TurboTax 2009, 2010

TurboTax Tax Return Calculator for 2009, 2010

TurboTax Tax Calculators

Use these free tax calculators from TurboTax to get a preview of your 2009, 2010 income taxes.

Whether you want to know how much your tax refund will be, how much you'll pay in taxes, which deductions you can take or how much your home mortgage will save you in taxes, TurboTax has you covered.

Tax Refund Estimator - How much will your tax refund be this year?

Changes in your life—like a salary or job change, new house or car, or additions to your family—might affect your refund. This tax calculator helps you determine how much you are likely to pay in taxes for 2009—or how big your refund will be. The latest changes to the Alternative Minimum Tax (AMT) are factored in for increased accuracy.

Tax Rebate Calculator - Will you get a Irs Federal stimulus tax rebate check from the U.S. government this spring?

The government will not automatically send you a stimulus check if you qualify. You must claim this rebate on your 2009 tax return. This could be a huge potential credit for many tax payers that have been laid off or hit hard by the current economic situation.

Average Tax Rate Calculator - What's my average tax rate amount?

Want to know the average tax rate you'll pay on your income? Plug in your income figures and this handy tax calculator will show what percentage of your income will go to taxes.

Home Loan Tax Saver - How much will my mortgage save me in taxes?

If you paid interest or points on a home loan, chances are you can deduct those payments from your income taxes. This tax calculator can help you find out how much your mortgage will save you on your taxes.

Paycheck Tax Withholding Calculator - How much will I take home after tax withholdings?

Are you withholding enough—or too much—from your paychecks? This valuable tool looks at your entire tax situation, including your other income and expenses, and figures out what you'll actually owe on your taxes for the year. The calculator then determines how much you should have withheld to cover what you'll owe for the year, without giving Uncle Sam a big loan.

Deduction Finder - Am I claiming all the deductions I deserve?

Are you missing out on deductions you deserve to claim? Use this tax calculator to help identify over 350 tax credits and deductions available and which ones you are eligible for.

Free Tax Calculators at TurboTax

IRS Vehicle Donation Program for Charity

Significant Benefits for the Taxpayer and the Charitable Organization

During these tough economic times we all want to help in any way we can. You may want to donate your used vehicle to a charity of your choice to help those who are less fortunate. Donating your used vehicle is an effective way to raise money. There are significant benefits for the charitable organization and the taxpayer if, the organization is well managed.

IRS Recordkeeping and Filing Requirements

The General Accounting Office estimates 733,000 returns had a tax deduction for a vehicle donation. These donations were valued at about $2.5 billion. This reduced the taxpayer liability by an estimated $654 million. This is certainly good news for the taxpayer and also for those in need. There are a few important steps you need to take in order for this to work properly.

• You must receive written acknowledgement from the organization for the donation

• The donation of the used vehicle will be valued at the fair market price

• You must claim the deduction for the vehicle for the year it was donated

• Make sure the organization is qualified

Donations are Simple

You are able to get rid of an old car you donʼt want or need anymore. While helping a worthy cause, you are eligible to take advantage of the tax provisions that allow for the profits to be deducted from your income tax. The IRS supports the generosity of Americans who are helping their fellow Americans. This tax deduction for the donation of a used vehicle is for taxpayers who itemize their deductions. You can accept the standard deduction or itemize each deduction you have if, itʼs worth more than the standard deduction.

Many Organizations have a Program for a Charity Donation

Letʼs face it; weʼre all trying to keep our taxable income as low as possible during these times. If we can help others and have a little benefit for us too then, itʼs good for all involved. Just remember what you have to do in order to take advantage of the deduction. A few simple steps can avoid big problems later.

To learn more about IRS Vehicle Donation Programs for Charity please visit TurboTax Online. TurboTax Online will help you meet all of the IRS requirements to get the largest deduction possible.

