Category: Extension

Extension Filers: Important Reminders When Preparing to File

Hey, folks! If you’re like me, you probably need more time to prepare your tax returns. There was no shame in that! Life can be hectic, and we may require extra six-month period for harvesting money, but now since October 15th is looming, time to buckle up. Thus, here are some important reminders for smooth sailing when filing a tax extension.

Tax Filing Extension
Tax Filing Extension

File by the Deadline

While we’re all about preparing for tax season and taxes, remember that tax season isn’t just around the corner but it’s here already and so on October 15th you need to note that down as your due date. If you got an extension approved, then make sure that this advice does not miss your ears: failure to file would give rise to penalties plus interest which could be disheartening. So, note it down on your phone, stick it on the fridge or write it somewhere else!

Gather All Your Documents

Before you start submitting anything, make sure your documents are in place and looking good. These include W-2s, 1099s, deductions, and other required documentation. If you don’t have one, ask your employer or bank immediately. I am telling you it is no fun to look for documents at the last minute.

Use IRS Free File

Did you know that there are taxpayers who are eligible to use the IRS Free File to fulfill their tax preparation obligations? If you want something simple without breaking the bank, there is no better option. Additionally, anyone should be able to understand how to go through it as it does not require any special skills in taxation. If this is your first time, we advise you to consider making use of this service.

Direct Deposit for Faster Refunds

If you’re expecting a refund, opt for direct deposit. It’s the fastest way to get your money. Just make sure your bank account information is accurate to avoid any delays. I remember one year I accidentally entered the wrong account number and had to wait weeks for a paper check. Lesson learned!

Payment Options

If you owe taxes, don’t panic. The IRS offers several payment methods, including installment plans. It’s best not to bail out at all and deliver what you can. Ignoring the problem will not make it go away, and the penalties can quickly add up.

Double-Check Everything

Verify all your details before submitting your tax return. Ensure that your Social Security number as well as the particulars of your bank account are correct, and that other personal information is also accurate. A tiny mistake can result in major problems later on.

Personal Story: My Extension Filing Experience

Allow me to share some of my own experience. In the past, I’ve been overwhelmed by work and personal commitments, and I knew I wouldn’t make it on the last day of April. I had to ask for an extension on that. I believed I had enough time; however, October came faster than I anticipated. I found myself in a panic mode during the weekend going through my receipts and papers. It was quite stressful, but at least I managed to file within the set timeline. So, what is the main point? Don’t procrastinate until something is due tomorrow; instead, start your project early enough and give yourself ample time to revise it all.

Final Thoughts

Although applying for an extension can help you avoid a costly mistake, it is essential to keep track of the current happenings and adhere to the new deadline. If you follow these steps and pay attention to these tips, you will successfully submit your extended return. All the best, and I hope you file your taxes as smoothly as possible!

How To File A Tax Extension

How To File A Tax Extension

Each year, millions of people find that they are unable to file their taxes in time for the April deadline.  While the IRS can be very unforgiving about some aspects of their collections, one thing that they do make available for all tax payers is a tax extension available for several months.  You can use TurboTax 2013 software in order to take advantage of this tax extension.

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

E-File First

Begin by using the TurboTax 2013 software to actually file you taxes, putting in as much information about income, securities, investments, and deductions that you are able to, even if it is only a smidgen.  You want to do this now so that there are no surprises you may have missed once you sit down to do the full job.  Once you have that done, find out when you are able to finish the extension to the closest date.  Log into TurboTax 2013 software and either e-file an extension or print out the paper copy.

Paper Or Digital

While most people might be more comfortable with filing their tax extension by mail, you can do so digitally with the TurboTax 2013 software.  In fact, since this process is instant, it is not recommended that you file an extension by mail since it will take a few days to reach the IRS offices and runs the risk of becoming overdue if it is not postmarked by April 15th.  Once you have sent it in, you have until October 15th of 2013 to fill out the full tax form.

