IRS
Efile
1040
Tax
Preparation
Online
Home
Page
next page
Top
10
Reasons
to
efile
efile
Services
Provided
Tax
Resources
Favorite
Places
About
Who
We
Are
Code
of
Ethics
Policy
Web
Ring
Exchange
Web
Link
Exchange
Tax
Instructions
and
Publications
Available
for
Free
Downloads
for
Support
efile
States
Available
and
Downloads
e-file
Site
Requirements
How
to
Get
efile
Started
Tax
Materials
Needed
to
efile
|
Online Tax Return Preparation
Tax Software Online for your Individual Taxes Return
Efile IRS Federal 1040 1040A 1040EZ & State Tax Returns
all for one low price online,
save
$ dollars $
do your own taxes yourself, it just to easily done by you !
Tax preparation made simple, reliable, more accurate, faster refund and safe.
CHECK LIST AND INFORMATION
TAX PREPARATION FOR THE INDIVIDUAL
Use this checklist as your important personal guide to compiling your tax documents.
It is not a legal document, but it may, however, save you time and remind you which
tax documents you've accrued throughout the year.
IRS CIRCULAR 230 DISCLOSURE:
Any Federal tax information contained herein is not written for the purpose of
avoiding any penalties asserted under the Internal Revenue Code. The following
material contains Federal tax information and is written to support the promotion
or marketing for the general public and in no way should the material herein be
considered tax advice to replace the Internal Revenue Code. The reader’s particular
individual tax preparation circumstances should be considered with respect to
the transaction or matter addressed herein before attempting to interrupt the
Internal Revenue Code or avoid any penalties asserted under the Internal Revenue Code.
This information below is a summary of a few facts for the average taxpayer.
According to the IRS
the Top 10 Mistakes Uncovered While Preparing a Tax Return Are:
- Taxpayer identification numbers or names for dependents that don't match IRS or Social Security Administration records, which results in the disallowance of exemptions;
- Taxpayer identification numbers or names for dependents that don't match IRS or SSA records, resulting in the agency not allowing all or part of the child tax credit;
- The primary Social Security number is incorrect or illegible;
- Dependent's last name has to be corrected;
- Earned income credit is figured or entered incorrectly;
- SSN for child(ren) who qualify for earned income credit don't match SSA records;
- Child tax credit is figured incorrectly;
- Taxable amount of Social Security benefits is figured incorrectly;
- Refund amount or the amount owed is figured incorrectly; and
- The information reported prompted the IRS to recalculate the tax using the filing status for a single person.
Extensions Buy Time but Cost Money
If you file an extension, interest accrues on your balance due, and the amount you owe dear Uncle Sam, could increase. However, filing an extension does not increase or decrease your chance of being audited. And if you don't owe anything, you aren't penalized at all. But if you fail to file within three years, you lose any refund you are due.
This means you need to file your
2006 return by April 15, 2010
2007 Return by April 15, 2011
2008 return by April 15, 2012
and
2009 Return by April 15, 2013
in order to claim a refund.
Take Interest in Prepaying Your Extension
When you file for an extension, you are not required to make any prepayments. However, if you don't pay at least 90 percent of your total tax bill at (or before) the time you file Form 4868, you will owe a late payment penalty. You will also owe interest on the entire balance due (even if it's less than 10 percent of the tax). You are required to list on the extension form the amount of your estimated income and tax liability. But if you're able to submit at least a partial payment when you send your extension, whatever money you send with it reduces the amount of money you pay the late penalty and interest on.
If you don't prepay and you miss the October 15 extension filing date, you'd better start saving. Even though you filed an extension, penalties are retroactive to April 15 when you miss the October 15 deadline. Your penalty for late filing is calculated at five percent of the amount owed per month, while your penalty for late payment of taxes is calculated at 0.5 percent of the amount owed. Your maximum combined late filing/late payment penalty is five percent of the amount owed per month. And your penalties continue to accrue until a maximum penalty of 25 percent of the balance due is reached. Interest continues to accrue on the unpaid balance until it is paid.
