Archive for the ‘Tax Preparation’ Category
Tax Day is here! Today is the day where procrastinators scramble, post offices stay open till midnight and we’re working around the clock to make sure you either file on time or get an extension.
With over 1,200 offices in 35 states, Instant Tax Service specializes in professional tax preparation, and many locations will be open late tonight to help you either file your taxes or get an extension. To find the nearest Instant Tax Service center to you, pleaseclick here.
The countdown is on, and there are just a few precious hours left until today’s tax deadline. Here are some tips for all you procrastinators:
- If you need to file for an extension, it’s a good idea to send an estimated payment… or face potential interest and late filing penalties.
- Beware of scammers. Too many people are taken advantage of in these last few hours before the tax deadline. The IRS does not send emails or make phone calls requesting personal or tax information from individuals. Do not give out your personal information unless you’re dealing with your tax preparation professional or accountant.
- Consider e-filing at this point to avoid the lines and aggravation of getting to the post office on time.
- Make sure you sign your returns in the right place. A tax return is like a check. It’s not valid unless it’s signed.
To make sure you don’t make any of these last minute mistakes, visit the closestInstant Tax Service to you. Our experienced income tax professionals will ensure that you receive the maximum refund you’re entitled to… just when you need it most. And with ourTriple Guarantee, there’s no better time to get professional tax services from your local tax experts!
April 15th is almost here… are your taxes done? Or do you need to file a tax extension?
You can ask the IRS for more time. In fact, about 10 million people a year file for a tax extension, so you’re not alone.
Get an extra 6 month extension on your tax deadline by filing Form 4868, Application for Automatic Extension of Time to File.
To file an extension, you have a couple options:
- You can file Form 4868 electronically using IRS e-file.
- You can file a paper Form 4868
If you’re out of the country, you can also get some leeway from the government and an extra two months to file your return without an extension. This rule applies to people whose primary job is based outside the U.S. (like contractors in the European Union, architects in New Zealand, and our servicemen and women overseas). Just keep in mind that this rule doesn’t apply to you if you’re sitting on beach in Bahamas on spring vacation!
If you do choose to file an extension, bear in mind that there are some potential consequences.
Interest: You’re going to owe it, no matter what the excuse is for filing late. The IRS has heard just about every story in the book, so be aware that there will be interest due on your late payment. Typically, you will be charged about a ½ percent to 1 percent each month that you don’t pay your taxes. The max penalty is 25 percent.
Late Penalty: If you wait until after April 15th to file anything, you’re going to be hit with a penalty, which is usually about 5 percent of what’s due each month that you are late. The max here is also 25 percent. The penalties for filing late are much harsher than the penalties for late payment. So go ahead and send in your 1040, even if you need to work out a payment schedule.
What’s important to keep in mind is that an extension of time to file is not an extension of time to pay. Most tax experts these days advise filing electronically, which is much quicker and easier. But if you are one of those old school types who like to have your paper return in your hand, many post offices will be open until midnight on April 15th to make sure you get that important postmark date.
To save you time and headache, you can also check out a local tax preparation service, who can prepare and file your taxes for you. At Instant Tax Service, we have a team of experts who can help you file your taxes quickly and painlessly – and on time! To find the nearest Instant Tax Service center to you, please click here.
Why do you need a tax preparer? As Albert Einstein once said about filing a tax return: “This is too difficult for a mathematician, it takes a philosopher.” This tax season, finding a tax “philosopher” in your area could save you hundreds or thousands of dollars in income tax overpayments.
The problem – even for one of the greatest minds in modern history – is that doing your taxes can be a complicated business. Are you sure you’re getting the maximum refund you’re entitled to? Are you taking the right deductions? Should you file separate or married? What about the kids? Do you qualify for a first time home buyer credit?
With all of these concerns looming over your head and the tax deadline quickly approaching, maybe it’s time to consider getting some professional tax advice.
A good tax pro will be able to apply all of the correct deductions to your tax return and give you advice about recent and upcoming tax code changes. If you qualify, they may be able to show you how to deduct as much as $500 ($1,000 on a joint return) in real estate taxes paid on your home even if you take the standard deduction.
