IRS Tax Extension and other Income Tax Return Help » Income Taxes Help

EZ File 1040, Choose The Right Forms When Filing.

author2 — Wed, 16 Mar 2011 04:35:41 +0000

The time is just about right to file for income taxes. The deadline is April 18th, and you should do what you can to avoid missing the deadline. Otherwise, you end up having pay penalties, which is totally unnecessary.

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When filing for individual income tax, there are three types of forms that you can use. Be sure to pick the right form.

1) 1040 EZ This is perhaps the most commonly used form.
You can use this form if:
- Your income is less than $100k You are filing as a single, or you are filing jointly as a married couple Both you and your spouse are under the age of 65, and both of you are not blind. There are no dependents in your claim. You earn less than $1,500 in interest income.

2) 1040 A Your income is less than $100k
-You have capital gains to declare. You are claiming certain tax credits. You claim deductions for special items. (e.g. student loan interest, tuition fees, etc)
If you don’t fall into either one of the categories above, you probably need to fill in the 1040 form.

3) 1040 Taxable income is above $100k There is income from sale of property. There are tax deductions. You have self employed income to declare. Selecting the right form to use is important because if you make mistakes when filing for your tax returns, you will be asked to file again. Of course, if you file early enough, you may still be able to meet the April 18th deadline.

But if there is not enough time, you may have to meet the October 17th deadline. For the second deadline, penalties apply. So you want to avoid being in this situation.

One way to file quickly and get the job done well is to efile. When you efile, the information is sent directly to the IRS for processing. The process can take between 7 to 10 days. If you qualify for income tax refunds, the funds can be directly deposited into your bank account. The entire time frame, from the point you submit your tax returns, to the time you get the cash in your account, is only about 14 days.

This speed is next to impossible to achieve if you choose the manual filing route. On an authorized online website (look out for the IRS logo), there will be a list of supported forms. Of course, all the commonly used forms are supported – 1040EZ, 1040A, 1040, etc.

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To efile, just create an account with your SSN number. Once an account is created, you can use back the same account to efile again. Login with your password and user name (your SSN number) and the efiling process will begin. Simply follow the instructions to complete the filing.

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Benefits Of eFiling your Tax Return.

author2 — Mon, 07 Feb 2011 15:10:06 +0000

It’s the same problem each and every year. You need to spend hours pouring over the most recent instructions for the federal and state 1040 forms which are only minutely different than last year’s, but you have to be sure you aren’t missing some evasive new tax law then another few hours compiling all your documents in an order than makes some sense.

Once that’s done, you begin the tedious process of computing each individual line and printing your responses in painstakingly neat hand writing just to know for absolute certainty that someone at the Internal Revenue Service won’t bounce your return back as unreadable.

Your return has been signed, placed in an eight by ten manila envelope and mailed to the IRS. Even though you mailed it registered, with return receipt requested no less, you worry that it never made it, that someone lost it, or that some small error will come up and push you beyond the looming April 15th deadline. If you haven’t started using computerized tax filing software, this probably isn’t so far from the truth. You may have heard of these programs and passed them off as not worth the investment. Each and every year, tax payers spend at minimum eight hours, and usually closer to fifteen to twenty hours, completing their tax returns. Even earning minimum wage, that eight hour time investment would have returned nearly sixty bucks at work substantially more than the cost of completing and eFiling your tax return online.

Not only does eFiling save you time, it saves you money. Since these programs are made to know the current year’s tax code, you can avoid many common mistakes. You don’t need to worry about incorrectly computing a specific line or claiming a deduction that isn’t actually deductible. Using these programs will prevent many seemingly minor errors which often result in hefty fees and fines from the IRS.Once you’ve completed your return on your computer, eFiling is the best way to submit it.

The IRS’s strict standards for eFile providers ensure that your return will be transmitted securely. With the “Free File” program, you may even be able to eFile your federal tax forms without any processing fees. Best of all, the eFile provider will keep you up to date on the status of your return, from submission to processing, so you never need to worry that the IRS hasn’t received it.

Because of the popularity of this method, all but two states (and those that don’t have an income tax system) also offer electronic systems to file state income tax forms. While the tax forms vary from federal to state, you almost always need the same information.

If you use tax software to complete and eFile your federal return, chances are you’ll be able to do the same with your state return.

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The Advantages And Disadvantages Of Tax Extensions.

author2 — Fri, 14 Jan 2011 11:11:04 +0000

Advantages: More time.

