TurboTax 2011 Tax Refund Calculator

Income Tax Audit Help for 2011, 2012

Are you being audited by the IRS?  There is help available.  The most important thing to remember when preparing your taxes is to report your income, deductions and exemptions accurately. 

You must save all of your receipts for your deductions for 3 years after filling your taxes.  If you are audited, you must provide proof that you indeed had those expenses.  If you cannot support your deductions, you may be assessed a tax liability for each unsupported deduction. 

There are tax professionals that are available to help, of course for a fee.  So it is important that you try to protect yourself to the fullest by making sure you report your tax information as accurately as possible.  Using a service that guarantees accuracy and therefore reduces your risk of being audited is your best solution, other than paying a tax professional a lot of money. 

There are online services like TurboTax that will guarantee the accuracy 100%. This reduces the risk of being audited and if you are audited, whether it is due to an area on your tax return that has prompted a red flag or you were randomly selected, TurboTax offers help.  For a small fee, they will help you with your audit.  Also, if you pay the small fee to use Turbo Tax to file your taxes, it will virtually eliminate the risk of an audit except for the chance of being randomly selected, which is approximately 1% of the taxpayers that file their return. 

For answers to all your tax-related questions, visit TurboTaxOnline. 

How much should I pay in Taxes for 2011?

Wouldn't it be nice to have an estimate of how much money you will owe in taxes before you complete your tax return?

Determining the amount of tax that you will owe involves many factor. The following is a list of a few factors that may change your tax return:
Filing status (single, married filing jointly, married filing separately)
Number of dependents
Income level (Tax bracket)
Exemptions
Deductions (Education tuition and fees, etc.)
Credits (1st time home buyers credit, Earned income credit)
Etc.

Since President Obama has implemented several stimulus packages, there are many more deductions and exemptions available for taxpayers. Stimulus packages offer more credits and deductions you can file for and in some cases it also has increased the dollar amount of several credits and deductions to help taxpayers owe less in taxes or receive more of a refund.

There are several online services available to help you calculate an estimate of your tax owed or refund amount. These services are easy to use and can help you plan ahead. Online tax calculators ask a series of questions that can mostly be answered by a click of a button and will estimate your taxes per your individual tax situation. It also includes additional deductions and exemptions that are now available.

Online services are extremely helpful when the service guarantees you the biggest refund possible or guarantees to reduce your tax liability by maximizing your deductions. You will also receive a 100% accurate tax return; this reduces your risk of being audited by the IRS.

Visit TurboTax Online to receive answers to all your tax-related questions and to try a free online tax calculator.

Taxing Health Care Benefits for 2011, 2012

The age of scientific wisdom is also the age of chronic illness and through-the-roof healthcare prices. Any serious body of research seems to indicate that the healthcare system in this supremely powerful country  is not going half as well as it could be.
Why is this? Personally, I’d say it has something to do with the basic structure of care that was created and used in a very different time period. Then we try to supplement that same system with more employees, more hospitals, more funding etc., but it’s the same system and 2010 is a very different world.
Also, the production and distribution of prescription medicines is a very intensely questionable process in itself.
Either way, we’ve come to a point where things might change.
The current laws state than an employer can deduct the expenses used to pay for employee healthcare from their annual income. On top of that, the employees do not have to declare that advantage as taxable income.
Before president Obama, Senator John McCain had proposed implementing such a taxation. This proposal  didn’t go anywhere a couple of years ago, and was surely not the first time such an idea had been mentioned. Currently, President Obama stands behind the proposed tax, which is a significantly different stance than many had in mind prior to the brainstorming reaching this historical point. There are heaps of information, speeches, and opinions that all offer their own small truths hoping to shed light on the President’s change of heart, and the intended, as well as unintended, results that will surely take place.
What you need to know, however, are the regulations that will be attached to this new tax. There are different percentages applied to different incomes, and there’s a difference for single versus jointly filing taxpayers (naturally). Check with a professional tax service like TurboTax Online for the scoop on the details and how the big change will apply to you and your family.

2011 Turbo Tax Instructions

Using an online tax software has in the last six years or so, become a very strong choice for many different types of taxpayers. There are different brands of course as with any technological service, and some perks are spread around pretty even, while others remain exclusively with some companies.