Stimulus Check, Tax Rebate Calculator

Did you receive a stimulus payment in 2008, but it was less than you were expecting? You can review your information using a tax rebate calculator. These calculators will help you determine the amount that your stimulus payment should have been.

Try using an online tax calculator such as the one available at TurboTax Online. It will ask you very simple questions regarding your marital status, number of dependents, and a few questions regarding your income. This a free tool that is offered to help you determine the amount you should have received.

The government issued over 130 million payments that started going out on May 2nd and finished up on July 11th. There was a small amount of individuals who received their payments after this date that required additional time to process. If you were late in filing your return and missed the April 15th deadline, the government will continue to send out checks weekly.

If you received a smaller amount than expected it could be due to the following reasons:

• Your adjusted gross income exceeded $75,000.00

• Your income came from supplemental security income

• Your income came from pension and annuity payments

• Your child turned 17 in December of 2007

• Your qualifying income is less than $3,000.00

• You were claimed as a dependent on someone else’s return

• You paid less than $600.00 in federal income tax.

• You do not have a social security number

Additional payments will be made by a credit offered on your 2008 return that you will file in 2009. If you have had a change in income or dependent amounts then you may receive additional stimulus funds.

TurboTax will automatically notify you if you qualify for the recovery rebate credit. Visit TurboTax Online and try the free stimulus tax rebate check calculator.

Allowed Job, Work, Gas, & Travel Mileage Deduction Amount

There can be potentially huge tax savings by deducting your vehicle mileage. There are many reasons that your mileage may be tax deductible. If you must travel for your job and use your own vehicle then those miles are tax deductible.

You can choose to take these optional standard rates if you are an employee, self-employed, and all other taxpayers if you have vehicle operating costs that fall in to tax deductible categories.

What is deductible?

• Mileage for Work Related Travel

• Medical Travel Mileage

• Moving Travel Mileage

• Servicing for Charitable Organization Mileage

Mileage Deduction Amounts

• 50.5 Cents Per Mile For Business

• 14 Cents Per Mile For Charitable

• 20 Cents Per Mile For Medical

• 20 Cents Per Mile For Moving

The rate for business travel has recently increased. It was previously at 48.5 cents per mile for 2007. Due to the current state of the economy the IRS has offered an even higher tax break that will cover mileage deductions from July 1st, 2008 through December 31st, 2008. The rate for business purposes for this six month window will be 58.5 cents per mile. The rate for moving or medical purposes for this six month window will be 27 cents per mile.

The deduction for charitable travel will remain the same. The reasons for this increase are the higher price with fuel and the increased price of vehicles. The standard rate for business, moving, and medical comes from an annual study that is done to determine the costs of operating a vehicle. The IRS will usually hire an outside company to complete this study. The standard rate for charitable travel is set by a previous statute and has not seen any recent increase.

To learn more about travel mileage tax deductions please visit TurboTax Online. TurboTax Online offers free tax software to help you maximize your vehicle mileage deductions.

Federal Tax Withholding Info & Calculator

Paycheck Withholding

You may think we pay our taxes by April 15 but, this is not true. A little bit of what we owe is taken out of every check we get.

What we pay in April is the difference between what we have already paid and the total amount we owe. A withholding tax is taken out of a salary, wage income, tips earned, pensions, retirement distributions and certain gambling winnings. Withholding is also taken out of interest and dividends earned.

Income Taxes Withheld on Wages

The amount of tax withheld from your wages depends on your marital status and how many dependents you claim. You have to file Form W-4 with your employer. If you do not do this, they assume you are a single person with no dependents.

Form W-2

Your employer must give you duplicate copies of your 2008 W-2 form by January 31, 2009. This is a statement of all of the wages you have earned for that year, the withheld income and the Social Security tax. If you no longer work at your place of employment before the year ends then, you may ask your employer with a written request within 30 days of leaving the job for your W-2 form.

Withholding Should Cover Your Estimated Tax

By filling out a W-4 form with your employer, you can adjust your withholding tax. The number of allowances you claim will either increase or decrease the amount of taxes being taken out of your check. On your W-4 you may also claim other allowances like the child tax credit and many others.