Tax extensions do indeed give you extra time 6 months to be exact. Many people decide to file an extension knowing they will not be able to properly prepare their return before the deadline. In this instance, filing for an extension is really worth it, because there are certainly tax mistakes that can be costly when made. It’s really better to file an extension then an incorrect return.

May help prevent an audit.

Although many people assume any mistake will result in an audit, with tax extensions it is not the case. Filing a tax extension won’t increase your chance of being randomly selected for an audit. No penalty. You will not be fined, cited, or penalized for filing a tax extension. The IRS gives the public this extra inch in hopes that they will be more likely to get their money with less paperwork to worry about.

Stress relief.

In this economy, there is plenty of stress and worry to go around. Since there is no penalty for filing an extension, you may file one just to take some anxiety off of your shoulders. These days we can take all the stress relief we can get, and if you think filing an extension helps you focus on bigger problems, use that advantage.

No rushing to get your return in.

The worst thing you can do is rush your return. By rushing your return, you will either fudge the numbers or miss out on claiming deductions or credits you were eligible to claim. So, if it is nearing the deadline, and you know you do not have time to do it right, file an extension.

Disadvantages: You still need to pay.

Although filing an extension gives you more time to file your return, it does not give you more time to pay the IRS if you owe them money. It is a common mistake that filing an extension allows you to postpone tax payments as well. If you owe money to the IRS, then be sure to send in a payment when you file your extension. You must pay 90% of the amount you owe in taxes by April 15 or be subject to a late payment penalty.

Not withstanding that payment, you will likely be subject to interest on whatever is owed if not paid by April 15.E-filing no longer and option. One real disadvantage to filing for a tax extension is that it will prohibit you from being able to file electronically past the deadline. After April 15 has past, you will be required to send in your tax forms through regular “snail” mail. This may seem scary to those of us used to doing everything online, but is really not as intimidating as it sounds. IRS does not always notify you.
When you send in your return forms, the IRS will notify you that they have received them. However, the IRS will likely not notify you when they receive your extension. If you do file one, then it is a good idea to call the IRS and verify they received it. Also, for your benefit always make and keep a photocopy of any tax documents you send out.

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Delaying the inevitable.

Hey, you might be getting some stress relief in April, but the stress will rear its ugly head again sometime between now and October. So, you had better find some time to get prepared.

You really still need to pay!

There is a reason this is on here twice-people fail to pay-up when filing for an extension and it ends up costing them thousands of extra dollars in interest and penalties. Remember that no matter the reason you file for an extension, it does not extend your obligation to pay your taxes by April 18. If you do not know how much to pay, look at last year’s return for some guidance.

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6 Months More To File By Spending 5 Minutes Now.

Author1 — Wed, 12 Jan 2011 05:28:25 +0000

So here it is, tax season 2011.

With a matter of days remaining until the April 18 IRS income tax deadline, the stress level of Americans is on the rise. Prepare yourself for a lot angry drivers on the highways, impatient customers in the lines of local coffee shops and grocery stores, and friends who don’t quite treat you like the friends they were only weeks ago.

Looking for a way to cut down on the April tax time blues?

There’s a little known secret called an IRS tax extension (the technical term is an IRS Form 4868 Application for Automatic Extension of Time To File U.S. Individual Income Tax Return), and there is a company called FileLater ( FileLater.com ) who can help.
Of 130M United States federal income tax filers, about 10M filed for automated extensions last year, so you won’t be alone. And the IRS doesn’t ask (or care) why you file for an extension.

Almost every tax-paying American is automatically eligible to file an IRS tax extension, and it can be easy to do. In about 5 minutes, you can go to File Later’s website, answer a handful of relatively simple questions, and have your tax extension e-filed to the IRS for you. In a few of days, you’ll get an email with IRS confirmation that your new tax deadline is October 17 2011.

To file a tax extension online you’ll need to provide some basic personal information, and an estimate of your tax liability. Don’t have a clue if you owe or if you’ll be getting a refund? Don’t worry, the better tax extension filing services like FileLater will provide you with a simple calculator to make determining your tax liability easy.

If you’re in the minority of tax filers who will owe money to the IRS (rather than getting a refund) the IRS will still want their money by April 15 or you could be hit with a late payment penalty. Filing a tax extension will give you the extra 6 months to file your tax return, but it doesn’t give you extra time to pay the IRS.

