If you can’t wait to find out to know how much your refund will be, worry not; there are a number of online tax refund online estimators that you can use to compute your tax refund.
The ideal way for a tax payer to find out how much his or her income tax refund will be is to go through his or her actual tax return. However, there are a lot of tax preparation sites that offer user-friendly tax calculators or estimators.
There are several benefits to using an online tax refund estimator. For one, it reduces the margin for error. Whether it is from impatience or ineptitude when it comes to dealing with numbers, error in computing income tax reimbursement can cost losses. Human error is curtailed by using an online tax refund estimator.
Another advantage of using an online tax estimator is that, of course, it makes computing easier. For many people expecting an estimate overpaid tax amount is an uphill battle. In these cases, an overpaid tax calculator is a rescuer.
One more benefit of an online tax refund calculator is that it saves time. Computing for your tax refund is an arduous task that takes up a lot of time. Few would commit to do this for so many ours.
The last advantage of an online tax refund calculator is that its results are nearly perfect. Even math geniuses will have difficulty coming up with the exact amount of tax refund the government owes you. You simply have to search for a reliable online tax refund calculator on a search engine, choose one, input all pertinent information accurately, and it will give you a near perfect estimation of your tax refund. if you do not want to pay for an online estimator.
New methods are being developed to help make filing tax returns easier for tax payers as well as enable them to receive of the benefits that they deserve.
The IRS works with different organizations around the country to come up with innovative methods of filing taxes from remote locations.
In Provo, Utah, agents of the Utah State University partnered with the Beta Alpha Psi student chapter at BYU and the Community Action in Partnership of Utah to come up with a non-face to face process that they call Remot File.
Remote File works with extension to set up four locales in remote counties. Non-certified volunteers greet tax payers at each site and provide them with an intake form. Once the forms are accomplished, they are scanned along with other tax documents and are then directly uploaded to a secure document management website. When this part is done, tax payers are then seated before a computer and connected via telephone to a certified volunteer who is in a totally different location called a preparation site. These certified volunteers use dual monitor computers in which one screen is used to access the tax payers intake form and other tax documents. The other one runs the TaxWise software. This screen that runs the TaxWise software is shrared with the tax payer. The certified volunteer reviews the intake form and other taxes then completes that the tax return while he the tax payer follows along. Once the tax return is accomplished, a second volunteer at the preparation site then conducts the quality review.
In Saint Paul, MN Accountability MN worked with VITA taxes to reach taxpayers in rural communitites. They use Skype to simulate face to face preparation. The same procedures and quality site requirements of the IRS are in place.
With so many online tax preparation software program that were developed over the years, preparing and filing your tax returns has now become a lot more convenient.
Online tax preparation software has, in many cases, eliminated the need to hire a CPA or accountant to prepare your tax returns.
Check out the IRS website to find out the different several companies that offer tax preparation and e-filing facilities. Preparing taxes has never been easier thanks to these tax software and online tools. You can also pick up some useful tax preparation and e-filing tips from the IRS website which will make the job even simpler.
Online tax preparation is also much faster and safer compared to paper filing. Most tax preparation software guide you through the task in a step-by-step manner. They will also ask you certain questions that are related to taxes and in turn, you must provide an accurate answer to each one. You will also be given tax forms wherein you have provide information asked by the software.
When preparing your tax returns, you should consider availing of tax credits and deductions. Tax preparation software will let you choose the deductions that are appropriate to your tax situation. Pick out your deductions carefully and wisely so that the IRS will have no reason to audit your return.
E-file your tax returns before the deadline. The earlier you file your returns the sooner it will be processed. After submitting your tax return electronically you will receive a confirmation email from the IRS within 48 hours.
With regards to receiving your refund, you have the option of choosing direct deposit or check via mail. With direct deposit, your refunds will directly be deposited to your bank account. You won’t have to worry about your refund getting lost in the mail or being stolen
Filing taxes are not high on people’s list. Most put off doing the deed until the last minute. Fortunately there are ways to make filing your tax returns simple and stress-free. However, it still depends on how complicated your tax situation is. A few things you need to consider include the following:
- Are you self employed?
- Are you single with no kids and have a regular job?
- Do you have a number of investments?
- Are you buying or selling a business?