Are You Withholding Too Much or Too Little?

If you have to pay a large tax at the end of the year, you had too little held. If you are getting a large tax refund, you had too much held. If you are not expecting a tax refund, you may want to pay more each quarter to avoid paying so much at the end of the year.

Paycheck Tax Withholding Calculator

This valuable tool looks at your entire tax situation, including your other income and expenses, and figures out what you'll actually owe on your taxes for the year. The TurboTax Online Calculator then determines how much you should have withheld to cover what you'll owe for the year, without giving Uncle Sam a big loan.

Schedule C Form Instructions for Filing

For small business owners and the self employed, perhaps the most important form on their tax return is Schedule C, where income and expenses are reported and the profit and loss of a business are calculated. 

If you are a sole proprietor, all of your income and expenses relating to your business are reflected on this schedule. 

This schedule is more straightforward than many forms you need to file with your return.  But it does require supporting schedules for common items like the home office deduction, Section 179 and depreciation expenses, and vehicle expenses.   These items are calculated on separate forms and schedules, and then the appropriate amounts are included on Schedule C.

One of the things you may find most challenging is deciding upon the appropriate business activity code which must be included on Schedule C.  As the business owner, the IRS allows you considerable latitude in determining the business activity code that most closely matches your business.  

What you must take care of, however, is that if you have businesses that generally or primarily engage in different activities, you are required to file a separate Schedule C for each business activity.  You are not required to file a separate Schedule C for an activity that is merely incidental to the primary business activity. 

For example, if your principal business activity is a property manager of real estate, and you are a licensed real estate agent who occasionally receives a commission for your work as an agent -  you would not need to file a separate Schedule C unless your agency acted entirely independently from the property management business.

You'll find everything you need at Turbo Tax Online to help you prepare and file your taxes online. 

How to Calculate Federal Income Tax

Federal Income tax is calculated based on the formulas established by the Internal Revenue Service according to the Internal Revenue Code, which is the tax law passed by Congress and updated from year to year.

For most taxpayers, the calculations are fairly simple. If you do not report business income, and use the standard deduction for all taxpayers, rather than itemizing your deductions, you may use a tax calculator and input a few simple items of information to determine the tax you owe:

• Age
• Filing Status (married filing jointly or separately, single, or head of household)
• Number of Dependents
• Other exemption items, i.e. for disabilities such as blindness
• Wages or Salary for the year
• Other Income, such as retirement benefits, interest and dividends, alimony, etc.
• Non-itemized deductions, like IRAs or other retirement savings
• Any tax credits

Unfortunately, the tax code has become very complex. Once you come to the determination of your dependents and the other items, there are IRS rules to follow. Fortunately, with a good tax calculator like TurboTax, there are step by step instructions that walk you through each of these steps.

Also, for most income and deduction items, wages, salaries, interest, dividends, etc., you will receive a year end tax statement, usually in the form of a W-2 or 1099. These are documents the payer is required to send to you, so you do not have to produce or calculate them yourself.

Also, for many of the deductible items, like an IRA, you will also receive a statement from the custodian of the account, which tells you how much of a deduction you will be entitled to.

In the end, all you need to do is gather a few records then go to the tax calculator at TurboTax Online, where the calculation will be done in a matter of seconds. Then you will know if, or how much of a refund you can expect to receive.

Home Based Business Tax Breaks

You may be able to deduct certain expenses for the part of your home you use for business whether you are self-employed or are an employee.

Part of your home must be regularly and exclusively used for business to deduct expenses for home based business tax breaks.

Here are the guidelines:

• Your home must be the principal place of business for your trade or business
• Your home must be the place where you meet and take care of your clients, patients, or customers in the normal course of business or your trade
• If you use a separate structure that is not attached to your house it must be in connection with your business or trade

There is something called the exclusive use of requirement rule. This means you cannot deduct a home based business tax break if you also use that part of your home for personal use. For example, if you use a spare bedroom as an office and conduct your business in there, you then cannot use the same bedroom as a guest room. If the spare room is used for any personal use you canʼt claim the space as a tax deduction.