Did you know that a single mother may qualify for the head-of-household filing status, which offers a greater income tax deduction than filing as single? Sometimes, even a married person with a dependent child can qualify for head-of-household status, which may give you a greater tax credit than married filing separate. What about Refund Anticipation Loans versus Electronic Tax Refund Checks? A good tax professional can advise you about the best option for you.
At the end of the day, not everyone needs the help of a tax preparer, but if you have questions or need assistance, hiring a professional can be money well spent – especially as tax rules become more complex.
Using a pro may also a save you from paying more taxes than you should… and it’s a lot less costly than paying fees and penalties to the IRS for late or incorrectly filed tax returns!
To find a local income tax preparer near you, click here.
So, you’re expecting a big refund on your federal income tax return this year… and you need your money fast. In this economy, there are a lot of people in your situation. This year’s tax refunds aren’t going toward big vacations or flat screen TVs. They’re going toward paying for basic things like rent, groceries, and electricity.
It’s your money, and Uncle Sam’s been holding it for you all year interest free. It’s time to get it back.
Quick filing makes the most sense for people with relatively straightforward returns who are taking standard deductions. If your return is complex, you’ll still be able to take advantage of a quick filing options like electronic filing, but you’ll want to review your return very carefully before submitting it.
If you want a faster refund, electronic filing is the way to go. The people who generally have to wait the longest to receive their tax refunds are those who mail in their returns.
Either way, the best approach to ensure that you get the maximum refund you’re entitled to by law is to hire a tax professional. Some companies, like Instant Tax Service, even offer service guarantees. Most tax offices also offer additional ways to get you the amount of your anticipated tax refund in as little as 12-48 hours. Most tax companies don’t even require you to pay any money up front for tax preparation fees, either. If you choose, the amount can be deducted from your tax refund.
To get started, gather all of your paperwork, including all W-2’s (you’ll need your W-2 to file). Once you have everything together, sit down and decide how fast you want the amount of your refund. Here are some options you might be presented with at your local tax preparation office:
Refund Anticipation Loan: If you need money right away for any reason, you can file what’s called a Refund Anticipation Loan, or RAL. This can provide you with a check in the amount of your anticipated tax refund, less any applicable fees, in as little as 12 to 48 hours.
Electronic Tax Refund Check: If your financial needs are not as immediate, you may want to consider an Electronic Tax Refund Check. This provides all of the benefits of electronic filing and also saves you money when compared with a RAL. The Electronic Tax Refund Check is available 10 to 16 days after the IRS acceptance date and tax preparation and other fees are deducted from the tax refund amount.
IRS Direct Check: If you’re not in a rush, then you can choose to receive your refund directly from the IRS either. The IRS can either direct deposit your refund into your personal bank account in 11 to 17 days or you can have it mailed to your home in 18 to 21 days, if you file electronically. Tax preparation fees are paid at the time of service.
Contact your local Instant Tax Service office for more information about tax preparation, electronic filing, and refund anticipation loans.
Preparing your own income tax return can have its advantages… right? You can take your time, go at your own pace, and learn more about the tax code.
Unfortunately, “all that time” often means procrastinating, and procrastinating means a delay in your refund amount (if you’re getting one) and additional tax season stress. There are few things worse than that looming April 15th deadline!
Having a paid tax preparer is one of the easiest ways to reduce your overall tax season stress. A tax professional will have suggestions on how to reduce your tax burden – now and in the future. If you needed a new roof or a major medical procedure, would you try and do it yourself? Yet when it comes to our finances, many Americans go it alone.
Most tax professionals are happy to have you drop off your tax information at your leisure. They can complete the bulk of your return while you’re out running errands. To finish the return, you can set up an appointment or just drop by the office to review and complete the rest of the return.
Remember to choose your tax preparer carefully. Even if your taxes are prepared by a third party, you are responsible for what’s on the tax returns. Many income tax companies, like Instant Tax Service, offer service guarantees. Check with your local tax service.
Educate yourself at IRS.gov for information about tax schemes or scams. There are a lot of tax preparers out there – be sure you choose the right one for you.
