Feature Articles: Taxes
Don’t fall victim to tax scams. These schemes take several shapes, ranging from promises of large tax refunds to illegal ways of “untaxing” yourself...more
The check may not be in the mail for people who don’t file a tax return or who owe back taxes
More than 130 million American households will begin receiving tax rebate checks between May and July...more
Stimulus Payments: Answers to Frequently Asked Questions
Under the Economic Stimulus Act of 2008, more than 130 million American households will receive economic stimulus payments beginning in May. The only way to get one this year is to file a federal tax return for 2007...more
Will the AMT delay your refund?
Some early filers may have to wait a few extra weeks for their refunds. The delay is due to the Alternative Minimum Tax (AMT) legislation enacted in December 2007. Most tax filers will not be affected by the AMT legislation...more
Claiming the Child and Dependent Care Credit
If you paid someone to care for a child under age 13 or a qualifying spouse or dependent so you could work or look for work, you may be able to reduce your tax by claiming the Child and Dependent Care Credit on your federal income tax return...more
If you have recently added energy-efficient improvements to your home, the payoff can be threefold. Energy-efficient items protect the environment and can save you money on utility bills. Now they can save you money on taxes as well...more
Last minute tax changes:
Sales tax, higher education, and
educator expense deductions return
You may be able to take advantage of certain tax breaks enacted in the final days of 2006. Claiming deductions for state and local sales tax, higher education tuition and fees, and educator expenses will require special handling if you file a paper income tax return for 2006...more
Long-Distance Telephone Excise Tax Refund
The telephone excise tax refund is a one-time payment that eligible taxpayers can request on their 2006 federal income tax returns. The refund gives back long-distance federal excise taxes paid in previous years...more
Splitting your refund among multiple accounts
Starting in 2007, taxpayers have more choices and flexibility for the direct deposit of their 2006 federal income tax refunds. For the first time, they can split their refunds among up to three accounts held by as many as three different U.S. financial institutions, such as banks, mutual funds, brokerage firms or credit unions...more
Advice for Choosing a Tax Preparer
If you pay someone to do your taxes, be careful. Most tax return preparers are professional and honest, but some are not. Some preparers offer high-cost services or arrange refund anticipation loans that reduce refunds. Take the time to find a qualified tax professional. As a taxpayer, you are ultimately responsible for everything on your return no matter who prepared it...more
Are You Eligible for Any of These Tax Credits?
Taxpayers should consider claiming tax credits for which they might be eligible when completing their federal income tax returns, advises the IRS. A tax credit is a dollar-for-dollar reduction of taxes owed...more
Avoid Headaches, Prepare Tax Return Early
Earlier is better when it comes to working on your taxes. The IRS encourages everyone to get a head start on tax preparation. Not only do you avoid the last-minute rush, early filers also get a faster refund...more
Don’t fall victim to tax scams. These schemes take several shapes, ranging from promises of large tax refunds to illegal ways of “untaxing” yourself...more
...that tax refund may not be cause for celebration. A refund means that you paid too much in taxes during the year. In case you didn’t notice, Uncle Sam didn’t pay you any interest while holding your extra money either...more
Changing Your Address? Notify the IRS
Have you changed your home or business address? If so, you may want to notify the IRS to ensure that you receive any refunds or correspondence. The IRS uses the Postal Service’s change of address files to update taxpayer addresses, but you may want to notify the IRS directly....more
Choose the Simplest Federal Tax Form for Your Needs
There are three forms for filing individual federal income tax returns. They are Form 1040EZ, Form 1040A, and Form 1040. If you are filing a federal income tax return on paper, use the simplest form you can. This will reduce the chance of an error that may cost you money or delay the processing of your return...more
Credit for the Elderly or the Disabled
You may be able to take the Credit for the Elderly or the Disabled if you are age 65 or older, or if you are retired on permanent and total disability, according to the IRS...more
Credit for Retirement Savings Contributions
If you make eligible contributions to an employer-sponsored retirement plan or to an individual retirement arrangement, you may be able to take a tax credit...more
Deducting Costs of Refinancing Your Home
Taxpayers who refinanced their homes may be eligible to deduct some costs associated with their loans...more
Deduction for Educator Expenses
If you are an eligible educator, you may be able to deduct up to $250 of expenses you paid for purchases of books and classroom supplies. These out-of-pocket expenses may lower your 2005 tax bill even if you don’t itemize your deductions...more
Early Distributions from Retirement Plans
An early distribution from an Individual Retirement Arrangement (IRA) or a qualified retirement plan need not be a "taxing" experience, according to the IRS...more
The Earned Income Credit (EIC) is a Federal income-tax credit for working families with low to moderate incomes. The EIC, sometimes referred to as the Earned Income Tax Credit, is available to married and single parents or caregivers. Individuals and families without children may also receive the EIC if their incomes are low enough...more
Education Credits Can Help at Tax Time
Are you footing the costs of higher education for yourself or a dependent you claim for an exemption on your tax return? The IRS says that education tax credits can help offset those costs. The Hope Credit and the Lifetime Learning Credit are education credits you may be able to subtract in full from your federal income tax, not just deduct from your taxable income....more
E-FILE – A smart way to do your taxes
Every year, more taxpayers discover the benefits of filing their tax return electronically. Whether you use a professional tax preparer authorized by the IRS or do it yourself on a home computer, there are many reasons to consider e-filing your tax return this year...more
Faster Refunds through Direct Deposit
Want a faster refund? According to the IRS, more and more taxpayers are choosing direct deposit as the way to get their federal tax refunds. The payment is more secure — there is no check to get lost. And, it’s more convenient — no special trip to the bank to deposit a check...more