There is a test called the principal-place-of-business test. You must determine that your home is the principal place of your business or trade. You must determine where your most important activities are performed and where most of your time is spent, in order to deduct expenses for the business use of your home.

Deductions also may be taken for the regular use of a residence if youʼre providing day care services or for business storage purposes; exclusive use is not required in these cases. If you rent out your residence you also may take deductions, see Publication 587.

You may not deduct expenses for lawn care, new landscaping in general or for redecorating a room that is not used for business. Deductible expenses for a home based business use include the business portion of real estate taxes, deductible mortgage interest, rent, casualty losses, utilities, insurance, depreciation, maintenance and repairs.

To figure the amount you can deduct for the home based business tax break, you can use the entire amount of expenses attributable solely to the portion of the home used in your business. The percentage of your home used for business determines the amount you can deduct for expenses.

To calculate this percentage, divide the number of square feet used for business by the total square feet of your home. If the rooms are about the same size then, base it on how many rooms you have in total by how many are used solely for business. If youʼre a day care provider then, itʼs based on how many hours are used for business by how many hours are used for personal use.

If you have any other home business questions, TurboTax Online has a comprehensive web site that can give you the answers. If you run a business out of your home then, you do qualify for the home based business tax deductions. Donʼt miss out on the many deductions you qualify for.

How to Figure and Compute Income Taxes Online

Figuring and computing income taxes can be a difficult and cumbersome process. When you use TurboTax online, it is much easier to accomplish.

A good starting place is the Tax Estimator provided by TurboTax on its web site. Walking through the process with the Estimator will tell you everything you need to know for the entire process.

First, you start by entering the personal information that is relevant to your situation. Your personal address is very important in determining state and local income taxes. You also have many personal exemption options as well as your filing status (single, married filing jointly or separately, etc.), that will impact the final amount of your income tax computation.

The second tab of the estimator is for your income. This includes your W-2 income, business income, capital gains and losses, social security benefits, and miscellaneous income from other sources.

The next tab allows you to enter your deductions, including medical expenses, non-income related taxes, mortgage interest, charitable contributions, and other personal deductions allowed under the tax code.

Finally, on the fourth tab, enter taxes and credits. These are the withholdings and estimated payments you have already made, and credits for child care, tuition, etc.

When you click on the last tab, TurboTax will show you your tax liability and payment due or refund. By going through this simple process, you are ready to go back and prepare your taxes using TurboTax software. Plan ahead, go to TurboTax Online now to figure and compute your income taxes.

Small Business Income Tax Planning & Preparation

For any small business, considering the tax impact of major transactions is one of the most important things you must do. As tax planners, we like to say, “don’t let the tax tail wag the dog.” But we wouldn’t cut the tail off our dogs either.

Small business tax planning is as important as the preparation and filing of returns. You can accurately project and predict what you will owe, how taxes will affect your profitability and whether one course of action may be better than another because of the taxes you will ultimately have to pay.

Here are a few key points to keep in mind to make tax planning more effective and to blend it in to your tax preparation process as well.

First, think in terms of your business objectives. Consider what you’re trying to accomplish from a business perspective and then calculate the tax impact you can expect from one or more decisions you could make – not the other way around. If a new path is profitable, even taxes won’t take it all away.

Second, remember that there may be different ways of accomplishing the same thing and one may be better from a tax perspective than another. Have a checklist of deduction possibilities available when you run the projections you’re considering.

Third, maintain the records you use in planning your business activities and taxes. They will come in handy when you prepare your taxes as well. And don’t forget to keep the calculations you made, so you can measure your performance against your plans. You’ll be glad you did!

