Tag: Tax deduction

  • File Early With Free TurboTax Online

    It definitely pays to file your taxes early, and according to the IRS about 14 million tax returns had been filed by the end of January, with just over 90 percent of thee filed electronically. These six reasons may help to convince you it’s a good idea to file early using free TurboTax online:

    The average refund last year was about $2,800 and almost 75 percent of tax filers received a refund and of course a tax refund can be used for whatever you need it for.

    Filing taxes with TurboTax early means that the IRS can send your information to FAFSA in plenty of time and this means that you can potentially receive financial aid for college, depending on your income.

    Free TurboTax photo
    Photo by mighty.travels

    Free TurboTax online is accurate and quick to use, and of course it is guaranteed to give you the most refund and to save you money. Standing in line at your local tax preparation office is a thing of the past with TurboTax and the system’s simple to answer questions will allow the program to search through over 350 credits and tax deductions.

    If you file electronically with direct deposit, the IRS expects to issue 90 percent of tax refunds within 21 days, meaning that you can get that much needed tax refund as quickly as possible. You can save up to a couple of months of interest just by paying off debts such as credit cards sooner rather than later.

    Many tax procrastinators make simple mistakes on their ta return such as putting down the wrong social security number or not signing their tax return. It is also very easy to rush through your ta return if you are trying to do it at the last possible minute, and filing your tax return ahead of time can avoid these errors and make sure that you take the time to do everything thoroughly and accurately.

    TurboTax really can save you time and money and get you the biggest possible tax return as quickly as possible. Using free TurboTax online allows you to have more of your money to spend and to file your return completely and accurately.

  • 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 Taxes 2014

    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.

  • Create Your Post College Budget In 6 Easy Steps

    Establish A Post College Budget In Just 6 Steps

    Congratulations on having earned your diploma and on having received a job offer. This time of life is guaranteed to be exciting. Make sure to plan your Post-College Budget.

    As you begin planning your next moves, it is vital to have a budget. How do you create a post-college budget? Following are several things that I discovered after having graduated and started my first adult job.

    Consider Your Monthly Income

    Post College Budget
    Investment (Photo credit: LendingMemo)

    You might have an awesome starting salary, but you should not use this figure to write out your budget. Determine how much you’re going to be bringing in after taxes every month instead. Remember that federal taxes, social security and Medicare are all going to be deducted from your check.

    Employees are going to have to pay 6.2% of their wage earnings, up to minimum wage. A tax rate of 1.45% is paid for Medicare. If you are self-employed, however, these rates are going to be double.

    Next, figure your federal income tax rate according to your projected earnings. You will be surprised by how much is going to be deducted from your check.

    Think About Retirement

    Decide how much you are going to invest in your 401k. Will your employer be matching your 401k? Use this match to your benefit as it is included in your compensation. Invest the minimum in order to receive this match.

    If you are able to, make an immediate effort to max out your 401k. Should you invest with pre-tax money, this is going to lower the rate for your federal income tax at the year’s end. Always use low-cost funds to invest.
    H&R Block gives amazing tips for investing.

    Take Advantage of Pre-Tax Dollars

    Use a Health Savings Account or a Flexible Savings Account to save pre-tax dollars. Do you have forthcoming medical expenses that you can cover with pre-tax money? Braces, contacts, glasses, doctor visits and prescriptions are things that you can use this money for. These savings are automatic.

    Wisely Choose Your Housing

    It is very easy to move into a luxury apartment after graduating. This is what I did. In retrospect, I wish I chose an apartment that was more affordable.

    Housing advice varies. Some people say that you should spend no more than 30% of your earnings for a rental or 28% for your mortgage.

    List Your Monthly Expenses

    List all of the bills that you need to pay each month including sewage, water, rent, Internet, electricity, groceries, cable, car insurance, gym fees, debt payments, renter’s insurance, cell phone services, etc. You will have to allocate you monthly earnings for these expenses. Budgets are used to track and manage this spending.

    Save Money in your Post College Budget!

    Put aside monies to create an emergency fund. You never know when car maintenance issues and other expenses will arise.

    You can also invest in a traditional IRA or ROTH to take your savings plan a bit further.

    Creating a solid financial house early in life will assure you of a comfortable financial future.

  • Tax Filing Tips For Taxes From TurboTax.com

    As the deadline for filing 2013 taxes approaches, beginners are faced with a much bigger challenge. Many of them do not know that there are fines and penalties for missing the deadline. That is because they have never filed tax returns in the past. Mistakes are more likely going to be made, but proper preparation can help to minimize errors. For instance, putting all your financial records for the previous tax year in one place may help.

    When filing for the first time, it is important that you consider getting help from a tax preparer. Alternatively, you can use a tax filing service like TurboTax.com to do your own taxes without help. The service can help you with both state and federal tax filing. TurboTax.com can make the process of filing 2013 taxes a pleasant experience for you. By simply answering a series of simple questions about your finances, TurboTax.com will enable you to claim all the tax deductions, credits and benefits for which you qualify, thereby helping you to increase your tax refund or reduce the amount of tax you are supposed to pay. While experience can teach you everything you need to know about taxes, TurboTax.com can be very helpful to first time tax filers.

    Kara DeFrias
    Kara DeFrias (Photo credit: TEDxCoMo (Columbia, MO))

    During childhood, the word taxes may have meant very little to you. However, taxes may be the most important word in your adult life. To learn more about tax credits, deductions, filing deadlines and other important tax-related information, you may want to visit www.TurboTax.com. The site has everything you need to file your taxes correctly.

  • Why Use a Tax Accountant?

    If you’ve ever tried to do your own taxes by hand, you know just how difficult it can be. If you’re not well-versed with IRS tax codes, you can really be sure that you are getting the maximum amount of deductions and credits that you are entitled to. If you are unsure of how to do a tax return or how to engage in tax planning, hiring a qualified tax accountant could be in your best interests.

