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Many people go throughout the year leaving money on the table when it comes to filing tax returns. Many feel they shouldn’t file because they earned very little income; CAUTION this could be a huge mistake! People across the U.S. realize that the IRS has income requirements based on filing status, age, and type of income that needs to be met before you are required to file a tax return. However, many people don’t know that you should file even if the IRS doesn’t require it. Everyone knows that understanding taxes isn’t the easiest thing but a simple check could fatten your wallet. Here are seven points you should consider before deciding not to file: 1. Federal Withholdings From Your Income - Practically everyone allows their employer to withhold Federal and State taxes from their pay throughout the year. Many people even make estimated tax payments or have a prior year overpayment applied to this year’s tax. If this year’s tax is less than your payments you are due a refund. 2. Earned Income Tax Credit - For some tax payers that work but did not earn a lot of money, you may qualify for the Earned Income Tax Credit if you meet all the requirements. The Earned Income Tax Credit is a refundable tax credit that is treated as a payment to help offset taxes and whatever is left over can be used to increase your refund. The Earned Income Tax Credit for tax year 2011 can be as much as $5,751 if you qualify. However, the only way to know if you are eligible for the Earned Income Tax Credit is to file a tax return. 3. Additional Child Tax Credit - This is another refundable tax credit that may be available to you if you have at least one qualifying child and you didn’t get the full amount of the Child Tax Credit. 4. American Opportunity Tax Credit - This partially refundable tax credit is available to students or parents/ guardians that are eligible to claim the student. Students in their first four years of college may qualify for the credit. As much as $1,000 can be refunded back to you for each eligible student. 5. Adoption Credit - If you have adopted a child you may be able to claim a refund on qualified expenses you paid to adopt an eligible child. 6. Health Coverage Tax Credit - Eligible candidates must be a Pension Benefit Guaranty Corporation payee or Trade Adjustment Assistant recipient who receives Trade Readjustment Allowance (TRA) or Unemployment Insurance in lieu of TRA. If you qualify and pay 100% of your health plan premiums throughout the year, you can claim and be refunded 65% of your payments on your tax return. 7. First Time Homebuyer - Service members that meet certain time periods outside the United States on qualified extended duty may qualify for up to $8,000 if they meet requirements for the First Time Home Buyers Credit. As you can see, it can possibly cost you thousands of dollars if you decide not to file without looking into it. TaxSlayer.com can help by simply starting a tax return and letting our software guide you on your way to ensuring you receive the maximum refund possible. We guarantee it!
Tax time is upon us. The IRS will begin accepting tax returns on January 17th and TaxSlayer.com is already processing thousands of tax returns every day. The question is, what should you do if you don’t have all of your tax forms?? If you are without some of your tax forms don’t fret, as a matter of fact most tax payers have yet to receive all of the forms required to file the tax return. Federal law allows employers, as well as other companies preparing tax documents (such as bank, educational institutions, day care etc.), until January 31st to provide these documents to you. With that being said you may want to get a jump on things so here are some suggestions to make sure you get these documents in your hands ASAP. • Ask your employer: While many companies don’t have to prepare the forms until the end of the month they may be able to generate them easily, especially smaller companies. Make sure you check with your boss and/or payroll department and they may be able to get it for you on the spot. • Check your address: If you have recently moved, the forms could be sent to the wrong address. A lot of the time you may forget to update your address with those that don’t send to you on a regular basis. If this is the case they may be able to resend the documents. • Check online: Many reporting agencies such as banks, mortgage lenders, and school may post the required forms online. In most cases these forms are available online long before you would receive them in the mail so make sure to check. • Contact the IRS: If all else fails you can contact the IRS in early February and they can help you track down the forms and information that you need. In most cases the information will be reported to them as well and they should be able to help. Just make sure that before you call you have all of your personal information ready to dish out. Once you receive all of your paperwork you can submit your return with TaxSlayer.com. With that being said it is not too late to get started regardless of whether or not you have everything you need. You can still register today and get started. TaxSlayer has more tools than ever to help you get the maximum refund possible and our calculations are always guaranteed. So what are you waiting on?? Get started today!!!
With tax season less than 2 months away, it’s time to start thinking about your tax return. For those of you that have graduated or finished your higher education, student loan repayments are now a big part of your life. If you haven't begun paying on your student loan, this guide will help alleviate some future confusion. Student loans can save you alot of money... up to a $2,500 deduction. But there are a few things you must know in order to claim the deduction. You can claim the deduction if all the following apply: • You paid interest on a qualified student loan in 2011 • You are legally obligated to pay interest on a qualified student loan • Your filing status is not married filing seperately • Your modified adjusted gross income is less than a specified amount which is set annually • You and your spouse if filing jointly cannot be claimed as dependents on someone elses return If the above apply to you, you are well on your way to claiming this deduction. If you paid $600 or more of interest on a qualified student loan during the year, you should receive a 1098-E student loan interest statement from the entity you paid. Now comes the easy part. With TaxSlayer.com all you have to do is enter the amount from the 1098-E into TaxSlayer.com and it will calculate your deduction. TaxSlayer.com simplifies the process. If you still need help, no worries! Check out our help videos that are found in the program once you login to your account. They are free and certainly will help!
Sometimes, we scratch our heads at certain taxes. Taxes can be a complicated and grueling process. But that’s why TaxSlayer.com is here to give you a heads up on state taxes. Here a list of the some of the most interesting state tax laws in the US. 1. The Blueberry Tax of MainMaine is blueberry central. They produced 83 million pounds of wild blueberries last year. According to state laws, anyone who grows, buys, sells, or handles blueberries is subject to the three-fourths of a penny per pound tax. The $1.5 million in revenue has been used for research and educational programs to help the crop grow better. 2. Hawaii’s “exceptional trees”If you are into gardening in Hawaii, you can deduct up to $3,000 for maintaining your trees. The tree must have historical and cultural significance. The state has over 1,000 “exceptional trees.” 3. The Flush Tax of MarylandSince 2004, all households get charged an extra $2.50 to their monthly water bill. The tax has produced over $370 million since 2004. The extra money has helped the state develop better technological processes for making water cleaner. 4. Arkansas “damaged cars” Since Arkansas is prone to bad storms, there is a sales tax extended to cars that have been affected by natural disasters. The law applies to vehicles whose damage causes the car to be reduced to 30% of it’s value. 5. Premarital Counseling in South CarolinaIf you plan on getting married in South Carolina, you are eligible for a $50 credit for receiving pre-marital counseling. As long as the counseling is done by a certified clergy member and the couple receives a marriage license during that year, they are eligible for the money. 6. Live Long in New Mexico If you are over 100 years of age and not claimed as a depended, you are exept from income tax in New Mexico. These may seem like strange laws, but they are all real and possibly beneficial to you as a taxpayer. There are tons of state taxes that apply to you and your family. Luckily, TaxSlayer.com has a tremendous support team that is willing to help you with any questions you may have about e-filing your state taxes.