These are just some of the things you need to think about when filing your taxes.
Filing You Taxes
You can file your taxes in two ways: on paper or online. Filing one way may be better than the other. It all depends on your situation and what’s comfortable for you.
Filing online is a fast, easy and secure way to file your taxes. Once you send your tax return, the IRS will immediately confirm that they already got your tax return. They may also reject and inform you what you need to fix for them to be able to start processing your return.
If your income is lower than $54,000 you can even free file your tax return on the IRS website. From the IRS site simply choose an online tax preparation company. For those with incomes over $54,000, simply choose a tax preparation company and get started.
For those who prefer paper filing, you can consult a professional tax preparer, accountant or other tax professionals to help you prepare and file your tax return. These professionals can aid in lowering your tax returns or get a more accurate computation, but hiring one can cost you. You can also use software programs like TurboTax. Of course these resources may also be employed if you are filing electronically.
The Internal Service Revenue is providing US tax payers a program that will allow them to file their taxes more easily and for free.
Free file is a free federal income tax preparation and electronic filing program that is created through a joint venture between the Internal Revenue Service and the Free Alliance LLC, a group comprised of tax software companies from the private sector.
Eligible taxpayers may use commercial online software provided by the Free File Alliance companies – and not the IRS – to prepare and file their federal income tax returns.
The IRS list of member companies includes links to existing programs. Some tax companies have stricter requirements than the IRS guidelines. Take TurboTax for instance. To be able to use this tax software your income must be $30,000 or less.
The Free File program is applicable only to your federal return; it is not applicable to state tax return. However, some users have found that once you have calculated the figures for your federal income tax forms, you can actually use a lot of them as a basis for completing your state income tax form. You should also try looking at your state website. Some states allow tax payers to file taxes for free through their website.
The IRS Free File program has been around since 2003 and since that time over 19.2 million returns have been filed through it, allowing tax payers to save millions of dollars.
There is one important thing to remember, and that is not everyone is eligible to use Free File.
Free File is available only to tax payers who have an Adjusted Gross Income (AGI) of $54,000 or less. The offers of different companies may be limited to particular states and come with other criteria. Each individual tax preparation software company places its own requirements for eligibility.
The saying goes “two things in life are certain – death and taxes.” But what happens when a person dies?
Deceased Tax Returns
When a tax payer dies, his or her finances are automatically converted into an estate. This estate is now in charge of filing a tax return which covers the finances. This includes income and distributions to heir and beneficiaries.
A last personal tax return should still be filed for the departed. This last personal tax return for the deceased tax payer is known as Form 1040.
When computing for the income and taxes due for the tax payer who passed away, the cut off is the date of death. All of the income the deceased earned for the year before the date do death goes on his or her personal tax return. All of the income earned after the individual’s death on the other hand is the responsibility of the estate and will then be stated on the estate tax return.
With regards to deductions, there is a silver lining. No matter what time of the year the unfortunate incident happened, the full deduction for the year can be claimed as well as any other expenses that occurred before the death. This means that you do not have to compute for ratios based on the number of months that passed. You will receive the full write-offs for the rest of the year.
The person in charge of the estate is called an executor or a trustee. The designation depends on the type of estate planning. The executor or trustee will be the one to sign the tax return and not that the tax payer is deceased. This will put things in order with the Internal Revenue Service and exclude the estate tax return.
Express tax return or express tax refund is a tax preparation software that taxpayers can use to file their income tax returns.
Similar to other online tax preparation software, express tax refund guides you through each part of preparing your return. However, unlike other more up to date tax software, express tax refund does not have a running refund feature so you will not be able to see your results until you are done with the process.
Express tax refund may also be used for different filing statuses including single, head of household, married filing jointly, married filing separately, and qualified widower.
Compared to other tax preparation software, express tax refund’s help center is very limited. When you click the link “FAQs, Tax Guides and Tax Tools” you will only found a handful of FAQs. Even if you log in to your account, you will not find additional information. You also won’t find much explanation or software in this software.
