Must I File a Tax Return?

TaxAct

Must I File a Tax Return for 2009?

The short answer to this question, do I have to file a tax return, is yes if your income is above the level required for your filing status. But a couple additional pieces of information affect the answer including your age and the source of your income. IRS.gov is a great resource for the exact tax rules.

In addition to the requirement, it makes sense to file a return to get a refund on any taxes that you did pay during the year. There is the special tax credit, Making Work … Read the rest

TaxAct

Must I File a Tax Return for 2009?

The short answer to this question, do I have to file a tax return, is yes if your income is above the level required for your filing status. But a couple additional pieces of information affect the answer including your age and the source of your income. IRS.gov is a great resource for the exact tax rules.

In addition to the requirement, it makes sense to file a return to get a refund on any taxes that you did pay during the year. There is the special tax credit, Making Work Pay, that is refundable to you even if you do not meet the income requirements to file. A government pension could provide you with a tax credit that will be refunded to you. The Earned Income Tax Credit will also refund money to you beyond what you have paid into the tax system. And there are a number of other tax credits that you might qualify for that you can receive a refund on without having earned enough to file.

Now, if you were self-employed during 2009 and earned over $400, you must file a return regardless of other factors. If you owe special taxes on retirement plans or medical savings accounts, you must file a return for 2009. If you work for tips and need to pay social security and Medicare tax, you need to file. If you need to pay the Alternative Minimum Tax or any recapture tax, you need to file a return. And finally, if you work for a church and your income is greater that $108.28.

The Making Work Pay Tax Credit

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The Making Work Pay Tax Credit

Created by the ARRA federal bill with an aim at leading to an economic recovery in the US, the Making Work Pat tax credit is something you should be familiar with when completing your tax return for 2009, according to the IRS. The first thing you will notice is a $400 refundable tax credit for single tax filers and an $800 tax credit for married couples. If your employer has taken the credit out of your withholding already, you will not be eligible for an additional credit.

Use Schedule M if you feel … Read the rest

TaxAct

The Making Work Pay Tax Credit

Created by the ARRA federal bill with an aim at leading to an economic recovery in the US, the Making Work Pat tax credit is something you should be familiar with when completing your tax return for 2009, according to the IRS. The first thing you will notice is a $400 refundable tax credit for single tax filers and an $800 tax credit for married couples. If your employer has taken the credit out of your withholding already, you will not be eligible for an additional credit.

Use Schedule M if you feel you have not already received the credit and want to claim it this tax filing season. You file the 1040EZ, there is a worksheet for line 8, in place of Schedule M, which will allow you to claim the credit directly on the main tax form.

The credit was spread evenly over a shorter period of time in 2009 than it will be in 2010. Therefore you might see some additional withholding in 2010 to compensate. There are some instances were the credit was deducted incorrectly for individual tax situations and you might have received a bigger tax credit during the year that legislated. Review Publication 919 to determine how much should have been deducted from your pay check and how much you will owe when you file your return.

Find Tax Help in Spanish

TaxAct

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

TaxAct

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

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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

TaxAct

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.

Article Original Source under Creative Common License.