April 15 is D-Day, the day to file your federal taxes. If you don't file your taxes on April 15, ask for an extension. If you are getting a refund you can file your taxes at any time although the IRS prefers you do so by April 15 each year.
If you owe taxes it is best to work with the IRS as soon as your file your taxes to setup a payment plan. Be sure to keep all of your receipts for future reference. Here are 13 deductions you can claim on your 2009 taxes.
1. Uniforms, job supplies
2. Higher education expenses
3. Purchase of energy efficient appliances and vehicles in 2009
4. Tax preparation fees
5. Job related training
6. Home office business expenses
7. Mortgage refinance fees
8. Charitable donations (cash and non-cash)
9. State Sales Tax
10. Property and estate tax deductions
11. Earned Income Tax Credit
12. Job research expenses
13. Foreclosure tax relief
Take your time if you prepare your taxes yourself. If you use an automated tax preparation tool like Tax Cut or Turbo Tax most of the laws are already installed in the tool so it is less likely that you will make an error or get audited. If you got a refund in the past and never received it, contact the IRS to get your money. The IRS has billions of dollars in refunds that were never picked up by taxpayers. Good luck.
Showing posts with label 2009 taxes. Show all posts
Showing posts with label 2009 taxes. Show all posts
Saturday, April 10, 2010
Thursday, December 17, 2009
2009 Tax Tips
It's seems as though 2009 has flown by. It just seemed like New Year's Day now we are approaching 2010. Unfortunately we are also approaching tax season. A lot of the laws from last year have changed so be sure to read the instructions when filing your 2009 taxes.
Many Americans miss out on deductions because they take the easy route and just use the standard deductions. If you do your taxes yourself or hire a tax professional to do your taxes use the standard deduction and itemize to see which method gives you a bigger return. Last year many Americans had refunds they did not receive including some who had an incorrect address on file. The IRS setup a section on their website for unclaimed tax refunds.
Here are 7 Tips to Save Money on Your Taxes.
1. Charity. If you buy food, drinks or supplies for a fundraiser or charitable event you can write-off the money you spent including the mileage costs. You can deduct $.14 per mile.
2. State Sales Tax. If you live in a state that does not charge state taxes you can either deduct state and local sales taxes or state and local income taxes but you cannot deduct both. If you choose sales tax remember to include all items eligible for sales tax. Check the IRS website sales tax tables for your state.
3. Refinance. Don't forget to include your refinance costs in your taxes this year. When you refinance you have to deduct the mortgage points over the life of the loan so it's better to refinance for less time than your original loan. If you previously had a 30 year loan refinance to 20 years or less. This equals to deducting 1/20th of the points a year if it’s a 20-year mortgage. It equals out to $20 a year for each $1,000 of mortgage points you paid.
4. Reinvested Dividends (DRIP). Reinvested dividends cannot be deducted on your taxes but you can subtract the amount from your total taxable income which can save you money because it reduces your taxable capital gains.
5. Property Tax. In 2009 property tax laws changes. Now homeowners who take the standard deduction can include up to $500 for single filers and up to $1,000 for married filers towards property taxes. You have to file a Schedule L to claim the property tax.
6. Casualty Loss. If you claim the standard deduction you can add casualty loss to your standard deduction amount if the loss occurred in an area that was declared as a disaster area by the President. You will have to file a Schedule L with your tax return to include the loss.
7. Estate Tax. If you inherited an Individual Retirement Account (IRA) from an estate that was subject to estate taxes you can get an income tax deduction for the amount of estate tax paid on the IRA you received, i.e. if you inherited a $100,000 IRA, and the money included in the estate added $45,000 to the estate tax bill – you can deduct the $45,000 on your tax returns as you withdraw the money from the IRA. If you withdraw $50,000 in one year, you can claim a $22,500 itemized deduction on Schedule A which saves you money.
Your goal for 2010 should be to get out of debt and improve your financial life. Good luck!
Many Americans miss out on deductions because they take the easy route and just use the standard deductions. If you do your taxes yourself or hire a tax professional to do your taxes use the standard deduction and itemize to see which method gives you a bigger return. Last year many Americans had refunds they did not receive including some who had an incorrect address on file. The IRS setup a section on their website for unclaimed tax refunds.
Here are 7 Tips to Save Money on Your Taxes.
1. Charity. If you buy food, drinks or supplies for a fundraiser or charitable event you can write-off the money you spent including the mileage costs. You can deduct $.14 per mile.
2. State Sales Tax. If you live in a state that does not charge state taxes you can either deduct state and local sales taxes or state and local income taxes but you cannot deduct both. If you choose sales tax remember to include all items eligible for sales tax. Check the IRS website sales tax tables for your state.
3. Refinance. Don't forget to include your refinance costs in your taxes this year. When you refinance you have to deduct the mortgage points over the life of the loan so it's better to refinance for less time than your original loan. If you previously had a 30 year loan refinance to 20 years or less. This equals to deducting 1/20th of the points a year if it’s a 20-year mortgage. It equals out to $20 a year for each $1,000 of mortgage points you paid.
