Category Archives: H&R Block

H&R Block’s Message To Trump: We Want A Simpler Tax Code Too

It appears that Trump, the Republican front runner in the 2016 presidential election, is going after H&R Block via one of his many campaign rants. H&R Block’s Message To Trump is quite simple. He says that he wants the federal government to change the tax code so much that it puts H&R Block out of business.

The ability to make the federal tax code easier to understand has always prompted public debate. For the last twenty years, Steve Forbes has proposed a flat tax that requires just a one page tax return.

However, the United States tax code is still very hard for the average person to decipher because it has so many types of deductions, credits, exemptions and brackets to understand.

This image depicts the total tax revenue (not ...

This image depicts the total tax revenue (not adjusted for inflation) for the U.S. federal government from 1980 to 2009 compared to the amount of revenue coming from individual income taxes. The data comes from the Office of Management and Budget’s record of the ‘Budget of the US Government FY 2011’, specifically the ‘Historical Tables, Table 2.1.’ The information is also here. (Photo credit: Wikipedia)

Last year, one out of every seven taxpayers had their taxes prepared by H&R Block. The company had about 17 percent of the physical tax preparation market share, and about 12 percent downloaded its software to file taxes digitally.

Thus, Trump feels that H&R Block is successful because no one understands the federal tax code. He believes that H&R Block doesn’t want the code to be changed for this reason.

Quite naturally, H&R Block denies this assertion. Its CEO, Bill Cobb, says that his company doesn’t benefit because of the current tax code. He believes that Congress has issued numerous programs that help Americans, but they can’t take advantage of them until their annual taxes are filed. He also says the code is very complex, and his company undergoes advanced training as a result. Cobb, however, agrees that the law could be changed to make things easier for everyone involved.

However, Cobb’s company was recently criticized for another tax reason. The media says that H&R Block wants to make it hard for taxpayers who want to file their own taxes to prove eligibility for the Earned Income Tax Credit. However, the company claims that it just wants these filers to have the same rights as their paying customers, who by the way, have to file with a complicated tax form. The company also says that it wants to decrease the amount of refunds that the government pays on fraudulent tax forms. This amount is about $16 to $19 billion annually.

It doesn’t look like the federal tax code will change anytime soon, and appears that H&R Block won’t be going out of business either. Since it isn’t regulated as a savings and loan holding company anymore, its balance sheet looks much better. The company’s shares actually went up when it announced a new capital plan.

Trump is on the campaign trail, and HR & Block is still preparing taxes and getting ready for tax season. In addition, taxpayers still need help preparing their taxes. As a result of the Affordable Care Act, taxpayers can look forward to getting their W-2s and a 1095B or C. This is an additional form that says they have Obamacare. But the CEO of H&R Block believes that his company is ready because of the extra training received.

H&R Block Still Bows To The Expertise Of TurboTax

There is a simple reality that people seek from tax preparation software. You want to be sure you are getting the maximum tax refund with the easiest time doing so, but not having to hire someone or be a tax expert in order to do so. Until only a few years ago people would pay around 250 dollars to have someone prepare their taxes, which would take them less than an hour. I then discovered that these professionals use the same software that I can use online. The days of using tax preparers became numbered in my opinion, as I stopped using them. While you may still need to use a preparer depending on what deductions you have to write off and document, you can usually go without this expense nowadays.

There are many wonderful options on the Internet for people to use if you use a Mac or some other type of personal computer. However, H&R Block and Turbo Tax from Intuit are always going to be two of the best, even if they are currently contending. Not only do these tax preparation apps come in many different flavors, they are designed to be easy and quick to use for even the least computer literate person. These tax programs assist you in finding all the information you need to do your taxes with as little fuss as necessary.

Accuracy is definitely something that is the most important factor about doing your taxes. You will not find a more accurate way to do them than with these great tax programs. You simply need to enter your income in the form of a W-2, mortgage interest, college tuition expensives, dividends and interest income and anything else you can deduct. The tax programs then come back with the exact information you need, and better yet, you can use it in the program afterwards to file your own taxes!

The thing to remember with these programs is that they are so sophisticated that you might end up saving more money and getting a larger tax refund than if you went to a professional tax preparer. So, please be sure that when tax season comes around you take advantage of one of these great tax programs. Your bank account will thank you.

Filing Confusion Faced By U.S. Citizens Living Abroad, June Deadline

Expats wondering about filing and health care requirements, have the opportunity of taking advantage of the expert advice and assistance offered to them by H&R Block, who estimate 1 in 3 expats haven’t filed a 2013 return. They are facing a filing deadline of June 16th this year.

