As the tax season approaches, the IRS has issued its annual list of tax tips for filers.
*Start gathering your records - receipts, canceled checks and other documents that support income or deductions you’re claiming on your return.
*Be on the lookout - W-2s and 1099s will be arriving soon.
*Use Free File - Let Free File do the hard work for you with brand-name tax software or online fillable forms available exclusively at http://www.irs.gov. If you made $57,000 or less, you qualify for free tax software that is offered through a private-public partnership with manufacturers. If you made more or are comfortable preparing your own tax return, there's Free File Fillable Forms, the electronic versions of IRS paper forms. Visit www.irs.gov/freefile to review your options.
*Try IRS e-file - After 22 years, IRS e-file has become the safe, easy and most common way to file a tax return. If you owe taxes, you have payment options to file immediately and pay by the tax deadline. Best of all, combine e-file with direct deposit and you get your refund in as few as 10 days.
*Consider other filing options - There are many different options for filing your tax return. You can prepare it yourself or go to a tax preparer. You may be eligible for free face-to-face help at an IRS office or volunteer site.
*Consider Direct Deposit - receive your refund faster than waiting for a paper check.
*Visit the IRS website again and again - The official IRS website is a great place to find everything you’ll need to file your tax return: forms, publications, tips, answers to frequently asked questions and updates on tax law changes.
*Remember this number: 17 - IRS Publication 17, Your Federal Income Tax, is a comprehensive collection of information for taxpayers highlighting everything you need to know when filing your return.
*Review! Review! Review! - Don’t rush. We all make mistakes when we rush. Mistakes slow down the processing of your return. Be sure to double-check all the Social Security Numbers and math calculations on your return as these are the most common errors made by taxpayers.
*Don’t panic! - If you run into a problem, remember the IRS is available to help. Visit http://www.irs.gov or call toll-free at 800-829-1040.
For more information, visit the IRS website, 1040 Central, E-filing and IRS Forms and Publications
Tuesday, January 3, 2012
Monday, September 27, 2010
Nurture Your Credit Score
In today's credit crunch, lenders are revising their criteria for borrowers. These changes could cause an Excellent rating to now be Average; a credit score of 750 today is equivalent to a score of 700 two years ago. Here are some tips to make sure your credit score is as good as it can be.
*Get your credit report and score from one of the three major credit bureaus (Experian, Equifax and TransUnion).
*Check your credit report for mistakes. If you find an error, request a correction.
*Make all your payments on time (or early). 35% of your credit score is determined by the timeliness of your payments
*Be aware of your ratio of how much you owe vs. how much credit you have available. Ideally, you should only utilize 20% of your available credit. This accounts for 30% of your credit score.
*Keep your oldest cards active. 15% of your credit score is based on the longevity of your credit history.
The remaining 20% of your credit score is based on new credit you've acquired (10%) and what mix of credit (mortgage, auto loans & credit cards) you have (10%).
To get your credit report and score, visit www.TransUnion.com, www.Experian.com or www.Equifax.com
*Get your credit report and score from one of the three major credit bureaus (Experian, Equifax and TransUnion).
*Check your credit report for mistakes. If you find an error, request a correction.
*Make all your payments on time (or early). 35% of your credit score is determined by the timeliness of your payments
*Be aware of your ratio of how much you owe vs. how much credit you have available. Ideally, you should only utilize 20% of your available credit. This accounts for 30% of your credit score.
*Keep your oldest cards active. 15% of your credit score is based on the longevity of your credit history.
The remaining 20% of your credit score is based on new credit you've acquired (10%) and what mix of credit (mortgage, auto loans & credit cards) you have (10%).
To get your credit report and score, visit www.TransUnion.com, www.Experian.com or www.Equifax.com
Thursday, September 9, 2010
How Long Should I Keep This?
The following are the IRS guidelines for keeping tax-related records. Ask your tax preparer if you have any special situations not covered by the IRS guidelines.
Individual taxpayers should usually keep the following records supporting items on their tax returns for at least three years:
* Bills
* Credit card and other receipts
* Invoices
* Mileage logs
* Canceled, imaged or substitute checks or any other proof of payment
* Any other records to support deductions or credits you claim on your return
You should normally keep records relating to property until at least three years after you sell or otherwise dispose of the property. Examples include:
* A home purchase or improvement
* Stocks and other investments
* Individual Retirement Arrangement transactions
* Rental property records
If you are a small business owner, you must keep all your employment tax records for at least four years after the tax becomes due or is paid, whichever is later. Examples of important documents business owners should keep Include:
* Gross receipts: Cash register tapes, bank deposit slips, receipt books, invoices, credit card charge slips and Forms 1099-MISC
* Proof of purchases: Canceled checks, cash register tape receipts, credit card sales slips and invoices
* Expense documents: Canceled checks, cash register tapes, account statements, credit card sales slips, invoices and petty cash slips for small cash payments
* Documents to verify your assets: Purchase and sales invoices, real estate closing statements and canceled checks
For more information, see IRS Publications 552, Recordkeeping for Individuals, 583, Starting a Business and Keeping Records, and Publication 463, Travel, Entertainment, Gift, and Car Expenses. These publications are available by calling 800-TAX-FORM (800-829-3676).
