Tag Archives: IRS tax forms

Why TurboTax 2014 Is So Simple

When you enter you username and password for the TurboTax login, you are going to have the chance to get your taxes done in a record amount time. Studies have shown that the time to prepare your taxes is greatly reduced when using online tax software like TurboTax. You want to have a tax assistant that is going to allow you to finish your taxes without feeling as though you are going to run out of time even if April 15th is approaching. The tax programs of today make your life much easier. And remember that you can use Intuit’s TurboTax program to do any kind of tax return that is needed, from the simple return to the most complicated.

The Simple Return

When you are doing a simple return (like a 1040EZ) on the program, you are going to be able to get it done quickly because you may only have one W-2. More than likely you will also not have to pay to file your Federal tax return. You can enter your information easily, and you will be able to submit your documents without problems. Also, you will be able to enter all your information for getting your refund back, select the best form of payment for you. This is going to get the money back to you quickly, and you will be able to get the process done in a matter of days if not hours.

Complicated Returns

When you are doing more complicated returns, TurboTax is going to ask you for all the information that must be entered to get these returns done. You will probably need to purchase a little bit more expense package, like TurboTax Deluxe. The program is going to ask for all supporting documentation so that you can take all deductions, and you will be asked to enter all the deductions that you can take. This is going to simplify the process, and you can log into TurboTax  any time in the future to keep working on your taxes if filing takes more than one session. The program saves all your progress, and the program will remind you how much longer you have to get your taxes done.

Extensions

You can also use the program to file a tax extension when you know that you need more time. You can file the extension (form 1040X) through the program, and the program will get a response when the IRS receives your request. You will be told how much longer you have to get your taxes done, and you will not have to worry about missing your deadline. An extra 6 months can make a big difference in the accuracy of your return and reducing your chance of getting audited. Make sure to pay any estimated tax due before the original deadline for the tax season.

Printing Your Records

When you are done with your taxes, you will need to print your paperwork for your own records. You can also save a PDF version on a drive that you backup. The paperwork that you keep is going to be proof that you filed your taxes, and you will be able to file your taxes much more easily in the future when you have your old return. Future TurboTax versions will seek out and import prior returns on your hard-drive, saving you time in entering the basic personal and work details.

If you are going to use an online program to file your taxes, you must remember that this program is going to do most of the work for you. It makes your life easier, and it is going to make it easier for you to get them done as fast as possible. Accuracy and speed make for a great tax filing experience.

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Form 990 Redesign for Tax Year 2008 (Filed in 2009)

On December 20, 2007, the IRS released a redesigned Form 990, Return of Organization Exempt from Income Tax, for tax year 2008 (to be filed in 2009 and later years). The new form incorporates comments and suggestions from the over 650 e-mails and letters received during the comment period, which closed on September 14, 2007.

The redesign of Form 990 is based on three guiding principles: enhancing transparency, promoting tax compliance, and minimizing the burden on the filing organization.

Additional information:

  • Press release (IR-2007-204)
  • Overview of Form 990 redesign
  • Background paper on Form 990 redesign
  • Form 990 Redesign Forms and Highlights
  • Frequently Asked Questions
  • Discussion Draft (June 14, 2007)
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Top Five Reasons To Adjust Your Withholding In 2013

Adjust Your Withholding

taxes (Photo credit: 401(K) 2013)

Your withholding is the amount of money you have taken out of each paycheck to apply toward income taxes.  When your taxes are filed at the end of the year, any amount that the Internal Revenue Service withheld is credited toward your tax bill.  I, like many others, am unable to afford my own certified public accountant, and just hope that  the amount withdrawn from my income will match up to the total taxes I owe.  Usually that isn’t the case, but luckily, up until this point, I’ve only overpaid and earned a refund back from the IRS.  Those who underpay end up getting a stiff bill, and may end up having to pay penalties as well.

According to the IRS, the average individual tax refund in 2012 was $2700.  That calculates out to an average individual overpayment to the IRS of $225 per month.  I have learned through a friend who uses a CPA from Burkett, that though some of us are accustomed to settling up during tax season, it is usually more beneficial for a taxpayer to calculate a withholding amount accurately in the beginning of the year.  If you got a refund this tax season, you were, essentially, giving the government an interest-free loan.  They wouldn’t do you a favor like that! This money may serve you better throughout the year paying down debt or accruing interest in a savings account.  On the flipside, if you calculated your withholding amount improperly and you had to pay money out of pocket to the IRS during tax season, you may have suffered financially for it.

If you are having trouble determining how to make your withholding amount more accurate, or if you are receiving payment from anything other than a standard paycheck (such as distributions eligible to be rolled over into a qualified retirement or annuity plan) you may want to discuss your situation with a qualified CPA.  Though it can be expensive, in some cases it can also be worth it.  Certified public accountants with tax experience can make sure that you’re doing the right things to put yourself in the best position when tax season rolls around, whether that’s adjusting your withholding, or something else altogether.  Sometimes being self-employed, owning your own business, or are dealing with corporate taxes can make things get a little bit muddy, and it can be helpful to address them with a qualified business CPA.  I am a strong believer in the “better to be safe than sorry” approach.