Quarterly Payments Prevent Annual Surprises
As a self-employed individual, you must estimate your income and self-employment taxes and pay them quarterly. You generally must pay at least the lesser of (1) 90 percent of your current year tax, or (2) 100 percent of your prior year tax.
Make Amends to the IRS
If you didn't file last year, it isn't too late to make it right. Even if you don't owe for last year, filing now ensures you'll get the refund the IRS owes you. And if you owe taxes, the sooner you file the less you'll accrue in penalties and interest.
Don't Bank on the IRS' Tax Advice
Like most governmental entities, the IRS is composed of many individuals. And although IRS employees dispense opinions about tax issues, the IRS will not necessarily stand behind their information if it is wrong. If you receive questionable information, be sure to get a second opinion from another tax professional.
Marriage Creates a New Paper Trail
Marriage changes numerous aspects of life, including your tax situation. As former single people, you must now file your taxes as married filing jointly or married filing separately, whichever works to your advantage taxwise. Check with a tax preparer for advice.
Stock Sales Require Proper Reporting
If a friend or family member gives you a gift, the IRS doesn't need to know about it. But if you sell someone stock, securities or other assets, you've created a taxable transaction. You must report proceeds from broker transactions on a sale on Schedule D when you receive a From 1099-B.
Tax Time is No Time for Procrastination
Paying the IRS isn't usually something people like to do early. However, it is a good idea to file your taxes before the April 15 deadline. Whether you file at the post office or on the Web, you'll avoid traffic and hassles. And if the IRS rejects your return, you'll still have time to correct the mistake.
Even if you don't have the money to pay your tax liability, file your return on time. Your penalties are less if you file without making a payment than if you don't file at all.
The Tax Perks of Active Duty
As an active-duty military person, you receive special benefits, such as a housing allowance, which are shown on your LES. You are also considered a resident of the state that is your home of record, regardless of where you serve. Many states have special rules that determine how you are taxed, be sure to check your tax advisor.
Bankruptcy is Nontaxable
Bankruptcy is not a taxable event on your return, assuming that you filed a Chapter 7 or 11bankruptcy. If you filed Chapter 13 bankruptcy, report your income and expenses on your return. You can exclude any discharge of debt, but you must file Form 982.
Beware the Ballooning Refund
So this year's tax return seemed like a windfall? If you purchased a house or made a lifestyle change that significantly increased your tax refund, you may wish to re-examine your Form W-4 to adjust your withholding amount. By correcting your withholding accordingly, you'll reduce the amount of your interest-free loan to the government and increase this year's take-home pay.
The Most Taxing of Tax Errors
People often make mistakes entering calculations for the earned income credit. The mistakes run from simple math errors and selecting an incorrect credit amount from the table to claiming a credit for which you are not entitled. When calculating the earned income credit, read the instructions carefully -and follow them to the letter.
Honey, We Forgot to Claim the Kids!
If you already sent in your taxes and realized that you forgot to report some income, expenses or dependents, you can prepare an amended return on Form 1040X. This allows you to indicate changes to income, dependents or expenses. When you do this, you calculate a new tax liability and compare it to the old tax liability. Don't forget to take advantage of additional withholding and credits associated with the dependents.
Rebuilding Your Paper Trail
If you're ready to sit down and prepare your tax return, and you've lost your records, don't panic. If you've lost your W-2, contact your employer for another. If you cannot get one before you file, use the information from your last pay stub for the year and prepare Form 4852. If you've lost receipts, reconstruct the amounts as best you can. If you obtain additional substantiation after you've filed, you can file an amended return if the numbers you reported weren't accurate.
Act Now to Reduce Taxes Later
The clock reads 11:54 p.m. You are squealing around corners on two wheels, running red lights like you're color blind and flying up straight-aways with reckless abandon, and all for one cause - operation: tax day.
