Learning how to maximize your tax refund, can pay you big money at tax time. With the help of a tax deduction maximizer you can increase your Federal Tax refund by 15%, 25% or even 50%.
How does a deduction maximizer work to increase my tax refund?
Tax deductions and credits are what enables you to reduce the amount of tax you pay, or to get a larger and Fast Refund. You may be tempted to settle for standard tax deductions and credits, and wind up paying the IRS more than you should. The deduction maximizer will alert you to overlooked tax deductions and credits you may qualify for.
Here are a few of the over 350 free tax deductions and credits available to you:
Home mortgage interest, real estate taxes, property taxes
Education expensesEarned income credit, child tax credit, child care credit
Energy tax credits
State and local income taxes
Home office deduction
Medical and dental expenses
You could spend a lot of money, paying a tax accountant to find these overlooked tax deductions and credits, but you no longer have to. There are tools on the internet that can help you can master the skill of finding tax deductions and credits, and achieve a triple or even quadruple digit increase in your income tax refund. Many taxpayers settle for the standard deduction rather than exploring the many tax deductions available to them. Before you settle for the standard tax deductions, take a few minutes to explore the over 350 Federal tax deductions and credits.
It's a great way to fatten your income tax refund!
In this digital world, we all often wonder if what we are doing is really safe. From online banking and shopping to filing taxes online we all fear that the convenience we enjoy may be our downfall. Fortunately, there are ways to protect ourselves against identify theft and the like when we use online taxpreparation services. One thing that people most often wonder is how they can receive their tax refund in the safest and best possible way. Fortunately, the IRS has several tax tips to help filers get their refund in a safe manner.
One option for tax filers is to have the IRS direct deposit their tax refund check. This means the check will be directly deposited in their bank account. Many people are concerned about having the IRS deposit their refund check directly in their bank account. However, allowing the IRS to direct deposit your refund check is actually the safest option. That is because having a check mailed to you increases the odds of the check being lost in the mail, stolen, and taking quite a few days to reach you. With direct deposit, the money is immediately available in your bank account.
Another reason why tax filers should choose direct deposit of their tax refund is because it is free. It does not cost a thing and it will show up in your account balance much faster than it would if you had to make the deposit yourself after waiting for the check to arrive in the mail.
Yet another benefit of direct deposit is that it uses no paper, stamps, or anything of that nature. So, it saves the environment and saves the government a little bit of money too. One thing you will want to focus on is that you provide the government with your correct bank routing number, the number that appears first on your check, and then your bank account number. If you do not provide the correct numbers, your direct deposit will be deposited in the wrong account. So, make sure you have the correct information when you file.
When you receive your direct deposited Tax Returns in your bank account, you will realize how safe and easy it really is not to mention wonder what made you wait so long to choose this option! Go ahead and have your tax return direct deposited this year and every year to ensure the safest delivery of your tax refund.
If you expect a Fast Refund check, filing online is a great option. The IRS can process your return and issue tax refunds much sooner than if you mailed a paper return.
Preparing and filing directly from your computer will cost you much less than going to a tax professional, and way less than going to a CPA.
The IRS is offering a new split tax refund option this year for parties that choose direct deposit for their tax refunds. Why? The agency wants to promote savings.
Let’s be honest. What is the first thing you do when you get a tax refund? Do you pay off bills? Do you put it in your savings? Buy some stocks? Nah. Most people go out and buy something with it. In highly technical financial terminology, this is known as “blowing it”.
Americans are infamous for their saving habits. Specifically, they have no such habits. As a society, we save almost none of our savings. This makes many in the government very nervous because they know sooner or later we will be looking to them for money. Social security is already a mess and an aging population is not going to help. As a result, the government takes extraordinary steps to get us to save. This is why we have 401(k) and IRA retirement options.
This year, the IRS is getting into the fray. It is offering a split tax refund option for people that choose to have their refund deposited directly into their bank account. If you file form 8888, the IRS will split up your refund as you indicate and send it to as many as three different accounts.
You are probably wondering why the IRS would do this. Well, the lack of savings issue is starting to get very worrisome. The idea is to try to get you to put some of the money in your bank account to be spent, but also some in a savings account. Yes, things are that desperate. So, does it work? A Harvard Business School study showed a significant number of people would actually use the split refund to put at least some money in a savings or investment account. Walla! Now you can.
