Filing Taxes

April means it's tax time. This is a guide about filing taxes.

Solutions: Filing Taxes

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Prepare for Tax Time

Tax Time, I hate it. However, there are a few things I do to prepare.

Start only when feeling sharp, refreshed, and clear headed. If there are errors, it will only delay that return you need so badly.
Have a space where you can leave your papers and documents out for a day or two, and do not have to be gathered up for the evening meal.
Use the free tax services online instead of the expensive tax prep places. Even this old non-tax-savvy granny can do it.
Read the instructions on the site carefully. Mistakes can be made. Read your answers over carefully and double check your figures, even if you are sure you made no errors. You may be surprised to find that info you type often (name,soc. sec. # etc.) can have a typo because of haste.
If you get too frazzled, stop and take a break. A walk, cup of coffee, time with the family etc can give your brain a fresh jump-start.
Have a quiet environment to do your taxes in. Pets running, or kids playing loudly are not helpful to detailed work.
Have all your papers together before you even start. Searching for important stuff can break your concentration and cause some confusion. (Where was I now?)

These sound almost too simplistic, but are important. I always have to relearn a couple of them each year. Hard to form good habits in this when it is only an annul occurrence.

Hope all of you do great financially this coming difficult year.

Source: This is just what I have learned to keep things simple while preparing taxes. I help raise four grand-daughters, and need to be organized as possible.

By Phyllis from Wisconsin

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Free Tax Filing Through the IRS

If you made less than $56,000.00 in '08 you can file your taxes for free. Go to IRS.gov, to the right is the free link. You pick which company to use. I have used Turbo Tax for years and have always been very happy with process and the outcome!

http://www.irs.gov/

By Jodi from Horse Shoe, NC

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Auto Depositing Your Tax Return

When electronically or e-filing your tax return with an anticipated refund, make sure the bank account you designate for the direct deposit has your name on it.

My daughter does not have an account but opted to have her tax return direct deposited to our account. Unfortunately, the IRS would not do this and without notice to her, they snail mailed it to my daughter, who was not expecting this delivery method. It took an additional 5 weeks beyond when she was expecting the refund.

By Ronsan

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Link: Free Tax Filing for Low Income Filers

Just found out this year that if you make less than 56000.00 a year you can go to http://www.irs.gov/ and do your taxes for free! Just wanted to let people know!

By jwmn from Hendersonville, NC

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Need More Time To File Your Taxes?

If you can't meet the April filing deadline (Midnight, April 17th this year) to file your tax return, you can get an automatic six month extension of time to file from the IRS.

Here are some things to remember about filing extensions:

File Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, with the IRS by the April deadline, or make an extension-related electronic payment.
The extension will give you extra time to get your paperwork to the IRS, but it does not extend the time you have to pay any tax due.
You will owe interest on any amounts not paid by the April deadline, plus a late payment penalty if you have paid less than 90 percent of your total tax by that date.
You can e-file an extension request using tax preparation software on your own computer or by going to a tax preparer that has the software. The IRS will acknowledge receipt of the extension request if you file by computer.
You can use Free File to file for an extension. Many private-sector companies in the IRS Free File Alliance offer extensions for no charge. You can access Free File via the IRS Web site at IRS.gov. Taxpayers with adjusted gross incomes of $52,000 or less may file their 2006 Federal Income Tax Returns electronically through Free File.

If you ask for an extension via computer, you can also choose to pay any expected balance due by authorizing an electronic funds withdrawal from a checking or savings account. You will need the appropriate bank routing and account numbers and must also have available the adjusted gross income from your 2006 federal income tax return to verify your identity. For information on these and other methods of payment, call 800-TAX-1040 (800-829-1040).

If your return is completed but you are unable to pay the tax due, do not request an extension. File your return on time and pay as much as you can. The IRS will send you a bill or notice for the balance due. To apply online for a payment agreement, go to IRS.gov, use the pull-down menu under "I need to ..." and select "Set Up a Payment Plan."

To obtain a copy of Form 4868 or other forms and publications use Efile tax preparation software, download them from IRS.gov or visit your local IRS office. Note that forms and publications can be ordered by calling 800-TAX-Form (800-829-3676). However, telephone requests normally take 10 days to fill and may not arrive before the tax deadline of April 17.

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Avoid Delays With Your Tax Return

Be careful when switching software or filling out your tax return if you are married-filing jointly. My husband and I accidentally switched the order of our social security numbers from last year to this. Everything is correct on the return but because the first social security is different from last year, the IRS is delaying the return 30 days to make sure.

