The Debt Ceiling Crisis

The Debt Ceiling Crisis

The Senate has agreed to put off debt ceiling. Yesterday, the Senate voted to approve a measure that suspends the U.S. debt ceiling which translates to our country being able to at least temporarily pay bills.

However, two amendments touted by Republican Sen. Rob Portman (Ohio) were voted down by Democrats who control the Senate. These were supposed to stop some of the chaos in these debates.

The bill, passed by the House previously last week, suspends the $16.4 trillion debt ceiling so that the U.S. can pay bills. Mid-April is the new deadline to make a budget; if not done by this time, lawmakers do not get a paycheck. The last vote was 64-34.

Portman desired to add two amendments to this bill: the first one would necessitate that Congress would cut spending first before being able to raise the debt ceiling, and the second one was hoping to avoid upcoming government shutdowns. Discretionary programs would still be paid for even if Congress didn’t pass bills to pay for them by the beginning of the fiscal year on October 1st.

There was also an enforcement clause: If Congress missed this fiscal year deadline by 120 days, there would be 1% deducted from money for those programs. An additional percentage point would be taken every 90 days.

In the Senate, the vote was 52-46 to table this clause. Three of the Democrats were in support of this.

Since 1997, Portman claims, Congress has not been able to come to an agreement on spending bills. There were government shutdowns in some years, such as 1996.

Also voted down was a proposal by Portman to require any presidential proposal to raise the debt limit be linked to a proposal to cut spending over the next ten years. With such a request would of course, come a request to raise taxes on at least some Americans.

Portman says his measures are one way to take care of the rising amount of unsustainable debt.

Portman also voted against suspending our debt ceiling in order to reduce spending, and therefore, taxes, and prevent the United States from overspending and casting the burden onto our children and grandchildren.

Free Tax Filing For Amended Returns

Free Tax Filing For 2010 Amended Return

Even with the best of intentions, mistakes happen. Sometimes they can be costly. But in the case of amended tax returns, fixing them could be free.

There are any number of reasons why people may want to amend their federal tax return. In addition to correcting simple errors, they may want to take advantage of a new credit, such as the $8,000 first time home buyer tax credit. Or they may have forgotten that lottery win back in July 2010.

IRS Form 1040X, 2005 revision
IRS Form 1040X, 2005 revision (Photo credit: Wikipedia)

Whatever the cause, free tax filing for 2010 amended return is as simple as filling out Form 1040X available from the IRS website or from some online tax preparation applications like FreeTaxUSA or TurboTax. The IRS, however, is not set up to accept electronic filings for Form 1040X, so they will have to be printed out and mailed.

Be sure to have your completed 2010 tax return ready to include any necessary information. In offering free tax filing for a 2010 amended return, many online tax services can provide this information quickly and easily.

Then just fill in the second section of Form 1040X identifying what has changed. Be sure and download any additional credit IRS forms needed to explain your claim. Explain why you are amending the return, print the form and send it to the appropriate IRS address. Be sure and include any documentation to support your claim, such as a bill of sale, copy of a deed and such.

If you have used online services such as TurboTax or H&R Block, check for free services offered in filing for a 2010 amended return. Other services, such as filing for state amended returns, may require a fee.

Eco Products That Are Tax Deductible

Eco Products That Are Tax Deductible

If you are wondering if eco products are tax deductible, maybe this will help you.

There are plenty of things that can help you save money if you go green. In 2011 you could write off home energy efficiency improvements. The tax credit was for 10 percent of how much you paid for the equipment and it could be up to $500 for asphalt or new metal roofs, energy efficient doors, retrofits that seal home air leaks, and skylights. For those who purchase a plug in hybrid or electric vehicle you could get a tax break. Also in 2011, if you purchased a Chevy Volt or Nissan LEAF you could’ve gotten a $7,500 tax credit.

Even if you did not make any purchases that were eco-friendly last year, you could’ve received deductions for donations you made to company’s like Goodwill or The Nature Conservancy. You can do this by keeping the donation receipt that the company gave to you. For instructions on filing for a tax credit or deduction you should look through the Internal Revenue Service’s guide to charitable contributions.

