Tag Archives: TurboTax

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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Microsoft May Owe Denmark A Billion Dollars

Microsoft May Owe Denmark A Billion Dollars

Throughout its known history, corporate America has not been unfamiliar with the concept of companies seeking to enhance their profits by saving on high taxes. The three giants of American IT – Google, Yahoo and Microsoft have faced the ire of several competitors and governments in their efforts to place billions of dollars in tax havens or through complex, layered acquisitions. Today, Microsoft finds itself in troubled waters with the taxation authority of Denmark who have levied a charge of over $1 billion on the technology giant in back taxes and fines.

The Burden of Back Taxes

Steve-Ballmer-CBI-Annual-Lecture2009

Steve-Ballmer-CBI-Annual-Lecture2009 (Photo credit: The CBI)

According to industry sources, Microsoft acquired the Danish Enterprise Resource Planning (ERP) software company Navision A/S in mid-2002. The taxation authority of Denmark claims that parts of the company were then sold to a small Microsoft subsidiary in Ireland and the company’s profits funneled through tax havens such as the Bahamas, Bermuda and Switzerland.

Navision has been renamed Dynamics NAV and operates in several countries around the world. Microsoft also competes with another American major Intuit who offers a personal and small business finance product TurboTax 2013 that is regarded as a threat to some parts of Microsoft’s ERP software developed by Dynamics NAV. Denmark’s corporate taxes are fairly high — to the tune of 25%, but the government has been proposing a 3% reduction in order to attract foreign investment. With countries such as Ireland and the Czech Republic offering significantly lower tax rates and inexpensive labor, several U.S. and European corporations have moved operations there, while making profits in high-tax nations. However, Microsoft’s use of Caribbean tax havens and subsidiaries to maximize profits has caused significant turbulence in a fragile software and financial market. Although Microsoft may come through relatively unscathed, any penalties paid may encourage other world governments to step up and challenge the American software majors.

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The Discretion of the President to Plan Cuts Under Debate

The Discretion of the President to Plan Cuts Under Debate

President Barack Obama has been pretty vocal about the effect that automatic budget cuts are going to have. These warnings are getting increasingly ominous from the President and the Congressional Republicans are preparing to counter these warnings as far as possible. Basically the Congressional Republicans are looking to aid the administration with more flexibility and that too in instituting the 85 billion dollars worth of cuts. They believe and have said that this one proposal could actually serve the vital purpose of shielding the most important programs. This should be done while the political fallout is shifted to the White House.

English: In January 2009, President of the Uni...

English: In January 2009, President of the United States of America, George W. Bush invited then President-Elect Barack Obama and former Presidents George H.W. Bush, Bill Clinton, and Jimmy Carter for a Meeting and Lunch at The White House. Photo taken in the Oval Office at The White House. (Photo credit: Wikipedia)

This plan is undoubtedly facing extreme opposition from the administration. The administration has declared that it isn’t really planning to do much to soften the blows that have come upon the domestic and military programs. However, what’s worth the consideration is the fact that this is leading to apparent racks in the Democrats’ camp. This is essentially because it’s the lawmakers from the states who’re literally standing face to face with the deepest cuts. Now, this obviously goes on to say much as there are high chances that the Democrats might also be prepared to go along with the Republicans, simply so that they can manage to avoid arbitrary cuts to military programs as well as social services.

With the nation reeling under debt and that’s easily reflected with the increasing number of sign ups for programs like online debt consolidation, this political turmoil over the cuts seems literally unwanted. There’s hardly much time left until “sequestration” makes its way. Basically, the across the board cuts also known as sequestration have been scheduled to commence. It’s not surprising that the administration officials are not taking to this favorably and they’re still talking about the consequences to come in alarming terms. This is in spite of the fact that there was hardly any evidence of hardcore negotiations with the lawmakers such that a deal could be reached to avoid them altogether.

In spite of all this, a South Carolina Republican, Senator Lindsay Graham gave the impression of advancing the debate on Monday. He being a leading defense hawk expressed that this is actually the ideal opportunity to carry out the big deal. He said that he was willing to raise revenue of around 600 billion dollars provided the Democrats would be willing to reform entitlements. He believes that they can then fix sequestration together.

The secretary of homeland security, Janet Napolitano expressed that the automatic cuts would leave the country not so very well guarded. In fact, she also believes that this can actually leave the nation ill-equipped to meet terrorist threats. This is obviously going to turn into an inconvenience for millions of travelers too. There came further warnings from the interior secretary, Ken Salazar. He warned about campgrounds closing down and firefighting efforts being scaled back. He also spoke about lesser seasonal workers who’ll be hired.

Ms. Napolitano opines that there’s always a threat looming large. Though they plan to do everything they can to minimize the risk involved, yet it’s a fact that the sequester makes things really very tough.

It’s a known fact that efforts are being made to shift the responsibility completely to President Barack Obama and to cushion the attacks by the White House. Now, what’s important is the fact that Republicans were supposed to unveil legislation on Tuesday and they said that this would literally alleviate their biggest concerns. This measure is supposed to be effective because it’ll allow for agencies and departments to amass programs that had long since been proved to be ineffective. This is almost like a measure to prove that there were functions like say critic federal functions as well as air traffic control and meat inspection that had been spared.

Now, if the Congress happens to grant the White House the authority to protect the air traffic controllers and other such patrol agents, then the administration’s carefully devised plan is bound to lose impetus.

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How To Organize Your Tax Records

How To Organize Your Tax Records

Learning how to organize your tax records can save you stress and time when it is time to file your taxes.  Start the year with an organization system so you know where all of your records are when it is time to file your taxes.  If you aren’t sure what records you need, here is a general guide that is suitable for most people.

