OP/ED Tax Time- This is my advice and opinion, but please ask your tax professional how the laws apply to your specific situation. I’m not an expert.
If you didn’t do your tax return yet, you better get an extention filed today! If you owe money and don’t send your return in today you will be charged interest and penalties. If you owe money and you file an extension, you can avoid some of the penalties, but you still have to pay interest on what you owe because it wasn’t paid on time.
If you are getting a refund and didn’t file yet, it shouldn’t be a worry. I have never had the IRS complain if you file a few days late when they owe YOU money. (Technically they COULD fine you for being late, but I have never heard of them doing so)
There are two credits you should make sure you take a look at this year. They will be missed by thousands of taxpayers and mean a bigger refund if you qualify.
General Sales Tax Deduction– This is only usable if you are filing "itemized Deductions" (schedule A) rather than the "Standard Deduction." It is most useful in states that don’t have state income tax (Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming), or if you made qualifying big ticket purchase (like a car or motor home) Under this deduction you can subtract the amount of sales tax you paid rather than the amount of state income tax you paid under taxes on your schedule A. If you live in a no income tax state or if you bought a qualifying item you may be able to deduct more on your schedule A, (then if you use your state income tax amount- because you use the higher of the two) thereby saving you money. Here’s the info from the IRS http://www.irs.gov/newsroom/article/0,,id=152316,00
The Making Work Pay tax credit is a new credit worth up to $400 for individuals and $800 for married couples. You may have already received the benefit of this credit because your employer reduced your tax withholding on your paycheck, BUT-
Even if your income tax withholding was reduced during 2009 because of the credit, you MUST STILL complete Schedule M, attach it to your return, and claim the credit on your return to benefit from it. Not claiming or reporting the credit properly could screw up your refund.
IRS written info on Making Work Pay- http://www.irs.gov/newsroom/article/0,,id=204447,00.html
IRS video on Youtube explaining Making Work Pay http://www.youtube.com/watch?v=qzdIElXDqhg&feature=channel_page
All true from my experience, in fact they’re collecting interest on your refund the later you file. Make sure to check those 1099s if you own stock to make sure you arent missing a write off on cost basis
I did my taxes the first week of March and of course got 3 more 1099 in the mail one just last week from a very attacked person on here lol Isn’t it illegal to mail tax forms so late? If it isn’t it should be!
Why can’t there just be a flat 19% tax for everyone? Already 40% of the country pays no taxes and the rest of us have to be stuck with this insane system no one can figure out.
It’s supposed to be Jan 31… You are just referring to income taxes, anyone who consumes any product pays tax. Anyone who lives in Jersey knows about tolls. Taxes are everywhere. A flat income tax caters to the rich, plain and simple. Sales tax is flat already, its not like they check your bank account before letting you pay for that TV.
Well duh, I was referring to income taxes. I dont get 1099 for sales taxes 🙂
I live in a state with a lot of tolls also and don’t mind it at all because we don’t have a state income tax. Sales tax is not federal, well not yet anyway. I’m sure it will be soon.
So its not fair for everyone to pay the same % of their income? How is that catering to the rich? 19% of a rich person’s income is considerable. Why should someone who is wealthy pay a higher % of their income?
Because if person A has jack shit and you take 20% of that it can cripple them, whereas if you take 20% from person B who is in the top percentage it’s nothing. The real question is, why are people who are of exceptional economic means so miserly about throwing in more? The vast majority of people in the military are men, does that mean I should get a tax break for being a man being as though if a draft were ever instituted I would be forced by law into war?
A 1099 is a sales tax by the way as it a report generated from the sale of a security.