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More Facts about Tax
February 22nd, 2010 by Avant Shane in Tax Law No Comments

Like any other law, tax law also changes the only difference is that it changes every year which affects our filing of tax return for the year. You can benefit from these changes like you can start to save money because of the change made if not it will be the other way around. Some changes may only take effect for a year or some for many years and other tax laws might be permanent.

Here are some examples of regular changes on tax law one which is regularly changed is the actual income brackets. Many people are not aware that actual income brackets are changed every year. Actual income brackets are changed to avoid increase.  Another good example is the usual mileage rate deduction. This deduction is used to gain reimbursements for the miles driven using their own cars for business purposes, this is usually used by the self-employed. The IRS adjusts this rate most especially when the prices of gas increase abruptly or drastically. In fact, for some years, one mileage rate for part of the year was subjected to taxpayers but a different mileage rate is imposed for other part of the year.

One good thing IRS is doing is that they let the people know of the changes made to the tax law by releasing a publication which provides a detailed overview of the changes. So before filing your taxes for the year make sure that you have read and understood the released publication so you can take note of the changes in the tax law which applies to you. Filing taxes on your own is a bit difficult to do and being updated on the tax law also is difficult but you can hire a professional to file it for you to make sure that you are filing your tax properly. You will need to pay them but this will surely help you save time, avoid being in trouble or avoid an audit.

Whatever way you want to do it, always make sure that you are updated with whatever changes made to the tax law every year and include them by the time you are going to file your tax.

How to check on your federal tax refund
February 5th, 2010 by Georgia in Taxes No Comments

Many people have made plans how to spend their federal tax refund, rather to save it, take a vacation, pay bills, or have money in hand but their refund hasn't arrived .

There is an  IRS toll free number which is 1-800-829-1954 or phone number 1-800-829-4477 24 hours a day,7 days a week  for automated refund information for tax payers who have no internet access , but if you have internet access just go on line to check the status of your refund within 72 hours after IRS has given you notification receipt of your e-file  return.

You may need to give additional information which is on your copy of your return that you filed, such as individual tax payers identification number or social security number, filing status, and the exact dollar amount of your return.

If you use the mail in paper forms, it may take up to 3 to 6 weeks to get your refund but the return information may be available by calling the IRS toll free numbers by using your social security number or tax identification ,filing status , an exact amount of your return.

To figure your itemized deduction you will need to fill in a 1040 schedule A form to itemize all the deductions you are entitled.

Itemized Deductions

Your deductions include:

  • medical expenses
  • dental expenses
  • taxes you paid which include -
  1. state and local
  2. general sales tax
  3. real estate taxes
  4. personal property taxes
  5. interest you've paid on home mortgage (that is a loan on your primary home, or second home that may include first and second mortgages, or home equity loan along with the points if you had refinanced the mortgage that was reported to you on Form-1098)
  6. Mortgage interest that isn't reported on a 1098 which was paid to a person from whom you bought the house from
  7. charity contributions that you can have a written record with name of the charity, date, amount of the contributions that can be in a check or cash
  8. out of the pocket expenses you paid for such as volunteer work, property, clothing, furniture, or gifts.
  • A casual or theft loss can, job expenses,certain miscellaneous items, for example safety shoes, safe deposit box and tax preparation.
Taxable Wages

Enter the total household wages, salaries,and tips made for the fiscal year that should be on your 1099 tax form sent to you from your employer. Taxable interest accumulated during the year, if your receive a taxable refund on your state taxes from the previous year, capital gain distributions, if you exchanged assets in a trade or business, fully taxable pensions and annuities.  If you receive a lump-sum contributions from a profit sharing or retirement plan some of the funds can be taxable if an early distributions is taken and the total amount was not rolled over in a qualified roll over.

*If scribbling your personal details seems too daunting a task, you can always efile.  There are many reputable and easy to use free efile services.

Free IRS e-filing on line
February 5th, 2010 by Georgia in Taxes No Comments

 

Preparing  your taxes has never been as simple and easy

Just prepare, print, and e-file using the free IRS

IRS  will guide you step by step

Free tax forms rather a 1040, 1040A, 1040 EZ, or schedule forms

Most secure and confidential way on your return

 Accuraacy on your return which is checked for errors

Quick and easy electronically filing your return

Fast way to get your refund in 8 to 10 days using direct deposit

Confirmation from IRS within 48 hours on you recepit return

Using free IRS e-file is an option, but using the professional tax services for a fee can be another option

You greatly need to select between utilizing the standard deduction (the flat amount of tax) and or claiming the actual allowable tax deductions which is called as the tax itemizing in each and every year that you file your income tax return. You will save money if in any case that the actual expenses exceeds the standard tax deduction.

Standard Tax Deduction – is the flat amount of allowable tax payment which is deducted from your taxable income if any case that you were able to itemize your taxes. You should not get confused with tax payment exemptions which you are entitled whether you itemize you tax payment and or not (this is if any case that your income exceeds the limitation).

If in any case that you were not able to itemize your tax liabilities, the specific and standard tax deduction within a specific year are posted below:

* $ 5, 450.00 if you are already married yet you file separately * $ 10, 900 if you are already married and file jointly with your spouse and or your widow * $ 8, 000.00 if in any case that you file as the Household Head * $ 5, 450.00 if you file taxes when you are still single

Your standard tax deduction might just be limited if in any case that you were claimed as dependent on somebody else’s end. If you are already over the age of 65 and or legally disabled, you can have the chance to acquire a tax deduction. You are actually entitled with additional tax deduction but it greatly differs and depends on your status.

To successfully distinguish if in any case that you have sufficient tax to be itemized, you can use a specific type of schedule which includes the long term version of the form 1040 to be able to successfully list all allowable expenses. It is also to successfully compare the total sum of the standard tax deduction in filing your status. You can actually itemize if in any case that you’re your allowable tax expenses exceeds the standard tax deduction.

Itemized Tax Deduction: What is it?

You greatly need to select between utilizing the standard deduction (the flat amount of tax) and or claiming the actual allowable tax deductions which is called as the tax itemizing in each and every year that you file your income tax return. You will save money if in any case that the actual expenses exceeds the standard tax deduction.

Standard Tax Deduction – is the flat amount of allowable tax payment which is deducted from your taxable income if any case that you were able to itemize your taxes. You should not get confused with tax payment exemptions which you are entitled whether you itemize you tax payment and or not (this is if any case that your income exceeds the limitation).

If in any case that you were not able to itemize your tax liabilities, the specific and standard tax deduction within a specific year are posted below:

ü $ 5, 450.00 if you are already married yet you file separately

ü $ 10, 900 if you are already married and file jointly with your spouse and or your widow

ü $ 8, 00.00 if in any case that you file as the Household Head

ü $ 5, 450.00 if you file taxes when you are still single

Your standard tax deduction might just be limited if in any case that you were claimed as dependent on somebody else’s end. If you are already over the age of 65 and or legally disabled, you can have the chance to acquire a tax deduction. You are actually entitled with additional tax deduction but it greatly differs and depends on your status.

To successfully distinguish if in any case that you have sufficient tax to be itemized, you can use a specific type of schedule which includes the long term version of the form 1040 to be able to successfully list all allowable expenses. It is also to successfully compare the total sum of the standard tax deduction in filing your status. You can actually itemize if in any case that you’re your allowable tax expenses exceeds the standard tax deduction.