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Tax Carnival Ecstasy – October 23, 2012

Welcome to the October 23, 2012 edition of Tax Carnival Ecstasy. In this edition we start with Anisha from the NerdWallet who takes a look at oil companies and the taxes they pay. Bill Smith reviews H&R Block’s small business tax software. Anna Deguzman looks over the Fiscal Cliff and how the two presidential candidates will handle the crisis. Finally we have four easy ways to save money on your taxes that you can implement before the year ends. Hope you get a chance to read all the posts here, bookmark for later, share on the social networks like Twitter and Facebook and follow the carnival in the future.

tax law

Bill Smith presents File Your Taxes posted at 2010Taxes, saying, “When it comes to online tax filing security is the major issue. Many people may like the concept or many might look down, most of them may feel worried about putting their information all on the internet and doubt that is it actually safe and secure to submit your tax return this way.”

taxes

Bill Smith presents Gay Marriage Increases Federal Tax Headaches posted at 2008 Taxes, saying, “The advent of a new era in our nation’s history brings with it more than gay marriage acceptance; we are witnessing the dawn of a new era of federal tax headaches.”

Bill Smith presents 2010 Tax Credits For Your Home posted at 2010 Tax, saying, “For those of you thinking of buying a new home but are not sure about the 2010 tax credits, maybe this will help you.”

[email protected] presents Should oil companies pay higher taxes? Prof. Ho explains the economics of optimal taxation posted at NerdWallet, saying, “Should oil companies pay higher taxes? Prof. Ho teaches the economics of optimal taxes for the purpose of reducing the federal deficit.”

Bill Smith presents Tips to Get TurboTax Discounts posted at 2009 Tax, saying, “Turbotax software comes in various different versions like Premier, Deluxe, etc. Turbo tax software is used to prepare both State & Federal Income Tax Returns.”

Bill Smith presents How to get online tax refunds with H&R Block? posted at 2008 Taxes, saying, “Nowadays there are many tax filing programs available online, but even today most of the people think twice while filing their income tax returns using these online programs.”

Bill Smith presents H&R Block- Small Business Tax Software Review posted at 2009 Taxes, saying, “H&R Block is one of the best tax preparation software used worldwide. Today more than 500 million clients mainly in Australia, the U.S., and Canada use H&R block.”

[email protected] Obama vs. Romney vs. The Fiscal Cliff posted at NerdWallet Blog – Credit Card Watch, saying, “What change will the impending “fiscal cliff” bring? The nerds weigh in on the issue and the roles the presidential candidates could play.”

tips

Bill Smith presents FreeTaxUSA- Prepare your Taxes Yourself posted at 2011 Taxes, saying, “There are several tax preparation programs available online. Let’s begin with a very simple and a detailed review.”

John Schmoll presents 4 Simple Ways to Save Money on Taxes Before Year End posted at Frugal Rules, saying, “Tax season is quickly approaching us. Don’t fall behind and wait til the last minute to prepare for it. There are numerous things you can do now to help save you money and give less to Uncle Sam.”
That concludes this edition. Submit your blog article to the next edition of tax carnival ecstasy using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

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Free Federal Tax Filing

Free Federal Tax Filing

Most tax payers find it difficult to pay their taxes in the expected time, except those who are familiar with the free online tax filing website provided by the IRS. The website IRS.gov gives information on how to fill out the forms and the requirements one should have. It provides a step by step procedure making the task simple and overly convenient.

Free Federal Tax FilingThe program software that can be used to file free of charge can only be used by those who are qualified. Free tax filing involves doing one’s taxes on an online form and is easier and faster than the traditional method of paper filing. The IRS provides free federal tax filing services for anyone that earns an adjusted gross income of less than $57,000. Having e-filed the correct information, a notification from the IRS is electronically mailed to you. The services that are provided include filing a tax payment, filing tax returns and finally filing a tax refund.

In readiness for filling the online forms, one should have at hand, a copy of the previous year’s tax return, determine ones adjusted gross income (AGI) and go through the free file FAQs and free file fill-able forms FAQs. After filling in the free federal tax filing forms with the right information, one should transmit it using a secure IRS e-file.

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3 Steps for Finding the Right Tax Lawyer for Your California Business

Every year, businesses in San Diego come face to face with tax disputes from the IRS. And when it comes to taxes, there is very rarely such thing as an open-and-shut case. When your business is faced with anything from an audit to a battle with the IRS, it is essential to find a well-qualified lawyer to take on your case. Regardless of whether the case is minor or requires extensive documentation and work, having a well-versed California attorney on your side will ease the burden on your business to do extra tax law research, and let you get back to what you do best, which is run your company.