You park the car in a bewildered state on the lawn of the post office and sprint for the doors, carrying your precious tax cargo like a running back would his pigskin. You make it inside just in time to drop your return in the slot, wolf down a complimentary stale cookie and chug a cup of luke-warm coffee. A feeling of relief immediately consumes your entire body. You can finally put your tax worries away for another year.
Or can you?
For the smart consumer, taxes are a year-round event. By taking a few simple steps now and throughout the year, you can save yourself a lot of heartache, and most importantly, money, later.
Keeping good tax records is absolutely, 100 percent, the most important step taxpayers can make in planning for next year. If you start from the very beginning, and make a habit of it, there's no easier way to potentially decrease your tax liability.
If you fail to keep good tax records during the year, chances are you will be paying more taxes than you need to because you have forgotten some deductions in the rush to get organized at the end of the year.
And make sure you write down all of your potential deductions. It's always better to have too much information than too little.
Along with record keeping, it's important to think about what potential life events could occur in the upcoming year. Will you be moving, finding a new job or adding another member to your family? All of these events would have significant tax implications on your situation.
It's important to think about things that could happen in your life and then alter your tax withholding appropriately. If you plan on having a baby, for instance, you might want to think about making adjustments in your withholding, even before the baby is born.
Although there are numerous practices to lower your tax liability, it's important not to lose site of some of the simplest ways. Using dependable tax records and timely adjustments to your withholdings, you can definitely enhance your chances of coming out on top during tax time. And, hopefully, avoid that panicked late-night trip to the post office on next year's tax day!
Single Parenthood Offers Modest Tax Benefits
Single parents often qualify for head of household status, which offers a higher standard deduction and more favorable tax rates than the single status. Also, single parents, like married couples, can take advantage of the earned income credit, childcare credit, and the child tax credit.
Claiming Not-So-Typical Dependents
You can write off as dependents people of any age who have lived with you an entire year, provided you can demonstrate they meet the five dependency tests. Each dependent allows you to reduce your income by $3,100.00, for 2004, $3,200.00 for 2005 and $3,300.00 for 2006. But the allowed amounts are reduced for high-income taxpayers.
File Electronically for a Speedy Return
Even if you prepare your own tax return, you might consider filing your return electronically. E-filing is quicker than mailing your return and waiting for a check. If you're a do-it-yourselfer, you can prepare and file your return online here at http://www.frietax.com. If you're not getting a refund, you can pay your balance due via credit card by calling 1-800-2PAY-TAX (1-800-272-9829) or 1-888-PAY-1040 (1-888-729-1040). You may also pay by using www.PAY1040.com or www.officialpayments.com. Your credit card issuer will charge you a convenience fee based on the amount of the payment, in addition to the fee for using this service. Both systems accept American Express, Discover, MasterCard, and Visa.
U.S. Income Taxing on Foreigners
International taxes are a complicated process for those in the U.S. on work or student visas. For example, depending on your status you may be required to file Form 1040NR or may be eligible to file Form 1040. We recommend you see a tax professional to determine the best method of filing and how treaty provisions may affect your taxes.
Determining Who's Head of the Household
If you lived with your spouse all year or any part of the last six months of the year, neither one of you will qualify for head of household status. If you didn't live together any of the last half of the year, the taxpayer who provided more than half the cost for keeping up the home for one or more children may file using the head of household status. It's possible for you both to qualify, but you would both have had to provide a household for separate children.
Married Couples Have Multiple Filing Options
Married couples have three filing choices: married, filing jointly; married, filing separately; or even filing as unmarried. To file as unmarried, you must have lived apart from your spouse for the last six months of the year, have a dependent child living with you, and provide more than half of the support for the household.
The Taxing Side of Marriage
If you plan to get married soon, compare the amount of tax you'll pay as two single taxpayers with the amount you would pay as a married couple. In some situations, the tax on a joint return is higher than it would be on two separate returns. The closer the spouses' incomes, the larger the marriage penalty. Your tax professional can help in planning to avoid a large difference in your tax situation.
|
