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!

Maximizing Your Savings: How Retailers Offer Tax Relief and Health Benefits

As April 15th looms on the horizon, retailers understand the financial strain that this day can bring. Tax Day can be a stressful time for many individuals, as the looming deadline to file taxes often comes with financial concerns. But there are ways that retailers offer tax relief for tax payers during this season.

Retailers Offer Tax Relief

Many well-known retailers across the nation have recognized the significance of Tax Day and are keen on lightening the load for their customers. Freebies and Special Promotions: Some retailers take it a step further by offering complimentary items or special promotions. This might include a free coffee, a meal deal, or even a relaxation service to help you de-stress after completing your taxes.

Tax Deductions for Dietary Needs: It’s a lesser-known fact that individuals with certain medical conditions can claim deductions for the cost of special dietary foods. Tax laws in the United States provide avenues for taxpayers to claim deductions related to qualified medical expenses, and this includes the cost of special dietary foods prescribed by a medical professional.

Additionally, it is advisable to consult with a qualified tax professional who can provide guidance on claiming these deductions accurately.

Whether it’s through tax deductions or the perks offered by retailers, there are ways to make Tax Day a bit more manageable and even enjoyable.

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

Married Same Sex Couples Gain Equal Tax Benefits

Married Same Sex Couples

Regardless of which state that they live in, all lawfully married gay couples can now file back taxes in the United States and can obtain the same tax benefits that married heterosexual couples receive. This means that whether a married gay couples lives in a state that recognizes gay marriage or one that does not, the marriage tax benefits applies nationally. This is because of the invalidation of an important part of the Defense of Marriage Act federal law of 1996 on June 26.

This act had previously recognized marriages only between a man and a woman. The invalidation of the act now provides for definiteness for gay couples that want to file back taxes and gives them access to benefits, responsibilities and protections under federal tax laws. The implication of this ruling is that same sex couples in states that do not recognize same sex might move to states such as New York where same sex marriage is legally permitted.

The ability of gay couples to file back taxes goes back to the 2010, 2011 and 2012 tax years and such couples can seek tax refunds by filling amended tax returns. Filling tax returns will change their tax status because couples can choose to file taxes as married filing jointly or married filing separately. But the change is also both positive and negative because it has benefits as well as penalties.

The positive side of the ruling is that spouses that are legally married will be exempted from federal state tax. A gay couple that is in a certain income bracket may get charged with the marriage penalty tax that heterosexual couples are usually faced with. Same sex couples will receive the file back taxes benefits as long as they are married without regard to where they reside.

Tax Carnival Ecstasy – April 10, 2013

English: Rep. Greenwood receives the "Her...
English: Rep. Greenwood receives the “Hero of the Taxpayer” Award from Americans for Tax Reform. (Photo credit: Wikipedia)

Welcome to the April 10, 2013 edition of Tax Carnival Ecstasy. We start this edition with a post from Dominic Mondal on Securing your Pension Plan by Investing in Self Managed Super Funds. Bill Smith takes a look at the U.S. tax reform and the effect of a decrease in the tax code’s bias for debt. John Schmoll has 4 Ways to Make Filing Taxes Easier from the Frugal Rules blog. And finally Edward Webber presents The New Tax Code for 2013-2014. Hope you enjoy the articles, bookmark, share, tweet, like on Facebook and come back for our next edition.

dominic mondal presents Securing your Pension Plan by Investing in Self Managed Super Funds and Property posted at Recent Articles.

deductions

Bill Smith presents U.S. tax reform – Effect of decrease in the tax code’s bias for debt posted at 2012 Tax – Free Tax Filing Options, saying, “The much awaited tax reform has at last arrived to reduce the tax code’s bias for debt.”

filing

John Schmoll presents 4 Simple Ways to Make Filing Taxes Easier Every Year – Frugal Rules posted at Frugal Rules, saying, “Very few people enjoy doing and filing their taxes. However, with a few simple steps you can make the process easier every year.”

retirement

John Schmoll presents Financial Advisor Compensation – Why it Matters posted at Frugal Rules, saying, “A financial advisor can be a great way to help you grow your portfolio when you have long term goals in mind. Make sure you do your homework and hire one that you feel right about and best fits your needs and goals.”

tax law

Bill Smith presents The Discretion of the President to Plan Cuts Under Debate posted at 2012 Tax – Free Tax Filing Options, saying, “President Barack Obama has been pretty vocal about the effect that automatic budget cuts are going to have.”

taxes

Alan Webster presents A Day in the Life of a Trader posted at TradingAcademy.com, saying, “Have you ever wondered what the average day is like for a trader? In this blog post we interview Steve Moses, an options trader, to sneak a peek into his average day.”