To be of the greatest help to these taxpayers, H&R Block last season launched a remote filing service, and for this tax season, expanding it even more.

Roland Sabates, who is the director of the expat filing services offered by H&R Block has said “U.S. expats may miss many things, but the tax deadline should not be one of them”.

To understand their U.S. tax obligations, there are three questions that expats should be answering:

Are they required to file?
Which foreign assets must they report and how does money in foreign accounts get reported?
What is their responsibility to maintain health insurance, which is new this year?
Know the filing requirements

Regardless of wherever they may be living, for 2013, the minimum income requirements for filing are $10,000 for single filers, and $20,000 for married filers. Some taxpayers possibly can exclude all or some of the income earned abroad, which might offset taxes owed the United States.

Those working abroad unable to file by June 16th can file an extension moving their deadline to October 15th. They should know that on any balance from the filing deadline April 15th, interest will accrue.

Know the rules and regulations regarding the reporting of money in foreign accounts and assets

If at any time during the year an account owned or controlled by a U.S. citizen has a combined value exceeding $10,000, they must file an FBAR which is a foreign bank account reporting form. They must by June 30th submit this form to the Department of Treasury, and also include this info with the next tax return which will be due on June 16th, filing on Form 8938.

Also, by June 16th, taxpayers have to report data regarding ownership interests in foreign businesses and any securities not in any account.

Sabates has said that “it is important all the tax deductions and credits qualified for are claimed by these taxpayers”.

Understand health insurance obligations

For the most part, in 2014, the majority of U.S. citizens will be required to have health insurance. All should carefully check whether or not this applies to them.

Unless an exemption applies, the taxpayer will have to get themselves health insurance.

H&R Block stands ready with offices in over 14 US countries and territories to offer their experienced and excellent services.

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 Preparation Reviews

Tax Preparation Reviews

TurboTax has always been very popular and a best selling tax preparation product. Clients continue to use TurboTax every year as it is easy to use. The reasons are very obvious; Turbo Tax directs you through the entire process step by step with frequent popup and assistance tips easing the process for you at your own ease and pace. One can work on the return any time during day or night, and also do it in go, or come back and continue after a few minutes here or there.

Tax Preparation Reviews

Tax (Photo credit: 401(K) 2012)

H&R Block is another leading and top selling product in tax preparation; that has built its own reputation on popularity, reliability and simplicity. Thousands of people use H&R Block to prepare their State and Federal tax returns each year as they trust the professionals. Some features include Tax Tips, along with a great knowledge center that offers useful information on how to increase your tax refund. A free Tax Calculator and a Tax Estimator for various purposes helping you to compute your tax figures easily. Online help from the H&R Block professionals is at your fingertips at any point of time, and uncomplicated forms with step by step assistance ease you through the tax return process.

TaxSimple is yet another tax return software that has constantly served the very financial industry. Their aim has always been to offer world-class tax return software services and solutions to meet all the income tax requirements. Each and every TaxSimple package represents an exclusive approach of managing financial data and tax with an utmost level of productivity.

CompleteTax is also a quick and simple way to prepare your taxes online. Developed typically for do-it-yourself taxpayer, it is one of the Internet-based programs that prepare both federal as well as home state income tax returns for you, with free e-filing.

How to Settle Tax Debt for Less

How to Settle Tax Debt for Less

If you wish to settle down tax debt for less than there is only one common way to do so: simply with an offer in compromise; which means the IRS will agree to let you reimburse less than the actual amount to you want to pay. Though you can settle your tax debt for less, it is essential to bear in mind that you might not meet the criteria for an offer in compromise. The IRS accepts just about 15% of those that they receive

How to Settle Tax Debt for Less

Wipe our Debt (Photo credit: Images_of_Money)

There are various situations when you are able to settle for less. They are:

  • Doubt as to liability- This is actually when you are not found at fault for the debt that has been considered.
  • Doubt as to collectability- Here you just cannot pay the tax debt now, and there is absolutely no reason to think that this can change in the future.

If you are keen in submitting an offer in compromise you have several steps to take. To begin with, you first have to complete Form 656, and then offer in compromise and also Form 433-A, besides this application fee of $150 as IRS requests.

Most of the experts advise that you must wait at least 2 to 3 months to hear on your offer in compromise. You must not be surprised if it even takes the IRS a year, though – this is pretty common.

If you think that you meet the criteria for an offer in compromise, you might want to appoint a professional so as to make a final decision. A well experienced professional, who is aware of how settle tax debt for less, will surely be able to help you from start to finish. The major benefit of this is you get advice from an expert who has experienced and was successful in this before.