Author Archives

Archive of the posts written by author: Daniel Hammond.

Why a Big Tax Refund Isn’t Always Good News

Most people who get a big tax refund usually think that it is free money but in the real sense it is not. But getting a big tax refund is not a problem the question is how do you use the big tax refund? According to statistics most of the people who get refunds usually invest in businesses and other permanent project s but few of them use the money to pay debts. Huge tax refunds can mean that you have been overpaid on taxes on that year but it can also mean that you are giving the IFS a loan that is interest free. But the good part of the big tax refund is that it is an advantage to you.

What this huge tax refund means

Despite the fact that huge tax refund is good news to you it is important for you to know how you are going to use these refunds. The refunds is not a gift given to you from the IRS and that is why you must have a good plan on how you are going to use the money that you will get from your agency. When you get a fat refund check it means that you are getting money that the agency owes you. In other words, it can mean that the tax refunds that you get are as a result of loaning the government from your paychecks. But the government does pay your huge refunds with any interest. Tax refunds are a result of paying your government too much and now it’s giving back your money.

Know your withholding

Knowing your withholding from your tax agency is very important because it will help you to know how much money your tax agency owes you so that when you get a huge tax refund you are not confused. Ensure the right amount of money is withheld from your paycheck and you can know this by ensuring that you check on your form W-4 that you were given by your employer when you were hired. Getting tax back will not make you feel that you are getting free money because you can adjust your Form W-4 to help you know whether the right amount of income tax is withheld. Some of the information that you put on this form include note on your spouse, the number of dependants that you have and your filling status. We call then your personal allowances and the more the allowances, the less income tax to be withheld by the agency.

Tax uncertainty

If you want to know the amount of tax that you withhold this year it is important for you to look at your previous year’s tax returns. Ensure that you are updated on the way you pay your taxes and you should not be penalized for underpaying your estimated taxes. There are instances when you find that your tax rate is increasing substantially and in such a case it means that much of your tax is withheld by the agency. Lastly, Tax return should be used in a proper way such as investing, saving and paying debts.

Please follow and like us:

5 Free (or Almost Free) Ways to File Your Tax Return

It is tax return filing season, and when you have not filed your earnings tax come back yet, you will need to soon. Tax returns are due April 18 this season, if you can get an extension until Oct. 15.

You might pay someone hundreds of dollars to document your tax come back, but don’t fork out for a duty preparer until you understand your alternatives and make sure you are making a good choice for you.

Experts tax returnadvise consulting

The first question to answer is whether you need a certified public accountant, enrolled agent or another duty preparer. Experts recommendasking an accountant at least routinely, in case you make your taxation statements, to make sureyou are sending the right information.

You can also get free help planning you are come back and filing from volunteers certified by the IRS who setup shop at libraries and community centres during taxes season. In most cases, you are better off interacting with the volunteer programs than walking into a storefront for help. Steer clear of refund anticipation lending options, in which a company offers to progress your income duty return because they often include high fees.

Listed below are five free – or nearly free – methods for getting help filing your tax return?

Use Paper Varieties And Email Them In.

You can download all the varieties you will need from the IRS website or order them via email. You can then email the completed ranges back to the IRS.

Get free in-person help.

The Volunteer Income Tax Assistance program offers free toaid in tax returns to taxpayers who make $54,000 yearly or less, those who do not speak English well or people with disabilities. The volunteers are authorised by the IRS, and they can assist with basic dividends and file profits electronically. The Tax Counseling for older people program focuses on issues common to taxpayers 60 or old, however, in some communities, they will help people of any age. The volunteers are provided through AARP’s Duty Aide program. You could usually find these volunteer programs at libraries and community centres or via the IRS locator tool.

Use free online software via the Free Data file Alliance.

Taxpayers whose incomes are $62,000 or less are eligible to use the free online software. However, not everyone qualifies to utilise all the options. Some programs provide free talk about a tax return, as well as others offer state dividends for a fee. To access these programs, you must enter into via the IRS website.

Document Online Free With Fillable Varieties.

The Free Document Alliance supplies the online equivalent of paper varieties (but these do the mathematics for you) for many who make more than $62,000 yearly and can do their taxes. You can load the varieties out online and then record electronically. Understand more here:

Use Free Variations Of Commercial Software For Simple Comes Back.

