IRS Suggest It Is Time to Begin Collecting 2021 Income Records

Americans should be ready to receive their refund by filing their income tax form as soon as possible. Taxpayers are instructed to gather all year-end income documents before filing a 2021 tax return, in order to speed up the processing of their tax refund: employees should gather their W2, pension and benefit statements, Notice of Deficiency-and pay stubs; self-employed individuals should gather all documentation such as 1099 from an employer, 1099 from a bank account and business cards. Gather your 2021 Income Records now.

2021 Income Records
2021 Income Records

Taking the time to include your Social Security number and those of your spouse and dependents on your tax return will result in less time spent answering IRS questions. Having the Social Security numbers of everyone listed on the return written down and easily accessible will ensure that errors aren’t made when entering them.

The combination of your bank account number and routing number is your direct deposit information. It’s important for you to have both numbers so you can direct your refund into a single account. You’ll need both numbers if you select direct deposit as your payment option.

Don’t have a bank account for Direct Deposit? Open one online now! For options other than online services, click through to the National Credit Union Locator Tool, which will help you find a credit union near you. Many offer free checking and a range of other services.

Be sure to save your Income Tax Records for the year in which you are completing this return.

When you’re ready to file your taxes online, you should know about a variety of tax forms that you can use to report income, expenses and deductions this year. These include W-2 forms from employers, 1099 forms from banks and other payment sources, 1099-MISC forms for various miscellaneous income, W-2 and other income statements for workers in the gig economy. You can also use these forms if you received interest payments or used a home or vehicle for business or investment purposes.

Taxable and Nontaxable Income

Tax Day Deals Might Get You Free Meals

On April 18th, restaurants will be offering tax day deals, discounts and freebies in an effort to get their share of the more than $330 billion in tax refunds that are being issued to taxpayers by the IRS. Following is a summary of some of the deals to be found across the U.S.

Tax Day Deals
Photo by socialwoodlands

In honor of the form taxpayers complete, you can get a half-chicken meal for $10.40 rather than the regular $11.77 at Boston Market. Visit the website for Outback Steakhouse, and print out a 15% off coupon which can be redeemed on April 18th. Or, get the coupon on Outback’s mobile app.

At Miami’s Trump National Doral resort or the BLT Prime in Charlotte, New York, Waikiki, White Plains, or Washington, D.C., you can get drinks for half price on April 18th.

At Schlotzky’s, enjoy a free small Original sandwich with the purchase of a 32 oz. drink and a bag of chips. Also, you can get prizes by uploading a pic of your sandwich to Twitter or Instagram using the hashtag #TaxDayBites.

For tax day deals featuring discounted burgers, some McDonald’s locations in Dayton and Cincinnati are offering a buy a Big Mac or Quarter Pounder at regular price and get another for just 18 cents. In Toledo, the offer applies to Quarter Pounders. Sonic Drive-in will offer a single-patty cheeseburger at half price. And, at participating Hard Rock Cafe‘s, those 18 and over can karaoke outside the restaurant and get a free Legendary Burger, which is regularly priced at $17.95.

How To Choose Great Online Tax Preparer Software

When people look for Online Tax Preparer software, they need to consider various factors. Choosing the right tax software option is vital to maximizing a tax refund after all. Therefore, individuals must focus and search for their best tax preparation solution. Each person is going to require something slightly different from their online tax prep service.

Tax Act

Safety Concerns with Online Tax Preparer Software

TurboTax 2013 from last year provided ample safety measures. Unfortunately, not all preparation services take safety seriously enough. The last thing a person wants to do is lose their personal information. Others have become victims of identity theft and lost their returns. The best tax prep options implement strict safety protocols today.

Tax refund theft continues to grow at an alarming pace. More taxpayers find themselves victims each tax filing year. While tax prep companies try to combat this fraud, cases will slip through the cracks. By choosing the safest option, taxpayers can minimize their risk of becoming a victim.

How To Choose Great Online Tax Preparer Software
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Convenience

These days, people tend to prize convenience and efficiency over other factors. It’s important to check out a tax service’s extra features. Turbo Tax 2013 was prized for its variety of useful features. Typically, such features aren’t core to the tax filing experience. They do, however, provide certain taxpayers with extra tools that can be used for various purposes.

In the end, consumers must consider price and a handful of other factors, too. TurboTax is often considered the best Online Tax Preparer Software available today. Anecdotal and usage figures seem to support the validity of this idea. Still, each taxpayer needs to find the tax preparation service that’s right for themselves.

Obamacare’s Impact On Taxes

Researchers have unveiled an ignorance on the part of the American public: a full 48 percent of people in the United States do not know that they must report their health insurance status on their 2014 federal income tax returns. So what is Obamacare’s impact on taxes?

Tax Act

The tax-filing season is soon on its way, and most Americans 18 and over do not realize that health care and income taxes are connected. This information was uncovered by an online Intuit TurboTax Health Survey which was conducted by the well-known Harris Poll group.

According to the Affordable Care Act, otherwise dubbed “Obamacare,” all Americans have to show that they have qualifying health insurance coverage. Proof has to be presented when they file their 2014 income tax returns. If they do not, they can face a penalty.

obamacare Impact On Taxes
Photo by emanjungle

The study also shows that many Americans who do not have health insurance–a full 62 percent of them–know that they will incur a penalty if they do not have health insurance. However, 87 percent of people do not know that the time to avoid a tax penalty for the year 2014 has already come and gone. Insurance purchased during the current open enrollment time which goes through February 15th will be applied to income tax returns which are filed in 2016.

Sacha Adam, Affordable Care Act product leader for TurboTax software, says that many people in the United States do not understand there is a correlation between income taxes and health care insurance.

The Intuit survey also showed that 9 of 10 Americans have insurance, but those living in the South are less likely to have policies. Also, almost half of Americans do not know that premium tax credits are available to make health insurance more affordable for low to moderate income families. In addition, three-quarters of Americans who got health insurance through the government marketplace will renew it next year.

For more information on Obamacare’s impact on taxes, go to TurboTaxHealth.com.

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