Are you missing out on deductions you deserve to claim? TurboTax Online can help identify over 350 tax credits and deductions available and which ones you are eligible for.

Individual Income Tax Return Filing & Calculator

Knowing how much you will owe on your taxes when you file is a very important thing to most people. Even if you’re withholdings were set up exactly to match your situation, you will likely be entitled to a pretty nice refund when you file your individual income tax return.

So how much will it be? What if the deductions you were entitled to were more than you could account for when you set your withholding allowances? There are many ways of finding a good calculator to estimate your taxes and even to project the appropriate number of withholdings to take.

The IRS tax tables are a helpful resource and always available as one means of calculating where you stand at any point in time. You can always consult a tax accountant who is likely to have tools at his disposal to calculate income taxes and withholdings for you.

Then there are the many different brands of tax software available for filing your tax return and providing a calculator that determines where you stand and what level of refund you should expect.

TurboTax is the most widely used tax software available and there are plenty of good reasons. For starters, once you get started with TurboTax, you will have year to year carry over information available to you in succeeding years as you continue to file with them.

TurboTax also asks you all of the questions you will want when you prepare your return – to make sure you get every deduction you should. Try TurboTax Online, for free, today!

Self Employment Business Tax Filing Forms

Self employment comes with the filing of many forms – so many tax forms and so little time!

In many states, like Michigan, there are forms to be filed for taxes on the business itself. What a pain this is! Fortunately, very few states have such a requirement. Actually, even worse, it means that you may have to consolidate all of the business activities in which you are involved and pay sales taxes, income taxes and payroll taxes all at the same time.

Every self employed person doing business in the United States or who is a United States citizen must pay taxes on the business income he or she earns. This is calculated on Schedule C of your Form 1040 tax return.

Self employed persons also must pay a self employment tax to the IRS. This is calculated and paid by using Schedule SE to Form 1040 of your tax return. The calculation is determined from your income on Schedule C. Online services and software like TurboTax make this calculation and generates this form you when you prepare the rest of your return.

The forms you need are typically available from the following sources: the IRS, the state government site for which you owe the tax, or TurboTax Online. Usually, the best way to obtain the forms is to use the internet. It is an easy, quick and reliable resource. You may also print forms as you complete them, or even blank forms to review before you file.

For the self employed, TurboTax Online offers valuable tips, forms and information for claiming business expenses and valuable deductions.

Renewable Energy Efficient Tax Breaks

The Renewable Energy and Energy Conservation Tax Act of 2008 will provide tax credits and deductions to individuals as well as businesses. This bill is a modification of a previous energy bill that was passed in 2006 that offered most of the tax breaks to large oil companies.

The bill will offer tax breaks for the following:

• Solar energy and fuel cell investment tax credits

• Residential solar property credits

• Credits for energy efficient home improvements

• Credit for the purchase of a hybrid vehicle

• Deductions for energy efficient commercial buildings

• Renewable energy production tax credit

If you are looking to make energy efficient home improvements, there are many items that can provide you a tax credit. Starting January 1, 2009, energy efficient items such as windows, doors, roofs, and heating systems can provide you with a tax credit up to $500.00. If you installed a solar electric system you can receive a tax credit of up to 30%. The system must be placed in service from January 1, 2006 through December 31, 2016. As far as hybrid vehicle tax credits, it will vary on when and what type of vehicle you purchased and you must have purchased the car new.

Businesses looking to produce renewable energy will also be able to receive many tax deductions and credits. There are many incentives offered for businesses that provide and use clean renewable energy. The goal of these tax incentives is to encourage developers to build efficiently or to improve existing buildings to help reduce greenhouse emissions.

To learn more about renewable energy tax breaks please visit TurboTax Online. TurboTax Online will help you find every deduction you deserve.

IRS Federal Tax Rebate Checks Status

The IRS is planning on distributing an additional $10 billion dollars to those individuals who may have a second chance at additional stimulus funds. This rebate will be beneficial to people who may have had an income decrease in 2008 or had a child.

