Taxes are a thing that can be very difficult for a person who has not done them before. People tend to get very stressed out and tired, but in the end it will be something that cannot be overlooked.
This is why TurboTax is lovely, and why they can help you in ways that you will enjoy greatly, especially if you are a novice at doing taxes. There are 4 things that you need to keep in mind, though, when doing your taxes for the first time.
TAKE CARE OF TOMORROW’S TAXES TODAY – NARA – 515523 (Photo credit: Wikipedia)
1. Get Organized
Organization is very important so that you do not run into issues like leaving important papers out, or accidentally putting numbers in wrong because you are hurriedly looking for a document.
2. Qualifying for Free
You need to check out the websites to find out if you can qualify for free. This saves you money and will give you a very large tax refund.
3. State Taxes
If you live in a state where you have to pay State Taxes, please remember to do this! You will get more money back, but you will avoid getting into trouble for forgetting to file these.
If you file online with TurboTax you will be happy. You get a good amount back and do not have to worry about going to any traditional tax places. This is why Turbotax 2015 and the entire TurboTax company is wonderful.
The first thing to consider when filing your taxes with a new baby is your tax status. If you were single before and now support the household, you should file Head of Household instead. The tax brackets are better and the standard deduction is increased for this tax filing status. Here are some additional tax filing tips:
An old Social Security card with the “not for identification” message (Photo credit: Wikipedia)
Consider informing your rich relative about the gift tax if they are thinking about gifting you over $14,000 for your new born. Normal gifts are not taxable, which is the good news.
Any uncovered medical expenses can be deducted once a 10% floor is applied to the deduction amount based on your adjusted gross income (AGI). To claim your medical expenses, use the long form 1040 and file a Schedule A Itemized Deductions form.
Claiming your new born as an exemption on your taxes requires them to have a social security number. File form SS5 with the Social Security Administration quickly, you will want to as soon as possible after the birth of your child. File for an extension if your taxes are due and you were not able to obtain a SSN in time.
Claim your new dependent on your taxes. You can shelter up to $3,950 in income with an additional dependent. Use the IRS tool for dependency if you are uncertain if you can claim your new born on your taxes.
A lot of people require help when filing taxes. Deciding on the forms to fill, number of dependents and how to claim your tax refund are some of the prevalent concerns that taxpayers face.
However, there exists numerous methods that can be helpful during the process. Below are some of the best techniques and practices that you can employ on top of using TurboTax 2014.
English: YOKOSUKA, Japan (Feb. 10, 2009) Volunteer income tax assistance (VITA) (Photo credit: Wikipedia)
The IRS website (www.irs.gov) is a one stop shop for tax payers. “1040 Central” is especially beneficial to those who are experiencing difficulties with filing their taxes. It will give you tips, guidelines and a lot of useful information. Moreover, the page has links to other important webpages such as the latest news and FAQs.
Online tools such as the Interactive Tax Assistant and IRS Tax Map can also be useful in giving you solutions to some of your questions and problems. “Where’s My Tax Refund” will show you the status of your refund while the Earned Income Tax Credit Assistant can tell your eligibility for the tax credit. All this information is available 24/7.
Another great tool found on the IRS website is the Free File. There are various software under Free File such as TurboTax 2014 that you can use to file your taxes electronically. Filing taxes electronically is not only convenient, but guarantees you faster refunds especially if used with direct deposit.
Free File is very useful for those who may have earned less than $58,000 in the last year. You can also use TurboTax 2014 with the same limit if you are in the military. The software has a simple interactive interface with a procedural approach that makes it easy to use for anyone. Those earning more than $58,000 can use Free File Fillable Forms to compute their taxes online.
The Volunteer Income Tax Assistance (VITA) is a program that enables people who make under $52,000 yearly to file their taxes online freely. Tax Counselling for the Elderly is also critical in helping older members (60 years and above) of the community file their taxes. Furthermore, it can be useful for those with low to moderate earnings.
These VITA programs are available everywhere within the country. To find one closest to you, simply search for VITA on the IRS website and select “Free Tax Return Preparation for You”. You can call 800-906-9887 to find out the same information too.
Lastly, those who do not have access to the internet can call the IRS on 800-TAX-FORM (800-829-3676) to get tax forms and publications. You can call 800-829-4477 to know the status of your refund and listen to more than 150 recorded messages on different tax related issues.
Filing taxes is easy if you take advantage of the arrangement between the IRS and the Free File Alliance, a group of private sector companies producing tax filing software. These companies allow their products to be used for no cost, and over 40 million taxpayers have safely and easily electronically filed their tax return for free using the software. Filing your return electronically and requesting direct deposit when filing taxes is the fastest way to get your tax refund.
You must go to the IRS website (www.IRS.gov) to use the Free File program and you can prepare, print and then file your tax return once you have chosen a Free File company to work with.
You may be able to find useful tax breaks that you can claim, by using the question and answer format of the Free File software, and the software will do all the necessary calculations for you by choosing the appropriate tax forms. You may also be eligible for the earned income tax credit, or one or more of the other tax credits.
You can use brand name software, such as TurboTax 2014 if you earned less than $58,000 last year. Free File forms that can be filed are available if you are filing taxes and earned more than that amount.
Free File also allows you to request a six month extension if you cant file your taxes by the normal scheduled date of April 15th, and requesting the extension is easy and free. However, you will still have to make a payment by the April 15 deadline, to avoid interest and penalties, if you feel that you will owe money. Filing taxes should not be a headache, and with Free File, it really is quick and easy. Visit IRS.gov/freefile for more information on the Free File system, who is eligible and participating software programs.