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.
time for CHANGE …item 1.. Déjà Vu in Gaza? — This calls to mind the words of Mark Twain: (Nov 28, 2012 / 14 Kislev 5773) …item 2.. Cobblers, Crisps and Crumbles (Nov 29th, 2012) … (Photo credit: marsmet546)
Did you know that there are over 7.6 million American people living or working overseas? Half of these people are only filing their US tax returns, despite still being citizens. It is clear that many expats do not realize that they still have an obligation to the US Federal Tax. This means that they are in fact targets for the IRS. Luckily, there are ways to get rid of this worry and move on.
This is probably the best way to deal with filing taxes if a person was not aware of them. This is a great program that was designed to be able to fix tax problems without seeming like you were hiding amounts of money, or knowingly evading taxes. Most people fall into this category if they live overseas. This means that they have to only provide the last 3 years of Federal Tax Returns and 6 years of Foreign Ban Account Reports. The trick with this is that you only need to file the FBARs if you hit at least 10,000 or more during a tax year, even if only for a small bit of time.
This procedure is wonderful because the IRS has recently deigned to waive all late fee penalties and filing deadlines. This does still mean that they have to be filed, however, so that you do not end up owing. Most people end up not having to owe any money anyway.
Being able to get your taxes fixed up no matter where you are living in the world is important, but even more so if you do not currently live in the United States and are still a citizen. Filing taxes is important!
How to maintain security when filing taxes electronically
Millions of U.S. taxpayers have used electronic software applications like TuboTax.com to e-file their taxes, many doing so from the home desktops. Roughly six percent more consumers are using this method of submitting tax forms, than the numbers who did so in 2012.
Though e-filing is convenient and easy, it can create a risk to the taxpayer, with the filing of fraudulent tax forms and and identity theft. These undetected thieves were able to get away with over three and a half billion dollars in 2011, according to the Inspector General.
The following tips for protecting your information and identity are offered by experts in internet security
One method of committing fraud is to send an email to the taxpayer, pretending to be the IRS. This form of gaining access, known as phishing, allows malware access to the user’s computer, to gain access to important taxpayer information. The emails can look like official requests from the government office and may claim some kind of problem with a social security number or taxpayer information. Many taxpayers have provided such information, unaware they are handing it over to an imposter.
The IRS never sends emails or text messages to taxpayers, to clarify personal identity or correct taxpayer information. Any person who receives a suspicious email message should forward it to the IRS, without opening the message itself or any attachment.
Keep Personal Information Safe
Aside from being aware of false email messages, taxpayers can take additional measures to protect personal data. Using a different password for electronic tax filing, from those used for other internet accounts, is one safeguard that makes it more difficult for cyber criminals to get your information.
Avoid sending tax files to the IRS in public locations where wireless internet is available. These connections a re open to all users and can be accessed by anyone, thus improving the changes of gaining access to an individual’s personal computer. Home networks that are password protected are best for sending tax forms.
Social networking sites like facebook are other places criminals hang out to gain personal information. If your site includes minor children, the thief now knows you claim dependents on the tax return, which allows them to make fictitious tax returns look more like the real thing.
Breaches in internet security are another cause for concern. The recent incidents with Target, Sony, and other retailers shows how easy it can be for cyber thieves to get account and personal address information.
No Refund (Photo credit: cheerfulmonk)
Though these incidents can occur, the internet e-file process is generally secure. There are red flags to look for the keep your information safe. Filing Taxes using the e-file method and software such as TurboTax.com can make the tax filing process a much simpler ordeal that saves time and money.
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.