Did you hit it big at the casino in 2004? With more and more gambling establishments, the IRS reminds people that they must report all gambling winnings as income on their tax return....more
Getting a Tax Refund? Make it Work for You
For many families, the arrival of a sizeable tax refund check is the financial event of the year. It is reason to celebrate...more
If you gave any one person gifts in 2005 that valued at more than $11,000, you must report the total gifts to the Internal Revenue Service and may have to pay tax on the gifts. The person who receives your gift does not have to report the gift to the IRS or pay gift or income tax on its value...more
Grandparents Raising Grandchildren May Qualify for Tax Breaks
Grandparents who have children living in their home may be able to get extra money from the IRS. Both grandparents and great grandparents can qualify. If the grandparents qualify for the tax breaks, they will not have to pay as much to Uncle Sam each year....more
Guidelines for Roth IRA Contributions
Taxpayers confused about whether they can contribute to a Roth IRA should consider guidelines based on the following categories...more
Haven't Filed Last Year's Tax Return? Here's What to Do
There are many reasons you might not have filed a tax return in previous years. Whatever the reason, it’s best to file your return as soon as you can. The failure to file a return can cost you — whether you end up owing more or missing out on a refund. If you owe taxes, a delay in filing may result in a "failure to file" penalty and interest charges. The longer you delay, the larger these charges become. Ignoring any IRS tax bill that you owe will not make it go away...more
How to Avoid Problems at Tax Time
Want to avoid the last-minute rush for doing your taxes? These stress-relieving ideas may help you...more
How to Check on Your Tax Refund
If you already filed your federal tax return and are expecting a refund, there are several ways to check on its status. “Where’s My Refund?” is an interactive tool you can use at IRS.gov. Online instructions guide you through a process that checks the status of your refund if you provide identifying information from your tax return. Once the information is processed, you get an online response...more
How to get a copy of your tax return information
There are two easy and convenient options for obtaining copies of your federal tax return information — tax return transcripts and tax account transcripts — by phone or by mail...more
The Internal Revenue Service has many forms, free publications on a wide variety of topics, and many resources to help you understand and meet tax filing requirements. If you need IRS materials try one of these easy options...more
Marriage or Divorce: Check Your Social Security Number on Tax Returns
The IRS reminds newlyweds and the recently divorced to make sure names on their tax returns match those registered with the Social Security Administration...more
Preparing Taxes: Using VITA Sites and Paid Preparers
A great way to save money at tax time is to have your taxes prepared for FREE. Volunteer Income Tax Assistance (VITA) sites provide free tax preparation...more
You can avoid headaches at tax time by keeping track of your receipts and other records throughout the year, the IRS advises...more
Refund Anticipation Loans: Are They Worth It?
For families trying to make ends meet, getting the W-2 forms needed to file for a tax refund is exciting. After waiting all year, struggling families can get a large lump sum to pay off bills, solve other financial problems or purchase something that they really need or want...more
Whether to itemize deductions on your tax return depends on how much you spent on certain expenses last year...more
Simple Steps Can Help Taxpayers with Charitable Donations
As the end of the year approaches, the Internal Revenue Service reminds taxpayers that they may be able to use their gifts to tax-exempt charitable and religious groups to reduce their taxes...more
Some Refinancing Costs May Be Deductible
Taxpayers who take advantage of lower interest rates to refinance their mortgages may be eligible to deduct some costs associated with their loans...more
Generally, most income you receive is taxable, according to the IRS. But there are some areas where certain types of income are partially taxed or not taxed at all...more
Taxability of Social Security Benefits
The IRS says that whether your Social Security benefits are taxable depends on your total income and marital status...more
Tax Credits for People Who Work
Sizeable tax credits still exist for working families--especially those with children--but as many as 10% of eligible Missouri families still do not file for them. Families making so little that they are not required to file a tax return might greatly benefit from doing so. more...
Taxpayer Rights Are a Priority for IRS
The law requires the IRS to protect taxpayer rights, and in its day-to-day operations, the IRS and its employees make taxpayer rights a top priority. This includes explaining those rights to taxpayers...more
Do you work at a hair salon, barber shop, casino, golf course, hotel or restaurant or drive a taxicab? The tip income you receive as an employee from those services is taxable income, according to the IRS. As taxable income, these tips are subject to federal income, Social Security and Medicare taxes. They may be subject to state income tax as well....more
Toll Free Telephone Service from IRS
Free tax help from the IRS is just a phone call away. The IRS provides various services through its toll-free telephone numbers. You can order forms and publications, listen to prerecorded tax information...more
Choose Your Correct Filing Status?
Your filing status on your federal tax return identifies you based on your marital and family situation, according to the IRS. It helps determine whether you must file a return, the amount of your standard deduction and your correct amount of tax. If more than one filing status applies to you, you may choose the one that gives you the lowest tax bill...more
What to Do If You Haven't Received a Form W-2
You should receive a Form W-2, "Wage and Tax Statement," from each employer you worked for to use in preparing your federal tax return...more
Which Tax Form Should You Use - 1040EZ, 1040A or 1040?
If you are filing a federal income tax return on paper, use the simplest form you can, the IRS advises. The simpler the form, the less chance of an error that may cost you money or delay the processing of your return. The simplest is Form 1040EZ. Form 1040A covers several additional items not addressed by the EZ. Form 1040 should be used when itemizing deductions and reporting more complex investments and other income...more
There are some instances when you may not be required to file a federal income tax return. But keep this in mind: more than 70% of those who file are due a refund, so it may be to your advantage to file even if you are not required to...more
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Last update: Friday, September 12, 2008