TurboTax and TaxACT both give a general free model for taxpayers with pure profits. Those programs include free talk about comes back. United Way and H&R Stop have partnered to offer free tax returns via a program called MyFreeTaxes, which provides free federal and state profits to filers who earn less than $62,000 annually, and Liberty Tax offers free federal government filing via eSmart Tax to filers who make $62,000 per year or less. State dividends are $19.95.

Please follow and like us:

Tax Deductions Online

When it comes to the internet, there are a number of unique ways to make money. Entirely new industries have just recently come into existence based purely on the insane social experiment that is, or was, the internet. As such, there are new ways to apply the existing rules of commerce that both interesting and important to know if you’re an online entrepreneur or plan to be. For example, many things that would otherwise be frivolous purchases can now be classified as business expenses and, therefore, are tax deductible. Here are a few outlandish examples.

First and foremost, YouTube has created an entirely new industry unto itself, and so there are several tax deductions here that might surprise you. For example, if you’re not in the know, people simply playing video games on camera and talking about is now a viable profession, and so that creates an interesting tax situation. If you’re a “Let’s Player,” you can classify video game purchases via Origin as business expenses. Similarly, makeup tutorials are prominent on YouTube, so makeup then becomes a tax deductible expense. The same goes for travel. The list goes on. The more personal and casual nature of YouTube content allows for a wider variety of viable business models and, therefore, business expenses, than ever before. So, ideally, you can make a career out of something you love doing and can deduct purchases made in the name of that hobby and career in the process.

Another, more general form of tax deductible business expenses is equipment. By the nature nature of working online, your internet bill becomes a deductible business expense, for starters, but a home office created in the name of this career becomes deductible, as well. As does any equipment or repairs you’ll need for your work. So, the furniture, computer, modem, router etc. in the home office you use for your career become tax deductions.

Please follow and like us:

How To Get Tax Refunds Quicker?

Thousands handle their tax return each year in hopes of receiving a big refund but for some, the refund they hoped for doesn’t come. For some, they haven’t contributed enough to get the refund and for others, they just haven’t worked enough! However, most people receive something back and the money can be welcomed to say the least. The problem for most people is the time it takes to get their refund back. Is there any way to make the refund process go faster?

Submit Your Returns Online

Sometimes, there can be delays in the amount of time it takes for a return to be processed and the refund checked and usually it’s down to paper returns. Submitting paper returns isn’t too bad but it isn’t always the best either. The Australian government can take a very long time to go over every scrap bit of paper sent with the return and if they struggle to read what’s on the return, there are major problems. Delays easily occur and when you want your tax refunds back quicker, you might have to wait. Instead of filing by paper, why not opt for online? Electronic submission might be able to prove useful when it comes to getting a quicker refund. Since people don’t have to strain or guess what’s written, it can be easier to process.

Always Check To Ensure Everything Is Correct

Next, you might want to take one very last look at the return before you submit. Most delays in refunds are caused because of misinformation and it’s vital for you to check for it. Getting an error or two on a return is natural but that could impact the amount of time it takes for you to receive the refund. This isn’t a problem you want simply because it spells lengthy waiting times. Your tax return needs to be carefully gone over with a careful eye so that if there are any issues, they can be picked up and resolved quickly. Far too many people don’t do this and end up in a heap of trouble. Visit this site for more information :

Wait Patiently!

In all honesty, you can go over your returns with a fine tooth comb and submit online but that doesn’t always guarantee a faster refund. The time it takes for a refund to be issued depends on when the return is sent in, when it’s processed and when the Australian government issues the refund. Sometimes it can take literally weeks and other times months. It really can vary considerably and a lot of people aren’t aware of this. With tax refunds you have to do your part to ensure they get to you fast and other times, you just have to wait.

Use Your Refund Wisely

Whenever you do receive your refund, you should think about using it sensibly. You could put it into a savings account for when you’re older or put it away for the children. There are lots of things in which you can use the refund for. Just remember to use it wisely and enjoy it if you can. Submit your tax return online and avoid adding more delays to your return.

Please follow and like us:

Could This Be the End of Tax Refund Loans?

 Citing that they prey on the working poor and include fees that can translate into annual interest percentage rates between 50% and as high as 500%, the Internal Revenue Service announced that starting in 2011 they would make it more difficult for income tax preparation companies to also provide tax refund anticipation loans. Originally designed to deliver instant tax refund for consumers, many consumer advocates have protested that having to pay major fees to borrow what is essentially your money, offers no benefits and is not a service for the consumer as the tax preparation companies promote.