Aside from this, a taxpayer will also encounter a few other more pressing concerns when using this software. First, the express tax software failed to detect erroneous amounts for social security and Medicare tax for the amount of income. Other tax preparation software detected the error. Second, when the process was done, the total amount for submitting a federal and state return was a lot more, compared to other services, while the tax refund amount was a lot less. This may be due to how express tax refund’s pricing structure functions: they charge for the basic package, but then charge another $20 for e-filing, plus $20 more for state taxes. Extra items such as chil care credit, itemized deductions, education tax credit and earned income credit can run up to an additional $10 each, resulting in a fairly standard return.
If you find yourself with a huge tax bill so close to the deadline, there are some tax strategies and preparations you can do to lower your income tax returns.
First, determine if your anticipated income will be higher or lower the following year. Get as may deductions as is applicable for the highest year. Your tax base is incremental which means it goes up in percentage the more money you make. Why get a deduction in a 20 percent year when you can wait and get it on a 33 percent year.
Next, pay for any deductible item before the year ends if your taxes this year require the additional reduction. If you think your income will be higher next year, wait until the 1st of January to pay it.
Invest in an IRA. The amount that you pay for an IRA is automatically deducted from your income if you qualify. Some income qualifications are applicable if you are already in a pension or have a 401K in place. You may also coordinate with your employer to change 401K deposits for the final weeks. You can either pay more if you need a deduction or pay less if you need it for next year.
If you have a long or short capital gain that you need to balance, look for a stock or mutual fund that matches, but has lost money. You can’t offset a long term capital gain with a short term one.
Do not sell stocks or mutual funds that have been in your portfolio for less than a year. It may be important to take a profit and run, but a couple of day can make a huge difference in the amount of tax you pay. If you are only a few days away from the year cut to switch a long term gain to a long term one, then simply wait.
Set up distributions form a retirement account, if you’ve just retired and do not require any funds for this year, consider taking the distribution in the following year when your income will be lower.
Perhaps the best part of paying taxes is getting the tax refund. Now, for the average tax payer, a tax refund may be nothing more than just extra cash. This is all well and good. But perhaps you should consider directing that money towards something that could help you make more money in the future, particularly if you are not in a very good place financially. Here are a couple of ways to make more money when you spend your personal tax refund:
Pay Off Your Debts
Paying off your debts is a wise way of spending your personal tax refund. For instance, you have a balance of $2,000 on your credit card. Let’s say that the minimum monthly balance is $50 and the interest rate is 28.8%. it would take you 300 months to pay off that debt. If you direct your refund towards paying your credit card debt, you can save yourself $12,481.62 in interest.
Make an Investment
Making an investment is another smart way to spend your personal tax refund. You can put your refund into stocks, bonds, or other paper assets. If you current economic situation is discouraging your from making such investments, you can leave your money in a high interest bank account or buy GICs. Or you can invest in mutual funds or top up your work pension contribution. It all depends on what you consider an investment. The key is to make your money work for you instead of spending it on unimportant items. Here is another example: if you take $2,000 and put it into a mutual fund that earns 8% annually, you will get $14, 68.35 in 25 years. That figure is more than seven times the amount of your original refund.
Most tax payers do not enjoy preparing and filing taxes; but most people look forward to receiving their tax refunds. To determine how much is your tax refund, try these simple steps:
First, gather all the necessary documents that has something to do with your latest earning such as your W-2 forms.
Do you want an accurate estimate of your tax refund or will a general estimate suffice? If you want an accurate estimate of your tax refund, you must make sure to get all the details and computations of your earnings correctly. Some of the factors that affect your tax return include deductions, adjustments, credits, etc. If a general estimate is enough, then you need not spend as much time estimating your tax return and refund as you would if you were actually filing them.
Make sure to refer to correct and updated information. Tax laws are regularly reassessed and reformed to adjust to current economic conditions. Stay on top of potential tax breaks and liabilities. To site a few examples, in 2009 first-time home buyers are offered credit, and economic stimulus payments are not taxable.
Use a free tax preparation software or tax calculator. There are a number of tax preparation companies who let registered users do simple taxes for free. The IRS enhances its official site with access to services offered by the Free File Alliance. These services that are on offer on the IRS website let taxpayers estimate their refunds and to actually file their tax return documents.
Do not forget to save a copy of your work. The simplest way is to take screen shots of the process. Some software provide a free service lets you take screen shots of your work plus add notes on top of the Web pages.