Buying A House And Saving on Taxes

When it’s time for you to buy a house, make sure that you aren’t just blindly following any advice. Make sure that you take your time to fully understand that you are getting into. Your finances are going to either take a major hit, or you’re going to be able to gain leverage when purchasing your dream home. The key to moving forward within this world is simple, you need to have patience, and you’ll need to also make sure that you’re in line with the tax breaks that help you, not hurt you. Without fully understanding some of the crucial tips for purchasing a home and possibly saving money on your taxes as a result, things can get really difficult.

Changing Tax Deductions

One thing that H&R Block professionals recommend in regards to purchasing a home and getting the best opportunity at the same time is to look into claiming itemized deductions. These will help you pinpoint a lion’s share of deductions that standard solutions won’t allow you to get. If you bought a house in the past year, this will be amazing.

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Go Beyond The Basics

When doing taxes, you need to focus on looking at beyond just the basics. You’ll find that a great deal can be dropped off your overall taxes, including deductions like interest, points, real estate taxes, and so much more. When it comes time to fill out paperwork, take a step back and allow a professional to look at your files. You may find out that there are some hidden gems in terms of deducting overall tax liability and more.

The Record Keeping Process

One of the most crucial tips that you can take with you today, especially when it comes to saving money on your taxes every year is to make sure that you have a clear picture of your finances, and anything that pertains to the purchase, sale, and upkeep of your home. It is a wise move to invest in a good filing cabinet and keep paperwork for upwards of 5 years. You’ll find that if you’re meticulous with this, you’ll make great gains moving forward with the world of purchasing a home, getting a mortgage, and saving money on your tax return.

One last thing you should remember is simple, hire a good tax preparation professional. Seek out qualified H&R Block providers and you’ll find that your next preparation could end up giving you a serious kickback in return.

First Time Filers Should Use TurboTax.com

Filing taxes for the first time can be nerve racking and it is worse if you are late with your preparation. You may experience challenges gathering all your information so that is why it is important to plan ahead so that you are on time with your filing.

If your 2013 taxes are your first filing, you have to be mindful of who is preparing your taxes. You may choose to prepare the taxes yourself or hire a tax preparer. If you have been asking friends and family about filing yourself, you may have heard about TurboTax.com. TurboTax.com is the authority on tax filing. It offers free federal filing and other options for state returns. By filing your 2013 taxes with TurboTax.com, you will be given step by step directions, as well as great customer service. In addition, TurboTax.com will ensure that you learn about all the deductions that can be applied to you when you are preparing your 2013 taxes. While your experiences in life will give you some insight on tax filing,
TurboTax.com gives you all the information you will need as a first time filer to ensure that your filing is done correctly.

As you reminisce on your children and your fun times, you will remember that taxes were something that you did not worry about. Now that you are filing for the first time, you have to make sure it is done correctly. Visit TurboTax.com today to review all the benefits available for you, which include an easy to navigate site and guaranteed results. Be sure to check out TurboTax.com.

How To File Back Taxes

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.

Filing Your Taxes Online

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.

Tax preparation help at the library
Tax preparation help at the library (Photo credit: Newton Free Library)

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.

TurboTax Fights Filing Reform

TurboTax Fights Filing Reform

TurboTax has come under fire recently after a report from Propublica revealed that Intuit, TurboTax’s parent company had launched a massive lobbying effort against what is known as return-free tax filing.

TurboTax Fights Filing Reform
TurboTax app (Photo credit: fixedgear)

This method, which is already used in other countries, would have the IRS prepare an estimate of the taxpayer’s liability. The recipient would have the option to accept the estimate, make corrections to it, or reject it and prepare his own return, using a tax preparation company or other option.

This process puts the onus on the IRS to use the information that employers and banks have already provided to them to prepare these files. The taxpayers who would benefit most from this process are those who file simple forms with no itemization.  Up to 40% of taxpayers could benefit from this system.

TurboTax 2013 would have suffered a clear loss of revenue by implementation of this plan.  Fewer taxpayers would actually need to file, and TurboTax, being the largest online tax preparation firm, would certainly feel the loss of preparation fees.