The IRS representative we spoke to said to make sure to keep the returns as identical as possible from year to year. I guess their computers are not as advanced as you might think. We filed as early as possible and were excited to receive our return quickly but now have to wait! Hopefully, this advice will help someone avoid the same delay.

Jess

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Filing Taxes Online For Free

I have gone through the following website for like 3 years now and gotten my federal and state taxes all done, e-file, for free. I believe it's for people who make less than $25,000 per year, and there are other people who qualify too. Check it out. It's free and I have the money either deposited right into our checking account, or mailed to us. I like putting it automatically in the checking account the best.

http://turbotax.intuit.com

TurboTax Freedom Edition Qualifying Criteria

Intuit offers TurboTax Freedom Edition via the Free File Alliance for taxpayers who either:

Earned an Adjusted Gross Income (AGI) for tax year 2006 of $28,500 or less.

Qualify for the Earned Income Tax Credit (EITC) with AGI up to $38,348.

Active Duty Military and earned an Adjusted Gross Income of $52,000 or less.

In addition, taxpayers meeting this eligibility criteria and who live in one of the 21 participating states can use TurboTax Freedom Edition to prepare and file both federal and state returns at no cost.

Note: The qualifying criteria is subject to change.

Source: Part of this is from the turbointuit.com website

By Ann from Munfordville, KY

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The Benefits Of Filing A Tax Return

Hope this is helpful to someone thinking about not filing a tax return this year. Due to illness one year, my income did not require me to file a tax return. I regretted that decision. There were many times that I was filling out forms and was asked for information off of that year's tax return. Since I did not file, I did not have the information. It was a headache. I promised myself from then on, I would file a return no matter what.

By Ole Lulu from New Baden, IL

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Who Must File a Tax Return

There are some instances when you may not be required to file a federal income tax return. But keep this in mind - more than 70 percent of those who file are due a refund, so it may be to your advantage to file even if you are not required to.

The law does require you to file a tax return if your income is above a certain level. Check the instructions for Form 1040, 1040A or 1040EZ (under "filing requirements") for specific details that may affect your need to file a tax return with IRS this year.

Here are some general guidelines for anyone under age 65. Remember, these guidelines may change based on your particular situation. In general, once you have the following gross income amounts, the law requires you to file a federal tax return with the IRS:

Single - $7,950
Head of Household - $10,250
Married Filing Jointly - $15,900
Married Filing Separately - $3,100
Qualifying Widower (with dependent child) - $12,800

Generally, a person who is self-employed must file a tax return if his or her net earnings from self-employment for the year exceed $400.

Even individuals who don't earn enough to be required to file a tax return may be eligible for an earned income credit up to $2,604 for a taxpayer with one qualifying child and $4,300 for a taxpayer with two or more qualifying children. Some individuals who do not have a qualifying child may be eligible for a credit of up to $390. However, you must file a return to receive the Earned Income Tax Credit. You must also file a return if you received any advance payments of this credit while you worked during the year.

Links (will go to IRS website):

Forms and Publications
http://www.irs.gov/formspubs/index.html

Earned Income Tax Credit
http://www.irs.gov/individuals/article/0,,id=96406,00.html

By irs.gov

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Questions

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Free IRS Tax Filing Program

The Free File program is a free (U.S.) federal tax preparation and electronic filing program for eligible taxpayers developed through a partnership between the Internal Revenue Service (IRS) and the Free File Alliance LLC, a group of private sector tax software companies.

Since Free File's debut in 2003, more than 15.4 million returns have been prepared and e-filed through the program. Free File allows taxpayers with an Adjusted Gross Income (AGI) of $52,000 or less in 2006 to e-file their federal tax returns for free. That means 70 percent of all taxpayers - 95 million taxpayers can take advantage of the Free File program.

Free File Home - Your Link to Free Federal Online Filing

RE: Free File Program through the IRS

Thanks loads for this tip. I did not know any such thing existed, and I was dreading either having to pay a CPA or buy an expensive computer program in order to file my taxes this year. Have a lovely day and God bless you! (02/07/2007)

By tedsmom

RE: Free File Program through the IRS

I have been using taxact.com for the last 3 years. It is so easy to use. They ask you straight forward questions and have help links that actually explain and help you. This year I paid them 12.95 and filed my state taxes through them also but the federal was still free. My state refund was mailed less than 1 week from me submitting my tax return. The federal refund is scheduled to be mailed 3 weeks after. Best of luck to you all. (02/07/2007)

By dpcw

RE: Free File Program through the IRS

This is the second year I have used this way to do our federal taxes. I found it to be easy and far less time consuming and it is free! And in less than ten days, my refund is direct deposited into our checking account. (02/09/2007)

By maggiemay