Five of the Most Common Tax Questions for 2016

Tax season will be here before we know it. Therefore, tax questions will be being asked left and right. There will be questions about claiming parents as dependents, deducting books for college and more. Therefore, we decided to put together a list of five of the most common tax questions.

What documents are needed to do my taxes?

The two common forms that taxpayers need to do their taxes are a W-2 form that comes from employers and a 1099-INT form that comes from the bank. Other important information you want to have with you everyone’s social security numbers and receipts if you have made charitable contributions throughout the year.

Do I need to file taxes if I didn’t make a lot of money?

tax filing questionsIf your income is below the IRS filing requirement ($10,000 for individuals and $20,000 for married couples under 65), it is still recommended that you file taxes. The only way you can get a refund is if you file a tax return.

Therefore, you should file taxes so you can take advantage of refundable tax credits. The average unclaimed tax refund is worth more than $600, and the IRS puts a three-year window on claiming past refunds.

Who can I claim as a dependent?

Many people know they can claim their children as dependents. However, you can also claim elderly parents, significant others and other relatives in some cases. They will have to meet certain requirements, but each dependent can allow you to deduct $3,900, which reduces your tax liability.

What tax deductions and credits are available for parents?

If you have a child, you can take advantage of the dependent exemption, which is worth $3,900 and the additional credits below:

  • Child and dependent care tax credit: For parents who have to pay for childcare. This credit is worth up to $1,050 per child.
  • Earned income tax credit: For low to middle income working Americans. This credit can be as much as $6,044.
  • Child tax credit: For those with big families. This credit can get you up to $1,000 per child under the age of 17.

What tax benefits are available for college students?

Going to college is expensive, which is why the IRS provides some relief options in the form of education tax credits and deductions. This can help you save money on college expenses and some of these include:

  • The American Opportunity Tax Credit: It helps parents and students pay for college with a credit that is worth up to $2,500 per student. It helps with tuition, fees, books, supplies and equipment.
  • Lifetime Learning Credit: You can get up to $2,000 per tax return for college tuition, fees, and supplies paid directly to the institution.
  • Tuition and fees deduction: This allows you to deduct up to $4,000 from your taxable income for your college expenses.

Discover The Benefits of Filing Your Taxes Online

Keep in mind, if you file online with H&R Block or TurboTax they will ask you the correct questions to let you know which deductions you qualify for and guarantee you will receive the largest refund ever.

Their online filing services have the ability to import your W2 information into your tax return so you can avoid worrying about your forms being delivered via snail mail. You can also use their free tax refund calculator to see how much of a refund you can expect.

 

IRS Tax Refund Status and Schedule for 2016

Many people think of the IRS return as a savings account or bonus that they are able to dip into each April. The IRS tax refund schedule also claims to provide refunds within 21 days after returns have been received.

Usually, 21 days is short when you have bills coming in like clockwork, however, when you are waiting on thousands of dollars it can feel like an eternity. Furthermore, Business News Daily revealed that the average tax refund is $2,700, which is more than what 2/3’s of taxpayers bring home each month.

Tracking Your Return & Refund

UPS approximates that their customers track packages an average of 2.42 times per shipment. This means that consumers want to know what is going on with their orders. Like UPS orders, taxpayers also have the ability to track their refunds. The IRS even has a Where’s My Refund” tool to help make doing so easier.

Things You’ll Need

Unlike the UPS, you need more than a tracking number to obtain the details of your tax refund. They want you to provide them with your social security number or EIN, filing status and the refund amount expected.

It has been said that taxpayers who opt to get their refunds deposited in their bank accounts receive their funds faster than waiting on a check. In addition, to speed up the process you want to make sure that your tax return is accurate. If you have questions about the IRS tax refund schedule make sure you consult with a tax professional such as the pros at TurboTax 2016 so there are no delays when you are expecting your tax refund this year.

Two Websites That Can Get Your W-2 Forms Online

Towards the end of January every year, numerous envelopes overwhelm post offices throughout the country as companies mail out W-2’s to their staff by the January 31st due date set by the IRS. The W-2 forms typically get to their impatiently waiting receivers by mid-February.

The W-2 form is an account, looked after by employers, and of the wages made and taxes paid out by the worker. This record consists of income, commissions and tips, along with the overall sums held back for state, federal and social security taxes throughout the prior year’s employment.

The W-2 includes the financial data required to complete the individual income tax paper work needed by the IRS and every state department of revenue that establish the yearly quantity of taxes that have to be paid to the federal and state governments by every person.

The majority of businesses, and also the military services, now provide W-2’s online. The forms are accessible for download via a number of outsourcing firms that administer and automate the W-2 delivery procedure. Your company will often let you know they have hired a payroll or W-2 delivery firm which has the web based W-2 function open to you.

Supplying W-2’s on the internet means that workers no longer need to wait around for paper versions in the post allowing them to submit their income taxes sooner and also removes most of the huge paper waste connected with this enormous, countrywide mailing.

Getting Your W-2 Form Online

Despite the fact that your company may fail to point out that your W-2 can be obtained on the internet, it is possible to use two popular websites to find out if your data is accessible.

