Graduation Debt » Tax Mondays

Tax Mondays: Tax time for Ammended Returns, Too

Reyna — Sat, 16 Apr 2011 12:59:30 +0000

As tax day approaches, think about old years of tax returns, too. Did you wait on claiming energy tax credit you could have received in 2009 because you thought you were going to make a bigger qualifying purchase in 2010? We did. My husband and I bought insulation for our home in 2009, but we didn’t claim it because we thought we’d buy new windows in 2010. We didn’t buy new windows. Now, we’re filing an ammended 2009 return.

You may have forgetten to claim a charity deduction or a self-employement business expense. Ammending returns is simple, and you can do it using the corresponding year’s tax software. For instance, I just ordered 2008 TurboTax today for Monday arrival via Amazon.com.

Have a great tax day everyone, and claim every deduction and credit you can.

Tax Mondays: One Week Until Tax Day

Reyna — Tue, 12 Apr 2011 03:31:47 +0000

If you haven’t filed your taxes yet, you still have one week left. Make the most of this time by researching possible deductions and credits. For example, if your investment losses were too high to be fully deducted on last year’s tax return, call 800-IRS-1040 and find out how much you can deduct this year. If you use tax software, don’t skip sections. The questions you answer may lead to discovering a hidden tax credit treasure.

Tax Mondays: 7 Ways To Avoid Self-Employed Tax Penalties

Reyna — Tue, 08 Mar 2011 01:48:10 +0000

Especially during your first year of self-employment, it’s hard to estimate how much money to send in to the IRS each quarter. Your earnings may be more or less than you estimated. Your social security tax is higher since you don’t have an employer that pays half. Checkout 7 Ways To Avoid Self-Employed Tax Penalties for tips on estimating taxes for next year and avoiding future penalties.

Tax Mondays:What to Do When You Owe Money to the IRS

Reyna — Tue, 01 Mar 2011 02:13:47 +0000

iting to file your taxes because you can’t pay the bill? If you owe the IRS money, you are actually part of the minority: according to the IRS, nearly three-quarters of taxpayers received refunds in the past two years.

But don’t panic. “The world isn’t ending because you owe taxes,” says Jim Sharvin, a CPA in Torrance, California. In fact, the IRS would loan you the money to cover your tax bill, he says. “It’s your instant loan approval company.”

But before you think about payment plans or loans from any other source, focus on filing on time. Failure to file your tax return or file for a six-month extension can cost you a penalty of 5% per month up to the first five months.

For example, if you owe $2,000 and you’re a month late, you just cost yourself $100. That’s equivalent to a 60% annual interest rate! And that’s without the additional government interest rate, currently at 4% plus the .5% failure to pay fee that both start accruing on tax filing day, which this year is April 18^th.

There are limited exemptions, such as active duty military if serving overseas, certain natural disasters or medical conditions. If you have an extreme circumstance for not filing on-time, contact the IRS to appeal late fees.

Tax Mondays: 10 Ways to Wisely Spend Your 2% 2011 Payroll Tax Cut

Reyna — Tue, 15 Feb 2011 23:47:17 +0000

Have you noticed that your paychecks have been a bit larger than normal lately? That’s because in 2011, the government is cutting the social security payroll tax paid by individuals from 6.2% to 4.2%.

How much is that in stone cold cash? If your annual income is $40,000, that’s $800 over the course of the year divided among your bi-weekly or monthly paychecks. If you earn $80,000 annually, your extra pocket money is $1,600. For those who make $106,800 or above, you’ll see an extra $2,136. Since social security is taxed individually, married couples could get up to a $4,272 take home pay boost for the year.

Now, what should you do with your extra moolah? Sheryl Garrett, the author of the Personal Finance for Dummies Workbook, a Certified Financial Planner and founder of the Garrett Planning Network, suggests these 10 ways to wisely spend your money, in order of importance for increasing your financial standing for years to come.

7 Record-Keeping Tips That Will Make Tax Prep a Breeze

Reyna — Wed, 09 Feb 2011 18:00:44 +0000

By now you’ve probably received your W-2s, 1099s and other forms necessary to complete your 2010 tax return.

If you’re super-organized, you may have even already filed your taxes and the question now is, what should you do with all those forms, receipts and other documents you used to prepare your return?

Many people err on the side of caution and keep all tax documentation for years on end, or until their filing cabinets literally overflow.

The truth is, you don’t need to keep tax-related stuff forever – but you shouldn’t get rid of it right after receiving your refund, either.

Throw away past tax returns and the supporting documents too soon, and you may find yourself in the middle of an IRS audit, lacking the evidence to back up all those tax deductions and credits. Approximately 1.4 million of 2009 tax returns were audited, according to the IRS. Though that’s only 1% of all tax returns, the chances of being audited are higher if your household income exceeds $100,000.

More importantly, being organized helps you avoid missing tax deductions or credit opportunities because you forgot about a certain expense or lost the receipt.

“You can avoid headaches at tax time by keeping track of your receipts and other records throughout the year,” says IRS spokesman Clay Sanford.

Here are seven record-keeping tips that will save you those headaches.

Tax Mondays: 6 Sources For Free Tax Help

Reyna — Tue, 08 Feb 2011 04:23:07 +0000

Every year when I do my taxes, I call up the IRS or contact customer service for my tax software program when I have questions. Having resources to turn to makes tax seasons so much easier. Check out 6 Sources For Free Tax Help to find your go to tax resources.

Tax Mondays: Top Tax Refunds For Recent Grads, College Students and Parents

Reyna — Wed, 02 Feb 2011 02:50:25 +0000

Whether you’re a recent grad, college student, or college parent, read Top Tax Refunds For Recent Grads before you file your tax return.

Tax Mondays: New IRS Tax App

Reyna — Tue, 25 Jan 2011 05:04:53 +0000

Download The IRS2Go App for your iPhone or Android to check your refund status. You’ll have to wait 72 hours or so after you e-file or 3 to 4 weeks after filing your paper tax return before your refund information is available. While you wait for your refund status, you can enter your e-mail address into the app for daily tax tips.

Tis’ the tax season.

Announcing Tax Mondays

Reyna — Mon, 17 Jan 2011 01:02:02 +0000

Come back every Monday through April 18th for tax tips and links that apply to current students and those with student loan debt.