5 Things You Should Know About Filing a Tax Extension

Written by 2 Comments

Tax Day seems to be suddenly staring you in the face.

You’ve known for a while that it’s been coming, but it still takes you by surprise.

If you can’t seem to track down the documentation that you need, or if you are uncertain that you will be able to file by Tax Day (April 17 in 2012), you may want to file for an extension.

Just about anyone can file for an extension using Form 4868.  You can even file this form electronically.  It’s convenient, and you get an extra six months to prepare your tax return.

However, it is important to note that it’s not as simple as filing some paperwork.

Here are some things you should know about filing a tax extension:
Continue Reading

Extension to File Taxes vs. Amended Tax Return

Written by 2 Comments
taxes

This year, you have until April 17 to file your tax return.

But those extra few days don’t necessarily mean that you are ready.

You might want a little more time to get things together, or you might need to make changes to an already-filed return.  It is important to understand the difference between a tax extension and an amended return.

Tax Filing Extension

Continue Reading

Tax Year 2010: Time to Begin Repaying the 2008 First-Time Homebuyer Tax Credit

Written by 2 Comments

Here in America, we view the housing market as one of the main pillars of the economy.  As a result, when the real estate market moves slowly, our leaders are concerned about what could happen to the economy.  This was a big concern in late 2007 and early 2008 as signs of a housing meltdown really began manifesting.  Even before the financial crisis, leaders were trying to prevent a real estate market collapse, and they began offering a first-time homebuyer tax credit to encourage citizens to buy homes.

Homebuyer Tax Credit 2008: Not a True Tax Credit

Continue Reading

When is it Best to Itemize Your Taxes?

Written by 4 Comments

When life becomes more complicated, so do your taxes. As you claim dependents, purchase a home, or are involved in a major loss or theft you can claim specific items on your taxes that will reduce your tax burden.  Other reasons such as owning your own small business, earning money in more than one state, or if you have investments or property that can be claimed as a loss then your taxes become slightly more difficult to file.  Most single people will file a Form 1040-EZ, but if you have any type of deduction that is greater than the standard deduction it may be best to file using a Form 1040.  So when should you itemize on your taxes? The following will provide some major reasons for itemizing.
Continue Reading

IRS Tax Credits and Deductions to Save on Your Taxes if You Have Kids

Written by 3 Comments

These child tax credits and deductions can mean a tax refund for you!

There are many money-saving tax credits and deductions that can reduce the tax burden on families with children. The Child Tax Credit, Child Care Credit and the Earned Income Credit can all mean tax savings for families with one or more children.  Remember, a tax credit is a dollar-for-dollar reduction of the taxes you owe.
Continue Reading

Free H&R Block At Home Online Premium Edition – Giveaway

Written by

Have you done your taxes yet? Do you know how you will have them prepared?  Well, I’m here to help (maybe).

Our friends at H&R Block have offered up three (3) codes that can be redeemed for their H&R Block At Home Premium Edition. That means three readers will have a chance to win a copy.

A little about H&R Block At Home Online Premium Edition (from H&R Block):

Continue Reading

Which is More Valuable: Tax Deduction or Tax Credit?

Written by 12 Comments

As Tax Day draws closer, many are looking for documentation and trying to figure out whether they are taking a deduction or credit for each item that they hope will bring a tax advantage.  Understanding the difference between a tax deduction and a tax credit is important — especially when you stop to consider that one is more valuable than the other.

Is That a Deduction or a Credit?

The difference between a tax deduction and a tax credit can be expressed by the way it affects your taxes.
Continue Reading

Changes on the 1040 IRS Tax Form this Year…How Does It Affect You?

Written by 2 Comments

It’s that time of year again! Sometime in the next few months you may be preparing, or having someone else prepare, a 1040 tax return form for 2010.  First be aware of some changes that have been made since last year, says “the tax guy” from Smart Money.

First of all, in case you haven’t heard, the deadline for filing IRS taxes is a smidgen later this year.  It will be April 18th because Emancipation Day, a holiday celebrated in Washington, D.C., falls on April 15th this year.

Your tax preparer may also file electronically this year.  Congress has passed laws that are pressuring them to e-file, and it’s safe to say this is the direction we are going as a country.  On that note, you may also have noticed that your annual year-end 1040 booklet from the IRS never showed up.  It won’t.  Ever.  Again.  2009 was the last year it was mailed out.  If you miss it, you can still find it at IRS.gov and at their walk-in taxpayer assistance centers or participating libraries and post offices.
Continue Reading

Love and Taxes – Tax Filing Date Changed to February 14 For Some Tax Filers

Written by Leave a Comment

Ahh, love is in the air! Valentine’s Day is just around the corner.  What better way to celebrate than by filing your taxes…

What?!?

No, I don’t seriously expect you to celebrate Valentine’s Day by filing your taxes (unless that’s your thing, then hey, by all means).

Due to late changes in the tax laws at the end of 2010 (the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act Of 2010 enacted Dec. 17), the IRS will be delaying the first day to file taxes for some taxpayers to February 14th, 2011.  The IRS needs extra to update some of their systems to accommodate the tax laws.
Continue Reading

Do You Need to Adjust Your Tax Withholding?

Written by 4 Comments

With yet another tax season under way, it is time to evaluate your tax withholding and determine whether or not you should adjust it. There are a number of reasons to consider changing your tax withholding:

Life Changes

Major life changes might mean a necessary change in your withholding.  Marriage, divorce, death of a dependent, and the birth of a child are all life changes that can result in a need to change the number of exemptions that you claim on your W-4.  This change will mean a difference in your withholdings.

You Ended Up with a Big Refund

Continue Reading