As opposed to a paper filing, you aren’t necessarily required to know what the exact tax form may be called that you’re going to need. Tax softwares will ask you questions starting with your choice of a tax situation which starts with a basic refund and 1040 form, and works its way all the way up to corporate filing. Yes, some corporations use an online tax software to file.

The questions continue throughout the entire tax filing process that will attempt to ensure that your every relevant situation will be automatically brought to light so that the necessary beneficial steps will be automatically taken. However, as will all technologies of convenience, it is wise that one is fully informed as to what needs to be and what can be done in regards to making the most of your tax situation.

Signing up with a tax software like TurboTax Online (which is considered a popular choice) will not cost you anything until the very end of the filing process. E-filing is not an exclusive privilege for the ranks of turbotax users though. The IRS and other companies also offer this form of tax filing.

Depending on your initial choice of a filing package, which include the 1040 and 1040ez, small business, and corporate. On the TurboTax website this appears as the free, deluxe, premier, home & business, and business packages. All of which include different advantages that are suited to the general needs of each situation. Throughout all you find that credits and bonuses are automatically searched for if there’s a chance of relevance. TurboTax Online will find all of the deductions that you are entitled to......guaranteed!

You can save your work at any point and return to the secure server, at any time you please. The website will require a full dose of every tax detail that’s required for any other form of filing, and you will be held just as accountable for the information you give as anywhere else.

There are obvious gains, and the drawbacks seem to be nonexistent. The good thing is, you can see for yourself what you stand to gain and what you stand to owe throughout the process before the grand finale which would at that point require payment, but not until then. For many tax situations this will be an optimum method, for others, possibly not, get online and do some extra research to see what you may benefit from the most.

Tax Audit Defense for 2011, 2012

Nobody wants to be on the receiving end of an IRS sponsored income tax audit. It might reassure you to know that only 1.5% of all taxpayers ever experience such an unpleasant fate.

An audit means that the IRS will have initiated some kind of contact, whether by mail, phone, or otherwise. They may want to have a question answered, to verify a suspicious piece of information, or in the worst case, to simply investigate the inner workings of your financial tax situation.

When you file on paper, your risk of an audit goes up. The more money you make per year, the more you risk an audit. The more complicated the tax programs you use to support your varied finances, the more risk you have. Also basic math mistakes are king on the list of errors that raise eyebrows.

Using a tax service that provides an online software like TurboTax Online however, reduces your risk of both errors and audits to nearly zero. And with this package, you’re entitled to some audit defense. This means that they’ll: 

  

• Handle all inquiries concerning your paperwork, whether by phone or otherwise
• Assign you an audit representative to work your case
• Develop a strategy prior to speaking with the IRS
• Further negotiate your case with the IRS prior to any trial appearances
• Ensure that no settlement is reached without your approval

To avoid being audited on your income tax return. We suggest using an online tax software program that provides free audit protection support when you file your return.

 

 

 

Quickbooks Accounting Software for 2011

When you own a business, accounting can be a stressful and time consuming aspect of your business. To help simplify your accounting and reduce your stress, consider accounting software that is easy to use and helps you manage your business.

Whether you’re looking for a simpler way to balance your accounts, manage payroll and payroll taxes, or manage a more complex business, Quickbooks has a program right for you. Some services they offer are to track sales and business expenses, track inventory you also have the potential to track employees, customers and vendors. Most versions have the capability to print professional invoices, print checks and print sales and expense reports.

Some versions and for a small fee Quickbooks can accept credit cards as a payment option for your business. After reviewing the different versions of Quickbooks, I think you will find that there is a version that will help you manage your business finances.

With Quickbooks you can organize your finances in one place which allows you to be ready for tax time. The software also allows you to use the program for one application or use it to the fullest potential possible.

Paying an accountant or another service that provides the same services can cost you a considerable amount of money. Quickbooks also has setup and training available. They also a try it before you buy it option. You can familiarize yourself with the program and see if that particular version is right for your business.

Quickbooks also comes with a guarantee that the software will pay for itself in the first 60 days or your money back.

Quickbooks 2011

 Are you looking for software to help your business get organized, save you time and make you money?  If so I would recommend Quickbooks. 

