Tag Archives: Tax

Talking About Buying A Home

Things To Know When You Are Buying A Home

Buying a home can be a lot of different things. It will most likely be the most money you will spend on any single purchase. It may be the biggest debt you ever incur. And very likely, it could be the best investment you will ever make. Needless to say, it is a major decision to be made.

H&R Block

There are certainly many ways in which buying and owning a home is going to reflect on your personal income taxes. This is why seeking a consultation with H&R Block prior to making that purchase simply makes so much sense. They will make sure you grasp precisely what you are getting involved with.

Congress is constantly revamping the rules in the tax code, points out Lynn Ebel who is a tax attorney. Lynn works with the H&R Block Tax Institute.

Itemizing Deductions Helps Lower Tax Bill

“Itemizing deductions gets the homeowner a better benefit than the standard deduction”, Lynn points out. Homeowners doing so must complete Schedule A of Form 1040.

Regarding your home purchase, here are five things important that you know.

1. Mortgage interest may be deducted.

Homeowners are allowed to deduct the interest on their mortgage. For the year, couples may deduct up to one million filing jointly, and five hundred thousand each filing separately.

2. Real property taxes paid may be deducted

A great positive when you itemize your deductions is that you may claim your real property taxes for the time you hold ownership of a home that particular year.

3. For the purchase of your first home, a retirement savings may be used.

Without incurring the 10% penalty for early withdrawal, $10,000 may be withdrawn from your Roth or traditional IRA.

4. Closing costs are not deductible

5. At tax time, home improvements help

The bottom line is that before proceeding with a major purchase like a home, be sure to check with your tax adviser first.

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Five Common Tax Myths Explained

Ginita Wall points out 5 tax myths that everyone should know about, especially with the deadline for filing right around the corner.

I would like to address some of those common tax myths that most people have heard about, although don’t really fully understand. Another source of information is TurboTax.com and the easy to use site will explain the tax myths as well as ensure that you get the biggest possible refund.

English: United States Internal Revenue Servic...

English: United States Internal Revenue Service Criminal Investigation Division Badge (Photo credit: Wikipedia)

Myth 1:

Despite popular belief, there is no evidence to suggest that if you file for an extension, you are more likely to be audited. Less than 1 percent of all tax payers are audited by the IRS, and you are also not any more likely to be audited if you file your taxes early.

Myth 2:

Whether or not you have the money to pay the IRS, you must still file your taxes by the April 15th deadline. if you owe money, you can work out a payment plan with the IRS, but you cannot delay filing just because you may owe money.

Myth 3:

Dependents who are not your relatives must be living with you, although parents are the exception to that rule, and if they live in a nursing home you can still claim them as dependents.

Myth 4:

Unless your pet expenses are directly related to your business, such as paying for a guard dog, you cannot claim your pet on your taxes, which is also one of the common tax myths. A seeing eye dog or another medically required dog would also be an allowable exception to this rule.

Myth 5:

Some states impose an inheritance tax (IN, IA, KY, MD, NE, NJ, PE, TN) and unless you live in one of those states, any tax is paid by the estate of the deceased person. Gifts that you give or receive are not taxable when it comes to filing your taxes and you do not have to declare them.

TurboTax.com is the place to look for information on these and other tax myths, and TurboTax.com can help you file your taxes easily and accurately.

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How An IRS Debt Relief Program Can Get Your Taxes Back On Track Again

IRS Debt Relief Program

The IRS is well known for pulling strong-arm tactics on those who do not pay their taxes, but to be honest, they do have a softer side for those who have a legitimate reason for being late with their payments. To make it easier for you the taxpayer, as well as the IRS, they have developed programs for you to use, to get your tax payments back on track again, and in their good books again, as it were.

IRS Form 1040X, 2005 revision

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

Installment agreement is an IRS debt relief program aimed at those who owe a large amount of money. Basically, they let you pay off the money in even installments, until the debt is fully paid. Interest will still accumulate on these late payments though, so the bigger the payment you make each month, the better.

Then there is the Penalty Abatement Program which, if you can prove without a doubt, that you have a viable reason for not being in a position to pay your taxes, will have the IRS do away with the penalties to reduce your debt to them.

The Non Collectible Status IRS debt relief program, is for those who are barely existing on their wages and just do not have the money to pay their late taxes. For these people, the taxman will stop taking any action against them, until their circumstances have improved. Again, interest will still accumulate on any money owed to the IRS, so it is a good idea to get it paid off as soon as possible.

Anyone considering using an IRS debt relief program, is can call an Enrolled Agent at IRS Tax Relief who will guide them through the whole process of getting their tax payments back on track again.

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Guidance For Personal Finance That Can Save These Days

Guidance For Personal Finance

Follow the tips that I have prepared for you and you will be able to fund projects you never thought you would be able to fund. And learning about finances is a great in many ways. Investing the right way and reducing your spending through a budget are all great talents to have today.

When you are saving for an emergency fund, aim for a minimum of 3 to six months worth of living expenses. This is not a large quantity, contemplate the difficulty in discovering new employment in the event you ever lose your job. Actually, the larger the emergency fund, the much better position you would be in to ride out any unforeseen financial catastrophes.

English: Interior of a Sam's Club in California.