Your withholding amount may have come reasonably close to the amount that you owed for the year, and if that’s the case, you probably don’t need to take any action now.  However, there are a few major life events that can drastically affect the taxes you’ll owe for the year.  If they occur, you will need to remember to file a new W-4 form with your employer to reflect them.  Here are the top five events that may mean you need to fine-tune your withholding:

–          When you get married or divorced.  Married couples are usually eligible for a lower tax rate and certain deductions.  A divorce can mean higher taxes for the earning spouse, and if you do not have enough withheld on your paycheck, you could face penalties and interest. This is one of those situations that can get a little hairy, so definitely consider a tax advisor or CPA if you’re struggling.

–          When you have a child.  Children can be claimed as dependents, and you may also be eligible for certain tax credits.

–          When you can no longer claim a dependent.  If one or more of your children is no longer eligible to be claimed as a dependent, you will lose an exemption and a tax credit.

–          When your employment status changes.  If you get a new job, a second job, become self-employed or become unemployed, the exemptions you want to claim may change.  Depending on how drastic of a change you’re facing, it may be best to consult with a CPA.

–          You purchase a home.  If your mortgage interest and property-tax payments are higher, you may need to increase your allowances.

Whether you’re aiming to increase your withholding or reduce it, submitting a new W-4 to your employer will initiate a change that you should be able to see in your paycheck within a month.  I submitted mine and saw the change on my very next paycheck!  Of course, I am no professional, just a blogger sharing my experience, so if you do have any questions about how you should adjust your withholding amounts, definitely contact a trusted tax advisor or CPA.

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TurboTax Military Edition – The right support for junior military personnel

TurboTax Military Edition

If you’re working in the military, then it’s quite obvious that you’d expect some breaks given how hard you work. You know best of all how difficult life can get when choosing military service. The kind of sacrifices you make for the country and that too after leaving your families behind is anything but easy. It’s indeed a tough life and as a token gesture for this immense duty you’re doing to the nation and its citizens TurboTax has announced a very special TurboTax Military Edition.

This particular Turbo Tax Military Edition has been specifically designed for junior military personnel. It’s special because now all servicemen and women who rank between E-1 to E-5 shall now be able to file their taxes for free including through the extensions. This well extends to the middle of October, 2013. Moreover, those officers who happen to rank between E-6 to E-10 can also go ahead and file for a reduced fee.

  • The foundation of TurboTax and its coming into existence

It’s not just like that that the TurboTax Military Edition came into existence. This particular edition was created by active military personnel and their spouses. These are retired personnel who’re reserved in nature but haven’t failed to identify the tax debt related problems faced by junior military personnel. These problems aren’t always easy to tackle and definitely not welcome to people who’re doing all they can for the nation.

  • The tax debt related problems faced and its solutions

There can be a bizarre number of tax problems which can soon amount to debt. Now, with the national economic scenario as it is, it’d definitely not be an encouraging situation to see the military personnel of the country neck deep in tax debt. Moreover, piling up on tax debt can destabilize any one any day and as military personnel stability at the financial end is more than just required. There are quite a few probable solutions when you rack up tax debt, be it debt settlement or an Offer in Compromise or a payment extension plan. You could also opt for installments. However, all this hassle can be easily avoided now that the TurboTax Military Edition is here.

  • The TurboTax Military Edition helps you avoid tax problems

With the TurboTax Military Edition you actually get access to programs that can walk you through military-related tax issues and situations. These include uniform deductions and PCS, state of residence, and more. Most importantly, this particular program effectively distinguishes between combat pay and basic pay.

  • The manner in which TurboTax generally works

You might be a tad confused about how exactly the TurboTax program works. It’s really easy. In fact, it’s said to work like an interview wherein you begin by answering easy questions and then you go on to fill the right tax forms and that too behind the scene. It depends on what you answer for it’ll reveal which are the deductions and credits you actually need. Most importantly, you’ll get thorough guidance and step by step instructions that’ll help you through your taxes. You’ll also be readily informed about every deduction and credit that applies to you.

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2013 Tax Return Processing Begins Late

2013 Tax Return Processing

IRS, formally known as the Internal Revenue Service, announced the 2013 filing season will open on January 30.  Individual income tax returns will not be reviewed until this date.

The IRS previously planned on allowing individuals to take part in electronic filing eight days earlier, on January 22.  The US congress approved new tax laws which in turn has delayed the start date for filing.  The new tax laws are due to the fact the US has been faced with great financial difficulties.  ATRA, an abbreviation for the American Taxpayer Relief Act, is the bill that was formed and agreed upon between the president and House of Representatives republicans.

2013 Tax Return Processing Begins Late

Taxes (Photo credit: Tax Credits)

The IRS is busy updating tax forms and “completing programming and testing of its processing systems.”  The update and intended improvements should allow the majority of US tax payers to file their tax returns starting January 30.  Some individuals will need additional forms pertaining to business credits, energy credit claims, and property depreciation when filing.  People who need to file regarding these issues can do so in late February or early March.

Steven Miller, commissioner of the IRS has expressed the IRS has worked hard to start tax season as soon as possible.  He continued to say the January 30 date allows ample time for IRS to update their own processing systems. The IRS also made it clear that tax payers who file electronically receive refunds quicker than those who mail in paper forms.

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