They offer six different versions of software.  Starting with an online version and advancing to more specialized bookkeeping software for your business type.  For example the following is a list of the versions they have available and the services they offer.

Quickbooks Online

• Less Paperwork – provides instant invoices and expense tracking help you get organized.
• Get Paid Faster – You have the option to setup automatic billing which speeds up customer payments.
• The service includes support and upgrades.

 Quickbooks Simple Start – Simple Finances

• Simplest way to track sales, expenses and customers
• Instantly create invoices, pay bills, and print checks.
• Organize your finances in one place-ready for tax time.
• Manage Payroll and payroll taxes

Quickbooks Pro  - Easily Manage your Business

• Includes all simple start features
• Manages customer, vendor and employee data
• Track every dollar in and out of your business
• Track inventory, create re-order points and purchase orders
• Download your bank and credit card transactions

Quickbooks Premier – Tailored to your Industry

• Includes all of Quickbooks pro features
• Easily Create a business plan
• Forecast sales and expenses
• Create industry specific reports
• Tools tailored to you business type

Quickbooks Enterprise Solutions – Tools to help your business Grow

• Includes all of Quickbooks Preimier
• Best for business’s with multiple locations
• Enhanced reporting and inventory tools
• Includes support and upgrades for 12 months

Quickbooks for MAC

• Easily manage your business on a Mac.

Quickbooks is an easy to use accounting software program that is detailed towards your business needs. Quickbooks also offers a try it before you buy it. 

2011, 2012 Income Tax Return Problems

Mistakes are an unpreventable occurrence. This is true for the smaller events and transactions of daily life, politics, professional sports, and even taxes. Many people assure themselves that they are unlikely to make mistakes on their taxes because of how important this chore is for most people. But it happens, and it might surprise you to know what mistakes are made and how often.

Online tax software has certainly helped to diminish many common mistakes which will could cost you an audit, a fee, or smaller refund than you deserve. That’s a good thing, but it’s easy to enter information the wrong way.

But first things first: be prepared! Don’t wait for all your new paperwork to arrive before organizing the paperwork you have and need to complete this daunting annual task. Get started early; the sooner you file, the sooner you’re going to get back what you need.

Double check all information that you use for mailing information, account numbers, and so on. One of the most common mistakes is an error in the address given by the taxpayer. It sounds ridiculous but it’s exactly how it is.

When it comes to paper filing, the most common mistake is a math error. The average paper 1040 tells this story of clumsy mathematicians every year. Again, this is one that online tax software has greatly reduced.

 

In fact, TurboTax software automatically double checks of all the information you entered a couple times throughout the entire process. If it finds errors, it won’t permit you to finish filing until they're corrected. Your chances of getting audited nearly reach zero when you file online as well. Catching these mistakes is just the beginning of a wide range of tax filing perks that you’ll get when you use a service like TurboTax Online. This kind of security will enable you to concentrate on getting more back from your money, while adding just a little bit of comfort to a pretty stiff process.

Income Tax Audit Help for 2011, 2012

Are you being audited by the IRS? There is help available. The most important thing to remember when preparing your taxes is to report your income, deductions and exemptions accurately.

You must save all of your receipts for your deductions for 3 years after filling your taxes. If you are audited, you must provide proof that you indeed had those expenses. If you cannot support your deductions, you may be assessed a tax liability for each unsupported deduction.

There are tax professionals that are available to help, of course for a fee. So it is important that you try to protect yourself to the fullest by making sure you report your tax information as accurately as possible. Using a service that guarantees accuracy and therefore reduces your risk of being audited is your best solution, other than paying a tax professional a lot of money.

There are online services like TurboTax that will guarantee the accuracy 100%. This reduces the risk of being audited and if you are audited, whether it is due to an area on your tax return that has prompted a red flag or you were randomly selected, TurboTax offers help. For a small fee, they will help you with your audit. Also, if you pay the small fee to use Turbo Tax to file your taxes, it will virtually eliminate the risk of an audit except for the chance of being randomly selected, which is approximately 1% of the taxpayers that file their return.

 

For answers to all your tax-related questions, visit TurboTax Online.