You must file a 2008 tax return. You can start processing your return in January. If you filed a tax return last year and still have not received a stimulus payment, the IRS offers a tool on their website to help you find the status of your stimulus check.

Did you receive a stimulus payment in 2008 but it was less than you were expecting?

If you received a smaller amount than expected it could be due to the following reasons:

• Your adjusted gross income exceeded $75,000.00

• Your income came from supplemental security income

• Your income came from pension and annuity payments

• Your child turned 17 in December of 2007

• Your qualifying income is less than $3,000.00

• You were claimed as a dependent on someone elseʼs return

• You do not have a social security number

Recovery Rebate Credit

The new stimulus plan will help out those taxpayers that may have exceeded the income threshold for previous payments but may now be eligible. If you had a recent decrease in income or have an additional dependent in the 2008 tax year then you will be able to claim the recovery rebate credit. This credit will allow you to receive additional funds that you may have not received before.

TurboTax will automatically notify you if you qualify for the recovery rebate credit. Visit TurboTax Online to learn more about the additional credit.

Hybrid Car, Vehicle Federal Tax Rebate Credit

The recent Bailout Package signed into law just before the election extended the credit for hybrid motor vehicles that was originally passed in 2005.  Under the original law, taxpayers who purchased certain energy efficient vehicles, received a tax credit offset to the cost of the vehicle itself. 

The IRS established a procedure for manufacturers to determine whether a particular vehicle qualifies and the amount of the credit for each vehicle. The credit amount for qualified hybrid vehicles other than passenger autos or light trucks is computed using a different formula.

For passenger cars or light trucks that qualify as a hybrid vehicle, a taxpayer may generally rely on the manufacturer’s certification that a specific make, model and year of vehicle qualifies for the credit as well as the amount of the credit that may be taken.

Regardless of other qualifications, any taxpayer seeking the credit needs to meet the following requirements:

• The vehicle must have been placed in service after December 31, 2005.

• The taxpayer must be the original user of the vehicle.  However, the rebate may only be claimed by the original owner of a new, qualifying hybrid vehicle.

• The credit is only available to the original purchaser of a qualifying hybrid vehicle. If a qualifying vehicle is leased to a consumer, it is the leasing company that may claim the credit.

• For qualifying vehicles used by a tax-exempt entity, the taxpayer who sold the vehicle to the tax-exempt organization may take the credit. 

• The vehicle must be used primarily inside the fifty, United States. 

If you have recently made a hybrid car purchase you may find the tools at TurboTax Online helpful in determining the rebate you may be eligible for. TurboTax offers free tax calculators and software to help you maximize your tax return.

Federal IRS Car & Vehicle Mileage Deduction for Taxes

We are all familiar with the prices at the pump. That is why it is more important than ever to seek every deduction possible when calculating your driving expenses that relate to your work or business. It can be a time consuming process but tracking and deducting your driving expenses can prove to be a great deduction on your tax return.

This year you will be able to claim 50.5 cents for every mile driven for a business purpose. This is an increase from the previous 48.5 cents per mile.

You will need to have proof of your driving expenses. If you take the standard deduction you will need track miles and if you choose to deduct actual vehicle expenses then you will also need to track other items such as gas, repairs, insurance, and registration. It is very important to keep these receipts and documents organized so that you are not scrambling at the end of the year.

Here are some tips to maximize your car mileage deduction:

• Learn what is allowable as a business mileage expense - The IRS offers publication 463 that gives you many examples to look over.

• Stay organized with receipts and tracking mileage - If you are audited this information is necessary and can save your deductions.

• Fill up when gas prices are lower - Since the deduction rate doesn’t change, this will help you maximize your deduction.

• Seek Assistance - This can be a lengthy process, we suggest using online tax preparation software such as TurboTax online.

Please visit TurboTax Online with all of your IRS mileage deduction questions. TurboTax online offers free tax calculators and deduction maximizers to help you get the most deductions possible.

