E-filing begins today

For those who have received their w-2's in the mail or online, today is the first day that the Federal Internal Revenue Service begins receiving transmission of federal income tax returns electronically!!

However you will need to be patient in transmitting your Indiana State tax return and want to file free. The reason is because Indiana I-filing does not begin until February. Of course there will be companies able to provide the service but it will cost you for using their service. Remember it's your money, and February is just a couple of weeks away for your state free filing.

But today is the day for the most action in getting in the federal tax returns to the IRS!!!

If you have an questions remember to ask a tax preparer or call the Internal Revenue Service.

It's Income Tax Time

I have worked on preparing tax returns since the age of 13. Once again, thanks to my grandfather and those entrepreneurial skills. Through the years I have learned that many folks are scared to death of the I.R.S. in not preparing their tax return. Or they fail to read the information provided by the I.R.S. that apply to their specific situation. Below I have posted from the I.R.S. some new updates that may have an impact on filing paper form or e-filing, such as how you can now deposit your money in three accounts, claim long distance telephone excise federal tax, and for those who are eligible to use a shorter form.

Tax Tips

For the first time, taxpayers can split their refunds among up to three accounts held by up to three different U.S.financial institutions, such as banks, mutual funds, brokerage firms or credit unions. To split their direct-deposit refundsamong two or three different accounts or financial institutions, taxpayers should complete the new Form 8888, Direct Deposit of Refund to More Than One Account. Taxpayers can also continue to use the direct deposit line on the Forms1040 to electronically send their refunds to one account.

For people who don’t need to file a regular tax return, the IRS has developed a special, shorter form to allow them to request the telephone refund. Copies of the Form 1040EZ-T will be available on IRS.gov, over the phone and at a variety of other locations. The IRS encourages people who qualify for the 1040EZ-T to file electronically through the Free File program, which will be available for free beginning later this month. More than 10 million taxpayers who aren’t normally required to file a tax return may be able to use this new form. Taxpayers can either request the standard amount on this form or attach a Form 8913 to request actual amounts.

Individual taxpayers will be able to request a refund if they paid the federal excise tax on long-distance or bundled service. The government stopped collecting the federal excise tax on long-distance service in August and announced plans to provide refunds of these taxes billed after Feb. 28, 2003, and before Aug. 1, 2006. More than 146 million individual taxpayers are expected to request the refund.

Check with a tax preparer if you need more information.

Taxes,Taxes, Income Taxes!!!!

Tax Tips

Those w-2 forms should be coming to your mailbox soon. For those who have not received their w-2's but are curious about their refund, be careful in using your last paycheck stub at certain tax preparers because you may get locked into their services only. This will prevent you from shopping around for a lower charging service. Remember it's your money.

If you are a noncustodial parent, you may be able to claim a child as your dependent, if that child does not live with you. You must attach to your return a written declaration your right to claim the dependent. For all you computer savvy e-filer you can attach form 8453 or 8332.




Need more information remember to check with a tax preparer.