Tag Archives: United States

Free File Still Available for Last-Minute Filers

13 Friday Apr 2012

Posted by in Income Tax

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The tax deadline is fast approaching and even though the April 17 deadline offers a couple of extra days this year, the IRS wants to remind taxpayers who haven’t filed yet that IRS Free File is still available.
For people who find taxes a little too taxing, IRS Free File offers free software to prepare and e-file your taxes for free. Get started at IRS.gov/freefile. Here are four tips about IRS Free File.

1. Free File Does the Hard Work for You Free File is a partnership between the IRS and leading tax software providers who make their brand-name products available for free. You don’t need to be a tax expert; the software will help find tax breaks for you, such as the Earned Income Tax Credit. The software asks the questions; you supply the answers. It will find the right tax forms and do the math.

2. Access to Free File products You must access the Free File products through www.irs.gov to avoid any charges for preparing or e-filing your federal tax return. Once you choose a Free File software product, you’ll be directed away from the IRS website to the partner’s site to prepare, print and e-file your federal return – all for free.

3. Free options for all There is a free option for everyone. People who make $57,000 or less, which includes most Americans, can use the Free File software. People who make more can use Free File Fillable Forms, an electronic version of IRS paper forms.

4. Free Extensions Taxpayers who can’t make the April 17 deadline can request an extension. Making the request is easy and free through IRS Free File. Just look for “free extensions” in the company offers. Remember, this is an extension of time to file your return, not to pay. If you think you owe, make a payment with your extension request.
Get all the information you need about IRS Free File at IRS.gov/freefile.

IRS Tax Tip: Free File Still Available for Last-Minute Filers

13 Friday Apr 2012

Posted by in Income Tax

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taxes

taxes (Photo credit: 401K)

The tax deadline is fast approaching and even though the April 17 deadline offers a couple of extra days this year, the IRS wants to remind taxpayers who haven’t filed yet that IRS Free File is still available.
For people who find taxes a little too taxing, IRS Free File offers free software to prepare and e-file your taxes for free. Get started at IRS.gov/freefile. Here are four tips about IRS Free File.

1. Free File Does the Hard Work for You Free File is a partnership between the IRS and leading tax software providers who make their brand-name products available for free. You don’t need to be a tax expert; the software will help find tax breaks for you, such as the Earned Income Tax Credit. The software asks the questions; you supply the answers. It will find the right tax forms and do the math.

2. Access to Free File products You must access the Free File products through www.irs.gov to avoid any charges for preparing or e-filing your federal tax return. Once you choose a Free File software product, you’ll be directed away from the IRS website to the partner’s site to prepare, print and e-file your federal return – all for free.

3. Free options for all There is a free option for everyone. People who make $57,000 or less, which includes most Americans, can use the Free File software. People who make more can use Free File Fillable Forms, an electronic version of IRS paper forms.

4. Free Extensions Taxpayers who can’t make the April 17 deadline can request an extension. Making the request is easy and free through IRS Free File. Just look for “free extensions” in the company offers. Remember, this is an extension of time to file your return, not to pay. If you think you owe, make a payment with your extension request.
Get all the information you need about IRS Free File at IRS.gov/freefile.

IRS Tax Tip: Tax Credits Available for Certain Energy-Efficient Home Improvements

09 Friday Mar 2012

Posted by in Tax Credits

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English: A unique energy-efficient home built ...

Image via Wikipedia

Tax Credits Available for Certain Energy-Efficient Home Improvements 

The IRS would like you to get some credit for qualified home energy improvements this year. Perhaps you installed solar equipment or recently insulated your home? Here are two tax credits that may be available to you:

1. The Non-business Energy Property Credit  Homeowners who install energy-efficient improvements may qualify for this credit. The 2011 credit is 10 percent of the cost of qualified energy-efficient improvements, up to $500. Qualifying improvements includeadding insulation, energy-efficient exterior windows and doors and certain roofs. The cost of installing these items does not count. You can also claim a credit including installation costs, for certain high-efficiency heating and air conditioning systems, water heaters and stoves that burn biomass fuel. The credit has a lifetime limit of $500, of which only $200 may be used for windows. If you’ve claimed more than $500 of non-business energy property credits since 2005, you can not claim the credit for 2011. Qualifying improvements must have been placed into service in the taxpayer’s principal residence located in the United States before Jan. 1, 2012.

2. Residential Energy Efficient Property Credit This tax credit helps individual taxpayers pay for qualified residential alternative energy equipment, such as solar hot water heaters, solar electricity equipment and wind turbines. The credit, which runs through 2016, is 30 percent of the cost of qualified property. There is no cap on the amount of credit available, except for fuel cell property. Generally, you may include labor costs when figuring the credit and you can carry forward any unused portions of this credit. Qualifying equipment must have been installed on or in connection with your home located in the United States; geothermal heat pumps qualify only when installed on or in connection with your main home located in the United States.

Not all energy-efficient improvements qualify so be sure you have the manufacturer’s tax credit certification statement, which can usually be found on the manufacturer’s website or with the product packaging.

If you’re eligible, you can claim both of these credits on Form 5695, Residential Energy Credits when you file your 2011 federal income tax return. Also, note these are tax credits and not deductions, so they will generally reduce the amount of tax owed dollar for dollar. Finally, you may claim these credits regardless of whether you itemize deductions on IRS Schedule A.