What Is The 2011, 2012 Child Tax Credit Amount

What is the 2011, 2012 Child Tax Credit Amount

The maximum Child Tax Credit Amount you can get for each qualify child is $1,000 and is not limited by the number of children.  For example, if you have five qualifying children, you will receive a $5,000 credit. 

The Child Tax Credit Amount can also be decreased due to your annual income amount.  

If your income is above the following amounts, your credit will be decreased:

·    Married Filing Jointly - $110,000.00 or More

·    Single, Head of Household or Qualifying Widow(er) - $75,000.00 or More

·    Married Filing Separately - $55,000.00 or More

When totaling your income, you must include all foreign earned income.  Often, your foreign earned income will be excluded from your taxable income but for this credit it will be included.  Additionally, to get the credit you have to use either Form 1040, 1040A or Form 1040NR.  You can not use Form 1040EZ or Form 1040NR-EZ if you are trying to get his credit.  

Now you must have a qualifying child to receive this credit, in accordance with IRS guidelines.  The IRS has set requirements you must meet to get the credit.  For example, the Child has to either be a U.S. Citizen, U.S. National or U.S. Resident Alien to qualify.  All children must have a valid Social Security Number and must match IRS records.  

Further, the child must have lived with your for more than half of the year but there are exceptions to this rule.   If your child had to live away for school or went to a juvenile home they will still qualify.  Also, if you child was born later in the year, such as November or December they will still qualify.    

This Child Tax Credit can make a big difference in your refund, since you get a $1,000 Credit on your taxes for each qualifying child.  To see if you qualify for the maximum Child Tax Credit Amount, try using TurboTaxOnline.  

 

Taxing Social Security Benefits for 2011, 2012

If you’re the recipient of any Social Security benefits for 2011 or 2012 then there are some things that you’re going to need to know, like whether they are taxable or not. 

The most common benefits are as follows:

·    Federal old age, survivors, and disabilities

·    Unemployment 

·    Temporary assistance for needy families

·    Medicare

·    Medicaid

·    State health insurance children's benefits

·    Supplemental security income

 

The US Social Security program is the largest government program in the world and is also the single greatest expenditure in the federal budget.

If Social Security benefits were your sole source of income for any given year, they are probably not taxable and you may or may not need to file a tax return. Your taxable benefits will be calculated through the tax sheet 1040a. This will be taken into account for you automatically if you file with a tax service like TurboTax Online. They’ll tell you exactly what you have to pay taxes on, and how much.

Here's a trick to use to get an idea about whether your benefits will be taxed or not:  take one half of the benefits you received and add this to the amount of total income you received for the year. Compare this number to your tax base, and if the first number exceeds your tax base then chances are you’re going to have to pay taxes on the benefits you received this year. 

The base for those filing jointly is $32,000, and it’s set at $25,000 for those filing single returns. There’s plenty more to it than that of course, and it’s stuff that you’re responsible to know for yourself. Do yourself a favor and get the details you need from a tax service like TurboTaxOnline. They have all of the information you could ever hope for in regards to your tax situation or questions. Their article library is free, and should you need some more info, you’ll be guided to the next spot where you can get what you need.

Tax Refund Schedule for 2011, 2012

Normally if you E-file your taxes you should have your Federal refund in 7-10 days and State refund in the same amount of time. You have the option to carry your refund over to the next tax year if you expect to owe taxes in that year.

 

Did you know that you have the right to file a claim for a credit or refund within 3 years from the date you filed your original return. Normally, it will take lengthy amount of time for the refund or credit to be processed and sent to you. Further, you can do this within 2 years from the actual date you paid the tax to the IRS. State rules for requesting a credit or refund will differ from State to State.   

 

If you happened to live in a designated disaster area on the date for filing a credit or refund it can be delayed in most circumstances. Normally, the due date for your refund or credit can be postponed by up to one year if approved. It must be designated a Disaster area though, so make sure you have proper documentation. 

 

Additionally, people who didn't file a tax return can usually get a refund from a tax overpayment from up to three years ago. This is the case if you failed to file your tax return and was entitled to a refund because of tax withheld. 

 

Now if you are applying for a refund or credit it may not be granted for different reasons.     You will not qualify if you are filing based on a bad debt, worthless investment or any foreign tax paid.

