It’s tax time again and while it’s usually a time for the added expense of hiring a tax preparer, you don’t have to do that. If your situation hasn’t changed, you can do your taxes on your own. Turbo Tax is popular but I prefer using eSmartTax online. It’s free to do your federal taxes and it’s cheap to file your state taxes. The best part is that there is no paperwork, you just input your income information from your w2′s and answer the simple questions about your status (single, kids, etc) and the program does all the calculations and putting the right numbers in the right boxes for you.
Read More
With just a month left in the year now is the time to think about your 2009 tax returns. Here are some unique end of the year tax tips.
– If you feel you’ve earned too much this year ask whoever pays you to defer payments until January 1st. That way you won’t pay taxes on those earnings until April 2011.
– If your wife gives birth bu the end of the month you can claim another dependent this year.
Read More
Here are some things you can do right now to pay less taxes when April comes knocking.
- Pay your January mortgage bill before the end of the year.
- Defer taxable income until after the year is over.
- Pre-pay your 2009 property taxes.
- Buy extra supplies or pre-pay ads if self employed
Read More
Â
Another year goes by and it’s time to file your taxes again. If you haven’t done so, what are you waiting for? If you need more time, you can file for an extension free of charge. You get 6 more months to file. This IRS page will explain what form you need to print and mail in.
I did mine in early March this year and managed to get a refund within a few weeks. Direct deposit is great, I bet it saves them time and money and you get your money quicker. Whenever I owe money, I set the date of withdrawal to be right before taxes are due so they don’t get my money early.
The IRS expects more returns this year than ever before because of the rebates we’re getting. You only get one if you file your taxes this year. If you file an extension you’ll still get your rebate check – but you’ll get it after you send in your taxes.If you’ve done your taxes already you should be expecting your rebate as early as next month.
Read More
It’s that time again to pay your quarterly taxes if you’re self employed. I made my payment today and had to readjust my payment since my income has unexpectedly increased. My first quarterly payment was big, my second one was small, and this third one was big again. I read that the IRS may issue a penalty because my 2nd quarterly payment was so small. I think a penalty is unfair because it’s supposed to be estimated taxes. If you’re supposed to be accurate to a certain percentage, then it’s not really an estimate anymore, but more like a precise mathematical calculation correct within a range. Self employment tax is killing me, I got to learn how to form an LLC and pay myself a wage to cut that tax out. It’s too late this year but maybe in ’08 I’ll get started on that.
On another note, I’m planning on buying my first home in a few months, so I’m going to be receiving a big tax deduction for that in my 2008 taxes. I will actually be paying less in taxes next year even though I’m going to be earning more.
Read More
Today June 15th is another installment date for sole proprietors who pay estimated taxes (1040-ES)
The due dates for estimated tax payments are:
For the period: Jan 1 – March 31
Due date: April 15
For the period: April 1 – May 31
Due date: June 15
For the period: June 1 – August 31
Due date: September 15
For the period: September 1 – December 31
Due date: January 15 the next year
If the 15th happens to fall on a holiday or a weekend day then the due date will be the next business day.
I pay my taxes at: https://www.eftps.com/eftps/ and just so I don’t forget, I set up automatic payments, so it’s withdrawn from my bank account right before it’s due.
Read More
The end of the year is quickly approaching and for those of us who have a business and make business expenses, it’s a good time to make some calculations and see how much you’re going to pay Uncle Sam this year. The advantage of doing this now is that if your tax liability is too high, it’s a perfect time to make some extra business expenses before the year is through.
Here’s a few things you can do to increase your business expenses yet not spend foolishlly.
- If you’ve been wanting to upgrade your computer, there’s no better time than now.
- Pre-pay your advertising expenses for the next few weeks/months in advance.
- If there’s this business investment you’ve been hesitant to make, this could be the extra motivation you need to take the risk.
Read More
Lets say you have a home office, but you’re not declaring a home office on your taxes, just because of the extra form you have to fill out and because of the added attention it may bring. Can you still put the electricity bill (or a percentage of the electricity bill) as a deduction on your income tax return? I don’t know why I’m thinking about it now, as it’s not tax time, but what a headache.
I’m beginning to think we’d all be better off if we just had a flat tax. Just add a federal income tax on all the goods and services we purchase, and eliminate income taxes. Just imagine how much easier that would be – and no more complicated tax forms. In fact, no more IRS either, no more audits. The only bad part is – no more IRS jokes.
Read More
Part of the Ethernity
