Invest your Tax Return

Invest your 2009 Tax Return

The IRS is offering an investment option if you are getting a refund for your 2009 taxes this year. You can transfer your tax refund for a US savings bond of up to $5,000. You can purchase a bond in any denomination of $50, remaining funds need to be directly deposited into a banking account.

It’s just that simple, when you file choose the US Savings Bond option and you will receive your bonds in the mail instead of a refund check. The official form is Form 8888, used to deposit your refund into more … Read the rest

Invest your 2009 Tax Return

The IRS is offering an investment option if you are getting a refund for your 2009 taxes this year. You can transfer your tax refund for a US savings bond of up to $5,000. You can purchase a bond in any denomination of $50, remaining funds need to be directly deposited into a banking account.

It’s just that simple, when you file choose the US Savings Bond option and you will receive your bonds in the mail instead of a refund check. The official form is Form 8888, used to deposit your refund into more than one account. Tax preparation software packages like TurboTax and TaxAct provide the form for you when you indicate that you want to purchase one of the bonds.

The Form 8888 also has instructions if you are completing for the form by hand. This is a nice option if you would be investing the money into a savings account as the bonds provide a better rate of return on average.

Extended and Expanded: The First Time Homeowners Tax Credit

Extended and Expanded: The First Time Homeowners Tax Credit

If you were looking to purchase a home last year before the First Time Home Owners Tax Credit ran out in November and did not find the home you wanted to purchase, you are in luck. The tax credit has been extended to the end April 2010. And this time you do not need to close on a home before the deadline, you just need to have a house in contract. You can close anytime prior to July 1st and qualify for the non-repayment credit. First time homebuyers are anyone that … Read the rest

Extended and Expanded: The First Time Homeowners Tax Credit

If you were looking to purchase a home last year before the First Time Home Owners Tax Credit ran out in November and did not find the home you wanted to purchase, you are in luck. The tax credit has been extended to the end April 2010. And this time you do not need to close on a home before the deadline, you just need to have a house in contract. You can close anytime prior to July 1st and qualify for the non-repayment credit. First time homebuyers are anyone that has not owned a home in the past three years.

And the really good news for those that are not first time home buyers, if you are considered a long time home owner there is a new tax credit for you. The tax credit is part of the First Time Home Owners Tax Credit but applies to home purchasers that have lived in the same home at least 5 of the last 8 years. They are eligible for a $6,500 tax credit towards the purchase of their new home. Not quite the $8,000 the first time buyers are awarded but helpful non-the-less.

For those that do not fall into one of these groups you will need to wait for another extension after the current April 30, 2010 deadline. And there are some income phases out to be concerned with. Single tax filers begin to be phased out of the credit at $125,000 in income and completely at $145,000. For married couples the phase out range is $225,000 to $245,000.

Find Tax Help in Spanish

Find Tax Help in Spanish

The IRS is providing many resources this tax season for those that speak Spanish and have had trouble understanding tax information in English in the past. Many of the services provided in English are now available in Spanish.

The best place to start is on the IRS website at IRS.gov/espanol. You can find tax information, avoiding tax scam documents, disaster relief pages, and identity safety helpful tools. Also on the website you will find the IRS federal tax e-File options, available in both Spanish and English.

The IRS has a wealth of video content … Read the rest

Find Tax Help in Spanish

The IRS is providing many resources this tax season for those that speak Spanish and have had trouble understanding tax information in English in the past. Many of the services provided in English are now available in Spanish.

The best place to start is on the IRS website at IRS.gov/espanol. You can find tax information, avoiding tax scam documents, disaster relief pages, and identity safety helpful tools. Also on the website you will find the IRS federal tax e-File options, available in both Spanish and English.

The IRS has a wealth of video content hosted on YouTube will all kinds of tips and helpful courses. There are many videos in Spanish. And if you are more comfortable with the telephone, there is a telephone automated service that provides all kinds of important tax information through pre-recorded instructions. The number is 1-800-829-4477. Talk directly to Spanish speaking IRS tax experts at 1-800-829-1040 x8.

Tax forms are available in Spanish and the federal agency has a newsroom where all releases are available in multiple languages. And finally, don’t be afraid of seeking out IRS Tax Assistance Centers (TAC) because many have bilingual tax assistance in person or through an interpreter on the phone.

Setting Up An Installment Payment Plan

Setting Up An Installment Payment Plan

Ignoring your taxes is something that you should never do. And with all the different tax preparation options available today, completing your return is easier than ever before. There are numerous outlets in every major city, office product stores selling the latest TurboTax and H&R Block Home Edition, plus online tax preparation and filing options. And planning you taxes during the year makes completing your taxes at the end of the year, that much more convenient.

If you do enter the tax season unprepared and wait until the very end you can face penalties, … Read the rest

Setting Up An Installment Payment Plan

Ignoring your taxes is something that you should never do. And with all the different tax preparation options available today, completing your return is easier than ever before. There are numerous outlets in every major city, office product stores selling the latest TurboTax and H&R Block Home Edition, plus online tax preparation and filing options. And planning you taxes during the year makes completing your taxes at the end of the year, that much more convenient.

If you do enter the tax season unprepared and wait until the very end you can face penalties, fines and interest from the IRS when you fail to file before the filing deadline. These amounts will add to the tax that you might owe making resolving the debt more difficult. Plus the IRS is reluctant to forgive debt unless you can prove a complete inability to pay. (Check with a professional)

If you do not have the funds needed to pay your taxes when April 15th arrives, there are options for you that are better than not filing a return. Work with the IRS and your tax professional to resolve your tax situation during the tax season. Requesting a payment installment plan with the federal government is a great solution for you. You can pay the taxes you owe over a period of time with payments that are affordable. While filing an extension is a great way to delay your final return, remember that taxes are due on April 15th and not when you file the extension.

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Benefits of e-Filing Your Return

Benefits of e-Filing Your Return

Last year nearly 67% of federal tax returns were submitted to the IRS by electronic transfer, or e-file. The IRS likes tax returns to come in electronic format as it is easier for them to process and recently provided a list of benefits for you to consider.

The speed with which your return can be sent, processed, and a refund sent to you is much better when you file your federal return electronically. The IRS is also able to correct your information if there happens to be a missed calculation on the return. Ten days … Read the rest

Benefits of e-Filing Your Return

Last year nearly 67% of federal tax returns were submitted to the IRS by electronic transfer, or e-file. The IRS likes tax returns to come in electronic format as it is easier for them to process and recently provided a list of benefits for you to consider.

The speed with which your return can be sent, processed, and a refund sent to you is much better when you file your federal return electronically. The IRS is also able to correct your information if there happens to be a missed calculation on the return. Ten days is a standard turn-around if you file this way and request direct deposit into a checking account.

The IRS maintains strict security on their transferred communications and feels your information is entirely safe filing electronically. And once your return is received by the IRS your tax preparer or tax preparation software, like TurboTax or TaxAct, will let you know it was received. Then you can monitor its progress to know when your refund will be coming.

Finally, if you do happen to owe taxes, you can e-file immediately when your return is complete and wait until the end of the tax season to send the IRS the amount due. And state returns are often able to be transmitted with the same benefits you will enjoy from your federal tax electronic filing.