Is the split refund option going to solve our national savings problems? No. It should, however, give you a wakeup call in relation to how worried the government is about the issue. Social security is not going to be able to carry us all.
Nearly 67 percent of all taxpayers around the country are entitled to state tax refunds, and the amount of these refunds is worth lining up for. In the state of California, for example, refunds averaged around $760. The average for most other states was about $550 in 2005.
Guidelines vary from state to state, so it is best to consult an accountant. As a general rule, though, low-income individuals and families could claim property-tax refunds or rent credits if they filed income tax returns. And in many cases, you can still get tax refunds even if you do not meet the tax filing threshold, because you may have money withheld from your paychecks, or because you may be eligible for the federal earned-income tax credit. This applies if you earn less than $33,000 and have more than one child, or earn less than $29,000 and have one child, or earn less than $11,000 and do not have a child.
Are statetax refunds taxable? Yes and no. State tax refunds are typically taxable the year you receive them. If you overpaid your state income tax last year and your state returned your money this year, for example, you must pay taxes on it this year. Expect to receive (if you haven't yet) a form 1099 from your state, reminding you about that returned money. Your state also sent a copy to the IRS, binding you to pay the appropriate taxes. But there are exceptions.
The state tax refund is fully taxable if you detailed the deductions on your federal tax returns. Check with your accountant, though, because there's still a chance that part of it is tax-free (even if you did itemize). If you owed the alternative minimum tax during the year of the refund, for example, there's a chance that your refund may not be taxable.
But if you are among the 70 percent of taxpayers who did not itemize deductions on your return, then you don't have to worry about a thing. You do not have to pay taxes on the state refund you received.
The easiest and quickest way to file a return and obtain a refund, is to do this electronically--a practice already used by more than half of all taxpayers. The conventional way of free IRS Efile taxes has been opposed by online tax filing systems in recent times. Filing online will allow you to get your tax refund in as little as 10 days.
The process of filing taxes online as well as Tax Preparation online is simple and trouble free. The customer first prepares his tax papers personally or approaches professional tax consultants to do so on his behalf. After the tax papers have been prepared they can be effortlessly filed through an IRS e-file provider. Filing can be done online as well, but if an individual is not sure about the mechanics, it is better to seek professional guidance. Usually most tax experts will be licensed IRS e-file providers. The relevant documents are signed and retained by the customer for future reference. The IRS e-file provider then files the returns electronically on the behalf of the customers. Next, the IRS e-file provider sends the customer an acknowledgement mentioning the current status of the filing process.
Online filing eliminates the need for going through tiring steps of rushing to the local IRS offices and post offices and waiting in never ending queues to post the papers before the due date. Office hopping has been completely eliminated. The only thing required is a reliable computer and Internet connection. Mistakes and errors can be corrected online in comparatively less time. Online tax filing has reduced the time gap prior to receiving tax refunds and papers can be printed to maintain precise records for future reference. Online tax filing also facilitates tax payments using credit cards. It has reduced back office processing time considerably.
Join the millions of people who have discovered how easy, online tax filing can be. The cost will be much less, your tax forms will get to the IRS with no hand-written errors, and you'll get your tax refund in as little as 10 days.
The Internal Revenue Service reminds taxpayers serving in the military to take advantage of all tax exclusions and filing and payment extensions available to them.
Members of the U.S. Armed Forces who serve in a combat zone or qualified hazardous duty area can exclude certain pay from income. Enlisted personnel, warrant officers and commissioned warrant officers can exclude:
The IRS automatically extends the deadline for filing tax returns, paying taxes, filing claims for refund and taking other actions related to federal income tax for U.S. Armed Forces personnel serving in a combat zone. The IRS also extends the deadline for those in the U.S. Armed Forces deployed overseas away from their permanent duty station in support of operations in a qualified hazardous duty area but outside the qualified hazardous duty area.
The deadline for filing returns, making payments or taking any other action with the IRS is extended for at least 180 days after:
The last day of qualifying combat zone service, or
The last day of any continuous qualified hospitalization for injury from service in the combat zone.
