 | |||||||||||||||||||||||
| |||||||||||||||||||||||
Totally Free Online Tax Filing and Free Federal Tax Return...
Do It Yourself Online Federal Tax Preparation ...
In the United States, the Internal Revenue Service (IRS) is the revenue service by the federal government. This agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue. The IRS is responsible for collecting taxes and the interpretation and enforcement of the Internal Revenue Code.
It is obvious and essential that you must pay Federal Taxes regardless of where you live in the United States, in accordance with this, most states also have additional state income tax. However, states like Texas, Florida, Nevada, Washington, Wyoming, South Dakota and Alaska have no state income tax. Tennessee and New Hampshire only apply state income tax to interest and dividend income. Each state will collect taxes from you in one way or another. The states that do not charge income tax impose higher rates on the other things like Sales tax or Property tax.
In the year of 1995, the IRS began to use the public Internet for electronic filing. Since the introduction of e-filing, self-paced online tax services have flourished, augmenting and sometimes replacing tax accountants to prepare returns. The IRS would not develop online filing software. For that instance, software vendors would provide free e-filing to most Americans. In 2009, 70% of filers qualified for free electronic filing of federal returns. In 2010, more than 66% (approx 98 million) of tax returns are expected to be filed electronically. Whereas in 2011 the results are higher than the expectation. The reason why the IRS working hard every year to make this process easy, hassle-free and more convenient for the taxpayers to efile their returns. over a period of time the users of online taxpayers are raising slowly and gradually which is a sign of success of IRS for providing the betterment to the taxpayers.
The process of tax preparation is to prepare your Free Tax Filing, often income tax return, often for a person other than the taxpayer, and generally for compensation. It may be done by the taxpayer with or without the help of tax preparation software and online services. Tax preparation may also be done by a licensed professional such as an attorney, certified public accountant or enrolled agent, or by an unlicensed tax preparation business. As United States income tax laws are considered to be complicated, many taxpayers seek outside assistance with taxes.
If you are paying your taxes very first time then it is obvious to arise bunch of questions in your mind about what to do, how to do, etc. There are certain things you need to do before you file your taxes. Filing your taxes does not need to be an intimidating process, you really do not need to worry about a wide variety of forms and tax laws, since computer software can help to simplify the entire process :
# Collect your Tax Documents.
# Determine your AGI.
# Review the Free File FAQs
# Choose your online Tax Assistant
# Efile for Free.
# Use Direct Deposit.
# Pay Electronically.
Every year the tax season arrives rapidly, a large number of people faces preparing their own tax. There are various types of tax deductions, tax credits and new tax laws that make the process complex. It demands accurate calculation and no margin for error makes the difficulty level higher when you are doing your taxes in a traditional way and on your own. There is an easy way for efiling is to choose federal 1040ez form which is the simplest form to efile.
Top 10 Helpful Features on the IRS Website.
Navigate your way through the tax season online and skip waiting in line. All you need is a computer and Internet access because the IRS website has a wealth of free information and online tax support. Here are the top 10 reasons to visit IRS.GOV website.
1. Unlimited access - get answers 24 hours a day, seven days a week If you find yourself working on your tax return over the weekend, there’s no need to wait to get a form or an answer to a question. Visit the IRS website; it's accessible all day, every day. You'll find answers to many frequently asked questions, and the helpful Interactive Tax Assistant is a tax law resource that takes you through a series of questions and provides you with responses to tax law questions. Much of the website and many forms and publications are also available in Spanish.
2. Use Free File Let Free File do the hard work for you with brand-name tax software or online fill-able forms. It's available exclusively at www.irs.gov. Everyone can find an option to prepare their tax return and e-file it for free. If you made $57,000 or less, you qualify to use Free Tax software offered through a private-public partnership with manufacturers. If you made more or are comfortable preparing your own tax return, there's Free File Fill-able Forms, the electronic versions of IRS paper forms. Visit IRS.GOV/ FreeFile to review your options.
