Monday, March 24, 2008

Taxes - Information for this year...

As most of you recall from last year, taxes are not fun in our house. Not only is Ray self-employed, but we have rental property, kids, and estimated tax payments. Any help with taxes is greatly appreciated. Turbo Tax offers tons of help...check our their site for information.

Tax Rebate Calculator
130 million Americans will begin receiving tax rebates in May as a result of the economic stimulus package passed by Congress last month. This week, the IRS is sending those individuals a letter entitled "economic stimulus payment notice" alerting people that they may be eligible for $600 and most married couples will receive $1,200. Parents will receive an additional $300 for each eligible child younger than 17. The notice says that in order to get the rebate all one has to do is file a 2007 tax return. This letter also includes a set of instructions for calculating one's own return. TurboTax has simplified a way for these individuals to uncover their actual refund amount for free.The new, free online Tax Rebate calculator at TurboTax.com will help people determine how big their tax rebate will be. Just by answering a few simple questions, any taxpayer can see how much money the economic stimulus plan will put into their pockets. You can use this calculator by visiting TurboTax.com and clicking on the icon in the lower right hand corner of the main page or by visiting this page.

Free Filing
Did you also know that some people can use TurboTax for free? If you earned $30,000 or less or were active military duty or qualify for the Earned Income Credit, you can use the resources at TaxFreedom.com to fill out your forms and e-file. Visit TaxFreedom.com to determine whether you qualify and how you can participate with TurboTax Freedom Edition.

Audit Tools
In 2007 the IRS cracked down, auditing more than 1.3 million individual tax returns. That’s a 7% increase over 2006 and the largest number of audits since 1998. This year TurboTax is helping its customers to identify and reduce the risk of an audit with two audit support tools.

Audit Risk Meter: This new tool helps taxpayers reduce their risk of an audit by identifying potential audit triggers before they file their return.

Audit Support Center: Helps customers deal with, and prepare, in the unlikely event that they are audited. Both of these tools give taxpayers the peace of mind to know they’re helping reduce their risk while also providing a life-line should they be contacted by the IRS. Additionally, taxpayers can help reduce their risk of an audit by being aware of common tax situations that could raise red flags with the IRS, such as:

Child Tax Credit: With more and more children living with separated or divorced parents this is becoming a more common red flag. To receive the child tax credit you must enter the child’s social security number. If another parent has already claimed that social security number, the second return to be filed will trigger an audit.

Home Office Deductions: The home office deduction is an area the IRS pays close attention to. Taxpayers claiming this deduction should make sure they are disciplined in what they deduct and how they use their home office.

Rental Property: If a taxpayer owns a rental property, the IRS may be taking a closer look at their return. Owners of rental properties will want to make sure their home can be classified as a rental property and not a vacation home.

1 comment:

bermudabluez said...

Lots of good information!! Thanks so much!!