4. Reinvested Dividends (DRIP). Reinvested dividends cannot be deducted on your taxes but you can subtract the amount from your total taxable income which can save you money because it reduces your taxable capital gains.
5. Property Tax. In 2009 property tax laws changes. Now homeowners who take the standard deduction can include up to $500 for single filers and up to $1,000 for married filers towards property taxes. You have to file a Schedule L to claim the property tax.
6. Casualty Loss. If you claim the standard deduction you can add casualty loss to your standard deduction amount if the loss occurred in an area that was declared as a disaster area by the President. You will have to file a Schedule L with your tax return to include the loss.
7. Estate Tax. If you inherited an Individual Retirement Account (IRA) from an estate that was subject to estate taxes you can get an income tax deduction for the amount of estate tax paid on the IRA you received, i.e. if you inherited a $100,000 IRA, and the money included in the estate added $45,000 to the estate tax bill – you can deduct the $45,000 on your tax returns as you withdraw the money from the IRA. If you withdraw $50,000 in one year, you can claim a $22,500 itemized deduction on Schedule A which saves you money.
Your goal for 2010 should be to get out of debt and improve your financial life. Good luck!
Monday, December 14, 2009
2009 Tax Organizing Tips
There are great tax estimator tools to help you estimate if you will get a refund or owe money on your taxes. Some great tools are on the IRS, H&R Block, Turbo Tax and Quicken websites. The IRS website also has several tools such as the withholding calculator to determine if you are taking too much or too little out of your paycheck.
If you owe money on your taxes you can make payment arrangements via email, by phone or online at the irs.gov website. One of the reasons many Americans end up owing taxes is because they are not organized – they throw away or misplace receipts and miss out on eligible deductions and tax credits. This year start preparing early to file your taxes, don't wait until the last minute. Here are 7 tips to help you get organized to file your taxes.
1. Gather all receipts, monthly and quarterly statements, medical bills, student loans, credit card statements, etc. and store in one easy to find location.
2. Use a software package like Quicken or Quick Books to record all of your deductions. If you don't have this software then you can use an Excel spreadsheet with these basic column headings: Item, Date Purchased or Sold, Cost, Quantity, Total Cost. If you don't have the Excel software program just use a plain old pencil and paper.
3. Identify all items that can be used as itemized deductions and put them in one pile. Determine if the standard deduction for your tax bracket is greater than your itemized deductions. (The list of items you gathered in step 2 and verified against the IRS tax form instruction manual as items that can be itemized). Check to see if the standard deduction is greater than using the itemized deduction, if not (standard deduction is less than itemized deduction), use the worksheet included with your tax booklet to calculate your itemized deductions.
4. To save money file your taxes electronically. You will receive your refund in approximately two weeks from the date of filing.
5. Don't get a tax refund loan (rapid refund) or refund anticipation loan. This is a waste of time and money. You have to pay a fee to get the refund loan which usually has high interest rates and associated fees.
6. If you salary is less than $52,000 or less you can file your taxes electronically for free.
7. Be cautious when purchasing a tax preparation software. Research the credibility of the company and verify if the software provides automatic updates to the IRS tax laws contained in the software. Go to the Better Business Bureau website to check out the company's history and see if anyone has filed a compliant against the company.
If you owe money on your taxes you can make payment arrangements via email, by phone or online at the irs.gov website. One of the reasons many Americans end up owing taxes is because they are not organized – they throw away or misplace receipts and miss out on eligible deductions and tax credits. This year start preparing early to file your taxes, don't wait until the last minute. Here are 7 tips to help you get organized to file your taxes.
1. Gather all receipts, monthly and quarterly statements, medical bills, student loans, credit card statements, etc. and store in one easy to find location.
2. Use a software package like Quicken or Quick Books to record all of your deductions. If you don't have this software then you can use an Excel spreadsheet with these basic column headings: Item, Date Purchased or Sold, Cost, Quantity, Total Cost. If you don't have the Excel software program just use a plain old pencil and paper.
3. Identify all items that can be used as itemized deductions and put them in one pile. Determine if the standard deduction for your tax bracket is greater than your itemized deductions. (The list of items you gathered in step 2 and verified against the IRS tax form instruction manual as items that can be itemized). Check to see if the standard deduction is greater than using the itemized deduction, if not (standard deduction is less than itemized deduction), use the worksheet included with your tax booklet to calculate your itemized deductions.
4. To save money file your taxes electronically. You will receive your refund in approximately two weeks from the date of filing.
5. Don't get a tax refund loan (rapid refund) or refund anticipation loan. This is a waste of time and money. You have to pay a fee to get the refund loan which usually has high interest rates and associated fees.
6. If you salary is less than $52,000 or less you can file your taxes electronically for free.
7. Be cautious when purchasing a tax preparation software. Research the credibility of the company and verify if the software provides automatic updates to the IRS tax laws contained in the software. Go to the Better Business Bureau website to check out the company's history and see if anyone has filed a compliant against the company.
Subscribe to:
Comments (Atom)