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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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How to Handle an Audit

The content of this page is intended for general informational purposes only and is not a substitute for professional financial advice.

updated 2010-07-17 08:56:39

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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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How to Get Your Tax Refund Fast

The third step to getting your tax refund fast is to file electronically. Paper filing will require you to mail in your forms. Processing will take 6 to 8 weeks for a federal return and up to 12 weeks for a state return, assuming there are no delays.http://turbotax.intuit.com/tax-tools/tax-tips/irs-tax-return/5628.html On the other hand, electronic filing can enable you to get your refund in as little as 24 hours.

As mentioned earlier, e-filing is available in four formats. The Instant Refund Loan will allow you to receive your refund the same day you file your return. However, to take advantage of this program, you will have to visit a tax preparation office and then qualify by passing a credit check. The Rapid Anticipation Loan, or RAL, is also a way to receive your refund quickly, usually in 1 to 2 days. Unlike the Instant Loan, however, the RAL does not require a credit check. The fees to receive either of these loans will cost anywhere from $29.99 to 89.99 and are deducted from the amount of the loan along with tax preparation fees.http://financialplan.about.com/cs/taxes/a/TaxRefundLoans.htm So, if you are considering getting your refund back using either of these options, make sure your refund is large enough to deduct the loan origination fees as well as the tax preparation fees.

A slightly less expensive option is the Refund Anticipation Check, or RAC. This refund settlement ...

updated 2010-07-17 08:54:16

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$8,000 Housing Tax Credit

The $8,000 tax credit was part of the $787 billion economic stimulus package that was signed by President Barack Obama in 2009.c

Existing home owners who bought their home between November 6, 2009 and April 30, 2010 were eligible for the $6,500 tax credit.

New home owners could file for a first time home buyer tax credit on their 2009 taxes or by amending their 2008 taxes. A 1040 tax form was needed for 2009 applications. 

For 2008 amended taxes, a 1040-X and 5405 form for the First Time Home Buyer Credit was needed, along with documentation of home purchase.

 For more information on the First Time Home Buyer tax credit, visit the IRS website.c

updated 2011-05-18 20:23:32

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How to Set Up an IRS Payment Plan

• You can request an installment agreement by filing Form 9465 with your return. You can also apply online, or by phone at 1-800-829-1040.

1. There is a fee to set up a payment plan.
2. You need to select a monthly payment date that will be fixed for the life of the agreement, and determine the amount you can pay each month.
3. The IRS offers direct debit, which ensures your payments will be made on time. If you select direct debit, the fee to set up the agreement will be lower.
4. The amount of your payment should be calculated so that the entire debt, including interest, will be paid off within three years.
5. If you owe more than $25,000, the IRS will also require form 433F

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updated 2010-07-17 09:52:20

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How to Check Your Tax Refund Status Online

Not every state which levies a personal income tax has a website set up to help you check the status of your state income tax refund. Some still rely on the automated telephone system.http://www.revenue.ky.gov/refund.htm

Whether you are using your computer or a phone, you will need to provide some information about your tax return to find out whether your refund has been processed yet. Each state requires something slightly different, but you will be asked, at the very least, to provide your Social Security number and the exact refund amount shown on your return.http://www.tax.state.ny.us/

updated 2011-06-01 02:01:36

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How to Read a W-2 Form

Form W-2 Box 12 - Deferred compensation and other compensation. Several types of compensation and benefits can be reported in Box 12. The different types will be represented by a letter code and are as follows:

Code A – Uncollected Social Security or RRTA tax on tips.*

Code B – Uncollected Medicare tax on tips.*

Code C – Taxable benefit of Group Term life Insurance over $50,000: already included in Boxes 1, 3, and 5.

Code D – Non-taxable elective salary deferrals to a 401(k) or SIMPLE 401(k) Retirement Plan.http://www.irs.gov/taxtopics/tc424.html

Code E – Non-taxable elective salary deferrals to a 403(b) Retirement Plan.http://www.403bwise.com/

Code F – Non-taxable elective salary deferrals to a 408(k)(6) SEP retirement plan.http://www.irs.gov/retirement/article/0,,id=111419,00.html

Code G – 457(b) retirement plan and non-taxable elective salary deferral contributions.http://www.irs.gov/retirement/article/0,,id=172437,00.html

Code H – Non-taxable elective salary deferrals to a 501(c)(18)(D) tax-exempt plan.http://www.irs.gov/charities/charitable/article/0,,id=96099,00.html

Code J – Non-Taxable sick pay. This is not a taxable amount.

Code K – Excise Tax: A 20% tax on excess "golden parachute" payments.*http://www.taxesindepth.com/info-w2-form-codes.html

Code L – Employee business non-taxable expense reimbursements.

Code M – Uncollected Social Security or RRTA tax on taxable Group Term life insurance over $50,000 for former employees.*

Code N – Uncollected Medicare tax on taxable Group Term ...

updated 2010-07-17 09:45:22

comments: 0