That means you either have to mail a check postmarked by April 18 to the IRS or provide bank information online for an automatic withdrawal. If you expect to get a refund, then there’s nothing to consider.
The deadline for filing your income tax extension is April 18. A simple 5 minutes with File Later can give you an additional 6 months to file your taxes, and your stressed out CPA or tax professional will love you for it.

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EZ File 1040, Tax Deduction Tips.

author2 — Mon, 10 Jan 2011 10:51:03 +0000

If you used a 1040 EZ form last year and you gotten another one in the mail this year because it was what you used last year, you should know that you don’t have to use this form again.

If your situation has changed, you will not be able to use this form any longer, especially if you have many different deductions that you will need to input. It’s important to remember that form 1040EZ is for those who have a very straight forward tax situation and generally there is not a place for itemized deductions. You can deduct more general things, but if you want to itemize you should use the 1040A form that will allow you more space for the itemized deductions.

You can still use the 1040 EZ if you do not claim any dependents and if you do not claim a deduction for educator expenses, the student loan interest deduction, or the tuition feeds and deductions. You also cannot claim the retirement savings contributions credit, education credit,, or the health insurance credit. If your not deducting items you can still use the form, though many find it easier to simply use the 1040 forms because they are meant for more complicated tax situations.

If you like the EZ form you can still use it as long as you meet all of the criteria such as not owing any household employment taxes on wages paid to a household employee. You also cannot be a nonresident alien, or have been given any advance earned income credit payments. In addition you can only have had salaries, wages, tips and other compensation that does not total $1,500. Using the 1040EZ form really is very straight forward and simple and that is why so many people really like the form.

When filling out the form you should do the first draft in pencil and then trace over it in pen so that you are certain you have filled out everything correctly. As simple as the form is compared to other tax forms, you can still make mistakes and it is a good idea to go slowly and do things in pencil so you can make changes if needed, when you correct your work.

If you input all of your deductions and you still owe money, be sure to make your check out to the “United States Treasury” to complete your taxes for the year.

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Here is some IRS Tax Lien Help

admin — Wed, 14 Jan 2009 18:40:00 +0000

by: Gray Rollins

A lien is defined as the right to hold or sell property that is owned by an individual who owes debt. The property is often sold to make payment on the debt or the property is held as security until the debt is paid off. There are many financial institutions that use a lien to obtain the amount of money owned to them. In addition to financial institutions, the federal government also uses tax liens to obtain money until their debt is paid off in full.

When the federal government makes a tax lien claim on a property, there is really nothing a taxpayer can do besides pay the amount of money they owe or try to work something out with the Internal Revenue Service (IRS). Since the Internal Revenue Service (IRS) is mostly interested in getting their money and nothing else, taxpayers may wish to hire the services of a professional tax attorney. Professional tax attorneys are experienced with dealing with the Internal Revenue Service (IRS) and developing a solution that benefits everyone involved.

When the government takes hold of a property they have a number of things they can do. Most county governments offer what is called a tax sales auction. This auction is open to the general public and the public can purchase the property or purchase a debt that will be later paid off. When an individual is purchasing the debt instead of the property it is as if they are loaning money to the taxpayer who is behind on their taxes owed. The individual who agrees to pay the amount of taxes due on the property will have their name placed on a lien certificate.

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This certificate will be used in case a property owner still is unable to make good on the amount of money he or she owes. At this time the individual who purchased a lien on the property has the right to foreclose on the property if they wish to do so.

In addition to auctions where only a lien certificate is purchased, there are tax lien property sales. These sales are also open to the general public and they are often performed as an auction. When an individual is the winning bidder at deed sale they become the new owners of the property. These new property owners will not be responsible for any previous mortgages or previous liens. http://www.taxhelpdirectory.com/taxliencertificate/.

A tax lien is often imposed by the government as one last chance to try and obtain the amount of money a property owner owes them. Once a lien tax has been filed against an individual and their property, their credit may be damaged. A lien imposed by the government often prevents individuals from being able to purchase new properties, new vehicles, or even lease an apartment. If you are unable to pay the amount of money owed on your taxes it is important you contact a tax attorney today. Take action now and learn about your tax lien options before it becomes too late.

About The Author

Gray Rollins is a featured writer for the Tax Help Directory. To learn more about tax liens, visit http://www.taxhelpdirectory.com/taxlien/ and to learn more about general tax information, visit http://www.taxhelpdirectory.com/taxes/.

This article was posted on February 17, 2006

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