Individual taxpayers should usually keep the following records supporting items on their tax returns for at least three years:
* Bills
* Credit card and other receipts
* Invoices
* Mileage logs
* Canceled, imaged or substitute checks or any other proof of payment
* Any other records to support deductions or credits you claim on your return
You should normally keep records relating to property until at least three years after you sell or otherwise dispose of the property. Examples include:
* A home purchase or improvement
* Stocks and other investments
* Individual Retirement Arrangement transactions
* Rental property records
If you are a small business owner, you must keep all your employment tax records for at least four years after the tax becomes due or is paid, whichever is later. Examples of important documents business owners should keep Include:
* Gross receipts: Cash register tapes, bank deposit slips, receipt books, invoices, credit card charge slips and Forms 1099-MISC
* Proof of purchases: Canceled checks, cash register tape receipts, credit card sales slips and invoices
* Expense documents: Canceled checks, cash register tapes, account statements, credit card sales slips, invoices and petty cash slips for small cash payments
* Documents to verify your assets: Purchase and sales invoices, real estate closing statements and canceled checks
For more information, see IRS Publications 552, Recordkeeping for Individuals, 583, Starting a Business and Keeping Records, and Publication 463, Travel, Entertainment, Gift, and Car Expenses. These publications are available by calling 800-TAX-FORM (800-829-3676).
Thursday, September 2, 2010
How Long Does it Take?
For this month's "green living" post, I decided to look into how long it takes items to decompose. While there is some disparity among the time frames, I'm listing the most common lengths of time for the following items.
Paper towel: 2 - 4 weeks
Paper coffee cups: 2 - 4 weeks
Newspaper: 2 - 6 weeks
Paper bag: 1 month
Cardboard: 2 months
Plywood: 1 - 3 years
Cigarette filter: 5 years
Paper plate: 5 years
Plastic bag: 10 - 20 years
Aluminum can: 200 years
Plastic water & soda bottles: 450 years
Disposable diaper: 500 years
The following items are not biodegradable:
Glass
Styrofoam
Plastic utensils
Rubber tires
By planning our purchases, we can live greener. Together, we CAN make a difference!
Paper towel: 2 - 4 weeks
Paper coffee cups: 2 - 4 weeks
Newspaper: 2 - 6 weeks
Paper bag: 1 month
Cardboard: 2 months
Plywood: 1 - 3 years
Cigarette filter: 5 years
Paper plate: 5 years
Plastic bag: 10 - 20 years
Aluminum can: 200 years
Plastic water & soda bottles: 450 years
Disposable diaper: 500 years
The following items are not biodegradable:
Glass
Styrofoam
Plastic utensils
Rubber tires
By planning our purchases, we can live greener. Together, we CAN make a difference!
Monday, August 30, 2010
Employee or Independent Contractor?
If you need additional hands to help run your business, here are several things to consider before you hire.
*The IRS uses three characteristics to determine the relationship between businesses and workers: Behavioral Control (whether the business has a right to direct or control how the work is done through instructions, training or other means); Financial Control (whether the business has a right to direct or control the financial and business aspects of the worker's job); and Type of Relationship (how the workers and the business owner perceive their relationship).
*If you have the right to control or direct not only what is to be done, but also how it is to be done, then your workers are most likely employees.
*If you can direct or control only the result of the work done -- and not the means and methods of accomplishing the result -- then your workers are probably independent contractors.
*Employers who misclassify workers as independent contractors can end up with substantial tax bills. Additionally, they can face penalties for failing to pay employment taxes and for failing to file required tax forms.
*Both employers and workers can ask the IRS to make a determination on whether a specific individual is an independent contractor or an employee by filing a Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, with the IRS.
You can learn more about the critical determination of a worker’s status as an Independent Contractor or Employee at IRS.gov by selecting the Small Business link. Additional resources include IRS Publication 15-A, Employer's Supplemental Tax Guide, Publication 1779, Independent Contractor or Employee, and Publication 1976, Do You Qualify for Relief under Section 530? You may also request these forms and publications by calling the IRS at 800-829-3676 (800-TAX-FORM).
*The IRS uses three characteristics to determine the relationship between businesses and workers: Behavioral Control (whether the business has a right to direct or control how the work is done through instructions, training or other means); Financial Control (whether the business has a right to direct or control the financial and business aspects of the worker's job); and Type of Relationship (how the workers and the business owner perceive their relationship).
*If you have the right to control or direct not only what is to be done, but also how it is to be done, then your workers are most likely employees.
*If you can direct or control only the result of the work done -- and not the means and methods of accomplishing the result -- then your workers are probably independent contractors.
*Employers who misclassify workers as independent contractors can end up with substantial tax bills. Additionally, they can face penalties for failing to pay employment taxes and for failing to file required tax forms.
*Both employers and workers can ask the IRS to make a determination on whether a specific individual is an independent contractor or an employee by filing a Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, with the IRS.
You can learn more about the critical determination of a worker’s status as an Independent Contractor or Employee at IRS.gov by selecting the Small Business link. Additional resources include IRS Publication 15-A, Employer's Supplemental Tax Guide, Publication 1779, Independent Contractor or Employee, and Publication 1976, Do You Qualify for Relief under Section 530? You may also request these forms and publications by calling the IRS at 800-829-3676 (800-TAX-FORM).
Subscribe to:
Posts (Atom)
