For this year, 2009, the difference is: There are over 22 MAJOR tax laws. This is not counting the dozens and dozens of laws which included the basic annual changes in tax codes.
This year, 2009, there are a number of complicated tax credits, that must be understood, completely, in order to successfully take the credits.
That is not to say that the major tax software companies won't include the new tax credits, because, they will, however, your ability to understand the more complicated tax laws is the concern.
What if the IRS didn't care if you make a mistake in THIER favor? However, if you make an error in YOUR favor, you will be receiving a letter in the mail, informing you of the changes!
Again, that is not to say that the IRS won't inform you, that you have a larger refund coming. But in order to do that, they (or the computer) will take a CLOSER look at your return, before a check is mailed.
If you find an online service which has a confidential policy, (in writting) and you can verify their professional status, it sure beats, waiting at the tax office to have your taxes done!
Thursday, December 17, 2009
If I have my taxes prepared online for me, can I still e-file?
Yes. It is only past due tax returns, that cannot be e-filed.
Most online tax preparation services will e-file your tax return. I know with our service, we send the online tax client, his or her tax return in PDF format for their approval.
Once identity is established, we can than e-file the tax return, with certain confidential, information provided by the taxpayer.
Most online tax preparation services will e-file your tax return. I know with our service, we send the online tax client, his or her tax return in PDF format for their approval.
Once identity is established, we can than e-file the tax return, with certain confidential, information provided by the taxpayer.
Taxes Prepared for You, Online. Is this safe?
Yes and maybe no.
It depends on the company and their confidentiality procedure.
There are only two states who require their tax professionals to be licensed. And in one of those states, California, the tax professional has to be bonded as well.
There are certain codes and business procedures which California tax professionals must adhere to. There are stiff penalties for allowing a taxpayer's information, to be compromised.
Check out which state the tax professional is in, and what are the procedures to make sure your information is safe.
PS: The Department of Justice gives out jail time, to unscrupulous tax preparers!
It depends on the company and their confidentiality procedure.
There are only two states who require their tax professionals to be licensed. And in one of those states, California, the tax professional has to be bonded as well.
There are certain codes and business procedures which California tax professionals must adhere to. There are stiff penalties for allowing a taxpayer's information, to be compromised.
Check out which state the tax professional is in, and what are the procedures to make sure your information is safe.
PS: The Department of Justice gives out jail time, to unscrupulous tax preparers!
Monday, December 7, 2009
This Just in from the IRS: New Mileage Rates for 2010
IRS Sent this information concerning New Standard
Mileage Rates for 2010.
Beginning on Jan. 1, 2010, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
50 cents per mile for business miles driven
16.5 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations
The new rates for business, medical and moving purposes are slightly lower than last year’s. The mileage rates for 2010 reflect generally lower transportation costs compared to a year ago.
If you have questions, visit: irs.gov for more information
We prepare taxes, online for tax payers. No fuss, no waiting, no problem. Secure, Confidential Online Tax Service.
Mileage Rates for 2010.
Beginning on Jan. 1, 2010, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
50 cents per mile for business miles driven
16.5 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations
The new rates for business, medical and moving purposes are slightly lower than last year’s. The mileage rates for 2010 reflect generally lower transportation costs compared to a year ago.
If you have questions, visit: irs.gov for more information
We prepare taxes, online for tax payers. No fuss, no waiting, no problem. Secure, Confidential Online Tax Service.
Wednesday, December 2, 2009
First-Time Homebuyer Credit Extended to April 30, 2010; Some Current Homeowners Now Also Qualify
WASHINGTON — A new law that went into effect Nov. 6 extends the first-time homebuyer credit five months and expands the eligibility requirements for purchasers.
The Worker, Homeownership, and Business Assistance Act of 2009 extends the deadline for qualifying home purchases from Nov. 30, 2009, to April 30, 2010. Additionally, if a buyer enters into a binding contract by April 30, 2010, the buyer has until June 30, 2010, to settle on the purchase.
The maximum credit amount remains at $8,000 for a first-time homebuyer –– that is, a buyer who has not owned a primary residence during the three years up to the date of purchase.
But the new law also provides a “long-time resident” credit of up to $6,500 to others who do not qualify as “first-time homebuyers.” To qualify this way, a buyer must have owned and used the same home as a principal or primary residence for at least five consecutive years of the eight-year period ending on the date of purchase of a new home as a primary residence.