3. Try IRS e-file IRS e-file is the safe, easy and most common way to file a tax return. Last year, 78 percent of taxpayers - 112 million people - used IRS e-file. Many tax preparers are now required to use e-file If you owe taxes, you have payment options to file immediately and pay by the tax deadline. Best of all, the IRS issues refunds to 98 percent of electronic filers by direct deposit within 14 days, if there are no problems, and some may be issued in as few as 10 days.
4. Check the status of your Tax Refund Whether you chose direct deposit or asked the IRS to mail you a check, you can check the status of your refund through Where’s My Refund?
5. Make payments Electronically You can authorize an electronic funds withdrawal, use a credit or debit card, or enroll in the U.S. Treasury’s Electronic Federal Tax Payment System to pay your federal taxes. Electronic payment options are a convenient, safe and secure way to pay taxes.
6. Find out if you qualify for the Earned Income Tax Credit EITC is a tax credit for many people who earned less than $49,000 in 2011. Find out if you are eligible by answering some questions and providing basic income information using the EITC Assistant.
7. Get tax forms and publications You can view and download tax forms and publications any hour of the day or night.
8. Calculate the right amount of withholding on your W-4 The IRS Withholding Calculator can help ensure you don’t have too much or too little income tax withheld from your pay.
9. Request a payment agreement Paying your taxes in full and on time avoids unnecessary penalties and interest. However, if you cannot pay your balance in full you may be eligible to use the Online Payment Agreement Application to request an installment agreement.
10. Get information about the latest tax law changes Learn about tax law changes that may affect your Tax Return. Special sections of the website highlight changes that affect individual or business taxpayers.
Remember the address of the official IRS website. Don't be confused by Internet sites that end in .com, .net, .org or other designations instead of .gov.
Do I Need to File a Tax Return This Year ?
You
are required to file a federal income tax return if your income is above a certain
level, which varies depending on your filing status, age and the type of income
you receive. However, the Internal Revenue Service reminds taxpayers that some
people should file even if they aren't required to because they may get a
refund if they had taxes withheld or they may qualify for refundable credits.
To
find out if you need to file, check the Individuals section of the Internal Revenue Service website
at IRS.GOV or consult the instructions for Form 1040,
1040A or 1040EZ for specific details that may help you determine if you need to
file a tax return with the IRS this year. You can also use the Interactive Tax
Assistant available on the IRS website. The ITA tool is a tax law resource that
takes you through a series of questions and provides you with responses to tax
law questions.
Even
if you don’t have to file for 2011, here are six reasons why you may want to:
1.
Federal Income Tax Withheld You should file to get money back if your employer withheld
federal income tax from your pay, you made estimated tax payments, or had a
prior year overpayment applied to this year’s tax.
2.
Earned Income Tax Credit
You may qualify for EITC if you worked, but did not earn a lot of money. EITC
is a refundable tax credit; which means you could qualify for a tax refund. To
get the credit you must file a return and claim it.
3.
Additional Child Tax Credit This refundable credit may be available if you have at
least one qualifying child and you did not get the full amount of the Child Tax
Credit.
4.
American Opportunity Credit Students in their first four years of postsecondary
education may qualify for as much as $2,500 through this credit. Forty percent
of the credit is refundable so even those who owe no tax can get up to $1,000
of the credit as cash back for each eligible student.
5.
Adoption Credit
You may be able to claim a refundable tax credit for qualified expenses you
paid to adopt an eligible child.
6.
Health Coverage Tax Credit Certain
individuals who are receiving Trade Adjustment Assistance, Reemployment Trade
Adjustment Assistance, Alternative Trade Adjustment Assistance or pension
benefit payments from the Pension Benefit Guaranty Corporation, may be eligible
for a 2011 Health Coverage Tax Credit.
Eligible
individuals can claim a significant portion of their payments made for
qualified health insurance premiums.
For
more information about filing requirements and your eligibility to receive tax
credits, visit IRS.GOV
Subscribe to:
Posts (Atom)
