Category Archives: Tax Return Preparation

Who doesn’t want to maximize the tax refund they get when they file their annual refund? There are different ways you can achieve this, depending on the spending you did during the year. In this article, we’ll focus on the different types of deductions you can use and various other tactics that boost your refund.

Now, let’s get into what you can do this upcoming tax year to get the most out of your tax refund.

Make Sure to File Early

We all know the looming deadline for tax returns is April 15th, but that shouldn’t be your goal. Your goal should be to send in your tax return early on – like at the beginning of the year before spring hits. As soon as you receive your W-2 (or last paycheck for the year), you can file your return.

If you were self-employed, then you can file form 1099-Misc. Whatever form you’re using, you can file yourself online using a provider. Or you can go to a CPA in your area. The quicker you e-file your tax return, the quicker you’ll get return.

This is especially true if you are receiving a direct deposit.

Itemize All the Deductions You Can

Hopefully, you’ve kept track of all the expenses you made during the year. You are allowed to reduce your taxable income by iteming these expenses on your tax return. If you’re single, you can lower your taxes by up to $6,300. And if you’re married filing jointly, you can lower your taxes by up to $12,600.

So keep all the receipts for the related purchases, so you can get the numbers right. This way, if you get audited, you won’t end up in hot water with the IRS.

Some of the items you can deduct include casualty losses, charitable contributions, unreimbursed business expenses, unreimbursed medical expenses, state and local sales tax deductions, mortgage interest and job search expenses.

Make Contributions to Your Retirement Account

Each year, you have until the filing deadline to contribute money to your IRA. This can offer a tax reduction by up to $5,500 or $6,500 if you’re 50 or older. Then you may also qualify for the Saver’s Credit, which is like a double dip that’s legal. This can give you an additional $1,000 if you’re single or $2,000 if you’re married filing jointly.

Deduct Expenses for Supporting a Friend or Relative

Children aren’t the only dependents you can get expenses refunded for. If you have a friend, significant other or relative you’ve been financially supporting, you can use the dependent exemption. You are able to deduct $4,050 from your income.

If it is a non-relative, they had to have lived with you for the past year. And relatives aren’t required to live with you. You have to provide more than half of their support and they can’t can’t have more than $4,050 in taxable income.

These are just some of the ways you can boost your tax refund. If you want to treat your children to some new gadgets, you can use coupons from Groupon to shop at Toys R Us and other popular stores

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30Apr

It wasn’t too long ago that the two major tax chains came up with the idea to promote what they called, “Super Fast Tax Refunds” or “24 Hour Tax Refunds”.

Three years ago there was a series of commercials promoting the speed at which the client would receive their tax refund. Two guys in the lobby grasping the green cube in front of them as their hair whips around while race car sound effects emphasize the swiftness of their refund coming to them. But there is no special relationship between the IRS and these chains.

The client does not get their tax refund quicker. They are actually signing away their refund to a bank!

The Way It Works

Remember that these tax franchise offices only get revenue for four months out of a twelve month year, so any plan they can come up with to generate higher revenue for those four months, they can and will do! And don’t get me wrong, this is America. If there is a market for these services and others, these companies should have the freedom to promote and sell these products.

I am not a big fan of the check cashing places, nor am I a fan of the rent to own furniture and appliance dealerships. They are extremely high interest and high payments oriented products. I honestly believe that these institutions take advantage of I.Q. deficient people.

But this is America and they have the freedom and right to offer this type of service, even if it is taking extreme advantage of people who have no clue how to budget their income.

Nevertheless, the way the RAL works is that the client who is getting a refund purchases a bank loan so they can get their check the next day. There are several fees attached to this ‘quick’ tax refund.

  • First, there is the ‘bank fee’. The ‘bank fee’ is the fee charged to the tax preparer by the bank providing this loan. Usually the preparer company pays $12-15 for this and passes the fee to its clients by increasing it as much as $40. That is pure profit to the tax prep franchise chain.

 

  • Second, there is the ‘application fee’. This is a completely arbitrary fee attached to the bank fee that can be as much as $50. The ‘cover-story’ on this fee is that it is being used to check the credit of the client to make sure that they don’t owe the IRS any money and as such would not be eligible for the rapid tax refund bank loan.

This is another pure profit for the tax prep chain as the banks are going to automatically check your credit with your social security number when your return is filed through the system. And finally, there is the extremely high interest rate attached to what amounts to a ten day loan. This interest rate calculated annually amounts to in excess of 300%. No one with half a brain wants a loan at 300% interest. And yet, people continue to ask for this loan.

To conclude:

The tyranny of the urgent will keep these loans available as many of the IQ deficient who fill their homes with pay per week furniture and appliances and use pay check advances to ‘better’ their lives will continue to use these services. However, with a checking account, the turn around time for a direct deposit refund is only about ten days.

And many of these people cannot handle a checking account what of thier tax refund?…

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Preparing your taxes can be a burden. Few people relish the opportunity to crunch numbers and watch their money slip away from them. There are several ways to get through that nasty time, with some being more pleasant than others. You can prepare your taxes yourself with the aid of a software program. These definitely take some of the pressure off and help you with tax return preparation. Or you can hire someone else to do your taxes for you. This way, you don’t even have to think about it until it is time to look them over and sign. click here for more details.

Filing income tax returns could be a daunting task for a business owner. Sometimes accountants and accounting clerks need to render overtime just to make sure that the preparation for the said documents and files are organized and done efficiently. For some, because of the large workload, they would need to temporarily hire someone who could work with the accountants. This would entail a considerable amount of money in overhead and staff costs. for more information, visit : https://uca.edu/international/tax/

Tax Return Preparation - Get Your Taxes Prepared

Fortunately, there is a growing trend to utilize online tax return preparation these days. With the use of it, you can now just sit and work on your computer right in the comforts of your home. You will be amazed that everything can be finished in as short as one hour, depending on the bulk of your data. Say goodbye now to the old-fashioned technique of tax preparation – if you can make everything easy and quick, then why not? Itnot only saves you effort, but it can save you time and money, as well. But for some, this could be something that they would be skeptic about. The concerns would be about confidentiality and privacy of documents.

Either way, it is very important that your taxes are done correctly, honestly, and on time. There are major penalties for breaching any of those areas. It is best to avoid problems with the IRS, as once you make a mistake you are flagged for further inspection. It can become overwhelming fast when you have problems with your taxes and you may be forced to get help from a professional. If you are confident that your tax return preparation will be straightforward, then go ahead and do them yourself with the help of a software program or the tax handbook at the very least (Tax Return Preparation).

When you do your taxes yourself, you may miss out on little known exemptions, deductions, and credits. Tax code is not something that you can gain a handle on with a bit of research. There are volumes and volumes of tax code and it is changing all the time. Tax preparation software can help you out here. Some of the more common benefits to you are part of what a software program guides you through. But for the full benefit, go to a professional. They know that tax code and tax law and keep up to date with its changes (Tax Return Preparation).

Tax return preparation is much simplified if you go to a professional. As long as you can trust them to do your taxes honestly, you are getting a thorough tax return prepared. To hire a great tax preparer, find out about their history and qualifications. Also, find out about their services and fees beforehand, so you are not surprised by their charges. Never sign a blank return and make sure to look over the return when you do sign it. The preparer should also sign the form and put his ID number in the correct place.

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