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.
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.
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
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.
Important Dates For Filing Your 2013 Tax Return Forms
As the year comes to an end, it is important to start thinking about filing your 2013 taxes. While it is true that taxes are not due on the first of the year, it is still important to understand the important dates on the IRS calendar for 2014. There are a few dates you should know.
January
On the 15th all estimated taxes for the last quarter of 2013 are due. Also the 31st is the deadline for employers to send out tax information. This is also the deadline to file your 2013 tax return forms without penalty if you did not pay your taxes for the previous year.
March
The 17th is the date when corporations must file their taxes by.
April
The 15th is recognized as tax day for individuals and partnerships.
June 16th
If you got an extension on your individual tax return, then this is the date it is due. This only applies to military personnel and people traveling abroad.
September
The 15th is the deadline for business extensions on tax returns to be filed.
October 15th
This is the due date for individuals who were granted a 6 month extension on their tax returns.
Keep in mind that these are only dates that are specifically related to fling your 2013 tax return forms. There will be other dates you will want to keep in mind with your taxes and for these you can turn to the IRS website. Here you will find all the information you need as well as great resources for ensuring you pay your taxes correctly.
2011 taxes are already in the books for most people. It is possible you simply forgot about taxes, were busy, or perhaps did not have the money to pay what you owed. If you have not filed yet, do not panic. If you have the capability, you want to go ahead and do your 2011 taxes as soon as possible.
If you are still not ready, contact the IRS and request an extension for taxes 2011. Depending on your circumstances, the IRS may not penalize you. If you are getting a refund, you should not be penalized at all for your late filing.
The best way to make the filing process go smoothly is to have all your tax information on hand. This can includes receipts, your total income, possible business expenses, and your taxes from last year.
2011 taxes can seem pretty daunting. If you are having trouble figuring out everything yourself, it can often be beneficial to use a program like Turbotax. This can help guide you step by step and show you the math and some of the deductions for taxes 2011 that you should make. Filing sooner means you will get your refund faster, or prevent late fees and interest piling up on money you owe.
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.
Mitt Romney‘s 2012 taxes have been subject to extensive scrutiny and he has been cast a one of the wealthy elite. The truth is percentage wise he pays more in taxes than most American households, which is an effective tax rate.
The average middle class household may be taxed at thirty-five percent, but with deductions and other tax exemptions, a family making between fifty to seventy-five thousand dollars may only pay around six percent. Many families owe no taxes or pay extremely low taxes. Conversely, the tax rates for people making over one-million dollars per year is approximately nineteen percent. Many families in this country benefit from the same tax rates as Romney. Anyone who has investment income is taxed at fifteen percent. He does not belong to a special group with unique privileges; he is taxed at the same rate on capital gains, as any other investor. Tax rates can be interpreted in many ways to make them look as though someone is not paying their share. The truth can become obscured and a regular taxpaying citizen can be painted as a greedy capitalist. The average person works hard and the percentage of their income that goes to taxes is often examined carefully.
Mitt Romney pays his taxes and he may actually pay more than most citizens. The government is currently faced with a huge deficit, unemployment, and myriad economic problems. Instead of looking at his tax rate, people should look at his success rate and how he plans to move this economy forward.