Nissan Leaf at the 2009 Tokyo Motor Show (LHD).
Nissan Leaf at the 2009 Tokyo Motor Show (LHD). (Photo credit: Wikipedia)

As for some of the things not covered by federal tax credit are: ceiling fans, dehumidifiers, ovens and ranges, refrigerators, toilets, window treatments, whole house fans, compact fluorescent light bulbs, light fixtures, programmable thermostats, and clothes washers and dryers.

So if you are interested in saving money this next tax season on eco-friendly products that you purchased, check the guidelines on the IRS website.

File Your Taxes Easily with TurboTax

When it comes to online tax filing security is the major issue. Many people may like the concept or many might look down, most of them may feel worried about putting their information all on the internet and doubt that is it actually safe and secure to submit your tax return this way. While you have few downsides to submit your taxes online as long as you are aware of the risks and avoid them then it is not at all unsafe or dangerous. This depends on your provider as well while submitting the return. Thus, it is always best to verify yourself by doing little research and look out for the recommended online tax filing websites and which one has the highest recommended software to be downloaded. There are number of software available online which are secure and help you file your tax returns online. One such software is TurboTax, one of the leading and top selling tax preparation software. TurboTax comes in various versions, which version to use depends on your situation.

You can visit the TurboTax’s website and you can file your tax returns online without having to pay any fee if you are simply doing an individual form. With more complex forms there will be some fee charged. With this you can even download the premium or deluxe TurboTax software for complex tax return filing like for large corporations or businesses. The software will include all that you need with a systematic assistance offered to you. Once you buy and download the software you can use this software every year to file your taxes. So, it not at all bad investments deals to do. Filing taxes with TurboTax is easy and safe as well. It has been in market since long and has created a good name.

 

 

Taxes And The Romney Tax Plan

Romney Tax Plan

If you are looking for information on the 2010 taxes and what the Romney tax plan is if he wins the election, maybe this will help you.

One of the things that Romney said he does not want to do is cut taxes for the well off. He said that high income taxpayers will have fewer exemptions and deductions. He said that if those numbers didn’t come down, they’d get a tax break. Romney said that he is proposing a reduction in the tax rate but that he also wants to close exemptions and deductions at the high end so that the revenues will stay the same. He also wants to lower the heavy load on the middle income people. Another thing he wants to cut individual income tax rates, reduce tax preferences, reduce the corporate income tax, eliminate the estate tax, and more. As for the taxes enacted in the 2010 health reform legislation, he wants to repeal it and the AMT.

The plan would reduce the six income tax rates so that the top rate would go down to 28 percent and the bottom rate would go down to 8 percent. The Repeal of the AMP would increase tax savings from rate cuts.

You can find more information on Romney’s tax plan if you are still confused. You can look it up online.

Tax Tips To Ensure Your Security

Tax Tips To Ensure Your Security

Experts warn that that many scam artists are out there, and frequently disguise scams as services that are related to your taxes.

Here are some tax tips for fighting possible scammers this year.

Over 2 million people are filing Australian taxes the electronic way, giving criminals a rather large potential market.

Criminals will often make attempts to get your personal information through scams. Michael McKinnon, a security expert with AVG, gives these tax tips.

Be wary of any e-mail supposed claiming to be from the government. This will often be designed to look urgent, and may offer you refunds that seem too good to be true, or claim your return is invalid, and information needs to be sent again.

One of the simple yet devastating scams will have you clink on a link in an e-mail. This will take you to an unsafe website, where you could easily get your identify stolen by hackers.

At the end of the year, people should be getting ready with these tax filing tips.

Tax Tips To Ensure Your Security
Taxes (Photo credit: Tax Credits)

-Make sure your security is up to date on any devices you might be using to file taxes. This includes PCs, phones, laptops, and possibly other technology.
-Make sure you check in with the ATO every so often about new scams that might be out there. Be sure to report anything suspicious to them as well.
-Always use a secure password, consisting of both numbers and letters that will be hard for hackers to crack.

Tax season is rough enough without having to worry about someone stealing your hard earned money. Use the above tax tips to make sure your information is always safe.