April 11, 2010
Options For Filing Your Tax Return
The month of April brings warm weather, major league baseball and the deadline for filing your 2010 income tax return? If you haven’t prepared your income tax, you still have options for filing before the April 15 tax deadline. Here are some of the options for filing your tax return.
The quickest and most efficient way to get your tax return in on time is to sign up for one of the many online tax services. They provide the software so you can file your income tax online. Most online tax services offer the service for free or at a steep discount. Taxpayers can also find tax coupons online by using searching the web using the keyword phrase “tax coupons”.
Another option is to contact the IRS. The IRS provides a free income tax preparation program for individuals earning less than $49,000 who cannot prepare their own federal income tax returns. The IRS Volunteer Income Tax Assistance (VITA) will help taxpayers prepare their income tax and help answer tax questions about special credits, such as Earned Income Tax Credit, Child Tax Credit, and Credit for the Disabled. The program offers free electronic tax filing (e-filing) at most of it’s sites. For more information on TCE, call 1-800-829-1040 or log onto www.irs.gov
Individuals who have tax problems or complicated tax situations should contact an income tax lawyer or tax consultant immediately. Tax lawyers can answer your income tax questions and act as your tax representative to the IRS. If you have serious tax problems, the price for a consultation with a tax attorney is worth it.
If you will not meet the tax deadline, you can file for a tax extension. Taxpayers have 3 choices for filing the income tax extension form (Form 4868, Application For Automatic Extension of Time To File U.S. Individual Tax Return); electronically, by paying part of your tax due with a credit card through an outside service provider listed on the form, or by mail.
If you file your Form 4868 electronically you will receive an acknowledgment or confirmation number and you do not need to mail in Form 4868. If you need to pay additional taxes, you may do so through the outside service provider or through e-file. Be advised that each tax service provider will charge a convenience fee based on the amount of the tax payment.
These are the most common options available for filing your tax return. For more information about income tax or filing an income tax extension visit the IRS website.
source: irs.gov
Filed under Taxes by
January 13, 2010
Your Tax Changes For 2009
The new decade is in full swing and before you know it you’ll be filing your federal income taxes. The tax filing deadline for the tax year 2009 is April 15, 2010. The tax changes for 2009 effect Social Security, standard deductions, mileage rate deductions, exemptions and earned income credit.
Lets start out with the Social Security and Medicare tax changes for 2009. The Medicare tax will remain at 1.45% while Social Security remains at 6.2%. The wage limit, or Social Security maximum, has been raised to $106,800 - an increase of $4,800 over last year’s maximum. The rate of increase continues to outpace inflation, or the cost of living increase in wage you might expect from your employer. The maximum Social Security benefit was increased to $2,399 per month in 2009, and the Cost of Living Adjustment (COLA) was 5.8%.
Next are the standard deduction tax changes for 2009. According to the IRS, around two out of every three taxpayers claim the standard deduction on their income tax returns. Once again, the rates that apply to 2009 have increased from their 2008 levels. The standard deductions that apply in 2009 include:
* Single - $5,700
* Married filing separately - $5,700
* Head of household - $8,350
* Married taxpayers filing jointly / qualifying widow(er)s - $11,400
* Married taxpayers filing separately - $5,700
Here are the tax changes for exemptions. The amount you can deduct for each exemption you can claim on your federal income taxes has increased again in 2009. The 2008 value of $3,500 has increased to $3,650 in 2009. That’s a total increase of $250 over the last two years.
The Mileage Deduction Rates have changed for the 2009 tax year 2009. Business miles have been increased to $.55 per mile. Charitable Services will be $.14 per mile and Medical Travel goes up to $.24 per mile.
The maximum earned income credit for low and middle-income workers and working families with two or more children is $5,028 in 2009, up from $4,824 in 2008. The qualifying income limit for the credit for joint return filers with two or more children is $43,415 in 2009, up from $41,646.
This is just an outline of the tax changes for 2009. For complete details visit the irs website. And remember, if you still haven’t filed or paid the tax for previous year(s) federal income tax, consult with a trusted tax attorney or tax lawyer.
source: money-zine.com
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December 26, 2009
Get Peace Of Mind, Consult A Tax Attorney
Its unfortunate that many taxpayers who owe federal income tax or have tax problems avoid consulting with a tax attorney. When you have a legal problem - you see a lawyer and when you’re sick - you see a doctor. So why is that many of you would rather stick your head in the sand and wait for the IRS to knock on their door than to consult with a tax attorney?
I guess one of the reasons is you’re not aware of the benefits of a tax attorney; maybe it’s because you feel it will cost you a fortune or maybe you just don’t know that a tax attorney is your best ally against the IRS.
Regardles of the reason you have avoided consulting a tax attorney, its time to change and seek tax help. Tax attorneys are schooled in knowing U.S. tax laws, representing you in IRS cases, providing you your legal options, help you restructure your finances to alleviate future tax debts. Perhaps the biggest benefit you can get from consulting a tax attorney is peace of mind.
What you need to understand about a consultation with a tax lawyer is that it is just a consultation. You are not obligated to hire the professional. Tax attorneys work like other lawyers, you pay for a consultation and go from there.
If you owe back taxes or haven’t filed federal income tax statements, the worst thing you can do is to continue to avoid them. It will cost you in the long run. In fact, it could cost you more than money, in extreme cases it could cost you time in jail.
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December 1, 2009
When To Consult An Income Tax Attorney
Every year, American taxpayers perform income tax preparation to file their federal income tax. Individuals and small businesses alike have income tax questions they can’t answer. The solution to this problem is to contact income tax attorneys, income tax lawyers, file online tax or hire an income tax service.
Which solution you choose is based on the complexity of your tax liabilities. Individuals without itemized deductions can use online tax software, an online tax service or do the online tax filing themself. Individuals who have itemized deductions may be better off served by consulting an income tax attorney, income tax lawyer or income tax service to get income tax questions and/or to complete the federal income tax forms.
For those who have unresolved tax disputes with the Internal Revenue Service, consulting with an income tax attorney obviously makes sense. The IRS has the right to withhold tax refunds, garnish wages and even liquidate personal assets to resolve federal income tax debts. Hiring income tax attorneys can be expensive but they specialize in the ability to arbitrate with the IRS . It is not uncommon to have an income tax attorney resolve the tax debt with the IRS at a discount. That tax debt discount is often agreed to be paid in installments instead of a lump sum payment.
Overall, individuals and small businesses are much better off hiring an income tax service or an income tax attorney than completing the forms via an online tax service because the income tax service and income tax attorneys are responsible for protecting their clients. Income tax attorneys and income tax services reputation is staked on the job they do.
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