Free Tax Filing For Amended Returns

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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.

5 Tips For Self-Employed Taxpayers

When an individual works for themselves, he or she is considered self-employed for taxes, which means the individual is responsible for paying and filing taxes on a scheduled basis. These individuals will have some advantages and disadvantages at tax time.

Five Tips For Self-Employed Taxpayers

  1. A self-employed individual will have to pay income and self-employment tax. The self-employment tax includes Social Security and Medicare taxes. Normally these taxes are withheld from an individual’s wages, but a self-employed individual will have to pay these taxes by filing a Form 1040 Schedule SE. However, the individual does get to deduct half of this tax from his or her income on Form 1040.
  2. The earnings will need to be reported on a Schedule C or C-EZ Tax Form. This form will show whether an individual made money from a business or had a loss from the business. It will be used in addition to the Form 1040 and Schedule SE.
  3. Sometimes, a self-employed person will have to make estimated tax payments during the year. Even though some people work as an employee on other jobs with taxes withheld, it is still important to make these estimated taxes if an individual has any self-employed income. An underpayment of taxes at the end of the year could result in a penalty. Therefore, making quarterly estimated tax payments will save the individual from being penalized for underpaying.
  4. If an individual had business expenses, these will be listed and deducted from the Schedule C earnings. The expenses must have concurred during the current tax year to claim as a deduction. A business expense is one that is common and necessary for the operation of that business.
  5. Many common deductions can be overlooked, such as printing business cards and postage. Forgetting about a deduction can cause an individual to pay more taxes.

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An independent contractor or sole proprietor of a business will have different tax obligations than an employee. For instance, the self-employed individual will pay more Social Security and Medicare taxes than an individual who is not self-employed. An employer will pay part of these two taxes for their employees, but a self-employed individual will be responsible for all of the taxes.

How to Estimate Self-Employment Payments

  • An individual can use the income tax return from the previous year to get an estimate for payments.
  • Look at the income and the self-employment taxes to figure the payments.
  • If this is the first year for self-employment, the taxes can be estimated based on the income that an individual plans to earn that year.
  • Adjustments can be made to the estimated payments after the first quarter if the estimate appears to be too low or too high.

Self-employed individuals need to file accurate tax returns with the proper deductions. Keeping good records throughout the year will ensure that no deduction is overlooked. At the end of the year, the taxes will be easier to file when the information is accessible along with estimated payments.

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The Benefits Of Filing Your Taxes with FreeTaxUSA

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FreeTaxUSA can now support the 42 US states where a state tax return is required.  Additionally it can also support the District of Columbia, Vermont, and Montana.  Taxpayers residing in states that do not require state returns still have the option of filing a 100% free federal return on the FreeTaxUSA website.  Each year, there are been new states added, with this being the first tax season in which all 42 of the states are available. This means that more taxpayers can file their state taxes electronic than in the past with this great online tax product.

There has been no change to fees for preparation of state taxes on FreeTaxUSA.  They remain one of the most economical in tax filing industry.  Services included with a state return are preparation of forms and e-filing directly to the department of revenue for that state.  Unlike many other companies, FreeTaxUSA clearly posts preparation fees on their homepage.  They also have no hidden fees, or upgrades that are mandatory.  The price listed on the homepage, is the same price the customer will pay.

In order to save time, the necessary information is imported from the customer’s federal income tax return to their state one.  This enables much of the state forms to be filled in automatically.  This reduces the amount of possible errors as compared to a return that has been handwritten.  Once the state portion is completed, all applicable forms preparation will be complete and the return will be ready to be e-filed.  Customer are offered free support in case there are questions or problems.

Why Pay More When You Can Use FreeTaxUSA to Do Your Taxes

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Why Pay More When You Can Use FreeTaxUSA to Do Your Taxes

Everyone knows about the tax companies advertising that they will do your taxes for a low cost of $xx. But why pay their “low cost”, which is usually between $30 and $100, when you can have your taxes done for free? These companies that charge for their service purport to do your taxes for you, allegedly. Really what they do is have you answer all the questions asked on tax forms but in a simpler way. You are still doing half the work.

FreeTaxUSA will do the same … Read the rest

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Why Pay More When You Can Use FreeTaxUSA to Do Your Taxes

Everyone knows about the tax companies advertising that they will do your taxes for a low cost of $xx. But why pay their “low cost”, which is usually between $30 and $100, when you can have your taxes done for free? These companies that charge for their service purport to do your taxes for you, allegedly. Really what they do is have you answer all the questions asked on tax forms but in a simpler way. You are still doing half the work.

FreeTaxUSA will do the same thing – for free. From the comfort of your home you answer the same simplified questions that another company would ask. This information is used to fill in all the necessary forms for you that might otherwise be confusing or simply too much work. Why do the extra work if you do not have to?

Additionally, FreeTaxUSA utilizes programs that will recommend any tax credits and write-offs you qualify for. When you use other companies, you are reliant upon your tax preparer to qualify you for any available programs. Because the software FreeTaxUSA uses is automated, based on the information you provide there will be no chance to miss or forget any credits or write-offs available to you.

Even complicated tax returns that involve self-employment, buying or selling a house, or unemployment can be handled by FreeTaxUSA. The automated software programs which scour your information in order to give you the best advice and suggestions come in especially handy when your tax returns start to get more complicated.

FreeTaxUSA is a great alternative to the other tax service companies that will charge a fee for the very same services. You can save yourself some money in fees and potentially even get more money for your tax return through credits and write-offs.