Are Annuities a Good Investment

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.

English: Types of Annuities
English: Types of Annuities (Photo credit: Wikipedia)

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.

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.

What Do The IRS And Your Ex-Girlfriend Have In Common?

You Don’t Want To Hear From Either One Of Them

What does getting an email from the IRS and getting an email from your crazy ex-girlfriend have in common? They are both something that you don’t want to open. The best advice is, don’t. If you get one of the IRS emails, it is best to not open it, or even altogether ignore it. We all know that the IRS is anything but a friend of yours, so why would they be sending you an email? They probably wouldn’t. It is just one of the latest scams that impostors are trying to pull off.

Exterior of the Internal Revenue Service offic...
Exterior of the Internal Revenue Service office in midtown New York. (Photo credit: Wikipedia)

Scammers know that when you see the IRS come up on any document, your first reaction is fear, and the second is that you had better answer it quickly to avoid penalty. When you use Turbo Tax 2013, you will have direct access to the IRS email, but they will never have a reason to reply unless it is an auto response. As a general rule, if you ever receive an email from any company asking you for personal information, don’t answer it. Any doubts you have about its authenticity, which there should be many, can be addressed by contacting them directly. If you are the one to contact them using official channels, than you can feel secure about any information that you supply to them.

It is best, if you receive IRS emails, to pick up the phone and contact them directly. After all, nothing ever gets settled through email, you will have to follow up any issue with a live representative anyway. So, it’s best to do with that email what you would with your ex-girlfriend’s, ignore it.

Free Tax Filing for Taxes

Tax Filing for 2011

Each year, thousands of taxpayers fail to file their federal income taxes. Some individuals willingly forgo this action while others run into special circumstances. No event or situation frees a taxpayer from their responsibilities though. With that in mind, a person can always file back taxes in order to start catching up. Various options are currently available for taxes 2011.

Tax Preparation
Tax Preparation (Photo credit: agrilifetoday)

Filing tax returns for previous years often proves relatively simple. However, an individual needs the right software and extensive records for that particular year. Products like TurboTax, TaxAct, and others offer software for past returns. Free tax filing 2011 is hard to come by but is not impossible to find. Undoubtedly, taxpayers want to save as much money as possible.

For taxes 2011, the taxpayer needs to fill out all necessary tax return forms. They should treat this return just like any other one, making sure to avoid common mistakes. Failure to do so might cause problems when the IRS receives the return. Without a doubt, it is important to handle this matter quickly to avoid major consequences and problems.

Free tax filing 2011 is still available even though it is a past tax year. Many people fail to realize that they can still finish taxes 2011. The longer an individual waits, the more penalties they will face. In the end, finishing this task quickly produces the best results under all circumstances. That fact should not be forgotten for obvious reasons. The IRS takes federal income taxes very seriously after all.

Taxes Can Be Simple With TurboTax

TurboTax 2011

Using Turbotax 2011 would be the best way to handle the filing of your taxes regardless of your financial situation. There are many people that make the mistake of putting off their taxes until the last minute. However, doing so would only delay the return of the money that belongs to you. Additionally, it is possible that you would be subjected to late fees for missing the deadline. It is important that you turn in your taxes as soon as possible in order to limit the financial stress that you face during this season. Instead of waiting until the deadline is approaching, you want to look for solutions that can help you to rid your life of this problem during this tax year. When you have the ability to use this great software, you will find that it takes much less time to enter all of your information and get it submitted.

Typically, people worry about the amount of time that is needed to get their taxes submitted. However, TaxAct is a streamlined approach to filing taxes because it is designed for anyone to use. As a result, you do not need to be a tax professional in order to complete your taxes with this software. In fact, most people that use TaxAct know very little about the specifics of tax law. Since this software is designed to remove all of the hard work, all that you need to do is enter some financial information. When you choose TaxAct this tax season, you will be able to enjoy a larger savings than any other option on the market today. Try the best and you will notice the savings in your pocket.