It is that wonderful time of year again " no, not Christmas, but rather tax time. Before you go and spend money on tax programs or a professional, think Form 1040A.
Many people avoid doing their taxes like the plague, and while we all realize that it is a "chore" avoiding it is not the answer. I've heard a ton of excuses ranging from I don't make enough money to file, to it is just too complicated and I dont have the time.
Many Americans miss out on getting money back every year just because they are afraid they are going to owe the IRS. For the common American, making under $100,000 per year - filing often results in a refund.
If you think that you have not earned enough money to file think about the fact that the government owes YOU! Not filing taxes can also have some serious consequences if you do owe the IRS. It is better to know where you stand and make arrangements for payment then to stick your head in the sand and hope that it goes away " unfortunately the IRS never does.
My recommendation to lots and lots of people is to use FORM 1040A, also referred to as the short form to determine their federal taxes. It is a simple two page form that is intended to cover regular types of income, deductions and credits. I often recommend my clients start out with the 1040A if their finances are uncomplicated. The 1040A is much easier to complete than the 1040 and it takes less time to process.
You are eligible to complete the 1040A if:
Your taxable income is less than $100,000 (subtract your total deduction from your total income).
You did not exercise incentive stock options.
Your income comes from:
Capital gains,
Grants and/or scholarships,
Interest and dividends,
Pensions, annuities, IRA distributions,
Social Security benefits,
Unemployment,
Employment Wages
Your deductions are standard:
Classroom expenses
Student loan interest
Tuition and fees
You are claiming the standard tax credits which are:
Retirement savings contributions
Elderly and disabled credit
Child and dependent care expenses
Earned income credit
Child tax credit
Additional child tax credit
Lifetime Learning and Hope education credits
Since youve read made it thru this article, why not take the next step and get your taxes done. Youll feel relieved if you can file before the deadline and that refund check will be on its way!
2008 Form 1040A Instructions (http://www.irs.gov/pub/irs-pdf/f1040a.pdf)
1040A Form (http://www.irs.gov/pub/irs-pdf/f1040a.pdf)
Schedule 1 - Interest and Ordinary Dividends (http://www.irs.gov/pub/irs-pdf/f1040as1.pdf)
Schedule 2 " Child and Dependent Care Expenses (http://www.irs.gov/pub/irs-pdf/f1040as2.pdf)
Instructions for Schedule 2 " (http://www.irs.gov/pub/irs-pdf/i1040as2.pdf)
Schedule 3 " Credit for Elderly and the Disabled (http://www.irs.gov/pub/irs-pdf/f1040as3.pdf)
Instructions for Schedule 3 (http://www.irs.gov/pub/irs-pdf/i1040as3.pdf)
Many people avoid doing their taxes like the plague, and while we all realize that it is a "chore" avoiding it is not the answer. I've heard a ton of excuses ranging from I don't make enough money to file, to it is just too complicated and I dont have the time.
Many Americans miss out on getting money back every year just because they are afraid they are going to owe the IRS. For the common American, making under $100,000 per year - filing often results in a refund.
If you think that you have not earned enough money to file think about the fact that the government owes YOU! Not filing taxes can also have some serious consequences if you do owe the IRS. It is better to know where you stand and make arrangements for payment then to stick your head in the sand and hope that it goes away " unfortunately the IRS never does.
My recommendation to lots and lots of people is to use FORM 1040A, also referred to as the short form to determine their federal taxes. It is a simple two page form that is intended to cover regular types of income, deductions and credits. I often recommend my clients start out with the 1040A if their finances are uncomplicated. The 1040A is much easier to complete than the 1040 and it takes less time to process.
You are eligible to complete the 1040A if:
Your taxable income is less than $100,000 (subtract your total deduction from your total income).
You did not exercise incentive stock options.
Your income comes from:
Capital gains,
Grants and/or scholarships,
Interest and dividends,
Pensions, annuities, IRA distributions,
Social Security benefits,
Unemployment,
Employment Wages
Your deductions are standard:
Classroom expenses
Student loan interest
Tuition and fees
You are claiming the standard tax credits which are:
Retirement savings contributions
Elderly and disabled credit
Child and dependent care expenses
Earned income credit
Child tax credit
Additional child tax credit
Lifetime Learning and Hope education credits
Since youve read made it thru this article, why not take the next step and get your taxes done. Youll feel relieved if you can file before the deadline and that refund check will be on its way!
2008 Form 1040A Instructions (http://www.irs.gov/pub/irs-pdf/f1040a.pdf)
1040A Form (http://www.irs.gov/pub/irs-pdf/f1040a.pdf)
Schedule 1 - Interest and Ordinary Dividends (http://www.irs.gov/pub/irs-pdf/f1040as1.pdf)
Schedule 2 " Child and Dependent Care Expenses (http://www.irs.gov/pub/irs-pdf/f1040as2.pdf)
Instructions for Schedule 2 " (http://www.irs.gov/pub/irs-pdf/i1040as2.pdf)
Schedule 3 " Credit for Elderly and the Disabled (http://www.irs.gov/pub/irs-pdf/f1040as3.pdf)
Instructions for Schedule 3 (http://www.irs.gov/pub/irs-pdf/i1040as3.pdf)
About the Author:
Feeling overwhelmed at tax time? See Mel C. Jardan's blog site for informative tax advice. If you need additional advice on such topics as sample legal letters to the IRS, IRS loopholes, etc., Visit Mels blog at Tax Help
Aucun commentaire:
Enregistrer un commentaire