Tag Archives: United States

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)

Tax Accountant Vs Tax Software

Tax Software

You are one of 50,000,000 Americans who must fill out an income tax return by March 15th … file yours early. (Photo credit: Keijo Knutas)

Why choose a tax accountant over tax software?

Preparing and filing taxes are rarely activities most people look forward to. Whether you need to prepare an individual or business tax return, you may be looking for an easier way to simplify this process. While one option available is for you to prepare your tax return on your own, the fact is that many people will find the process easier to complete when they use either tax software or the services of an accountant. While both options are preferred by many over completing a tax return on your own, there are clear benefits associated with using the services of a tax accountant.

Finding All Deductions
For most individuals and businesses, it is not enough to simply prepare and file a return. The goal also is to minimise the amount of taxes owed and even to maximize a refund. Tax software is designed to help taxpayers identify common tax deductions, but the fact is that you may qualify for additional deductions that are less common. In some cases, you may not be clear about if you qualify for certain deductions or not. Tax software may help you to identify some of these deductions, but you simply cannot beat the benefit associating with having a live professional assist you with the identification of deductions.

Getting Questions Answered
Most tax software programs are designed to be user-friendly, and they have a helpful hints or frequently asked questions section that may assist you if you have questions. However, many questions that taxpayers have are unique. They may fall into what can be perceived as a gray area, or the situation may be unusual and may require expert assistance. The fact is that you need to file your return accurately to avoid penalties. Therefore, working with a live tax expert can be useful to you.

A Look Toward the Future
Furthermore, a tax accountant can help you to plan for the future. When a tax accountant reviews your finances now, he or she may be able to identify different steps that you can take to minimize your tax liability next year or for several years in the future. You may be planning to purchase a new home, to buy office equipment or to make some other change, and there may be tax consequences associated with this. By working with a tax accountant, you will be able to better plan for the future and avoid paying more than necessary on your tax return.

As tax day approaches, one of the best steps that you can take to ensure that your tax return is filed accurately and on time and to ensure that your tax liability is minimized is to work with a professional tax accountant. The best tax accountant to use is one who is experienced and knowledgeable and who has the desire to communicate openly with you about your taxes. Take time today to locate a tax accountant to work with, and you can rest easy knowing that your tax return will receive the personal attention it deserves.

TurboTax And The Earned Income Tax Credit

Individuals who wish to use a tax service may wish to try TurboTax 2013. This is the option that they may need to easily pay their taxes, and be able to get the tax help they can use. One of the items that the individuals can take advantage of is that they can use an earned income credit when they are filing their taxes. An earned income credit allows individual to get money back from child care expenses they may have paid over time. The Earned Income Tax Credit was designed to help low to moderate income people get a refund of some of the expenses they may have paid over the course of the year.

You can use TurboTax 2013 to try to get an EITC that will help to get the refund that may be needed. Make sure to get this program as part of a plan to get the tax credits that you may need. TurboTax 2013 is an option individuals can take advantage of and use.
Some of the Things to know about this credit

Earned Income Tax Credit

Earned Income Tax Credit (Photo credit: LendingMemo)

Make sure that you understand the factors concerning the EITC. The IRS has guidelines set up to help taxpayers determine if they are eligible for the EITC credit. Those who have a qualifying child are likely to be eligible for the credit. The child in question needs to meet certain qualifications. They must be under age 19, be a full time student under age 24, or be permanently disabled. Your son or daughter, or qualifying foster child must pass the residency test.

Other things to be aware of when qualifying for the EITC credit is that you must have a valid social security number in order to file. You must also make sure that the spouse signs off on the credit if you are filing a joint return. Taxpayers must also fall between the ages of 25 and 65 in order to be Earned Income Tax Credit eligible. Income must be generally be earned from working for someone else, you may also be eligible for the credit if you have a small business or run a farm. It is also necessary to have lived in the United States for at least 6 months. Turbotax 2013 can help individuals figure their Earned Income Tax Credit. The alternative would be to have the IRS figure the credit when filing. Make sure you the individual, can find the help that is needed from TurboTax2013 to get the Earned Income Tax Credit.

IRS Tax Adjustments

IRS Tax Adjustments and the Pickle Salesman Photo by Michael Vadon

Taxes in 2014 are set to undergo various adjustments, affecting more than 40 tax provisions. The Revenue Procedure 2013-35, published on 18 November 2013, provides detailed information of each adjustment.

A tax rate of 39.6% will affect singles whose annual income exceeds $406,750 and married couples with joint returns exceeding $457,600. This is up from the current amounts of $400,000 and $450,000 respectively. The Revenue Procedure describes the rates that apply to other thresholds.

In terms of standard deductions for singles or married couples filing separate returns, the amount rises from $6,100 to $6,200. For married couples filing joint returns, it rises from $12,200 to $12,400. On the other hand, the standard deduction that applied for heads-of-households has risen from $8,950 to $9,100.

Both the personal exemption and the alternative minimum tax exemption will also rise. Couples who file jointly and have three or more qualifying children will qualify for a maximum earned credit of $6,143, which is up by $99 from the 2013 amount.
Among the amounts that remain unchanged, include the annual exclusion for gifts, which stands at $14,000, and the annual dollar limit for contribution to an employer–sponsored healthcare FSA, standing at $2,500.

The Revenue Procedure contains other adjustments on the 2014 taxes.

Filing Taxes After October 15

Filing Taxes In 2013 After October 15

If you were unable to pay your taxes earlier in the year, you might have been dreading the October 15th deadline for your deadline extension. Now that the 15th has come and gone, you might realize that you still have not filed – and that major problems may soon occur. Your first impulse should be to file as quickly as possible.