Combat Zones :
A combat zone is any area the President of the United States designates by Executive Order as an area in which the U.S. Armed Forces are engaging or have engaged in combat. Usually, an area becomes a combat zone and ceases to be a combat zone on the dates the President designates by Executive Order.
The following is a comprehensive list of combat zones:
The following locations (and airspace above) in the Persian Gulf area were designated as a combat zone beginning Jan. 17, 1991.The area includes the Persian Gulf, the Red Sea, the Gulf of Oman, the part of the Arabian Sea that is north of 10 degrees north latitude and west of 68 degrees east longitude, the Gulf of Aden and the total land areas of Iraq, Kuwait, Saudi Arabia, Oman, Bahrain, Qatar and the United Arab Emirates.
Kosovo area, beginning Mar. 24, 1999 — Federal Republic of Yugoslavia (Serbia and Montenegro), Albania, the Adriatic Sea and the Ionian Sea north of the 39th Parallel.
Public Law 104-117 designates three parts of the former Yugoslavia as a Qualified Hazardous Duty Area, to be treated as if it were a combat zone, beginning Nov. 21, 1995 — Bosnia and Herzegovina, Croatia, and Macedonia.
In addition, the Department of Defense has certified these locations for combat zone tax benefits due to their direct support of military operations in the Afghanistan combat zone (Operation Enduring Freedom), beginning on the listed dates:
Pakistan, Tajikistan and Jordan, Sept. 19, 2001
Incirlik Air Base, Turkey, Sept. 21, 2001
Kyrgyzstan and Uzbekistan, Oct. 1, 2001
Philippines, Jan. 9, 2002
Yemen, Apr. 10, 2002
Djibouti, July 1, 2002
Efile Your Income Tax Online Today
Once you're ready to start your taxes, you should consider the Efile taxes option available to you today. Since you're here searching for information, may have already made up your mind. If you haven't, I can tell you that I have done my taxes online for three years, and I am really happy with the results, especially with how fast I get my return.
The bottom line is making sure that you are paying the right taxes. This means that you should get all the Income Tax Refund to which you are entitled or pay the right amount to the government. Sometimes, when doing your return alone at the dining room table, you may gyp yourself. How many of us can guarantee that we understand all of the instructions and know all of the changes in tax laws? Not many.
Efile Taxes Advantages
One of the great advantages of Online Tax Filling is speed. Almost as soon as you finish your return it will be forwarded directly to the IRS. They will confirm receipt within a day or so. After that, if you are due a refund, it will come in days rather than weeks. Another advantage of filing online is that you can use the direct deposit option for a faster return.
You should also consider the fact that online tax programs will help you to determine which form or forms to use. They will then walk you through the process step-by-step. Because of the way the programs are structured to ask you every important question, you may discover deductions that you might have missed. The end result is a far simpler process and far fewer headaches!
If you already filed your federal tax return and are due a Tax Refunds, you have several options for checking on the status of your refund.
One way is to use “Where’s My Refund?” an interactive tool on simple online instructions guide taxpayers through a process that checks the status of their refund after they provide identifying information shown on their tax return. Once the information is processed, you could get several responses, including:
1. Acknowledgement that your return was received and is in processing.
2. The mailing date or direct deposit date of your refund.
3. Notice that the IRS could not deliver your refund due to an incorrect address. To ensure delivery, you can change or correct your address online.
Where’s My Refund? is a very flexible tool. Whether you split your refund among several accounts, opt for direct deposit into one account, or ask IRS to mail you a check, where’s My Refund? gives you online access to your refund information. You can even use where’s My Refund? If you filed taxes only to claim a refund of the telephone excise tax.
It also includes links to customized information based on the taxpayer’s specific situation. The links guide taxpayers through the steps they need to take to resolve any issues that may be affecting their refund. For example, if you do not get the refund within 28 days from the original IRS mailing date shown on Where’s My Refund?, you can do a refund trace online.
The “Where’s My Refund?” service meets stringent IRS security and privacy certifications. Taxpayers enter identifying information that includes their Social Security number, filing status and the exact amount of the refund shown on the return. This specific information verifies that the person is authorized to access that account and avoids an unsuccessful response.
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