 

If you do not receive your refund within 14 days after E-filing, it highly recommended to look into possible processing problems with your tax return. Typically, if you file your tax return by paper, it will take much longer to receive your refund. Try using TurboTaxOnline to prepare your taxes and get your refund fast.

Small Business Tax Write-Offs in 2011, 2012

If you File a Schedule C for a Small Business you can qualify for many Tax Write-Offs.

First, you can depreciate property, known as an Asset. This can be items like office furniture, computers or any other general equipment used in your business. 

 

You can do what is called a 179 Depreciation expense deduction. This allows you to write-off the entire cost or part of the Asset you are reporting. For example, if you purchased $14,000 in office furniture, you could write-off the entire amount under Section 179.   

 

Further, if you rented or leased equipment you can also write that off. So, make sure that you are reporting all leased equipment and interest paid as well. 

 

You can also write-off Real Estate and personal property taxes on business assets. For example, if you paid real estate taxes during the year and use part of your home as an office, you can write some of those taxes off. Additionally, if you use a vehicle as part of your normal course of business, you can deduct the annual registration taxes. 

 

Most businesses are required to pay License and Regulatory Fees to state and or local governments and this normally can be written off on your taxes. 

 

Make sure if you carry an inventory you are deducting the Cost of Goods Sold. You will need to keep good track of your inventory to accurately report this. Your records should show the exact beginning and ending inventory. 

 

If you qualify you can also deduct the Business Use of Your Home. When doing this you will need to measure out the exact square footage of your total home and business office. The Home Office has to be used exclusively for business in order to qualify. 

 

If you own a small business check out TurboTaxOnline to see what write-offs you might qualify for.

Small Business Tax Credits For 2011, 2012

Many Small Business Credits exist that could have a substantial effect on your tax refund. 

 

Small Business Tax Credits include the following: General Business Credit, Investment Credit, Work Opportunity Credit, Credit for Alcohol for fuel Credit, Credit for Increasing Research Activities, Qualified Electric Vehicle Credit, Empowerment Zone Employment Credit, New Markets Credit and Credit for Small Employer Pension Plan Startup Costs.

 

Some of these credits are reported on the following Forms:

 

·    General Business Credit - Form 3800. 

·    Alternative Motor Vehicle Credit – Form 8910.

·    Investment Credit - Form 3468.

·    Credit for Employer Social Security & Medicare Taxes paid on Tips – Form 8846

·    Increasing Research Activities Credit - Form 6765.

·    Empowerment Zone Employment Credit - Form 8844.

·    New Markets Credit - Form 8874.

·    Small Employer Pension Plan Startup Cost Credit - Form 8881.

 

If you File a Schedule C you may also qualify for the Earned Income Credit. This Credit typically applies to lower income earners. Did you know that you can also carry-back most credits to prior tax years, where you filed a Return. This means that you can re-file an old return and possibly qualify to get some money back in your pocket.   

 

The Alternative Motor Vehicle Credit, which is reported on Form 8910 is becoming a more widely used Credit, due to it's great tax savings. This particular Credit is made up of the following other Credits:

 

·    Fuel Cell Vehicle Credit

·    Advanced Lean Burn Technology Vehicle Credit

·    Hybrid Motor Credit

·    Plug-In Electric Drive Credit

 

Many of these Credits are unknown to most people and can result in large tax savings and big refunds. Check out TurboTaxOnline to see what Credits you might qualify for.f

Paying Back Taxes Online for 2011, 2012

 

 Do you owe the IRS taxes or back taxes?  If so, there are services available to you to make your payments online.  

 

You have the option to pay with a credit card, debit card or a payment plan option.  This service will allow you to pay your personal taxes or your business taxes.  The site is safe, secure, and easy to use.  There is a convenience fee that is charged for each payment submitted with minimum fee of $3.95. The convenience fee, in most cases, is based on a percentage of your payment. There is a calculator available for you to calculate your fee and you will know what the fee is before submitting your payment.  In most cases, if you use a debit card you will pay a flat fee, which is the minimum. If you choose to use a credit card, the average fee is 2.35%.   The following are some examples of what you can expect to pay as a fee for the service:

Payment of $1,000 with a credit card, your fee would be $23.50

Payment of $1,500 with a credit card, your fee would be $35.25

 

Most services also give you the option to schedule payments by selecting a payment arrangements icon and setting up future payments by a click of a button.  

