Tax Deduction Tips For most Americans today, the amount of their tax refunds is much lower than what it could be. The United States government gives us a tax break on many situations and circumstances, but the majority of Americans fail to list these as deductions on their tax returns. With some important tax tips and basic knowledge, you can gain control of your tax situation and put more of your dollars back into your pocket. Hybrid Cars: If you own a car that is run primarily on electric, it is well known More >>

Tips for working students All employees have income tax withheld from their pay, right? Not necessarily. You may be exempt from withholding if: You can be claimed as a dependent (usually on a parent's return), Your total 2005 income will not be over $5,000, Your unearned income (interest, dividends, etc.) will not exceed $250, and You had no income tax liability for 2004. You'll still have to pay Social Security and Medicare taxes, but skipping unnecessary income tax withholding will put More >>

10 Common Tax Return Problems 1. Social security number incorrect or missing or don't match name. 2. Required documentation (W-2s, etc.) not attached. 3. Return not signed. 4. Filing status incorrect. 5. Math errors. 6. Incorrect or missing forms and schedules. 7. Standard deduction used when itemizing is more advantageous. 8. Social Security taxable benefits worksheet not More >>

Deductible Taxes Did you know that you may be able to deduct certain taxes on your federal income tax return? Deductions decrease the amount of income subject to taxation. There are four types of deductible non-business taxes: 1. State, local and local income taxes. 2. Real estate taxes. 3. Personal property taxes. 4. Foreign income taxes. People will have a chance of claiming a state and More >>

Common Errors to Avoid The IRS recommends reviewing your entire tax return to be sure it is accurate and complete. Even a simple mistake can cause problems which might lead to delays in processing your return and receiving your refund. Want to avoid frequent trouble spots? Check these areas which can reduce problems: 1. Use the peel-off label. You may line through and make necessary More >>

Tax Tips for Last-Minute Filers 1. Put all required Social Security numbers on the return (they’re not on the label). 2. Double-check your figures. 3. Sign your form. 4. Attach all required schedules. 5. Send your return or request a filing extension by April 15. The numbers to check most carefully on the tax return are the identification numbers — usually Social Security numbers — for each person listed. This includes More >>

7 Ways to Avoid Problems at Tax Time 1. Don't Procrastinate. Resist the temptation to put off your taxes until the last minute. Your haste to meet the filing deadline may cause you to overlook potential sources of tax savings and will likely increase your risk of making an error. 2. Organize Your Tax Records. Tax preparation time can be significantly reduced if you develop a system for organizing your records and More >>

Are You Eligible For Any Of These Tax Credits? Taxpayers should consider claiming tax credits for which they might be eligible when completing their federal income tax returns, advises the IRS. A tax credit is a dollar-for-dollar reduction of taxes owed. Some credits are refundable – taxes could be reduced to the point that a taxpayer would receive a refund rather than owing any taxes. Earned Income Tax Credit. This is a More >>