But as a business owner, you may be wondering where to start. Finding the right lawyer could mean the difference between a win and a loss against the IRS, so it is perhaps the most important piece of the tax case puzzle. Here are three things to look for when finding the right San Diego tax lawyer:

  • Narrow the focus – Depending on whether your case has to do with state or national taxes, you need a lawyer who is well educated in the right type of tax law. If possible, focus the search even closer and drill down to the attorney with the greatest amount of experience dealing with cases similar or nearly identical to your own. By understanding his or her qualifications and past experiences, you can ensure you are selecting the right lawyer for your case.
  • Don’t jump at the first lawyer you speak to – It is OK to interview a few lawyers before settling on the one who will fight your battle with you. Comparing law firms and abilities will help you make the right decision for your case, and keep you confident throughout the process that you chose the right law firm to take on your fight. With such an important decision to the success of your case, it is a good idea to go the extra mile and interview more than one firm.
  • Research your prospects – Once you have a few names picked out, take an extra step and do your own research on their backgrounds. Talk to the bar association or past clients to find out how easy the firm was to work with and what you can expect from it during your own case. Search the Internet for various forms of information, too. There may be some extra info not provided by the lawyer that is available online about his or her reputation and abilities.

Start your search by narrowing the focus down to which lawyers will be well suited to manage your case with the IRS. Then, be sure to interview more than one prospect and do your own research on the side to find the perfect fit for your specific needs.

Becky loves to write. Her favorite subject to write about is finances. If you’d like more information regarding San Diego tax lawyer, please visit http://www.allenbarron.com/

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Tax Refund Advance

Tax preparation time can be stressful for people who hold their breath until they find out the damage or the good news when the final figures are in. If the news is good–the government owes them back some of their money–those who want those funds as soon as possible may request a tax refund advance.

Annually, a friend of mine goes to H&R Block for preparation of his state and federal returns. The taxes withheld each payday from his paychecks typically exceed his tax liability at the end of the year. When H&R Block calculates taxes, each time they determine that he is entitled to get some money back from the government. They then offer him the option to receive his tax refund immediately through their tax refund advance loan.

What are Tax Refund Advance Loans?

These loans, also known as tax refund anticipation loans, allow you to receive the money you will get back eventually from the government in your tax refund much sooner. This is very tempting–having the money right now, so you can pay urgent bills or buy things you really need sooner rather than later can always be a very inviting proposition. But should you jump at this chance?

There is no free lunch–whether talking about food or a tax refund advance. The tax preparers or payday loan companies incur expenses in connection with issuing these loans, including the value of their money that will not be repaid for days or weeks by the government refund. They want a fee for their services, and the fee charged by some of these places that give tax refund advances can be exorbitant.

You are in effect paying a very large chunk of your own money to someone else, in return for lending you some of your own money. The lenders incur virtually zero risk in return for giving you money you are due anyway.

What should you pay to someone so that they will lend you your own money? If the refund due you is around $1,000, the tax preparer who you have just paid a fee to prepare your returns may entice you to accept a loan to get that money immediately, and then charge you another fee which he assures you will be a modest or “token” additional fee.

This “modest” fee varies among different tax preparing services and loan companies. Sometimes the fee is $30; however, some loan companies charge fees up to $100. They then may tack on “administrative” and electronic bank transfer fees charges. These additional charges can run the total cost of getting your own money to $100 to $200. You are saying farewell to up to 20 percent of your refund, just for the pleasure of getting it a bit sooner.

The time you are saving by getting this up-front tax refund advance is probably only 10 to 14 days if you file electronically. There are few emergencies that cannot wait 14 more days, if you have already waited several months for your return. Even a return sent by mail has a turnaround time of as little as three or four weeks if the return is mailed early in the tax season.

Probably the only real justification for paying so much to get money a little sooner is a genuine, unexpected emergency that cannot wait until the government processes the return and issues the refund.

One way to avoid the issue is to submit a new W4 form to your employer that adjusts your withholding status so that you receive your money as soon as you earn it, rather than waiting until you file your tax return. Otherwise you are giving a free loan of your money to the government!