Emergency Economic Government Bailout Bill, Plan

The new emergency economic bailout plan will not only help out the large corporations in trouble, it may also help individual taxpayers. This new bill is expected to be passed by the end of the year and offers new tax breaks as well as extensions to previous tax breaks.

It is called the Emergency Economic Stabilization Act of 2008 and it will include some of the following breaks:

• Many taxpayers will not be required to pay the AMT (Alternative Minimum Tax) again this year.

• There will be a $250.00 deduction available for teachers who have purchased classroom supplies out of their own pocket.

• Deductions available up to $4,000.00 for college tuition and expenses. Allows married couples that make up to $130,000 to take this deduction.

• Tax Free IRA distributions to charities. $100,000 can be paid annually directly to charity.

• Large tax breaks for victims of natural disasters. Includes deductions for clean up, housing, and demolition)

• The choice to deduct either state income tax or state and local sales tax if you itemize.

The Alternative Minimum Tax adjustment will be an extension from previous years. This tax has not been redesigned but will be adjusted for the current time. The minimum tax was once intended for the wealthy but has since worked its way in to the middle class so this extension is necessary in our current economic state.

The total relief from the emergency economic stabilization act could be worth more than $150 billion dollars in benefits to taxpayers.

TurboTax online offers free tax advice & tips. Please visit TurboTax Online to find out about the new tax breaks available.

Tax Stimulus Rebate Plan 2009, Stimulus Payment

On your 2008 tax return you may be eligible to claim the recovery rebate tax credit. This amount will be up to $600 for a single person and up to $1200.00 for a married couple filing jointly. To be able to receive this credit your tax liability must be more than the credit.

This would also include and AMT taxes minus any nonrefundable credits you may have claimed other than the child tax credit. A credit of $300.00 will be available if you meet either of the following two requirements:

• Your earned income must be at least $3,000.00. This should include disability payments as well as social security payments.

• Your earned income is more than $8,950 for single filers and $17,900 if you are married and filing jointly.

If you do in fact meet any of the above requirements then you may also be eligible for a $300.00 credit for each qualifying child. To receive the credit either for you or children, a social security number is required. You will not receive this credit if you are a dependent on someone else’s return.

This credit may be reduced by certain factors. Your average gross income for a single filer must be below $75,000 and below $150,000 if you are married filing jointly. The credit will be decreased by 5% of your average gross income for any earning above and beyond the credit thresholds. If you did receive a stimulus check in 2008 then this amount will also be eliminated from your total recovery rebate credit. You will not be required to pay any overpayments back if your credit is less than the stimulus check that you did receive.

TurboTax will automatically let you know, as you prepare your 2008 tax returns, if you qualify for a tax rebate. It will also do the calculations for you.

To claim the credit on your 2008 return, please visit TurboTax Online. 

State Income Tax Filing Forms for All States

Every year we must file our federal and our state taxes. You will only have to file one federal return but depending on what states you have worked or lived you may have to file more than one state tax return.

Employees - If you have just worked in one state you will only need to file a state return for that state, but if you have moved or worked in another state than you must also file a return in that state as well.

Property Owners - You may also need to file another separate state tax return if you have some type of income property in another state. It is very important to do some research on the rules of the state that you have either lived or worked in as different rules apply to income property and the amount of income earned from that property.

Students - If you are currently a college student living in a separate state from your parents be sure to find out if they are still claiming you on their taxes. If they are still claiming you as one of their dependents you will be classified as a resident of your parentʼs home state.

Every state has different tax forms that you must complete before the tax deadline. There are many different software programs such as TurboTax that offer all of the necessary forms you may need to file a return for the states you have worked or resided in. Each state has different taxes and different names for each of these so it is very important to find the right forms that you need to fill out.

If you have lived, worked, or earned income in any state, please visit TurboTax Online to find all of the necessary tax forms. TurboTax online offers free tax calculators and can help you figure your estimated tax return.

