Feb 8
What You Need To Know When Filing Your Taxes This Year
Posted on Tuesday, February 8, 2011 in Finance
Tax laws change every year, causing personal accountants to lose both hair and sleep. Those who brave sorting through their paperwork to file their own taxes may find themselves simply oblivious to these taxes changes and may miss out on potential credits, alongside several other changes. So it maybe worth the average tax filer to know of these changes alongside personal accountants, even if it means a few hours less sleep. Tax day generally falls on April 15, however this season, because April 15 is Emancipation Day Washington D.C. the tax deadline has been extended to April 18. In fact, according to the IRS you might have to wait until nearly March to file your taxes, as a very important change regarding itemized deductions relating to sales tax, tuition and fees, and educator expenses has taken place. This change apparently occurred late and the IRS is working to remedy the situation, having to reprogram computers, assuring the public they will announce when filers who fall in this small group may file. The Federal Government has been making cuts like most of America, and part of that included not sending out paper tax forms to all potential tax filers. Many libraries and post offices will continue to carry the papers forms, however due to an increase in e-filing, as well as the federal government offering it free to anyone who makes $58,000 or less per year, they simply couldn't justify making the expenditure. Help for those who made $49,000 a year, and who do not want to fill out the tax form themselves, will continue to be offered free of charge by an IRS certified volunteer. These volunteers can be located by calling 1-800-906-9887. Many pieces to the economic recovery act include credits for single or married Americans, several of which went unclaimed last year. New and old homeowners might be eligible for credits, ranging anywhere from $6,500 to $8,000, and those who added green-friendly improvements to their homes may be able to write off up to $1,500. A wide variety of credits might benefit tax filers, thus knowing what is available in its entirety might benefit the filer by hundreds or possibly thousands of dollars. Federal and state law continues to state that those making just under $10,000 a year might be considering not filing their taxes this year, as it wouldn't be required on that income. Whether you consider you made too little or too less, know this, by filing this, filers get to see if they do have a return coming. Several tax credits and incentives have been put in place to help to provide assistance to those who need the money the most. If you are considering not filing for income tax this year, you might miss out on hundreds of dollars of your own money, especially since it is your right to file. If you are facing an IRS audit or have other tax problems, contact the experts at Guardian Tax Resolutions today by visiting GuardianTaxResolutions.com for a free consultation and quote.
Apr 14
Tax Season: Ways You Can Spend Your Returns
Posted on Wednesday, April 14, 2010 in Finance
For most people, tax season can be a dreadful time. The new changes in the tax code and trying to make sure you have all of the essential items such as important documents and receipts can make the tax filing process very frustrating and time consuming. Most experts say that you can make the filing process much easier if you take the time to prepare instead of waiting until the very last minute. However, there is a light at the end of the tunnel. The average tax refund that Canadians receive is approximately $1,400. Many Canadians will use that money to go on a holiday or have a shopping spree; however, there are many other ways that you can put your tax refund to use. Your tax refund can help you get ahead with your personal finances. Here are several, useful things you can do with your tax refund. 1. Invest it Why not put the money you just got back and invest it on your own future? Invest it into your mutual funds, or put it away into your retirement fund. Grow a nest egg that you can enjoy when you finally go into your well deserved retirement. 2. Pay Off Debts Owing money to creditors can bring a lot of unwanted stress and pressure. Use your tax refund to pay off debts and get your finances back in order. Even if the money isn't enough to clear all your debts, the money will reduce the principal and bring you that much closer to being debt free. 3. University Fund It's never too early to start saving for your children's education. Put it away into an RESP. With the rising costs of tuition, this may be one of the smartest moves you're doing to secure a bright future for them. In addition, it's a valuable lesson for your kids to plan ahead. As a result, when they find out they have a nice fund waiting for them to complete their education; they can focus on what's important, learning. 4. Home Improvement Have you been waiting for the right time to do that perfect renovation? Why not spend your return on improving your home? You can renovate your kitchen, change the bathroom, even change the overall theme of your house! This is a great way to breathe new life into your home, while increasing its value. 5. Save it. If all else fails, you can always first put it into a savings account, and worry about it later. At the very least, it will still earn some interest (even if it is at historical lows), and in the long run, compound interest will take its effect. The number one reason why people file their taxes in the first place is so they can get their tax returns. Use the windfall to pay off some debt, save it for the future, or even dabble in some investing. This money is yours to spend as you will; however, using it wisely can help towards gaining greater financial stability. Credit counselling is crucial for those continuing to struggle with credit card debt. Find out how credit and debt counselling can improve your financial situation from the experts at Consolidated Credit.