You can find Form 5695 at IRS.gov or order it by calling 1-800-TAX-FORM (800-829-3676).
Link:

Form 5695, Residential Energy Credits

IRS Tax Tip: Seven Tips to Help Taxpayers Avoid Phony Refund Schemes Abusing Popular College Tax Credit

05 Monday Mar 2012

Posted by in Tax Credits

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Seven Tips to Help Taxpayers Avoid Phony Refund Schemes Abusing Popular College Tax Credit

The Internal Revenue Service offers the following seven tips to help taxpayers avoid an emerging scheme tempting senior citizens and other taxpayers to file tax returns claiming fraudulent refunds.

These schemes promise refunds to people who have little or no income and normally don’t have a tax filing requirement.

Promoters claim they can obtain for their victims, often senior citizens, a tax refund or nonexistent stimulus payment based on the American Opportunity Tax Credit, even if the victim was not enrolled in or paying for college.

Con artists falsely claim that refunds are available even if the victim went to school decades ago. In many cases, scammers are targeting seniors, people with very low incomes and members of church congregations with bogus promises of free money.

A variation of this scheme also falsely claims the college credit is available to compensate people for paying taxes on groceries.

These schemes can be quite costly for victims. Promoters may charge exorbitant upfront fees to file these claims and are often long gone when victims discover they’ve been scammed.

Taxpayers should be careful of these scams because, regardless of who prepared their tax return, the taxpayer is legally responsible for the accuracy of their tax return and must repay any refunds received in error, plus any penalties and interest. They may even face criminal prosecution.

To avoid becoming ensnared in these schemes, the IRS says taxpayers should beware of any of the following:

  • Fictitious claims for refunds or rebates based on false statements of entitlement to tax credits.
  • Unfamiliar for-profit tax services selling refund and credit schemes to the membership of local churches.
  • Internet solicitations that direct individuals to toll-free numbers and then solicit social security numbers.
  • Homemade flyers and brochures implying credits or refunds are available without proof of eligibility.
  • Offers of free money with no documentation required.
  • Promises of refunds for “Low Income – No Documents Tax Returns.”
  • Claims for the expired Economic Recovery Credit Program or for economic stimulus payments.
  • Unsolicited offers to prepare a return and split the refund.
  • Unfamiliar return preparation firms soliciting business from cities outside of the normal business or commuting area.

In recent weeks, the IRS has identified and stopped an upsurge of these bogus refund claims coming in from across the United States. The IRS is actively investigating the sources of this scheme, and its promoters can be subject to criminal prosecution.

To get the facts on tax benefits related to education, go the Tax Benefits for Education Information Center on this website.

Links:

YouTube Videos:

Tax Refund Scams – English | Spanish | ASL

Podcast:

Choosing a Tax Preparer

Education Tax Credits Help Pay Higher Education Costs

27 Monday Feb 2012

Posted by in Tax Credits

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The following is a tax tip from IRS:

Education Tax Credits Help Pay Higher Education Costs

Two federal tax credits may help you offset the costs of higher education for yourself or your dependents.  These are the American Opportunity Credit and the Lifetime Learning Credit.

To qualify for either credit, you must pay postsecondary tuition and fees for yourself, your spouse or your dependent. The credit may be claimed by either the parent or the student, but not both. If the student was claimed as a dependent, the student cannot file for the credit.

For each student, you may claim only one of the credits in a single tax year. You cannot claim the American Opportunity Credit to pay for part of your daughter’s tuition charges and then claim the Lifetime Learning Credit for $2,000 more of her school costs.

However, if you pay college expenses for two or more students in the same year, you can choose to take credits on a per-student, per-year basis. You can claim the American Opportunity Credit for your sophomore daughter and the Lifetime Learning Credit for your spouse’s graduate school tuition.

Here are some key facts the IRS wants you to know about these valuable education credits:

1. The American Opportunity Credit

  • The credit can be up to $2,500 per eligible student.
  • It is available for the first four years of postsecondary education.
  • Forty percent of the credit is refundable, which means that you may be able to receive up to $1,000, even if you owe no taxes.
  • The student must be pursuing an undergraduate degree or other recognized educational credential.
  • The student must be enrolled at least half time for at least one academic period.
  • Qualified expenses include tuition and fees, coursed related books supplies and equipment.
  • The full credit is generally available to eligible taxpayers whose modified adjusted gross income is less than $80,000 or $160,000 for married couples filing a joint return.

2. Lifetime Learning Credit

  • The credit can be up to $2,000 per eligible student.
  • It is available for all years of postsecondary education and for courses to acquire or improve job skills.
  • The maximum credited is limited to the amount of tax you must pay on your return.
  • The student does not need to be pursuing a degree or other recognized education credential.
  • Qualified expenses include tuition and fees, course related books, supplies and equipment.
  • The full credit is generally available to eligible taxpayers whose modified adjusted gross income is less than $60,000 or $120,000 for married couples filing a joint return.

If you don’t qualify for these education credits, you may qualify for the tuition and fees deduction, which can reduce the amount of your income subject to tax by up to $4,000. However, you cannot claim the tuition and fees tax deduction in the same year that you claim the American Opportunity Tax Credit or the Lifetime Learning Credit. You must choose to either take the credit or the deduction and should consider which is more beneficial for you.

For more information about these tax benefits, see IRS Publication 970, Tax Benefits for Education available at www.irs.gov or by calling the IRS forms and publications order line at 800-TAX-FORM (800-829-3676).
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Miami Bookkeeper offering affordable bookkeeping Services

06 Monday Jun 2011

Posted by in Bookkeeping Services, Small Business, Taxpayers

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Welcome to The Bookkeeping Miami Blog. We offer affordable services to South Florida businesses on bookkeeping, payroll, bank reconciliation, QuickBooks, Peachtree and more. Check back regularly for updates to our blog and our services or email us at info@bookkeepingmiami.com with questions.