English: Wooden File Cabinet with drawer open....

English: Wooden File Cabinet with drawer open. Taken by me. (Photo credit: Wikipedia)

Luckily, even those who forget to file can still go through the process of filing taxes in 2013. Unfortunately, though, you will be without quite a few of the tools that you would normally use. Most of the web-based providers like TurboTax or TaxAct have shut down for the year as they prepare to transition from taxes 2013 to taxes 2014. E-filing has also been suspended in preparation for the 2014 tax season, meaning that you will not only have to prepare your taxes by hand (or with a desktop-based application), but you will actually have to send in the physical forms yourself.

Once you send in the forms, you will find yourself dealing with penalties. You will owe an additional five percent on top of any money you owe once the deadline passes, along with an additional five percent for each additional month that passes. If you fail to pay on time, you will owe .5% interest on your balance for each month that the balance goes unpaid, further increasing your debt. Added to all of this is a general 3% interest rate on the balance, which might leave you owing far more than you originally thought if you cannot file soon.

Tax Made Easy – 7 Usefull Tips For Business

For many businesses, especially small businesses, taxes can be quite a handful. Moreover, it’s not just paying taxes, it’s knowing what can be taxed and/or deducted. So, we made a list of things every business should know about taxes, along with various tips for your business tax. This will help make our tax life a lot easier.

Make sure you keep Track of Everything

While we realize this may seem like one of the most obvious tips for your business tax, many businesses forget to keep track of everything. Every expense, purchase, deduction, refund and even car mileage –  keep track of them all. This helps you file accurate taxes. Remember, an inaccurate tax filing can lead to legal problems.

Separate your Expenses

One of the most important tips for your business tax is to always set apart your business expenses from your personal ones. Your personal expenses are not tax deductible while your business expenses are. Therefore, always keep them separate so you know how much you can deduct from your taxes.

Be Generous

If you have unsellable software, goods or equipment just sitting idly in your office, donate them to another business or to individuals. This will enable you to be eligible for a number of tax deductions.

Provide Benefits rather than Raises

One of the most basic tips for your business tax is that many goods and services are tax deductible. For example, if you purchase a business car, it’s tax deductible. If you purchase health insurance for your employees, even that is tax deductible. Therefore, instead of giving salary raises at your next performance evaluation, provide benefits instead. Not only do you have happier employees, you save on your taxes.

Make your Car a Business Car

This has got to be one of the best tips for your business tax. Many of us require a car to commute to and from work. In fact, we need the car to travel around the city when we are working. If you require a car, purchase one for ‘business purposes’ and log its miles as a mileage deduction. Since the car is registered to your business, it becomes a business expense and hence, tax deductible.

Pay for your Benefits, Deduct them from your Business Tax

One of the best tips for your business tax may seem rather awkward at first. If you have your own business, one of the best things you can do is hire your spouse. Once you have hired your spouse, provide them health insurance. Inadvertently, you are providing yourself and your family health insurance. Best of all, this is tax deductible. This could just be the most affordable health insurance ever!

Save yourself from Bad Debt

There are many tips for your business tax that are not well known. For example, deducting bad debts. Many businesses provide loans and lines of credit to their customers. For example, clothes bought with a credit card. If you can prove that a customer bought goods and cannot pay it back, if it’s an noncollectable account expense, you can claim for a business tax deduction.

Tax Return Extensions Made Easy

Tax Return Extensions Made Easy

Most people these days have such busy schedules and isn’t it a hassle to personally file our tax returns? We agree that there are better things to fill your day than filing taxes, but yet it is necessary that we do so.

Turbotax 2013 can help you dedicate your time to more important things. If you are not able to file your tax return before a certain time, then software dedicated to filingtax return extension could be just what you need.

Day 093/365 - Tax Time Phat Cash!

Day 093/365 – Tax Time Phat Cash! (Photo credit: Great Beyond)

With a few easy steps you could be on your way doing things aside from filling in complicated and time-consumingtax extensions forms. Out of sight and out of mind.

By using Turbotax2013 and its easy extension service you will be able to file you federal extension right from the comfort of your home. No need to personally go to the tax office.

If you have overdue payments, the quickest way to take care of that is by paying right from your savings or checking account. This user-friendly piece of software allows you to do just that.

Through the easy extensions service you can also print out a PDF copy of the extension you filed, for ease of mind and also the comfort of having a printed out copy.

At any time you can also log into your easy extension account and see the status of your filed extension and whether or not the IRS has accepted it.

You can also gain access to the forms required to file a state extension right from the easy extension online service.

If you have not filed your taxes yet or have not filed an extension, using this software would definitely make it all easier. The ease of use is what sets this software apart from the competition.

Just imagine if you still had to file an extension the old fashioned way using paper. The tedious amount of all the different forms you had to fill out could make any person confused, not to mention the amount of time it would consume.

Making mistakes is human and when filing for an extension, committing errors could prove costly. You can avoid wasting time and unnecessary mistakes by using this software. Do not complicate things for yourself and use this software so you can be sure that everything is filled up correctly.

You must be thinking that all these services and perks must come at a cost, but that’s where you are wrong. This is the best and most user friendly way to get free online tax filing for your tax return extensions.

It is not a surprise why this software stands out from the competition, having the largest user base year after year should say something about how easy to use our solution is.

If accuracy and ease of use is what you seek in software, then I invite you to try Turbotax 2013. This software can provide you an easier experience in filing for a tax return extension. This software has a reputation to uphold and all the positive reviews make it the most popular solution.