With 2012 income tax season on us, many of us are looking for ways to cut the cost of filing a Income Tax Return and get a federal tax refund faster; opting to efile does this for you. Your fastest response once you have filed your federal return comes from submitting that income tax return. This is because the tax form doesn’t have to go into a large pile and wait to be captured – it has already been captured as accurately into the system as you can. It may seem difficult at first, especially if you’ve been making use of a consultant. But so long as you are prepared and keep your focus, you should be able to manage perfectly well on your own. You should have your earlier return handy so that you can use it as a manual, Anyhow. But remember to do appraisals and revise them in the course of the year as important financial events happen in your life. Keep a folder with all your current tax documentation and have a list in which you can tick off documents as they are received and checked for accuracy. Make a note of differences from your earlier tax return which should be incorporated in your new one. By employing free online tax estimation computer software regularly to keep up-to-date with your tax position, your latest appraisal would be a good template for your closing tax return. All you would need to do is to substitute the precise figures for the estimations (you could do this on the estimating software plan and print the ensuing return out for reference). Compare this with the last return you submitted, and you’re ready to efile. Even if you don’t qualify for free use of a Free File program because your AGI (Adjusted Gross Income) for 2011 is over $57,000, you would be well outfitted to use Free File Fillable Form computer software which is available at no charge to all to use to submit their documents to the IRS e-file system. As far as state taxes go, remember that there are World-wide-web sites such as Free1040taxreturn.com which will let you file your state tax return for a minimum charge of beneath $10, irrespective of your adjusted gross income. This is not a charge which would be concerned many individuals. The IRS is on your side in this: They want you to file thru the internet as it helps them keep their collection charges low and means they don’t have to employ so many additional employees just to cope with the peak submitting season. So they encourage the use of this option by making sure that it is available free of charge to most taxpayers. Do remember if you have a problem being able to submit a return that you must ask for an extension earlier than the due date for return and your payment is still due on time – the extension doesn’t apply to the payment, only the return. You should have an precise estimation available to make a payment, as you should just be waiting for last documentation at this stage. Remember if you don’t submit a return at all, the penalties are much higher than if you are just late with your payment, having filed your income tax return or asked for an extension in time. Like so many things in life, submitting a tax return also turns into much more straightforward if you stay on top of it. With the option of becoming able to do free online tax return estimates and E-file a tax return, no one should have any purpose to miss the deadline.
Archive for the ‘Tax News’ Category
The IRS has announced that, as of January first of 2011, they will be lowering their interest rates by 1% as opposed to what the rates were in this last quarter of 2010.
Even though the budget is tight, New Jersey, in a not-so-surprising move, may lift New Jersey state income taxes off of retirees.
Why? The reason is that more and more retirees are determining where they will be spending their retirement years based on whether or not their states have income taxes.
As you are trying to figure out your financial picture and the latest legislation on the extension of the cuts?
In an article published December 16th 2010 called “Highlights of the Tax Package Passed by the Senate” which was written by the Associated Press and published in the Bloomberg Businessweek, a quick and simple overview of the Senate’s tax package is presented.
San Francisco city officials are hoping that tax increases, which focus on sales taxes, will avoid tax increases directly on their citizens like property taxes or added income taxes. Instead city officials have decided to direct the tax increase toward tourists.
Increase Taxes or Cut Spending?
Although their hope is to lessen the blow on their residents when it comes time to file California state taxes, online comments and interviews show strongly mixed feelings to the proposed increases. Supporters of the added tax burden seem to believe that the cities have no choice, but opponents ask why the cities can’t just cut spending.
As November gets closer, the heat is on and according to Wall Street Journal’s John D. McKinnon, it’s not only Federal but also state taxes that are going to affect congressional elections.
State Income Tax On the Rise
McKinnon explains that according to the National Governors Association in 2010, state taxes were raised $24 billion. This is the highest raise in state taxes since 1979. The tax debate has been a big issue, and some candidates have already broken with the Democrat party’s leadership McKinnon says.
Bischoff explains that Congress has decided not to discuss the tax debate until after the election. He lists, for the taxpayer’s convenience, what is unresolved – as well as a list of his predictions of the future outcome on your 1040 tax. As you start to think about your tax return for next year, this information will come in handy.
Stephen Moore of Political Diary revealed this week some frustrating predictions for us. Next year when we e-file taxes, we could be facing some tax hikes. If the Bush tax cuts expire and the sketched out tax raises happen, we could be in for some bad news when we e-file. Taxes are not just going to go up for the rich says Moore. In fact, he shows by the title of his article that he believes the middle class will be paying more tax as well.
The Earned Income Tax Credit (EITC) is a U.S. government program to help low income families and individuals have more money to spend. It gives tax refunds that can range from $457 for individuals to $5,657 for a family of five or more. During this time of economic downturn, this money should be in the hands of people and boosting the economy, not left on the government’s table.
A major battle is brewing in Washington, D.C. , over Bush-era tax cuts due to expire at the close of 2010. The tax cuts were originally passed in 2001, and income tax rates will rise if they are allowed to expire. The 33% income tax rate would increase to 36% , and the top income tax rate would return to 39.6%. Taxes on lower bracket taxpayers would also increase, potentially affecting millions.