Tips for Filing Your Tax Return For Free

The IRS has made it very easy to prepare and electronically file your own income tax return through Free File at no cost. I recommend this route for anyone who is comfortable filing his or her own income tax return and has an uncomplicated tax return with an adjusted gross income (AGI) of $57,000 or less. Usually this is a taxpayer with one or two W2s and taking the standard deduction.

To use the program, simply visit the IRS website and click on “Free File” located on the right side under the orange bar entitled “Filing and Payment.” This takes you to another location where vendors offer free filing as a service to the general public. Some vendors have age and resident state requirements, but there are plenty of vendors and it’s important to review the list to find the best fit.

The programs are easy to follow and require you to input your personal data as well as specified data from your W2 form. When complete, click the button to electronically file your tax return. You can even choose to have your refund direct deposited.

If you live in a state that levies an income tax, you may have to visit your state’s taxing agency website to prepare and file your state income tax return, which means inputting your data all over again. So look for one of the Free File vendors who offer assistance with state tax preparation. Some vendors allow you to file state income tax returns for free while others charge a fee, so make sure you review all the details.

For those who earned more than $57,000, you may still file for free. There are free online forms available, and both options allow people to file returns electronically and use direct deposit, which is the fastest way to get refunds.

If you are a senior citizen, you may access the IRS Volunteer Income Tax Assistance and Tax Counseling for the Elderly partners who will e-file your return for free. Some states offer tax preparation services for low-income filers.

More than 80% of all American taxpayers now file their tax returns electronically. There has never been a reported security breach at the IRS, and the agency claims to have “processed more than 1 billion individual tax returns safely and securely since the nationwide debut of electronic filing in 1990.”

The IRS generates refunds at a faster pace when a tax return is filed electronically. It makes sense: If you paper file your tax return, you must wait for the post office to deliver your return to the IRS. The return then must be keypunched into the system, which makes room for an error. By the time your tax return is processed and the refund check released it’s probably a good 5-10 days longer than if you had transmitted the data electronically.

The fastest way to get your refund is through direct deposit to your bank account. It takes time to prepare a paper check and then there’s the long journey from the IRS service center to your mailbox.

If you owe tax, you can e-file whenever you want then set an automatic payment date anytime on or before the April 15 deadline. You can pay by check or money order, by debit or credit card, or by transferring funds electronically from your bank account. If you do not transmit the funds electronically and prefer to mail a paper check, you must print a voucher – IRS Form 1040-V to send with your check. Make sure to put your Social Security Number and tax year on the memo line of the check.

If you cannot file your tax return by April 15, you may file for an extension using IRS Form 4868 – also available via Free File. Just remember that an extension is only for extra time to file, not for extra time to pay.
If you would like a volunteer to help you prepare the return via Free File, go to IRS.gov and search for “VITA” to find a volunteer-equipped self-preparation site location near you.

Bonnie Lee is an Enrolled Agent admitted to practice and representing taxpayers in all fifty states at all levels within the Internal Revenue Service. She is the owner of Taxpertise in Sonoma, CA and the author of Entrepreneur Press book, “Taxpertise, The Complete Book of Dirty Little Secrets and Hidden Deductions for Small Business that the IRS Doesn't Want You to Know.” Follow Bonnie Lee on Twitter at BLTaxpertise and at Facebook. 

Read more: http://www.foxbusiness.com/personal-finance/2013/02/07/tips-for-filing-your-tax-return-for-free/#ixzz2KFooSAkZ

 

 

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You Can Get $10,000 Per Child In College Tax Credits, Thanks To The Fiscal Cliff Deal

Source: http://www.forbes.com/sites/troyonink/2013/01/16/american-opportunity-tax-credit-pay-for-college-and-pay-less-tax/

Now that the fiscal cliff tax deal has given the  American Opportunity Tax Credit (AOTC) an additional five years of life, it’s time for parents of both college students and high school juniors and seniors, to learn about how this valuable tax break works.  The credit reduces your federal tax bill dollar-for-dollar by up to $2,500 per year for each eligible college student for whom you pay qualified tuition expenses. It can be claimed on behalf of an undergraduate for four years—that’s a $10,000 tax subsidy, over four years. And if you have more than one child in college at the same time, you can claim more than one credit. This break  had been set to expire at the end of 2012, but the fiscal cliff deal extended it for tax years 2013-2017.

Visit the source link for the rest of this informative article! These posts are for informational use only to educate people about their online income taxes and the financial world around them. If you found this helpful, share the original article or this one, and help spread the word! With tax season rapidly approaching let us get you the best income tax return you can possibly have by e-filing! Leave us a comment if you want to share your opinion.

 

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Better Business Bureau's Top Ten Scams of 2012

Source: http://abclocal.go.com/wls/story?section=resources&id=8945041

January 8, 2013 -- Ariane Daguin, owner of organic meat purveyor D'Artagnan will be in town on Thursday, January 10 to host an event with Chef David Burke of David Burke's Primehouse.

(RELEASE)

Topping the list of scam activity for 2012 is work-at-home schemes that account for over 33-percent of scam inquiries to the Better Business Bureau serving Chicago and Northern Illinois. This scam is especially tempting for those out of work or needing additional income. Coming in a close second, with 30-percent of scam inquires, is advance fee brokers. This scam attracts vulnerable consumers that need cash urgently.