    Tax Planning

    Hiring a tax accountant can provide you with the help you need in planning out your taxes. While most people simply go about their business and then file a tax return at the end of the year, others are proactive about saving money on taxes. By taking certain steps throughout the year, you can lower your taxable income and the amount of taxes that you have to pay. If you are running a business, there are a number of deductions that you can take that others are not entitled to. For example, you can deduct any supplies or equipment that you buy from your taxable income. A qualified tax accountant will be able to look at your business situation and determine what areas you could save money in.

    Filing Returns

    In addition to planning out your tax saving strategies, and accountant can also help you file your tax return. At the end of the year, the Internal Revenue Service expects you to file a tax return and report all of your income and expenses. This process can be very confusing if you do not have any experience with it. An accountant will be able to take your financial records and come up with the necessary information for your tax return.

    If you have a business and a personal tax return to handle, separating the two can be difficult. A good tax accountant can help you file both tax returns and make sure that each area of your financial life is divided appropriately.

    Avoiding Audit

    If you do not complete your tax return correctly you were you leave something out, the Internal Revenue Service may audit your return. When an audit occurs, the IRS may disallow certain deductions or credits that you claim if they are not legitimate. A qualified accountant will be able to look at your return and see if anything looks out of the ordinary. Certain items are more likely to trigger audits by the IRS. A good accountant will be able to see if your return looks like it might be selected for audit or if it is fine.

    If you’ve ever tried to do your own taxes by hand, you know just how difficult it can be. If you’re not well-versed with IRS tax codes, you can really be sure that you are getting the maximum amount of deductions and credits that you are entitled to. If you are unsure of how to do a tax return or how to engage in tax planning, hiring a qualified tax accountant could be in your best interests.

    Tax Planning

    Hiring a tax accountant can provide you with the help you need in planning out your taxes. While most people simply go about their business and then file a tax return at the end of the year, others are proactive about saving money on taxes. By taking certain steps throughout the year, you can lower your taxable income and the amount of taxes that you have to pay. If you are running a business, there are a number of deductions that you can take that others are not entitled to. For example, you can deduct any supplies or equipment that you buy from your taxable income. A qualified tax accountant will be able to look at your business situation and determine what areas you could save money in.

    Filing Returns

    In addition to planning out your tax saving strategies, and accountant can also help you file your tax return. At the end of the year, the Internal Revenue Service expects you to file a tax return and report all of your income and expenses. This process can be very confusing if you do not have any experience with it. An accountant will be able to take your financial records and come up with the necessary information for your tax return.

    If you have a business and a personal tax return to handle, separating the two can be difficult. A good tax accountant can help you file both tax returns and make sure that each area of your financial life is divided appropriately.

    Avoiding Audit

    If you do not complete your tax return correctly you were you leave something out, the Internal Revenue Service may audit your return. When an audit occurs, the IRS may disallow certain deductions or credits that you claim if they are not legitimate. A qualified accountant will be able to look at your return and see if anything looks out of the ordinary. Certain items are more likely to trigger audits by the IRS. A good accountant will be able to see if your return looks like it might be selected for audit or if it is fine.

    Considerations

    If you are interested in hiring an accountant to handle your taxes, make sure that you do your homework first. You have to put a lot of faith in an accountant and you do not want to simply hire anyone. Get some referrals and find out how long the accountant has been in business. If you find a good accountant, it can make your life a lot easier overall.

    If you are interested in hiring an accountant to handle your taxes, make sure that you do your homework first. You have to put a lot of faith in an accountant and you do not want to simply hire anyone. Get some referrals and find out how long the accountant has been in business. If you find a good accountant, it can make your life a lot easier overall.

    This article was written by the tax accounting experts at Tax Resolution Centre.  http://www.taxresolutioncentre.ca/

  • The Supreme Court Decision On Healthcare Will Affect Taxes

    The nation waits for the Supreme Court to announce the ruling about health-care. Many wonder how their ruling will change taxes?

    Not only does the Supreme Court decide about the Affordable Care Act, but also taxes. How will their judgement change taxes?

    The law must include tax cuts and increases. Even if the individual mandate is eliminated, the taxes would go on. Unless the Supreme Court eliminates the entire healthcare bill.

    The mandate tax will be the punishment people would owe for not buying insurance. The High Court must decide whether it is considered a penalty or a tax.

    There are important ACA tax cuts for small businesses that will help with purchasing insurance for their workers. There was over a million dollars spent on lawyers and fees to challenge the healthcare law by the NFIB.

    Is it practical to have the subsidy if the Court overthrows the key elements of the reform? It is a sure thing that the NFIB will agree.

    The law contains many tax increases, that includes the excise tax on top-value, employer-sponsored healthcare plans which will start in 2018. There is be a provision that will make it harder for people to itemize medical costs.

    There are a couple of other tax increases. The first increase is a .9% Medicare tax for those making above a certain threshold. This money would finance the elder care health system. The other is the 3.8% tax that households who have non-traditional income will have to bear. Some feel this is a surtax and the real purpose is to bankroll part of the cost of the ACA.

    The Supreme Court decision may hit upper income families hard. In 2013, the two levies would hike taxes on households making $500,000 to $1 million, their taxes would increase by $4,600. For those making more than a million they would pay $41,000 in taxes.

    Even for lower income families, there will be a tax. Married couples making over $250,000 combined, and single taxpayers making $125,000 will face a brand new tax. Households needing to pay these taxes over the next decade are going to double in number, because inflation is not taken into account. It will reach 4.6% from the 2.4% that it is now.

    These tax provision should not be forgotten, even if the Supreme Court leaves them untouched. I think we shall hear about them again.