Income Tax

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TurboTax

Here is a description of the different TurboTax software packages:http://turbotax.intuit.com/

Basic: TurboTax Basic is for people who typically file taxes using form 1040EZ. This version is for taxpayers who have little to no deductions.

Deluxe: TurboTax Deluxe is typically for taxpayers who itemize. This version works well for homeowners, and for people who have a lot of medical expenses or charitable donations.

Premier: TurboTax Premier is for people who own stocks, bonds, mutual funds or rental properties. This version of TurboTax will help you calculate your gains and losses from investments.

Home & Business: This version of TurboTax works well for those who have a home business or do freelance work where taxes are not taken out of their pay.

Business: TurboTax Business is for people who have corporations, partnerships, or multi-member LLCs.

updated 2010-07-18 01:10:43

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Earned Income Credit

The content of this page is intended for general informational purposes only and is not a substitute for professional financial advice. Contact the IRS or a professional financial adviser for the most up-to-date and complete information regarding state and federal tax law.

updated 2010-07-17 04:04:05

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How to Avoid Common Tax Mistakes

• Introduction
• Step 1: Common Mistakes
• Step 2: Other Errors
• Step 3: File Electronically
• Conclusion

updated 2010-07-17 08:00:04

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Capital Gains Tax

Disclaimer: The content in this page is not a substitute for professional financial advice. Please contact a finance professional before using the information presented here. 

updated 2011-03-04 06:51:05

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Deductions & Adjustments Worksheet: W-4 Tax Form

The Deductions and Adjustments Worksheet contains 10 lines of instruction which take an employee through the process of adjusting his or her withholding.http://www.irs.ustreas.gov/pub/irs-pdf/fw4.pdf

• Line 1: Here, the employee enters an estimate of his or her itemized deductions.http://www.irs.ustreas.gov/pub/irs-pdf/fw4.pdf These might include mortgage interest, casualty expenses, taxes, charitable contributions, medical care, and other deductions.http://www.irs.gov/newsroom/article/0,,id=105101,00.html Typically, taxpayers itemize if the total of their itemized deductions exceeds the amount of the standard deduction.http://www.irs.gov/newsroom/article/0,,id=105101,00.html
• Line 2: This line contains the amounts of the standard deductions for those who are married and filing jointly, employees who can claim head of household, and those who are single or married but filing separately.http://www.irs.ustreas.gov/pub/irs-pdf/fw4.pdf Employees enter the amount that fits their situation.
• Line 3: This line instructs the employee to subtract the amount entered into line 2 from the amount on line 1.http://www.irs.ustreas.gov/pub/irs-pdf/fw4.pdf This will enable the taxpayer to know whether their itemized expenses actually exceed the standard deduction.
• Line 4: This line instructs employees to enter the amount of their income adjustments and any additional standard deduction they may be claiming.http://www.irs.ustreas.gov/pub/irs-pdf/fw4.pdf IRS Publication 919 contains information on the adjustments available.http ...

updated 2011-06-01 15:55:56

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How to Avoid a Tax Audit

Even though you can't completely avoid the chances of an audit, you can ensure that any interactions you have with the IRS are relatively stress-free:

1. Do not rush: Take your time filling out your tax return, get professional help if needed and check your return for accuracy.
2. Be honest: Report all of your income -- do not take questionable deductions.
3. Keep good records: The burden of proof of an audit is on you so keep clear, accurate records, as well as receipts for every deduction you claim. The statute of limitations for assessing additional taxes typically runs three years from the date you file your return so keep your records.
4. Ask for help: If you are itemizing, are self-employed or have difficulty understanding the tax regulations, get help from a professional when preparing your taxes.c 

updated 2011-06-07 01:48:52

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Federal Income Tax Instructions for Form 1040A

You should only use the IRS form 1040A if you meet the following qualifications:

• Your taxable income is below $100,000
• You have capital gain distributions
• You claim certain tax credits
• You claim adjustments to income for IRA contributions and student loan interesthttp://www.irs.gov/newsroom/article/0,,id=105099,00.html 

updated 2011-03-04 01:41:26

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Donate Your Car Sacramento

Those looking to donate their cars in Sacramento, California, can reap the benefits of a income tax write off and help a charity of their choice.

The links on this page are designed to help you Donate Your Car in Sacramento, California.

updated 2010-07-17 03:42:50

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1040EZ Tax Form

The Making Work Pay Credit was established by the 2009 Economic Stimulus Bill and expires at the end of 2010. Without an extension to the bill, this credit will not apply in the 2011 tax year. Many taxpayers already receive this credit as a small increase in their regular paycheck.  For those individuals who did not have taxes withheld during the year or did not receive a one-time payment of the credit, the 1040EZ may allow for this credit to be claimed when filing the tax return.http://blog.turbotax.intuit.com/deductions-and-credits/take-advantage-of-these-tax-credits-before-its-too-late/ 

updated 2011-06-02 15:43:18

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