TurboTax has tax forms for all 50 States;

Alabama AL, Alaska AK, Arizona AZ, Arkansas AR, California CA, Colorado CO, Connecticut CT, Delaware DE, District of Columbia DC, Florida FL, Georgia GA, Hawaii H, Idaho ID, Illinois IL, Indiana IN, Iowa IA, Kansas KS, Kentucky KY, Louisiana LA, Maine ME, Maryland MD, Massachusetts MA, Michigan MI, Minnesota MN, Mississippi MS, Missouri MO, Montana MT. Nebraska NE, Nevada NV, New Hampshire NH, New Jersey NJ, New Mexico NM, New York NY, North Carolina NC, North Dakota ND, Ohio OH, Oklahoma OK, Oregon OR, Pennsylvania PA, Rhode Island RI, South Carolina, South Dakota, Tennessee TN, Texas TX, Utah UT, Vermont VT, Virginia VA, Washington WA, West Virginia WV, Wisconsin WI, and Wyoming WY

Federal Income Tax Medical Expense Deductions

When itemizing your medical deductions, it is important to know what qualifies and how much you can deduct.

You can claim deductions for medical expenses for yourself as well as medical expenses for any of your dependents as long as they were considered your dependent when the medical service was performed. Any type of payment made in advance for medical treatment will not be deductible until the service is rendered.

Most of us are probably familiar with the standard medical deductions such as hospital expenses, doctor visits, and health insurance premiums that are not paid pre-tax, but there are many other not so common deductions such as:

• Artificial limbs or teeth

• Chiropractor fees

• Hearing aids

• Alcoholics Anonymous club meetings

• Purchase and care of a guide dog

• Transportation services to appointments

• Home modifications for medical reason

• Sterilization

• Television or phone equipment for hearing impaired

• Laboratory fees

• Eyeglasses

There are many other deductions that are available to you as well. Medical expense deductions can add up to a huge savings for you and your family. If you have a certain item and are wondering if you can deduct it as a medical expense you may want to try on online tax service such as TurboTax.

Under the current federal medical tax deductions you may not deduct certain items such as gym memberships, over the counter medicine, vitamins, cosmetic surgery, dental work considered cosmetic, or any type of veterinary care for an animal.

Have a question about your medical expenses? Visit TurboTax Online to see how you can maximize your tax deductions. TurboTax Online offers Free Tax Deduction Calculators. The only time you pay a fee is if you decide to use their service to file your taxes.

Tax Deductions for the Business Use of Vehicles

The use of any vehicle for business purposes presents some of the most tricky tax issues a small business or home based business owner faces. It also presents one of the biggest opportunities for tax savings you will encounter.

First, there are multiple items for you to consider:

• Is the vehicle used in any part for personal use?
• Is it used as an employee of a company you work as well as a business you own?
• Have you maintained the logs of mileage that demonstrate how much the vehicle was used in the business and elsewhere?
• Which expenses are covered under the mileage deduction, and which can be taken in addition to the mileage deduction?
• Are there special considerations for the type(s) of vehicle(s) you use, i.e. special fuels, SUVs, vehicle weight, etc.
• Do you own a “fleet” of vehicles used in your business?

And, you need records for:

• Mileage
• Maintenance and repairs
• Taxes, title and license expenses in any year
• Purchase and sale documentation

Including records showing:

Whether the vehicle is owned or leased, sales, use and excise taxes paid, whether there are any liens and loans on the vehicle(s), and any other expenses you may wish to deduct.

As you navigate this maze, you may need help. A good internal accountant or recordkeeper earns his or her keep when it comes to tracking the important information you need relating to vehicle deductions. A tax advisor who is an expert in vehicle expenses can save you a world of heartache or heartburn, as the case may be.

And to get everything organized, filed and settled, TurboTax Online is your resource to put everything together and to rest when you are ready to file your taxes for the year. Don’t wait! Get what you need ready now before the tax crunch looms like a dark cloud in April!