The IRS is offering free tax help to taxpayers this weekend. On Saturday, March 26, 2011, nearly 100 IRS offices will be open to help taxpayers resolve tax issues. The location of participating offices is listed on IRS.gov.

“We are opening our doors this Saturday to help taxpayers who may not have a chance to seek assistance during the work week,” said IRS Commissioner Doug Shulman. ” We are very focused on providing services to taxpayers when they want it, where they want it.”

The IRS Saturday Open House hours are from 9 a.m. to 2 p.m. local time. IRS personnel will be on-site to provide taxpayers one-on-one tax help. More than 35,000 taxpayers attended similar events last year resolving more than 95 percent of their tax issues.

IRS personnel will provide free tax help to taxpayers by helping with tax return preparation, answering tax questions, offering tax tips and assisting in tax issue resolution.

In addition to IRS help, community organizations partner with the IRS. Volunteer Income Tax Assistance (VITA) programs assist people who earned $49,000 or less, and Tax Counseling for the Elderly (TCE) programs assist individuals age 60 and over with their 2010 income tax return preparation and electronic filing. Many of these sites have Saturday hours while others offer assistance at various times during the week. Taxpayers can call 800-906-9887 to locate partner sites in their area.

The IRS Saturday Open House is a great opportunity to get IRS tax help, tax tips and answers to your tax questions – for free.

Make note, the IRS expects to open on two additional Saturdays later this year.

source: irs.gov

If you’re like most Americans, filing your income tax can be a daunting task. Just being able to complete the income tax form correctly can be considered a victory. But before filing your income tax return, there are a few good tax tips regarding the tax breaks that were renewed and can be claimed on 2010 returns.

• State and local general sales tax deduction, primarily benefiting people living in areas without state and local income taxes. Claim on Schedule A, Line 5.
• Higher education tuition and fees deduction benefiting parents and students. Claim on Form 8917.
• Educator expense deduction for kindergarten through grade 12 educators with out-of-pocket classroom expenses of up to $250, Claim on Form 1040, Line 23 or Form 1040A Line 16.
• District of Columbia first-time homebuyer credit. Claim on Form 8859

For further information about these changes and for other tips on taxes, visit the IRS website.

source: irs.gov

The IRS tax laws can be extremely complex even to a tax expert, never mind the average taxpayer. When it comes to determining if income is taxable or non-taxable, you may want to leave it up to your tax preparer or accountant. Here are some tax tips that may provide anwers to tax questions related to income.

Most income is considerable taxable but there are exceptions. In fact, there are certain types of income that is either partially taxed or not taxed at all. Here are some tax tips from the IRS to help taxpayers understand about taxable and non-taxable income.

The following items are examples of items that are NOT taxable:

• Adoption Expense Reimbursements for qualifying expenses
• Child support payments
• Gifts, bequests and inheritances
• Workers’ compensation benefits
• Meals and Lodging for the convenience of your employer
• Compensatory Damages awarded for physical injury or physical sickness
• Welfare Benefits
• Cash Rebates from a dealer or manufacturer

Some income may be taxable under certain circumstances, but not taxable in other situations. Examples of items that may or may not be included in your taxable income are:

• Life Insurance If you surrender a life insurance policy for cash, you must include in income any proceeds that are more than the cost of the life insurance policy. Life insurance proceeds, which were paid to you because of the insured person’s death, are not taxable unless the policy was turned over to you for a price.
• Scholarship or Fellowship Grant If you are a candidate for a degree, you can exclude amounts you receive as a qualified scholarship or fellowship. Amounts used for room and board do not qualify.
• Non-cash Income Taxable income may be in a form other than cash. One example of this is bartering,which is an exchange of property or services. The fair market value of goods and services exchanged is fully taxable and must be included as income on Form 1040 of both parties.
• All other items—including income such as wages, salaries, tips and unemployment compensation — are fully taxable and must be included in your income unless it is specifically excluded by law.

These examples are not all-inclusive. For more information, see Publication 525, Taxable and Nontaxable Income, which can be obtained by visiting the IRS website or by calling the IRS at 800-TAX-FORM (800-829-3676). The website also provides a wealth of tax tips, tax help and even get you answers to your tax questions.

source: irs.gov