Expecting a big tax refund this year? With all the tax changes for 2008/2009, sometimes it’s hard to estimate whether or not you owe.
Why not stop by your local Instant Tax Service? We can get you a FREE tax refund estimate today!
Find an Instant Tax Service location in your area.
Are you ready for some tax advice for 2009? The new year signals more than new beginnings in the tax industry – it’s also the start of tax season. January is a great time to get 2009 tax advice.
First up: Buying a house!? First-time home buyers can take advantage of an IRS credit of 10% of the purchase price of their home (up to $7,500) this year. Buy your home by June 30th, 2009 and get your tax credit! This credit is available to both single and married filing jointly taxpayers. For the purposes of this credit, a “first-time home buyer” is someone who hasn’t owned a home in the three years prior to buying the home. If you’re already planning on buying a house this year, be sure to take advantage of this credit!
Make sure you and your tax preparer are aware of a new standard deduction for those who pay real estate taxes (but don’t itemize their deductions). This deduction can be taken for the amount of estate taxes paid: up to $500 for singles and $1,000 for joint filers. You can take this deduction in the 2008 and 2009 tax years to maximize your deduction!
In 2009, you also have higher income limits for your deductible IRAs and Roth IRA. You can take the full IRA deduction if your gross income (married filing jointly) is less than $85,000 or $53,000 (single, head of household).
Another tax credit you may be able to tax advantage of before it lapses if the $250 deduction for classroom supplies purchases by educators. This deduction can be taken during this tax year, but will be phased out next year. If you qualify, take it now!
Don’t forget to take your student tuition an fees deduction. The deduction for up to $4,000 in student tuition and fees was reinstated for tax years 2008 and 2009.
For more 2009 tax advice, visit IRS.gov.
2008 is coming to a close (and there are a lot of folks out there who are glad to see it go!), and we’re pushing toward tax season here at Instant Tax Service.
Here are this year’s Top 10 Tips for the Taxed to chew over during your holiday meal this season:
1) Remember, you have until December 31st to get all your affairs in order. Remember that income deferred until after the new year won’t count on this year’s tax return. If you’re freelancing, you can ask your employer if they’ll pay you for December’s work in January.
2) Looking to clean out the house before the holiday gift-giving madness? Donate all of your items before December 31st to a local charity like Goodwill or The Salvation Army and keep your receipts. Donations are tax-deductible.
3) Don’t forget your flex spending accounts. Some companies offer flex spending accounts to help employees pay for health care related costs throughout the year. The great thing about these accounts is that the money is deposited (and accumulates) tax free. But remember: any money you deposit into your account and don’t use by year end… you lose. So gather up those health care related receipts and cash out your flex spend accounts before they dry up.
4) Shop around for a great tax preparer. This can be vital to receiving the maximum refund amount you’re entitled to. Tax codes change quickly – and often. A professional tax preparer can help you navigate this winding road.
5) Lost your tax documents? Don’t fret. Call the companies that gave them to you. They can send you copies. Sure, losing tax documents is inconvenient, but it’s not the end of the world.
6) And, if you’re still having trouble keeping track of all that paper… Create a tax documents checklist. If you’re using a tax preparer this year, some of them have checklists on their websites. We have one here.
7) File online. Online filing has been a great boon for procrastinators and worriers alike. Online filers, or e-filers get faster return confirmations from the IRS and faster refunds when refunds are due.
8 ) Always check your filing status. This is one of the biggest mistakes that tax payers make. Incorrect filing status can cost you time and $$$. Claiming an incorrect filing status means you could lose your ability to claim your child tax credit, dependent exemptions, and earned-income tax credit.
9) Remember your supporting documents, and don’t send the IRS your only copies! W-2s, 1099s, all of your receipts… (keep copies!) If you’ve used a tax checklist, this hopefully won’t be as much of an issue.
10) Keep great records all year long. This is really the key to avoiding a lot of the headache when tax season rolls around. The IRS loves receipts and documentation! Make sure yours is in order. Organize your filing system now. If you need help getting organized, contact your local tax preparer for some tips. They’re the experts at record keeping.
