Did you receive your W-2 ? All W-2s were required to be sent to employees by January 31, 2011. If you have not received your W-2, contact your employer first to inquire when it was mailed to you.
If you do not receive your W-2 by February 14, 2011, then contact the IRS at 1800 829 1040.
Are you self-employed? If so, you still need to social security and medicare taxes on your income.
What expenses qualify as deductible miscellaneous expenses? Included in this category are tax preparation fees and tax advice.
Others expenses will posted in my next blog.
How many of you have a student loan for your college education? Are you paying interest on that loan? If the answer is yes, then you need to be aware of this fact if you are filing a 2010 tax return.
You cannot deduct student loan interest if you income exceeds $75,000. Yes, this is the IRS rule.
Do you operate a business out of your home? Then, you can take the home office deduction. It must be a specific room and used only for your business to be allowed the deduction.
Most of expect that the required amount of taxes are being withheld from our paychecks based on the information we provided in Form W-4. As your financial situation changes, it is a good practice to update your W-4 form. If you underpay your Federal, State or Local taxes, a penalty and interest could be assessed and a bill sent to you.
Update your Form W-4 today for peace of mind.
You got your taxes prepared and you are getting a refund. What next? Congratulations to you!
Choose direct deposit to get your refund as quickly as possible. You can get your refund in possibly 8 days. No paper checks will be mailed to taxpayers this year.
Do you qualify to take the making work pay credit? If you are single and your adjusted gross income exceeds $95,000, (married filing jointly $190,000), then you do not qualify for the credit.
How much is the credit? Up to $400 single, and up to $900 married filing jointly. Keep in mind that the credit is phased out as you approach the limits.
Most people file their annual taxes but there are lots of people that don’t. If you happen to be one of those people who do file your taxes, be aware there are penalties for not filing.
The IRS penalty for failure to file is $135.00 or 100% of the unpaid tax, which ever is smaller.
File your taxes timely and avoid paying penalties.
Am I getting a refund? Most people expect to get a refund when they file their taxes but this is not always the case.
If you are single and claim “0″ (zero) on your form W-4, then chances are you may not owe any taxes and may get a refund.
This is important to know because some people want to increase their take home pay check by claiming dependents on their form W-4. If these dependents are not listed when the tax return is filed, then chances are, taxes may be owed or the refund may be small.