simple access to the IRS forms when needed and learn more about e-filing and learn which form is the simplest tax form to use while visiting the IRS site at www.irs.gov. Tax forms are accessible any time, all day long every day of the week. These forms are normally available online long before they are obtainable as paper forms. To view the tax products or download forms, go to the website and choose the option publications and forms.

Related articles
- Top Ten Most Overlooked Tax Deductions (2009taxes.org)
- Gambling and taxes – what should you report? (2009tax.org)
January 8, 2012
3 Ways in which you can accelerate debt reduction
If you are under severe debts and do not know what to do, then you should understand that debt reduction should be your primary focus. This is because debt reduction can help you reduce stress and levels and leaves you with more cash that you can save or utilize in investments to make money.

Some of the ways in which you can reduce your debts and also make sure that you save are as follows.
1. Plan a budget to manage finances: It is most essential for you to formulate a budget that you can use by which you can assess your financial condition. The budget that you formulate should list all your expenses and also your monthly income. It should have categories to tell you how much you spend and where you spend it. This helps you in getting a clear picture of your finances and also makes you aware about where you are spending and how much you are spending. You must also make provisions in your budget so that you can save a certain amount every month. You must subtract the total expenses from the total income and the amount that you get is to be used to pay off your debts. If you feel that this amount is not sufficient, then you must try to reduce your expenses or increase your income. The budget keeps you motivated and helps in debt reduction as well as savings.
2. Do not spend on what you do not need: It is important for you to know that when you are paying off your debts you are to try and spend as less as possible. This is to be done so that you can save enough to pay off your debts. Every month make a list of the things that you really need and buy only those things. Things that you desire but do not need must be avoided. The best way to refrain yourself form making such purchases is to wait. If you want to buy something that is very expensive wait for a few days to make the purchase. You will gradually realize that the desire to possess it has left you. This will save you a lot of money and you will be able to pay off your debts with ease. After you have finished paying your debts, if you still practice this, you will have enough left for investing and making money.
3. Do not add up more debt: You should try not to add more debt to your existing debt. This is because when you are already paying off debts then it is best that you do not take on new debts. If you take on new debts, then you will have to pay a certain amount of money towards it. This will lead to a shortfall in the amount that you have to pay off towards your current debts. In order to avoid that and accelerate debt reduction you must not take on further debt. This will also help you save and make more money in future.
These are a few ways in which you can tread the path of debt reduction and opt for a new way life where you have enough to save and enough to invest.

Related articles
- Debt Reduction Strategies – That Work (debt-consolidation-2u.com)
- Advantages of Debt Consolidation Loans (debt-consolidation-2u.com)
April 28, 2011

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