TurboTax and H&R Block are web based tax preparation sites which have a search and import function enabling you to find your W2 online. On the other hand, if you happen to know your employers Employee Identification Number it is possible to sign into the website making use of this number, also some of your personal details as well as the gross pay from your previous paycheck.

After you have found your details, you are able to download and print your W-2 to put in with your income tax return forms. It is possible to print out a number of copies by signing back into the website and doing it again. You should keep in mind that when you elect to access your W-2 on the internet, you do not get a paper copy via mail.

5 Ways to Increase Your Tax Refund for 2016

Setting up the foundation for a good tax refund takes some basic tax planning, some research and a bit of forethought. Going over your tax situation, talking to your partner when completing your W-4s and capitalizing on many tax credits will help you maximize your tax refund. H&R Block Online will help figure out which credits will get you the largest refund.

Once you begin employment, your employer requests you fill out form W-4. This conveys to your employer the amount of federal income tax to withhold from your salary. The more allowances you apply for on the form, the less income tax is going to be kept back. Then you will have larger paychecks, but a smaller tax refund (or even possibly zero tax refund or a tax charge at year’s end). Things to think about when selecting the amount of allowances you claim include things like:

  • Claiming allowances for you alone, your partner and your eligible children and dependents
  • Taking an allowance for submitting head of household
  • Claiming over $1,500 for child and dependent care charges
  • Working multiple jobs
  • Having a husband or wife who is employed

Claiming fewer allowances on the W-4 means reduced paychecks, given that more tax is going to be withheld. This raises your odds of over-withholding, which results in a larger tax refund. That’s exactly why it’s known as a “refund:” you are actually being paid back what you overpaid to the IRS in the course of the year.

Caroline Thompson, President of Thompson Accounting and Tax, stated that you should be careful because claiming fewer allowances gives the federal government a year of your money tax free.

Make use of a W-4 Withholding Calculator to help calculate which allowances to claim.

Take a look at your filing status

Selecting the filing status that is best suited for your requirements will impact the chance of a rebate. Your filing status establishes:

  • Your usual deduction
  • Your filing needs
  • The credits you will be qualified to be given
  • The amount of tax you have to pay or the tax refund you get

You will find 5 statuses to pick from, however the 3 most popular are: married submitting together, married submitting individually, single, and head of household. TurboTax will help you figure out which option is best for your circumstances.

Claim the earned income tax credit

Working families, individuals, those who are business owners as well as others who have a modest to low-level earnings might be eligible for the earned income tax credit. The EITC reduces the amount of income taxes you owe and you might qualify for a tax rebate. To be eligible, you need to:

Have a legitimate Social Security number

  • Be a U.S. resident, a year-long resident alien or a non-resident alien married to a US citizen or resident alien submitting together
  • Have earnings from self-employment, from an employer or from providing farm labor
  • Not be a claimed dependent or child of someone else
  • Have an eligible child and be between the ages of 25 and 65, residing in the U.S. for a minimum of 6 months

To get the EITC you have to file a tax return, even though you owe no taxes.

Include the dependent care credit

The child and dependent care credit is dependent on a percentage of the sum you paid out for the care of an eligible child or dependent. The overall expenses you possibly can claim are capped at $3,000 for 1 qualified person and $6,000 for 2 or more. If your company provides dependent care benefits, you have to deduct this value. An eligible person is:

  • Your son or daughter is under 13 years of old
  • A dependent that is physically or psychologically not capable of self-care and who resides with you for over 6 months, or
  • Your wife or husband who may be not capable of self-care and resides with you for over 6 months

Additional criteria must be met in order to claim the credit:

  • If you’re married, you have to submit a joint return.
  • You can’t use a caregiver that is your partner or mother or father of the child, your son or daughter under 19 years old or additional dependents.
  • All eligible dependents and children need to have a Social Security number included with your return.
  • You have to provide the name, home address and Social Security number of the caregiver.

The Benefits of Filing Your Taxes with H&R Block Online

We recommend that you file your taxes with H&R Block as it will make the tax season so much easier. When filing they will ask you questions regarding your tax situation and will fill out all the correct tax forms for you. Here is link you can visit to find a discount coupon.

They will let you know which tax deductions and credits are applicable to you so you can keep the maximum amount of your money. You can even use their free tax refund calculator to see how much money you can expect to get back.

Tax Refund Calculator for 2016

It’s almost that time again – time to do your taxes. While some people put it off until the last minute, many want to at least try to gauge what they’ll owe or what their refund might be. Fortunately, you can get an idea of that data by using a tax refund calculator for 2016.

How it works is that it’s online and you simply enter your estimated data. Now while it can’t be entirely accurate down to the penny, you can get an idea of what is going on with your taxes so you don’t get surprised by an amount owed or if you are getting a refund, you can plan for the future.

If you’re like me, you’re impatient and want to know right away – regardless of the outcome. This is the perfect tool for those kind of people or simply those who may have an idea of what they might be expecting but simply want to be sure.

Best of all, it’s free to use so you can go ahead and get an idea of your tax refund or what you might owe, without having to pay.