You do not have to apply for an instant tax refund loan for fast access to your anticipated income tax refund.

 Here are two things that will help you get your tax refund faster:

  • File your income tax forms electronicallyit is much faster than paper.
  • Request your tax refund be directly deposited into your bank’s savings or checking account.
  • Combining these two simple practices could enable you to get your tax refund within 8 to 15 days.

Just think if everyone did this, instant income tax refund loans would not even be necessary.

How much are they paying to get an advance?








Comparing their tactics, as comparable to a downtown pool hall loan shark, operationconsumer advocates have been attempting to educate the massive numbers of Americans whom every year take out loans on their tax refunds, just how much they are paying to get an advance on their money. Initially believed to be of benefit to consumers when, initially offered in early 2000, tax refund anticipation loans positively endorsed across the board.

However, these days they are being denigrated as largely useless because, thanks to modern technology, most taxpayers can have access to their tax refund within days.

Refund anticipation loanshigh-interest rates

Refund anticipation loans are short-term loans with high-interest rates. Marketed as “instant tax refunds,” they target those who are least likely to be able to afford them…the working poor. Since the tides have changed regarding their true “loan intent,” a few of the giant tax preparation companies have been sued due to the way they market this service.

Unintended tax security consequences

Due to the massive complaints and negative publicity surrounding refund anticipation loan practices, the IRS begin checking into instant tax refunds and in 2008 start issuing guidelines on how they were marketed to tax preparers. Within their guidelines, the IRS reminded the tax preparers of their responsibility to their clients and also proposed new competency guidelines.

The continued promotion of refund anticipation loans and the related high fees has caused the IRS to re-evaluate their position and concur they have been aiding and abetting tax preparers in making high-interest loans to those who can least afford them.

To conclude:

In the past, the IRS provided tax preparation services with special information referred to as “debt indicator” for every taxpayer. Debt Indicator’s let the preparation company know whether that taxpayer’s income tax refund was going to be seized by the government for things such as back taxes, child support or delinquent student loans. Whenever the taxpayer’s debt indicator showed that the taxpayer was not getting a tax refund, the tax preparation company knew not to lend that particular person money in the form of a refund anticipation loan. Visit this site to get more information :

Please follow and like us:

How to Get IRS Tax Refunds Quickly and Easily

IRS Tax Refunds

Waiting for your IRS tax refund can seem to take forever, especially if you need that money urgently. There are many different ways that you can actually speed up your refund, so that you can get it faster and easier. These are some important tips that you should remember to be able to get your IRS refund as fast as possible:

Deposit the money into your bank account

With all the fraud that is going on, there are many people that are not giving out their banking details for transferring their tax refund into their bank accounts.

But, the one thing that many people don’t realize, is that this is the easiest and fastest way of getting your tax refund into your account. Other methods take time, and there are many more risks involved in the other methods than giving your banking details to the IRS. You are anyway giving this information on your tax return form.

Filling your form in correctly

The second thing that you can do, is to make sure that you are filling in the tax return form correctly. If you are making mistakes, the tax return form needs to be sent back to you for correcting the mistake. This can make the whole process harder and longer.visit site here!

You should then fill in the tax return form again, and send it back. This is going to take much more time than with other tax refund payouts.

Consider E-filing

If you can’t go to the IRS offices personally, then it might be a good idea to do it via E-filing. This is the second fastest way of filing your tax return, so that you can get your tax refund faster.

The whole process of doing your tax return online, is faster and easier. It is also without any problems what so ever. You just go online, fill in the form, and sent it back with all the right documentation. You will get paid out faster than what you would have when sending the return via post office to the IRS office.

File as soon as possible

Most people wait until it is the tax return deadline before they start submitting it online, or even by waiting in queues at the head office. But, the one thing that they don’t realize, is that this is going ensure they wait longer than ever for their tax refunds.

IRS Tax RefundsPeople are all waiting until the last minute. And this is going to mean that they need to process many forms at a time. Making the process longer. If you are submitting your tax return as soon as possible, they won’t be as busy anymore and you will get your tax refund back a lot faster.see page from for more info.

Waiting for your tax refund can be a daunting task.

