Archive for Tax Return

Tax Time Guide: Contribute To An Individual Retirement Arrangement (IRA) By April 17, Claim It For 2017

WASHINGTON —The Internal Revenue Service reminded taxpayers today that it’s not too late to contribute to an Individual Retirement Arrangement (IRA) and still claim it on a 2017 tax return. Anyone with an IRA may be eligible for a tax credit or deduction on their 2017 tax return if they make contributions by April 17, 2018.

This is the sixth in a series of nine IRS news releases called the Tax Time Guide, designed to help taxpayers navigate common tax issues. This year’s tax-filing deadline is April 17. Read More

Written by | Posted in IRA • IRS • Tax Return

How Long Should You Keep Business Records For Tax Purposes?

If you own a small business, you need to keep business records. These can include digital or hard copies. They may contain financial information and licenses. Business record retention is necessary for your annual tax filings. It’s also necessary for potential audits.

What Are Business Records?

You know saving business documents is important. Now, you need to figure out what documents to save. The term “business documents” can refer to many things, including: Read More

Written by | Posted in Business • Tax Filing • Tax Forms • Tax Return • TaxConnections

Tax Advisor’s Reference Guide – 292 Pages Of Individual Federal Tax Return Instructions

With all the changes in taxes this year, it takes an ace tax advisor to figure them out. Therefore we want to make certain our members and followers have access to the most up-to-date information in preparing clients individual federal tax return.  We are providing you the Tax Advisors Reference Guide with 292 pages published by the IRS  for those of you preparing federal tax returns for tax clients. What is also wonderful about this publication is it provides all the Tax Forms you will need to prepare tax returns in English, Spanish, Chinese, Korean, Russian and Vietnamese. Read More

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IRS Owes $1.1 Billion To Taxpayers In Unclaimed Tax Refunds For 2014 – Is This You?

US Expats – Have you filed your 2014 US Tax Return?

IRS Refunds worth $1.1 billion waiting to be claimed by those who have not filed 2014 federal income tax returns

Claim yours now before you are unable to do so – June 15 is the deadline for US Citizens Living Abroad

WASHINGTON ―Unclaimed federal income tax refunds totaling about $1.1 billion may be waiting for an estimated 1 million taxpayers who did not file a 2014 federal income tax return, according to the Internal Revenue Service.

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Written by | Posted in Federal Income Tax Return • IRS • Tax Refund • Tax Return

Taxpayers – 7 Reasons Why You Should File Your Tax Return Early

Filing your taxes long before the April 15 deadline might not be your top priority, but there are many benefits to completing your return early. By filing early:

  • You avoid the last-minute stress,
  • Have time to plan for paying taxes you may owe,
  • You can get your refund faster and
  • Avoid fraud by filling out your tax forms sooner rather than later.

1. The Earlier You File, The Earlier You Get Your Refund

  •  A good reason to file your taxes early you’ll get your money sooner.
  • According to the IRS, the average refund was more than $2,800 for 2016 and 2017 Tax Filers…so why miss on that earlier claim and why give you an interest free loan to IRS?

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Written by | Posted in Tax Filing • Tax Return

Some Taxpayers Eligible For A Refund And Do Not Even Know It

Taxpayers who are not required to file a tax return may want to do so. They might be eligible for a tax refund and don’t even know it. Some taxpayers might qualify for a tax credit that can result in money in their pocket. Taxpayers need to file a 2017 tax return to claim these credits.

Here is information about four tax credits that can mean a refund for eligible taxpayers:

  • Earned Income Tax Credit. A taxpayer who worked and earned less than $53,930 last year could receive the EITC as a tax refund. They must qualify for the credit, and may do so with or without a qualifying child. They may be eligible for up to $6,318. Taxpayers can use the 2017 EITC Assistant tool to find out if they qualify.

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Written by | Posted in Individual Tax • Tax Credit • Tax Cuts Jobs Act • Tax Return

FBAR Must Be Filed Electronically Through FinCEN’s BSA E-Filing System, Not With The Federal Tax Return

FBAR must be filed electronically through FinCEN’s BSA E-Filing System. The FBAR is not filed with a federal tax return.

Public Law 114-41 mandates a maximum six-month extension of the filing deadline. To implement the statute with minimal burden to the public and FinCEN, FinCEN will grant filers failing to meet the FBAR annual due date of April 15 an automatic extension to October 15 each year. Accordingly, specific requests for this extension are not required.

Thus, before the FBAR extended due date of October 15, file streamlined FBARs for each of the most recent 6 years for which the FBAR due date has passed (i.e., is delinquent, and of course timely file the current year FBAR too). Read More

Written by | Posted in Canada • FBAR • Federal • Tax Return

Casualty And Theft Losses

It is not unknown for people to suffer a loss in the form of theft and casualty for their personal properties. If you are one of them, you can claim the same as itemized deduction for your tax returns. To do so, you need to fill up the Form 4684 to understand how much of yours loses you can report and then mention the same in the Schedule A of the Form 1040.

It is important to note that you can claim only for those losses that are not covered or reimbursed by any insurance company. Also, in order to qualify for the deductions, your loss should amount to more than 10% of your adjusted gross income. You cannot claim a deduction otherwise. Read More

Written by | Posted in Tax Return • Theft

Telephone Service In An Omnichannel Environment – Communicating With The IRS Over The Phone Must Be Made Easier For Taxpayers (Part 1)

Jan. 29th marked the start of the 2018 tax filing season, as the IRS began accepting and processing an estimated 155 million individual tax returns for Tax Year 2017. Taxpayers have between now and April 17, 2018 to file their individual tax returns with the IRS, either online or through the mail, or obtain a filing extension until Oct. 15th. Filing season can be stressful for taxpayers in the best of times, as many have questions about how to properly report their earnings, claim deductions, and comply with their tax obligations. Read More

Written by | Posted in IRS • Tax Return

The Postcard Filing – A Naïve, Misguided Fantasy

Eva Rosenberg, Tax Connections

The good news. President Trump Congress keeps telling you that taxpayers will be able to file on a postcard.

The bad news? Look at lines 3, 10, 11, and 12.
Your government is naïve. While this may be wish-fulfillment, it has no basis in practical reality.

It should be a required pre-requisite for all lawmakers to prepare their own income tax returns before they are permitted to write, vote on, or pass legislation. I loved that episode of the short-lived TV series Mr. Sterling, where Senator Bill Sterling (Josh Brolin)  is grumbling, trying to prepare his own tax return. Better yet, they should spent two weeks volunteering, or observing, at a VITA site to see how their tax laws truly affect low-income people’s tax filings. Read More

Written by | Posted in Tax Credit • Tax Filing • Tax Return

IRS Has Not Yet Released Date For Accepting 2017 Tax Returns

It seems that a whole lot of taxpayers are anxious to get their taxes in to the IRS!

I’ve never seen the IRS issue a statement that they have yet to determine the date when they will be accepting tax returns; however, they’ve done just that this year.

Below, I outline various reasons that could be responsible for this sudden frantic rush:

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Written by | Posted in IRS • Tax Return

Sticker Shock From The Tax You Owe: Read This!

Manasa Nadig

Everywhere these days, commercials are vying to get you to spend your big tax refunds on their products and services—oh yeah, even that liposuction place! But you just finished preparing your taxes and you find out you OWE Uncle Sam big bucks. That is quite the sticker shock if you are short on cash or are unprepared.

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Written by | Posted in Tax Return
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