TurboTax – The Best Tax Software

Let’s be honest – tax filing is boring, time-consuming and demanding task. Of course, not all of us have to file the same amount of data, but it would be nice if we had some help with the whole process. This is exactly where TurboTax comes into play.

There are many different tax software solutions, but rarely any other piece of software can be compared to TurboTax. This online tax software has been present on the market for years and this fact alone should be enough for you and encourage you to try TurboTax Online this year.  Of course, this is not the only reason why you should invest a small amount of money and ease your life by buying this product.

TurboTax has an excellent user-friendly design with intuitive buttons and tabs, specially designed tools and resources that can help you learn more about the taxes. From the moment you start working with this online tax software you will notice that this program was designed to be efficient and simple. Each of the actions that you can complete with this software is logically connected.

Even people who don’t have any knowledge in this field will find using this software very easy. At the same time, thanks to the great learning resources, TurboTax is also a great option for experienced tax payers. You can find many different features that will make the whole process easier and faster. On top of that, you can also use the help of TurboTax Community in order to get answers on some of your questions.

Providing Good Customer Service to our Clients

Working as an accountant for many years, I have seen so many questions come my way.  People come to me for advice on matters related to money, and they count on me to help them make decisions.  This means that I need to be educated on all sorts of topics, and it makes every day I come to work an interesting one.

During this time of year, I get a lot of questions about income taxes.  Many people are looking at ways to minimize their income tax bills and maximize their refunds.  At this time of year, there is still time left to put money in their IRAs, donate to charity, or take advantage of the many tax write-offs available to both personal and corporate tax clients.  I work together with my clients to save them the most money possible, and I think that they appreciate it.

This year, I have decided to take my customer service to the next level and I have been giving my clients dates as to when they will receive their refunds.  I am basing my advice on information found here: http://filemytaxesonline.org/projected-irs-tax-refund-schedule-dates/

This information has been invaluable to many of my customers, and those of them that base big purchases on their income tax refunds feel a lot better knowing when they will be receiving their money.  It is just one more thing that I can do to provide my customers with better customer service.

Save Money On TurboTax This Year

If you are like me, you do your own taxes using TurboTax.  It is an easy software to use that allows you to complete and file your taxes in a very short period of time.  It is more cost effective than paying an accountant, and many Americans count on this software each and every year to do their income taxes.

But the one catch is that you need to buy the software every year.  The reason is that there are always updates, and you need the latest version in order to file your taxes properly.  But I am on a  limited budget, and I always try to save money wherever I can.

I was very excited when I discovered a TurboTax discount coupon, that saved me $20 off my copy of the software.  It was easy to use, all I did was click and the discount was applied to my shopping cart.

It was that easy.

If you use TurboTax, you owe it to yourself to use this coupon to save money on your purchase of this software.  It is easy to apply to your purchase, and you get the same, fully-functional software, but without having to spend more money than you have to.

Use the Free 2015 Tax Calculator to Find Out Your Tax Refund This Year

With tax season and the end of the year right around the corner many people are hesitant on spending money on Christmas. It could be that they are anticipating a large tax bill coming their way or other maybe simply underestimating what they will get in terms of a tax refund. If this sounds like you then don’t fret.
You can get a quick estimate on your tax refund in just a few clicks of the mouse or taps on the screen for those on a mobile device. Check out the 2015 tax refund calculator and you’ll get a good idea of the amount you’ll get back or if you’ll be paying this year. Although the calculator is only a guide and knowing the exact amount would take longer you can really get an idea of how much your tax refund is going to be.

 

The best part is that using the tax calculator is absolutely free. Just visit the free tax calculator for 2015 and enter some rough estimates and you could be having a much better Christmas. It’s also a great way to plan for upcoming tax payments that you may be required to pay. It will allow you to know beforehand what sort of payment you’ll be required to pay. This can also be a huge benefit if you’re worried about paying your taxes since it gives you a bit of warning before you do your taxes. Check out the tax calculator and know where you stand for your 2015 taxes.

Finding the Best Tax Refund Just Got Easier

When it comes to filing your taxes there are many choices you’ll need to make. They include things like should you file married or separately. Simply choices like these can have a huge impact on how much of a tax return you can get. The problem most people face when doing their taxes is they don’t want to go through countless forms and stay up all night doing math problems just to figure out what they should choose to get the best tax refund. But that’s where technology comes in to help you out. And no I’m not just talking about a calculator.

If you use TurboTax to do your taxes each year you’re in luck because the system makes it super easy to find new ways to legally get more back on your tax refund. If you haven’t tried using TurboTax yet then this year is the year to start. Sign up with TurboTax and you’ll be quite amazed at how powerful it is. You can even find a discount code for TurboTax to save money on your filing.

Once you’ve signed up and entered your details you will see how much return or payment you are receiving at that point. Then by checking off some of the choices like “head of household” or “filing jointly” and see which has the better return. Sometimes it may be better to file jointly with your spouse and sometimes it could be filing separately. The best part is you don’t need to spend all night trying to figure it out on out dated tax forms. You just need a few clicks of the mouse. And those few clicks could be worth a lot of money!