Income

Your employer will issue a W-2 with your income and tax information for the year.  You should also include interest statements from investment accounts and any 1099s that you may receive for work done the previous year.

English: Same as :File:2010 Receipts & Expendi...

English: Same as :File:2010 Receipts & Expenditures.PNG, but slightly improved. Bar chart comparing estimates for United States federal government total receipts and expenditures in fiscal year 2010. (Photo credit: Wikipedia)

Medical Expenses

File receipts for all medical expenses and your out-of-pocket health expenses.

Donations

Keep all receipts for cash donations made from the previous year.  You can also deduct non-cash donations made to a charitable organization.

Real Estate

If you own your home or other real estate, keep all interest statements and tax assessments.

Child Care

If your children are in day care for all or part of the year, keep a copy of your receipts for payment.

Student Loans

The interest you pay monthly on a federal student loans is tax deductible.

Letters from the IRS

If you receive any letters from the IRS, keep these in your file.

Previous Tax Forms

Keep all previous tax forms for future years.

Other Receipts

Keep all receipts that you may need for a deduction.  You may not need them, but it is better to have them in case you do. If you plan on itemizing your deductions, keep all receipts for taxes you paid, medical expenses, interest you paid, charitable donations, loss due to theft, job expenses and other receipts you think may qualify for a deduction.

If you plan to itemize your deductions, it will be a lot easier for you if you keep these receipts organized throughout the year.

If you do not have a lot of paperwork each year, you can store them in one file.  However, if you have a lot of receipts or other tax papers, you should organize them by type to make your free tax filing 2012 easier and quicker.

For most people, a simple paper organizer that holds several files is sufficient to organize tax information.  Use a separate file for each type of paperwork, and file receipts and information as soon as you get them.  Keeping paperwork organized and not letting it pile up is important to stay organized, so file your paperwork as soon as your get it or once a month as needed.

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How To Free File Online Using The IRS Website

How To Free File Online Using The IRS Website

Many taxpayers are using free file online programs that are based on popular tax software programs like the TurboTax 2013 programs. The free file online program is offered directly by the IRS on their website. It is available to all taxpayers, but different taxpayers can access different portions of the program based on their income and other factors.

The IRS free file online program connects taxpayers with participating software companies like TurboTax 2013. Taxpayers can choose between a range of software programs including the TurboTax 2013 Freedom edition. Once the taxpayer has selected a software company, they can get started on their returns.

English: YOU ARE FREE TO USE THIS FILE

English: YOU ARE FREE TO USE THIS FILE (Photo credit: Wikipedia)

Taxpayers who have an adjusted gross income of $57,000 or less can file using the free program. Taxpayers who earn more than that amount cannot use the free software programs. However, they can download free file online forms. These forms are primarily for people who enjoy doing their own taxes. Using these forms, these taxpayers can prepare and file their own taxes online. However, these taxpayers do not get the extra assistance that is offered to people who can take advantage of programs like the TurboTax 2013 software programs.

Before they get started with the program, taxpayers need to prepare themselves. They will need to have copies of their last year’s tax return, copies of their W-2s, 1099s, and any other information that they will need for their taxes. For instance, taxpayers who plan to itemize their deductions may want copies of their charitable deductions or information on how much interest they have paid to their mortgage company throughout the year.

Before starting, taxpayers should also estimate their adjusted gross income. If you have not had any significant changes to your income over the last year, you should be able to estimate your adjustable gross income using last year’s tax return. Once you have determined whether or not your adjusted gross income is more or less than $57,000, you will know which program you are allowed to use. About 70% of all taxpayers have adjusted gross incomes of less than $57,000 so the chances are high that you will qualify to file free online.

Once you have completed the tax preparation work, you can submit your return electronically with the click of a few buttons. If you qualify for a tax refund, you can elect to have it mailed to you in a paper check, or you can have it electronically deposited into your bank account. Electronic deposits are typically the fastest way to get your returns, and you may see your refund within three weeks or less of your filing date. If you owe taxes, you can also make your payments electronically.

The free file online program is perfect for many taxpayers. However, taxpayers with unique situations may simply want to use some of the low cost software offered by a company like TurboTax 2013. This is especially true for people who own their own businesses or who need to file an extension.

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Free Online Options To File Your Taxes

Free Online Options To File Your Taxes

Filing your taxes on time can be a very long and time consuming process if you do not have a clue of what you are doing. However, you can make this process as easy as possible by simply choosing to file online with TurboTax or TaxAct. If neither of these tax filing options is ideal based on your personal needs, you should consider using H&R Block Home edition which also receives good reviews.

TaxACT Logo (Photo credit: Wikipedia)

It is important that you consider your free online options to file your taxes prior to deciding which would be able to best meet your needs. There is no one solution that is going to work for every person, you may find one service to be very useful, but your brother may enjoy the layout of another service. Typically, this decision is very much about personal preference and the company that you are most comfortable with. However, they are very different when it comes to guiding you through the process of filing. TurboTax makes the tax filing process easy by guiding your every step through a return, they make the steps easy by providing simple explanations that you can understand. As a result of this approach, TurboTax is great for those that want to save time, it is a quick solution that can help you get your taxes completed easily.

When it comes to time involved with filing your taxes, the H&R Block solution would be the slowest. There are no in depth explanations and this can mean that you would spend a lot more time to get through the filing process. The TaxAct solution is going to fall in the middle, it will save you money and make your taxes easier to do while limiting your stress.

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