Edward Webber presents The New Tax Code for 2013-2014 posted at TaxFix Feed Update, saying, “In the UK the tax allowance is about to increase. This means that anyone working in the country can earn 9,449 pounds before they need to pay any tax. This post explains all about it.”

Bill Smith presents Innovations For Turbo Tax 2013 posted at 2013 Taxes, saying, “Professional accounting can help business owners save time and resources, and the Turbo Tax 2013 CPA Select edition by Intuit may be the ideal solution for tax filing season.”

Bill Smith presents Easy Online Tax Filing With Free Turbo Tax 2013 Software posted at 2009 Taxes, saying, “Having expert tax assistance can be the best way to avoid financial penalties, complete your filing on time, and maximize your refund.”

Bill Smith presents The Benefits Of Using TurboTax 2013 To File Your Taxes posted at 2012 Taxes – Free Tax Filing Options, saying, “If you have never used Turbo Tax before, you need to consider filing your taxes with this computer program this year.”

Bill Smith presents Jackson Hewitts Tax Advice For Recent College Graduates posted at 2008 Taxes, saying, “Recently, Jackson Hewitt released its biggest tax tips for college graduates. Recent graduates often make some big mistakes on their returns that are more than avoidable.”

Bill Smith presents Last Minute Tax Tips When Using Turbo Tax 2013 posted at 2009 Tax, saying, “Before you head to TurboTax.com, take a moment to read through these tips. With the deadline approaching, you need to know what to do at the last minute to make the filing process successful.”

Bill Smith presents Finding The Right Online Tax Prep posted at 2009 Taxes, saying, “The nice thing about these different options is that they are all free and allow you to quickly get your information in so you can receive your refund.”

Bill Smith presents TurboTax Helps Users Get More Accurate Tax Returns posted at 2010 Tax, saying, “Each year, Americans are forced to go through last year’s financial information and prepare a tax return.”

tips

John Schmoll presents How Should You Spend Your Tax Return? posted at Frugal Rules, saying, “The average tax return is nearly $3,000. Receiving that sum of money all at once can lead to easy temptation. Make sure you make wise decisions with that money, whether it be paying off debt or investing for the future so you can make the money work for you.”

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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Most Taxpayers Don’t Cheat

Most Taxpayers Don’t Cheat

Paying taxes is required for both citizens and non-citizens. (Photo credit: Wikipedia)

If you are racing to get your taxes done by the April 15 deadline, you are not alone. Millions of Americans will file their taxes this year, and more than ever will file taxes online. One of the most common misconceptions about tax filing is that everyone cheats on their taxes. Studies have shown, however, that the majority of Americans are against cheating on taxes.

Who Cheats on Taxes?

Surprisingly few people cheat on their taxes. Aside from the big news stories about wealthy real estate magnates evading taxes, it is rare to hear about tax cheating. With a variety of deductions and credits that reduce the average tax bill, most people don’t see the advantage of cheating on their taxes.

According to a poll conducted by the IRS, the majority of Americans agree that cheating on your taxes is never okay. Only a small percentage of taxpayers surveyed said that they regularly cheat on their taxes. The IRS depends on the self-reporting of taxpayers to uphold the integrity of the tax system. They report that only 1% of taxpayers are ever subject to an IRS audit.

With safeguards in place to prevent dishonesty, it is difficult to cheat on your taxes. When you receive tax forms such as interest income forms from your bank, the IRS also receives a copy of that information. Banks, employers and other financial institutions are required to report this income to the IRS at the end of the tax year.

Software like Turbo Taxes has checks and balances in place to ensure that all of the information you input is factual and correct. The software will even allow you to go back and check past returns for errors.

Filing Your Taxes Online

Filing your taxes online with Turbo Taxes is easy. With a team of tax preparation experts at your disposal, you can be sure that your taxes will be filed correctly every time. When you file your tax return online, it is electronically submitted to the IRS for immediate processing. You will be notified of the status of your return within a few days.

Get the refund you deserve when you file your taxes online. Although most taxpayers will never face an audit, you can be assured that you have support should the IRS need more information from you. With audit protection, you never have to worry about facing an IRS audit alone.

Don’t let the April 15 tax filing deadline creep up on you. File your taxes today.

87% say it’s never okay to cheat on taxes