For all qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 tax returns.
A new version of Form 5405, First-Time Homebuyer Credit, will be available in the next few weeks. A taxpayer who purchases a home after Nov. 6 must use this new version of the form to claim the credit. Likewise, taxpayers claiming the credit on their 2009 returns, no matter when the house was purchased, must also use the new version of Form 5405. Taxpayers who claim the credit on their 2009 tax return will not be able to file electronically but instead will need to file a paper return.
A taxpayer who purchased a home on or before Nov. 6 and chooses to claim the credit on an original or amended 2008 return may continue to use the current version of Form 5405.
Income Limits Rise
The new law raises the income limits for people who purchase homes after Nov. 6. The full credit will be available to taxpayers with modified adjusted gross incomes (MAGI) up to $125,000, or $225,000 for joint filers. Those with MAGI between $125,000 and $145,000, or $225,000 and $245,000 for joint filers, are eligible for a reduced credit. Those with higher incomes do not qualify.
For homes purchased prior to Nov. 7, 2009, existing MAGI limits remain in place. The full credit is available to taxpayers with MAGI up to $75,000, or $150,000 for joint filers. Those with MAGI between $75,000 and $95,000, or $150,000 and $170,000 for joint filers, are eligible for a reduced credit. Those with higher incomes do not qualify.
New Requirements
Several new restrictions on purchases that occur after Nov. 6 go into effect with the new law:
Dependents are not eligible to claim the credit.
No credit is available if the purchase price of a home is more than $800,000.
A purchaser must be at least 18 years of age on the date of purchase.
For Members of the Military
Members of the Armed Forces and certain federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and still qualify for the credit. An eligible taxpayer must buy or enter into a binding contract to buy a home by April 30, 2011, and settle on the purchase by June 30, 2011.
The Worker, Homeownership, and Business Assistance Act of 2009 extends the deadline for qualifying home purchases from Nov. 30, 2009, to April 30, 2010. Additionally, if a buyer enters into a binding contract by April 30, 2010, the buyer has until June 30, 2010, to settle on the purchase.
The maximum credit amount remains at $8,000 for a first-time homebuyer –– that is, a buyer who has not owned a primary residence during the three years up to the date of purchase.
But the new law also provides a “long-time resident” credit of up to $6,500 to others who do not qualify as “first-time homebuyers.” To qualify this way, a buyer must have owned and used the same home as a principal or primary residence for at least five consecutive years of the eight-year period ending on the date of purchase of a new home as a primary residence.
For all qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 tax returns.
A new version of Form 5405, First-Time Homebuyer Credit, will be available in the next few weeks. A taxpayer who purchases a home after Nov. 6 must use this new version of the form to claim the credit. Likewise, taxpayers claiming the credit on their 2009 returns, no matter when the house was purchased, must also use the new version of Form 5405. Taxpayers who claim the credit on their 2009 tax return will not be able to file electronically but instead will need to file a paper return.
A taxpayer who purchased a home on or before Nov. 6 and chooses to claim the credit on an original or amended 2008 return may continue to use the current version of Form 5405.
Income Limits Rise
The new law raises the income limits for people who purchase homes after Nov. 6. The full credit will be available to taxpayers with modified adjusted gross incomes (MAGI) up to $125,000, or $225,000 for joint filers. Those with MAGI between $125,000 and $145,000, or $225,000 and $245,000 for joint filers, are eligible for a reduced credit. Those with higher incomes do not qualify.
For homes purchased prior to Nov. 7, 2009, existing MAGI limits remain in place. The full credit is available to taxpayers with MAGI up to $75,000, or $150,000 for joint filers. Those with MAGI between $75,000 and $95,000, or $150,000 and $170,000 for joint filers, are eligible for a reduced credit. Those with higher incomes do not qualify.
New Requirements
Several new restrictions on purchases that occur after Nov. 6 go into effect with the new law:
Dependents are not eligible to claim the credit.
No credit is available if the purchase price of a home is more than $800,000.
A purchaser must be at least 18 years of age on the date of purchase.
For Members of the Military
Members of the Armed Forces and certain federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and still qualify for the credit. An eligible taxpayer must buy or enter into a binding contract to buy a home by April 30, 2011, and settle on the purchase by June 30, 2011.
Subscribe to:
Posts (Atom)