Other tax firms and some political figures have opposed return-free filing because they feel the plan expands government control and that receiving a “bill” from the government might intimidate taxpayers into paying the amount without question.

Free Turbo Tax 2013 preparation would not have been necessary if the return-free plan had been adopted. Considering that TurboTax 2013 garners much business by selling consumers upgrades to more expensive packages, the company’s opposition is understandable from a financial standpoint.  They cannot, however, claim an impartial interest in the matter.

Return-free filing is not a new idea and has been endorsed by two Presidents and a host of consumer advocates.  Other countries have already successfully adopted such a plan, but strong lobbying efforts by TurboTax and other tax preparation firms have so far kept it from becoming a reality in the United States.

Intuit’s PAC Lobbies Against IRS Filed Taxes

Should taxpayers determine how much are owed on their taxes or is this a job for the government? TurboTax lobbying has led to millions of dollars being spent against IRS filed taxes. The IRS could make doing taxes easier on Americans by filing the taxes of citizens instead. Intuit is the parent company behind the TurboTax software and has used its public action committee (PAC) to spend millions to oppose every effort to make tax day less painful.

Intuit, the parent company of TurboTax has lobbied extensively against the “return-free” filing, decreasing the stress of Americans who file complex taxes. This represents the continuation of having to file taxes which take up a great deal of time, despite Obama’s efforts in 2007 towards taxes being prepared by the IRS.

TurboTax and other similar companies are partly responsible for Americans not being able to go without filing their taxes for years. It’s possible that this would have previously been made a law, however, tax professionals have expressed their opposition to this. American’s being able to go without filing taxes for such long periods of time would be detrimental to the businesses that profit from this.

TurboTax’s public opposition to IRS government tax preparation is a clear indication the business knows their long term profits would be affected. Intuit’s PAC has spent over $5 million contributing to certain politicians with the biggest donation to one individual being $1 million.

Turbo Tax Television Ads Will Continue

Turbo Tax Television Ads Will Continue

H&R Block has failed its lawsuit and injunction attempts two times against Intuit’s TurboTax. H&R Block was attempting to stop their television ads from airing. The initial lawsuit was filed in January, 2013 on the grounds of an infringement on the company’s trademark. H&R Block stated that Intuit’s TurboTax commercials showing people having their taxes prepared by inexperienced tax preparers was directed at the company.

H&R Block, Miles City
H&R Block, Miles City (Photo credit: dave_mcmt)

H&R Block is trying to stop Intuit from airing two ads. The first is a scene of a shopper checking out in a women’s clothing store and the sales clerk remembers that she did the customer’s tax return the previous week. The second commercial shows a plumber that is fixing a kitchen sink and he announces to the family that he did their taxes.

First Lawsuit Lost

The U.S. District Court for Missouri ruled against H&R Block’s first lawsuit filed in January, 2013. H&R Block is headquartered in Kansas, Missouri. This in essence meant that Intuit could continue to run its ads and to promote its services such as Turbo Tax 2013 free, and the benefits of using the online software for free tax preparation.

Preliminary Injunction Denied

H&R Block attempted a preliminary injunction to cease the TV ads in March, 2013, but once again, the U.S. District Court rejected the request.

The television ads do not mention H&R Block by name and Intuit has made it clear that the advertisements were to educate the public on tax preparation. Many people have no clue when it comes to taxes and depend on a professional software application such as Turbo Tax 2013 free or a professional tax preparer. H&R block is continuing its lawsuit against Intuit, a spokesperson for the company confirmed.

Why H&R Block is Concerned

Intuit notes in the ads the lack of experience needed in retail tax stores. Intuit stated they only hire CPAs, tax attorneys, and Enrolled Agents to offer advise to customers about tax questions. With both attempts by H&R Block to stop the commercial ads, it’s clear that the U.S. District Court does not see this as an infringement on the company’s trademark, which was the grounds for the original lawsuit.

Intuit and Television Ads

Intuit has said they will continue to run the two ads despite the H&R Block’s determination to keep the lawsuit going. The TurboTax software can be accessed on a secure website and offers free tax preparation in an intuitive and user friendly application. The programs walks the filer through the process by asking question. It sometimes will recommend a different filing especially for the self-employed.