English: Interior of a Sam’s Club in California. (Photo credit: Wikipedia)

Selling some household products that are never utilized or that one can do without, can create some additional money. These items may be sold in a variety of ways such as numerous various online web sites. Totally free classifieds and auction websites offer many choices to turn these unused products into additional cash.

Avoid financial pitfalls in life by have an emergency fund on hand. Three months is the minimum amount that you should set aside for difficult times. When you face unemployment or something in the house breaks, you won’t need to use your credit card but can instead use a savings that you stored away for such an event.

It is frequently simpler to save money in the event you do not need to think about it, so it could be a good concept to set up your direct deposit so that a certain percentage of every paycheck is automatically placed into your savings account. This way you don’t need to be concerned about remembering to transfer the money.

Saving money at the store can be accomplished by purchasing items in bulk that you use on a regular basis. Warehouse stores have become quick popular as people have fallen in love with the savings they find when purchasing in bulk from the likes of Sams Club.

Cutting expenses is essential if you want to get ahead financially. Save some money after you reduce your spending on unnecessary items. Look for casual purchases that you can do without. Strip out services on the phone and the cable that are extra and that you never really use anyway. These are easy places to begin.

Make the most of your future with the tips you have learned here today. Families and retirement are not cheap so take action right away so you will be prepared. The government has become a popular source of security but real financial security is found at home when you reduce debt and have a savings.

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Getting Taxes For Free

Getting 2012 Taxes For Free

Many reasons exist that an individual taxpayer would want to get his or her 2012 taxes for free. One reason may be that he or she simply forgot to file. The 2012 taxes had a deadline that ended in April. Therefore, a person who owes taxes may have to pay interest and fees implemented by the Internal Revenue Service. Getting the taxes done free will save that person some money so that he or she can use the rest to pay the IRS.

IRS Form W-2

IRS Form W-2 (Photo credit: Wikipedia)

Another reason someone might want his or her 2012 taxes for free is a huge refund. Single mothers and students can sometimes obtain large refunds because of their annual diligence and struggles. The government looks kindly upon those individuals. Therefore, any person who has not yet filed taxes would be happy to get them done free.

An individual can get 2012 taxes free in a wide variety of locations. The number one place to file taxes free is the government website. However, several independent providers offer tax-filing services to individual taxpayers and businesses. Each provider has varying features and benefits, and each provider has a specific period for filing taxes. The best way for a person to get 2012 taxes free is by conducting research and working with the provider that offers the fastest turnaround and the best customer service.

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Complete Your Tax Return For Free

Complete Your 2012 Tax Return For Free

It’s time to prepare your 2012 tax return. But have you ever considered submitting your federal income tax return online? Well, if you are ready to deal with your 2012 tax then there’s good news; you can prepare and file your taxes for free. You have to admit that it would be far simpler to do all of your federal income tax preparation from the comfort of your own chair and then file the taxes for free. You can file your taxes for free if you use an online tax software provider. If you have all of the information for your 2012 tax return to hand then you can do the job in no time at all.

US Navy 080206-N-6538W-008 Electrician's Mate ...

US Navy 080206-N-6538W-008 Electrician’s Mate 2nd Class Nathan Hansen, left, helps Operations Specialist 1st Class Paul Lutton prepare his tax return aboard the Nimitz-class aircraft carrier USS John C. Stennis (CVN 74) (Photo credit: Wikipedia)

OK. So how do you go about doing your taxes for free online and preparing your tax return for 2012? Look online and locate a federal income tax preparation software site that has been IRS approved. The majority of the sites that let you file your 2012 tax return for free are easy to understand.  In fact doing your taxes has never been so easy. Anyone who is filling in their 2012 tax return needs to know that the site they use is speedy and secure. Find a site you like and fill in your 2012 tax return. When you have given all of the federal tax information needed then it’s time to let the software take over. Submitting your taxes has never been as easy and you can do all of this for free.

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The Marketplace Fairness Act

The Marketplace Fairness Act

One of the many perks of online shopping, the lack of online sales tax, may soon be a thing of the past as the Marketplace Fairness Act, an official Senate Bill, is on its way to the House of Representatives. As of 1992, online retailers have only been required to collect sales tax from consumers that live in the state where the online store has a “physical presence”. However, tension was slowly mounting as smaller businesses tried to keep up with the many perks the online world offered.

English: Lochalsh Butchers Located in Station ...

English: Lochalsh Butchers Located in Station Road, Kyle of Lochalsh. This is a thriving local business with three other shops in the locality, offering online shopping, home delivery and mail order. (Photo credit: Wikipedia)

Retailers on the web slowly began to push that little edge, and allowed cheaper prices for the same product. Physical stores eventually caught onto the new trend, realizing that they had become showrooms for consumers who would end up leaving the store to buy the same product online.

The only thing slowing online shopping then was the shipping. Most would offer free shipping as a way to rope in new buyers; but people that really want something, have to have it right away, right? Nothing beats having your purchase in your hand right away. That was, until the start of the same day or next day shipping guarantee. That was the last push that gave small businesses all of the evidence they needed to argue the clear advantage online retailers possessed. They questioned how online retailers successfully carried out those guarantees without in-state affiliates. The bill easily passed with a vote of 69 to 27, getting support from both the Democrat and Republican parties. While large corporations and the average customer may not be affected much, this could mean a big loss for online retailers.

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