This is because people are always waiting anxiously for the extra money. There are a couple of ways that you can make sure that you are getting your refund as soon as possible. With just doing some simple things like submitting as soon as possible and giving your banking details for your deposit, will ensure that you’re getting your tax refund in no time.

Please follow and like us:

File tax returns: Should you file when you don’t have an income?

File tax returns

Year after year, you are going to the IRS office, standing in a long queue and waiting to file your tax returns. But, in actual fact, should you not have an income, or your income is low enough for you not to submit your return, should you still file when you don’t have an income? This is the question that many people are asking when it’s time for filing taxes. Here are some things to consider that will make answering the question a lot easier:

What’s legal?

Many people are saying that you should still file your tax returns, even if you don’t have an income or even if you don’t need to because of a lower income. Other people again say that if you have filed your taxes once, you should always do your tax return – even if you don’t have an income anymore.

But, what really is the truth? When you don’t need to file taxes because you don’t have any work, or you don’t get high enough salary you don’t need to file your tax returns. You can leave it until your salary increases, or when you have a job again. But, there are many people that are saying this isn’t as simple as that.

What can happen when you don’t file your taxes?

You should remember that there are hundreds of thousands of people each year who are filing their tax returns. And the IRS won’t just know that you don’t have an income anymore, or that your income isn’t high enough for filing taxes. They just see a red flag that you haven’t filed taxes for a year or two.

And, when you start filing your tax returns again after a couple of years, you are going to need to explain why you didn’t file previous years. You are also going to have all the paperwork at hand as proof that you didn’t have a job or that your salary wasn’t high enough.

Why it’s recommended to file your taxes, even with no job

If you are going to take the time each year to state that you didn’t have any work, and you’re doing your tax return and sending it back, you will make sure that the IRS is up-to-date about your situation. And, when you need to do your taxes again, you will know that you will not encounter any problems with unfiled taxes.

File tax returnsIt is recommended that when you have already filed tax returns before, you should always file your taxes each year even if you are without work, or when you are getting a really low income. This is to ensure that you are always on the safe side.view more tips from

Tax returns are something that many people don’t really like doing. And, they are most definitely not going to stand in a long queue if they don’t need to. Many people are wondering if this is a good idea to leave the tax filing when you don’t have an income or when your salary are too low. It’s recommended that everyone, even those without work, should continue with filing their tax return each and every year.

Please follow and like us:

Education Tax Refund – Keep Your Receipts!

Education Tax Refund

When it comes to tax returns, it is important to know as much as possible. There are so many people that don’t know everything and, in the process, they don’t get the amount of tax refund back that they had hoped for. If you want to ensure some refund, you should make sure that you are keeping all these types of receipts. This is the only way of showing proof of payment and to be able to get a refund back on the money you have spent.

Any medical receipts

So many people don’t realize that they can get a tax refund back from any medical expenses they have paid. However, you can’t claim for any of these payments if you don’t keep the receipt and file it with your tax return at the end of the financial year.

You can claim for it on your return form, but if you don’t have the proof, you will not get the money you are entitled to. This is why you should make sure that you are keeping all your medical receipts as safe as possible until you need to file it with the tax return.

Child care

This is something that most people probably don’t know about. You can claim some tax refund back if you have use a child care service. This doesn’t matter if you have child care or a nanny at home, or if you are sending your child to child care, like a nursery or daycare.checkout more details at

However, you still need to proof of payment. This is why you should ensure that you’re paying cash for this and ensuring that you are getting a receipt for it. And you need to make sure that you keep it very safe until it’s time for your tax returns. Many people are losing money, due to the fact that they didn’t even realize that they can get a tax refund back because of child care.

Work-related expenses that you don’t reimburse
Itis important to know that the work-related expenses that you can claim a tax refund for, are just those expenses that you are paying out of your pocket without getting reimbursed by your employer.

Education Tax RefundThere are many people that think that they can claim work-related expenses with their tax returns, if they are adding the receipts. But, they have already been reimbursed by the employer. This is fraud and you can land in some serious trouble. But, by saving your receipts for petrol to work and back, can mean that you can get a tax refund. Just remember the proof is in the receipt.

So many people are throwing away their receipts and this actually means that you are literally throwing away money! Money that you could have gotten when you complete your tax forms. These receipts you should keep, are just a few that have been mentioned. There are many other receipts that you should keep and file with your tax return in order to get some kind of tax refund.

Please follow and like us: