Posted on | November 5, 2013 | Comments Off
How To File Back Taxes
All people with income need to file taxes yearly. If you have missed one or more years in the past ten, now is the time to file back taxes. The Internal Revenue Service (IRS) can impose steadily increasing fines and penalties the longer you wait.
Why File Back Taxes
There are convincing reasons to catch up on back taxes:
• Reduce penalties; there are separate penalties for not filing, and for not paying; by filing you avoid one penalty even if you cannot afford to pay immediately
• Ease your conscience by meeting legal requirements
• Start the clock on the IRS statute of limitations which is three years to audit and ten years to collect
• If the IRS has sent an inaccurate estimate, filing can correct it
• You may be due a refund for any of the previous three years; unless you file, you will not know
Steps for Filing Back Tax Forms
Follow these steps to file back taxes:
• Gather all W-2s or 1099 forms, receipts and other documents to support deductions and credits for each year
• If you are missing W-2s, 1099s or 1098s to support deductions, ask for copies from the IRS, using Form 4506-T
• Download appropriate tax forms for each year, or use tax preparation software
• Prepare the tax return for each year, using that year’s information and guidelines
• Submit the forms, along with as much of a payment as possible to reduce interest charges
• After filing, talk to the IRS to try to reduce penalties and fees
If you need help to file back taxes, consult a tax attorney. He can help gather and complete necessary documents to send to the IRS. This professional can also negotiate a payment plan or settle other issues.
Posted on | October 10, 2013 | Comments Off
The 2014 Tax Deadline
Like most years, the tax deadline for 2014 falls on April 15. Failure to file federal income taxes by this date results in penalties. Most people seek to avoid these financial penalties and get their taxes in on time. Still, thousands of taxpayers run into trouble and can’t meet this deadline each year. Each American adult is required to pay taxes, and taxpayers should strive to meet these deadlines.
Many late filers simply procrastinate until the very end and pay the price. Without a doubt, taxpayers should start gathering their documents as soon as possible. Companies and stock firms usually send out necessary tax forms by the middle of February. Two months is more than ample time to file one’s federal taxes. Therefore, the average taxpayer doesn’t have a good excuse for not meeting the tax deadline 2014.
For 2014, the six-month extension lasts until October 13, 2014. That date is static and won’t be changed by the government shutdown. Anyone can take advantage of this extension, but they must apply for it. Fortunately, each taxpayer is guaranteed an extension, and many states offer automatic extensions. A simple extension doesn’t free a person from accrued interest on their tax burden, though.
In the end, tax deadline 2014 is much like every other year. A taxpayer can’t wait too long to file their taxes. They could otherwise find themselves spending hundreds or thousands on penalty fees. Sadly, such penalties can push a person into financial distress quite quickly. It’s always a better idea to file taxes as early as possible on an annual basis.
Posted on | September 10, 2013 | Comments Off
Individual Financial Troubles
Numerous individuals discover their finances have become one of the most stressful and confusing elements of their adult lives. If you’re one of these individuals, do not despair. This short article will give you the advice you need to handle nearly any financial scenario that you might encounter.
Cooking at home can give you a great deal of extra money and help your individual finances. While it may take you some extra time for you to cook the meals, you will save a great deal of money by not having to pay an additional company to make your meals. The business has to pay something to employees, buy materials, buy fuel and nonetheless have to profit. By taking them out of the equation, you are able to see just how much you are able to save.
Also keep in mind to save a little money before spending it. It is simple to invest now, and forget to save later. Because the cash is not accessible, it’ll make it easier to stick to your budget.
To teach your kids about individual finance, begin giving them an allowance when they are young. This really is a great method to teach them the value of cash while also teaching them duty. Earning their very own money will make sure that kids will know the worth of working and saving when they are older.
As a college student, you’ll wish to decrease the amount that you spend on books and supplies. Rather than purchasing books in the campus book-store, that is generally at retail cost, make buddies with upper-class students who can give you these books at a discount. This can save you hundreds of dollars per semester.
Don’t shop for your meals on a daily basis but instead plan your grocery shopping ahead of time for the week. This will keep you from stopping by the store daily and spending carelessly. And if you can skip a week and prepare meals from the food already in your home, even better.
Your personal finances don’t need to be the source of endless concern and aggravation. If you owe back taxes, file your back taxes and stop worrying over them. And try applying the suggestions you have just learned, you are able to master practically any monetary scenario. Prior to you realizing it, you’ll have turned what was one of your greatest anxieties into one of your greatest strengths.
Posted on | July 18, 2013 | Comments Off
Are Annuities a Good Investment
There are two different types of annuities: deferred annuities and immediate annuities. The type of annuity you choose depends on how soon you expect to receive payments. If you are looking for a long term investment where you plan on making withdrawals once you reach retirement then you might choose a deferred annuity. If you are looking to make withdrawals sooner than you may want to choose an immediate annuity.
Either type of annuity can be fixed or variable. A fixed annuity acts like a CD from a bank but in this case it is an investment with an insurance company. You have a fixed interest rate that you receive for the annuity and it is usually a higher percentage than a normal CD would bring at a bank.
The guaranteed interest payment from these fixed annuities as well as the minimum amounts that you have to invest makes the fixed annuities appealing for those who are not confident in the ways of the stock market.
Another nice thing is that you do not have to pay taxes on the interest gained until you decide to start withdrawing the money from the annuity. A disadvantage with fixed annuities is that the interest rates might be high to begin with but can drop after the first year of having the annuity. This unknown factor can be a turn off for some who are hoping that they can maintain the rates that they first received when they started their annuity.
If you do not like the new rates and want to withdraw your annuity before it matures then you might be stuck paying surrender charges that will cut into your profits. With a variable annuity you can choose from a variety of investments to put your money into and the rate of payment you receive depends on how well the investments performed. With variable annuities you invest in several different stock or bond like accounts that will help your investment grow over a long period of time. Just like with the fixed annuities you pay no taxes on your gains until you begin withdrawing from your account.
Although with variable annuities you may have an opportunity to have greater growth potential with your investment there are some drawbacks as well. The investments you chose may take a turn for the worse causing your potential growth to plummet. There are drawbacks with the tax rates when you decide to withdraw you money,as well as fees if you decide to withdraw early and there can be high sales commission fees. It is good to do your research before you decide which annuity is best for you or even if an annuity is a good investment.
Posted on | July 18, 2013 | 1 Comment
Welcome to the July 18, 2013 edition of Tax Carnival Ecstasy. In this edition we have 5 great articles starting with Daniel’s letter to the IRS disputing an insufficient funds charge. Bill Smith looks at reasons to adjust your w-4 withholding at work this year. And John Schmoll has investment advice for your retirement investing. Hope you like all the articles, bookmark, share, tweet and come back real soon.
Bill Smith presents Why Investors Should Be Interested In Bank Of America – FastSwings.com posted at FastSwings, saying, “There are several reasons that investors are starting to look into Bank of America stocks: the first being that for now, they are still fairly cheap because the bank is still paying off debts and has yet to reach its potential for profits.”
Daniel presents My Letter To The IRS Disputing Their Insufficient Funds Charge posted at Sweating The Big Stuff.
Bill Smith presents Top Five Reasons To Adjust Your Withholding In 2013 posted at 2013 Taxes, saying, “Your withholding is the amount of money you have taken out of each paycheck to apply toward income taxes.”
John Schmoll presents Finding Strength in Our Lack of Investment Control posted at Frugal Rules, saying, “Investing in the stock market can be rife with emotion as stocks go up and down. While there is a lot we can’t control, there is much we can. By focusing on what we can control you can set yourself up for effective investing and start you down the road of investing for long term needs like retirement.”
John Schmoll presents What Makes a Company Worth Investing In posted at Frugal Rules, saying, “There are many things that you can look at if you’re interested in investing in stocks. By following some of the basics you can start to build a stock portfolio that will serve you well and help set you up for long term needs like retirement.”
That concludes this edition. Submit your blog article to the next edition of tax carnival ecstasy using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.
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Posted on | June 17, 2013 | Comments Off
Filing Your 2011 Taxes Online
Every year, many people race to tax preparation offices to have their annual taxes prepared, making sure to beat the April 15 deadline. Long waits and high fees are common, and many people find getting their taxes done a chore. Preparing your own taxes can save you time, money and hassle.
Even if you have never prepared your own taxes, you will find filing your 2011 taxes online simple and easy. Online tax prep programs provide you with step by step instructions and guide you through the process of getting your taxes done. Simply gather your income information and basic documents and let the software do the rest.
Most people dread trying to figure out tax items like deductions, tax credits and multi-state taxes. When you complete your 2011 taxes online, the program will search for any applicable deductions and credits for you. The program will also help you to easily input information if you work in one state and live in another.
Don’t stress out about preparing your own taxes. With easy to use online programs that do all of the work, you can prepare your taxes without worry or hassle. With live phone support available, you can consult tax experts that can provide you with advice and guidance.
Waiting in long lines at the tax office is a thing of the past. File your 2011 taxes for free online and take the hassle out of tax filing. Gather your paper work and file your 2011 taxes online today.