Tax Carnival Ecstasy – May 9, 2013

Online Investing?
Online Investing? (Photo credit: Monkey Mash Button)

Welcome to the May 9, 2013 edition of Tax Carnival Ecstasy. We begin with a post from James Powell on credit and benefit changes for 2013 that is quite interesting. Bill Smith looks at how TurboTax has changed in the current year. And finally John Schmoll has a number of online brokers that he likes to use. Hope you enjoy all the articles, bookmark, share on your social sites, and come back real soon for more tax topics.

credits

James Powell presents Tax Credits and Benefits Changes 2013 – How They Will Affect You : Tax Credits posted at Tax Credits, saying, “This post will look at how the changes in tax credits will affect you in 2013.”

filing

Bill Smith presents Innovations For Turbo Tax 2013 posted at 2013 Taxes, saying, “Professional accounting can help business owners save time and resources, and the Turbo Tax 2013 CPA Select edition by Intuit may be the ideal solution for tax filing season.”

retirement

Jebelle presents LIFE is what you make it: HEALTH is WEALTH posted at LIFE is what you make it, saying, “earn even retired”

John Schmoll presents Online Brokerages I Use: OptionsHouse Review posted at Frugal Rules, saying, “There are many online brokerages to use as you look to invest in the stock market. The good ones are there to meet your needs and help make sure you’re doing what you can to be investing for things like retirement.”

tax law

Bill Smith presents Senate Bill On Internet Taxes Passes First Hurdle posted at FastSwings, saying, “Recently, the United States Senate passed a bill concerning Internet tax collection.”

taxes

Bill Smith presents Estimate Your Tax Refund With The Free TurboTax Taxcaster posted at 2013 Taxes, saying, “Tax time is drawing near and like most other Americans, you need to file and prepare your taxes to avoid penalties and late fees from the Internal Revenue Service.”

tips

Bill Smith presents The Benefits Of TurboTax 2013 posted at 2013 Taxes, saying, “When you are planning to file your income tax return, you want simplicity, accuracy, and options. You will have these benefits and more with TurboTax 2013.”

That concludes this edition. Submit your blog article to the next edition of tax carnival ecstasy using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

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Tips On Preventing Tax Refund Identity Theft

Tax Refund Identity Theft

Tax filing tips can help someone prevent tax refund identity theft, but there are tax filing tips that can keep someone from becoming a citric of this crime when he is filing his taxes 2011 or his taxes for any other year.  There is vital information a person must place on every return. The return needs his name and his social security number. He needs to be honest about his income, but if more than one social security return is filed for the same  number may or may not send up a red flag. The IRS cannot check everyone.  The checks or the debit cards need to be sent to their intended recipient.

Many people rely on their tax return to make large purchase. Some people use their taxes to buy new cars or to make other large purchases. If the IRS gets two different terms from the same social security number, it flags the return. IRS agents need to go over the return manually. The need to process a return manually can delay the return for weeks or months. The IRS needs to figure out which return is legitimate and which return needs to be processed.

A taxpayer who has followed the rules all of his life may wonder why  his tax return has undergone such scrutiny. It has to do with the way the organization processes returns. The return that gets handed in first is processed first. A later return coming in later causes an investigation to be launched. There may be times when the mistake comes about because of a transcription error. There are other times when it comes about because someone has stolen the original taxpayers social security number.

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/

Tax Tips For Those Selling Their Homes

If you sell your house there are certain benefits that you may get from the Internal Revenue Service (IRS). Here are a few tax tips for consultants and you on how to benefit.

If you have used the home for two out of the last five years, you can exclude 250,000 dollars from your income, the capital gain is tax free. But you may not exclude the gain if you already did so on another house in the last 5 years.

You must report all gains that cannot be excluded under the $250,000 limit. And if there is a loss on the sale of the home, you cannot deduct it. Sorry.

There are worksheets that help you determine whether you made a gain or loss on the sale. These can be found in IRS publication 523, on the IRS.gov website.

Having more than one house limits you to excluding gains from the sale of your main house only. This is the house that you usually spend most of your time in. Vacation homes cannot excluded from capital gains tax.

First time home-buyers are required to repay the credit if they do not use the property as their primary residence for more than 36 months after getting a home-buyer credit. The details should be filed with your tax returns using form 5405 the year you stopped using the house as your primary residence.

Be sure to let the IRS and the United States Postal Service know about any changes in address so that you do not lose correspondence and refunds from them.

The IRS publication for selling your home, 523, can be found on their website www.IRS.gov or call 800-TAX-FORM (800-829-3676) to receive a copy.

Tax Cautions Delivered By The Internal Revenue Service Concerning Fraudulent Tax Returns

The Internal Revenue Service (IRS) Advises: Scammers might attempt to lure you in the church seat.

“A few con artists are within churches and additional areas, globally, attempting to lure individuals into sending them details by sending out fake tax return 2011 forms that say people have cash coming to them,” the IRS cautions.

“Folks are made to believe that they ought to file 2011 tax returns with the Internal Revenue Service to receive monies from tax credits, rebates and/or federal tax refunds, funds the recipients of these fake forms are not eligible to receive, stated the spokesperson for the Internal Revenue Service,” Mr. Michael Dobzinksi.

“This fraud continues to occur although the deadlines to file a tax return ended in April, months ago,” stated Michael Dobzinksi. “The IRS has placed fliers on church bulletin boards,” says Mr. Dobzinksi.

“In a few instances, individuals are asked to pay a fee – with the scammers disappearing with the payment,” Michael Dobzinksi continued. At times, the con artists attempt to deceive the government, also referred to as “uncle Sam” by requesting funds back from the fake tax returns that were filed: The late-filed 2011 tax return account funds held back really were not withheld,” Mr. Dobzinksi stated.

“It is happening globally, which includes areas such as FL (Florida), with several instances developing in the middle section of the state,” the IRS representative alleged.

Michael Dobzinksi delivered the long-standing caution: “If it seems too good to be real, perhaps it is.”

“A deal that appears too good to be real includes proposals for free cash ‘devoid of needing to provide adequate papers,’” Mr. Dobzinksi stated.

Michael Dobzinksi continues, saying, “These frauds have been showing up in municipal churches nationwide.” “Scammers are steering towards church worshippers, manipulating their good purposes and trustworthiness. These frauds are frequently delivered by way of “word of mouth” amid innocent and goodhearted individuals; tell their acquaintances and family members.

Mr. Dobzinksi stated that he did not know of any church names the scammers are targeting at this time.

If anybody has questions concerning these tax credits for 2011 tax, they ought to go to the Internal Revenue’s actual web site, located at http://www.irs.gov, or they need to contact the IRS by telephone, at their 1-800 #, toll-free, 1-800-829-1040. People can go to their local Internal Revenue office as well and speak with a taxpayer assistant if taxpayers have any questions regarding tax return 2011 and the fake returns saying they are eligible for refunds, rebates or cash back.

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.