 

The following information is required to make payments online:

Payment Category -- Personal or Business tax category

Payment Type -- Select which tax form you have filed (1040 series, 4868, 5329, to list a few)

Form Type -- Whether you are paying your current tax bill, back taxes from a previous year, or paying tax due for an amended return.  

Payment Type – Credit Card, Debit Card or a Bill Me Later option.  

 

For answers to all your tax-related questions, visit TurboTaxOnline.  

IRS Tax Due Date for 2011, 2012

Federal tax returns are due April 17th unless you file an extension. Your extension must be filed by the same deadline.  

 

If you think you will be unable to meet the deadline, file an extension.  There’s not a penalty for filing your return before your extension is up or even for filing it on time if you're able to. You’ll want to be safe to avoid costly penalties. If you do miss the deadline and did not file an extension, you will be assessed penalties and interest.  There are 3 penalties you will be charged by the IRS and they are calculated by the amount of tax you owe.

    3 Penalties for Late Filing

 

Failure to File:  

This penalty is calculated by the length of time past the deadline for filing your tax return.  You will be charged 5% times the amount you owe each month you are late up to a maximum of 25%. 

 

Failure to Pay:

This penalty is also calculated by the length of time past the deadline for paying your tax due.  You will be charged 0.5% times the amount you owe each month you are late. 

 

Interest:

The percentage of interest you will be charged is also calculated per the amount owed, however the percentage varies per the amount you owe and is per the current interest rate.  

 

To avoid costly penalties, you must either file your tax return by the deadline of April 15th or file a request for an extension by the deadline of April 17th.  

 

There are online services available to help you complete your tax return that will guarantee the accuracy and guarantee the biggest refund or maximize your deductions to help reduce the amount of tax you owe.  

 

For more information and answers to all your tax-related questions, visit TurboTaxOnline today.   

IRS 1040EZ Instructions for 2011, 2012

The IRS 1040EZ is a much simpler and easier form to use when filing your taxes if you are able to meet the requirements. In order to qualify to use the 1040EZ Form your filing status must be reported as Single or Married Filing Jointly. Additionally, you can't claim any dependents, such as children when filing your taxes. If you have children you are most likely required to file Form 1040. 

 

When filing the 1040EZ you can claim credits, such as the Earned Income Credit and the Making Pay Credit. You are unable to claim the Child Tax Credit when filing the 1040EZ, as you will need to use the traditional Form 1040. 

 

Additional rules apply for the 1040EZ if you are filing a Joint Return. For example, you must be under the age of 65 and not blind at the end of the year. Thus, you will need to file the regular Form 1040 if you don't meet these requirements. Also, your taxable income must be less than $100,000 to qualify for the 1040EZ. Although, this is not your Gross Income but is only your reported Taxable Income.   

 

The 1040EZ is designed for taxpayers who don't have a lot of investments, deductions or available credits. Typically, single filers who don't have a high income can use the 1040EZ Form, which makes filings taxes a lot easier. Although, if you happen to own a home, you should file the traditional Form 1040, in order to receive all of the available deductions. To learn more about the Form 1040EZ and prepare your taxes check out TurboTaxOnline. 

Individual Tax Due Date for 2011, 2012

If you are filling as an individual, your federal tax return is due by April 17th.  An Individual includes the filling status of married filing jointly and married filing separately.  If you cannot meet the deadline of April 17th, you must file an extension to avoid costly penalties.  

 

The following are some examples of forms that have a deadline of April 17th:

1040, 1040A, 1040EZ

4868

709

1065

It is important to note that not only must you file your federal tax return, if you owe the IRS taxes you must also pay that amount by the deadline.  If you miss the deadline, the IRS penalizes you unless you file for an extension.  Your extension request must be filed prior to April 17th.  

 

The penalty and interest for filing your tax return late is calculated by the amount you owe.  If you are to receive a refund, there is no penalty; since the penalty is calculated by the amount owed and you owe nothing, the penalty is nothing.    