The BBB's Top Ten Scams are ranked based on number of specific inquiries made by consumers to provide insight on the deceptive and sometimes illegal business practices in 2012.

"In 2012, many consumers were still working on improving their financial situations in these challenging economic times," said Steve J. Bernas, president & CEO of the Better Business Bureau serving Chicago and Northern Illinois. "Scammers were ready to capitalize on this vulnerability and take advantage of consumers.
Bernas explained, "Being aware that these scams exist is extremely important so that people can avoid becoming a victim and losing money or personal financial information."

The complete list of Top Ten Scams in 2012 from the BBB includes:
1. Work-At-Home Schemes. There are certainly legitimate telecommuting jobs, but many work-from-home opportunities are scams. Promising convenient work always attracts attention; however, when the requirement is to send money for materials first, consumers should always be on guard. Do not purchase services or products from a firm that's reluctant to answer your questions and be cautious of any company that offers an exceptionally high salary requiring few skills and little work. Check offers out thoroughly for free with the BBB at www.bbb.org.

2. Advance Fee Brokers. Often these appear to be very professional operations with attractive websites and advertisements. However, it is illegal for a business to charge a fee prior to providing a loan. Typically, after wiring money to the scammer, the victim never receives the loan. These "lenders" will use fake physical addresses or the addresses of real companies that are victims of identity theft.

3. Credit Repair Services with Advance Fees. Consumers with bad credit ratings are particularly vulnerable to this scam. Everything a credit-repair operation offers an individual can do personally at little or no cost. Credit repair operations cannot ask for money in advance and they cannot automatically remove legitimate negative reports from your credit history.

4. Foreign Lotteries. Any lottery from a foreign country is illegal in the United States. Stating a person can win, or is a winner already provides a strong incentive; however, people should never send money to obtain lottery money. Scammers using fictitious addresses will request you send "fees and taxes" to them through a wire service, they take the cash and never provide any winnings because there are no winners.

5. Prize Promotions. There are several variations of this scam, but most include some aspect that requires people who are identified as "winners" to provide money or some type of personal information, such as a credit card or social security number, to verify being a winner. In the end, no prize is awarded and the personal information is then used to withdraw a victim's money from accounts or for identity theft.

6. Office Supplies - Sale by Deceptive Telemarketing. This scam features fake invoices for office supplies being sent to a business, often for only a couple of hundred dollars. This relatively low amount makes it easier for company personnel to quickly sign off and feel it is not worth their time to check the invoice's validity, which would be done if it was for a larger amount.

7. Pyramid Companies. Pyramid schemes within companies are fraudulent because returns to investors are paid from personal money or the money paid by the newest investors, rather than from any actual profit earned by an individual or organization running the operation. These scams collapse because payouts exceed investments, or because the legal authorities prosecute the organizers for sale of unregistered securities. Often the organizers simply disappear with funds sent to them.

8. Debt Relief Services (Non-Compliant with FTC rule). The Federal Trade Commission has established rules for debt relief services (for profit businesses that represent that they renegotiate, settle or alter the terms of payment for an unsecured debt). The FTC rule governs disclosures and representations that debt relief services can make and does not allow advance fees. There are legitimate debt relief companies that comply with the FTC rule and the Better Business Bureau is identifying only the non-compliant companies as scams.

9. Paving, Painting, Home Improvement by "Traveling" Workers. Never pay upfront to a "traveling" contractor who just happens to be in the neighborhood, is doing work nearby, or has extra materials. The technique to get your money often requires you to pay for added materials. Once you pay the contractor, he disappears with the money and no work is ever done. Having access to your property also provide an opportunity for these people to check what valuables you may have for a future burglary or ID theft.

10. Sweepstakes. If you don't remember entering a sweepstakes, be very suspicious about being declared a winner. If the prize provider wants you to send money or give your social security number to receive your prize, take no action. If you send money you will likely never receive a prize, or you will get a prize of lesser value than the money you've sent.

"Remember, before giving any company credit or debit card information, the BBB recommends reviewing the business fully to avoid potential billing nightmares," said Bernas. "As always, if an offer seems too good to be true, it probably is."

For more information on these top 10 scams, visit www.bbb.org

These posts are for informational use only to educate people about their online income taxes and the financial world around them. If you found this helpful, share the original article or this one, and help spread the word! With tax season rapidly approaching let us get you the best income tax return you can possibly have by e-filing! Leave a comment if you know of any more tax scams!

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Internal Revenue Service Releases Updated Withholding Guidance for 2013 Income Taxes

(Source: IRS) - WASHINGTON — The Internal Revenue Service today released updated income-tax withholding tables for 2013 reflecting this week’s changes by Congress.


The updated tables, issued today after President Obama signed the changes into law, show the new rates in effect for 2013 and supersede the tables issued on December 31, 2012. The newly revised version of Notice 1036 contains the percentage method income-tax withholding tables and related information that employers need to implement these changes.

In addition, employers should also begin withholding Social Security tax at the rate of 6.2 percent of wages paid following the expiration of the temporary two-percentage-point payroll tax cut in effect for 2011 and 2012. The payroll tax rates were not affected by this week’s legislation.

Read the rest of the article here: http://www.loansafe.org/internal-revenue-service-releases-updated-withholding-guidance-for-2013-income-taxes#comment-666268

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