 

There are three types of penalties:  failure to file penalty, failure to pay penalty and interest.  Each penalty is calculated differently. For example, the failure to file penalty is calculated by the length of time your return is late:  you will be charged 5% for each month your return is late, up to a maximum of 25%.   The failure to pay penalty is .5% for each month you’re late in paying your balance.  The interest penalty varies per the current interest rate for the IRS and also varies per the amount you owe.  

 

For more information and answers to all your tax-related questions, visit TurboTaxOnline today.

How to Pay Income Tax for 2011, 2012

Did you know you have options as to how to pay your taxes?  There are options available  for how you can submit your payments but not for when they are due.  The IRS must receive your tax payment by April 17th. If you miss this deadline, you will be assessed penalties.  To avoid costly penalties, either make your payment on time or file an extension, which also must also be received by April 17th. 

 

Your options on how to pay your taxes include:

Mailing your payment to the IRS in the form of a check or money order. 

Making your payment through an electronic funds transfer from your bank account.

Making a payment by credit card over the phone.

Using one of the online services available to pay by credit card, debit card or set up payment arrangements.

 

Also, if you cannot afford the entire balance by the deadline, you will want to reduce your balance due by as much as possible.  The amount you will be charged in interest and penalties is based on the amount you owe, meaning if you owe less, you will be charged less.  

 

The IRS will allow you to set up an installment agreement with options on how you want to pay it.  For example, you can set up a payment schedule and have the payments deducted from your debit card, have your payment withheld from your paycheck, etc. For the installment agreement, the IRS will charge you a one-time fee of $105.00.  

 

For more information and answers to all your tax-related questions, visit TurbTaxOnline today. 

Gift Tax Rates For 2011, 2012

You can give up to $13,000 to any number of people without having to pay gift tax. This is the federal gift tax rate for the years 2009, and 2010. You may not know this, but it’s actually the giver who pays the gift tax. The people who receive the gifts never have to pay taxes on the gifts. 

$1,000,000 Please 

You are allowed by the federal government to give up to $1,000,000 during your lifetime without having to pay the gift tax. The government is really putting these laws into place so people can’t find a way to give away a lot of money to avoid the federal estate tax which is the tax people are hit with when receiving money as an inheritance. You are going to be taxed one way or another. 

You can either space it out the gifts in amounts less than $13,000 before you die, or leave money as an inheritance and pay the estate tax. Of course there are always ways to get around some forms of taxation. You can give money directly to a college to pay the tuition of a friend, or relative which will be tax free. You can always donate to charity which is tax free and you can pay medical bills for people, which is also tax free. 

The Gift Tax and the Estate Tax 

The gift tax is a monetary gift given before you die and the Estate Tax is placed on monetary gifts bequeathed to loved ones after you die. Your estate is the total value of everything you own when you die after you have subtracted your debts. If happen to have an estate worth more than 3.5 million in the year 2009, any amount beyond that 3.5 million will be subject to estate tax which can go as high as 45%. 

In the year 2010 the exclusion amount will drop to 1 million dollars. There are a lot of estate planning management plans that will save you money if carried out in the right way. Get the gift giving facts straight and protect yourself and loved ones from giving a large chunk of it away to good ol’ Uncle Sam. 

Inheritance Verses Gift 

There’s a huge tax difference between an inheritance and a gift. You should look into the rules about property given as an inheritance compared to property given as a gift. The laws are very different in these two categories. If you do have a substantial estate, you will want further information concerning property. 

Reducing the Value of the Estate by Giving 

You can reduce the tax of your estate by reducing the value of your estate before you die by giving tax free gifts. There are many ways to give charitably without paying tax on the gift. I know I don’t want my estate to be taxed at a federal tax rate up to 45%, and I don’t think anybody really wants to think that about that. 

If you have the ability to spread your money around to your children or loved ones tax free, then you will probably want to do that. If you would like more help or information concerning the gift tax rate, you should visit TurboTax Online. Their web site has a lot of helpful information and will help you to calculate your tax rates. TurboTaxOnline has a free tax calculator that you can use to estimate your taxes which is very helpful. Go to TurboTax Online and give it a try today!