Taxes 
4
comments

How to Request an IRS Filing Extension

April 15th is only a couple weeks away! If you haven’t filed yet and don’t think you’ll make the April 15th deadline, all you need to do to procrastinated another six months is fill out IRS Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return. You don’t have to provide a reason unless the IRS denies your request, which they don’t do very often (at least from what I hear), and you can file your return anytime before October 15th, the new deadline for those approved for an extension.

The only gotcha is that you are still required to pay taxes owed. The extension is only for filing your return, not for payment. If you owe taxes and can’t pay, start the process of setting up an IRS payment plan today because the extension won’t help you.

If you’re supposed to get a refund, I recommend that you file ASAP so you can get your money back!


 Taxes 
5
comments

IRS Safe Harbor Income Tax Underpayment Rule

In the last few weeks I’ve several email and IM conversations with readers who owe tax this year and are concerned they will be penalized for it. In the case of one reader, TurboTax told them they owed a $120 penalty when they didn’t, because he never told the software that he filed last year and didn’t owe any tax.

(Click to continue reading…)


 Taxes 
13
comments

IRS Tax Payment Plan: Don’t Pay Taxes With A Credit Card

When you finish filing your taxes, perhaps with one of these free tax filing resources, you may find yourself owing a little or a lot to Uncle Sam. If it’s a little, good job. If it’s a lot, don’t panic. The IRS will inform you of the opportunity to pay your tax bill with a credit card through one of their IRS e-pay service providers. If you owe a lot, it may be very tempting to just put it on a credit card and worry about it later but that’s probably a very bad idea.

(Click to continue reading…)


 Taxes 
8
comments

Free Tax Filing Resources

1040 Tax FormsWe’re deep in the throes of tax season and with the economy in the sorry shape that it’s in, I’m sure many taxpayers are looking to gain an edge. I mean we’re already paying taxes, surely it makes less sense that we have to pay to figure out how much we’re going to pay in taxes right? Fortunately, there are a lot of different ways you can get tax filing software or assistance absolutely free.

In addition to the nationally available programs I’m about the list, there are also a lot of local programs. Each state’s tax website will usually list the free tax filing resources or services available in the state. many of these are simply listings of data made available through the IRS Free File system but you might be able to find some gems in there as well.

(Click to continue reading…)


 Taxes 
3
comments

IRS Leniency Program

There’s a report out this week about the IRS offering a leniency program for people who have paid their taxes on time and in full in the past but find themselves in a financial bind this year. While the details aren’t clear, it sounds like they will simply be more willing to work with people on repayment plans as people face a myriad of problems like job loss or a reduction in income.

“We need to recognize that it’s an extraordinary, challenging time,” Shulman said in an interview. “We need to understand the taxpayers’ perspective. We need to walk a mile in their shoes.”

I’ve been fortunate enough to have worked, and paid taxes, in a time of great prosperity so I don’t know if the IRS has done this in the past but I applaud them for it. This type of flexibility and pragmatism is not something I associate with the government, let alone an organization often viewed as draconian. Even Ellis Reemer, head of tax litigation at law firm DLA Pipe, cited in the article, thought this program was extraordinary.

What if you can’t pay? Here’s what the IRS says:

Don’t panic. If you cannot pay the full amount of taxes you owe by the April deadline, you should still file your return by the deadline and pay as much as you can to avoid penalties and interest. You also should contact the IRS to discuss your payment options at 1-800-829-1040. The agency may be able to provide some relief such as a short-term extension to pay, an installment agreement or an offer in compromise. In some cases, the agency may be able to waive penalties. However, the agency is unable to waive interest charges which accrue on unpaid tax bills.

So pay what you can, then call to see what you can do. In fact, if you think you can’t pay in full come April 15th, call them today.

Source: IRS agents soften heart for delinquent taxpayers [AP]


 Personal Finance 
5
comments

50 Financial Skills Every Person Needs To Know

Popular Mechanics created a list of 100 Skills Every man Should Know, which naturally gravitated towards DIY/physical skills like jump starting a car and split firewood. The Frisky listed 30 Skills Every Woman Should Have Before Turning 30, which actually touched on more than physical skills (though #12 is physical :) ), with a handful of financial skills (#17 – #20).

This isn’t a checklist of things you need to necessarily do in your life, it’s just a list of things that you should know how to do (in case the need arises).

(Click to continue reading…)


 Taxes 
21
comments

List of Free Tax Preparation Services

I bet the first thing you thought after you screamed “Happy New Year!” was how it was now time to do your taxes. (no? me neither) Unfortunately, it’s now February and it’s time to start thinking about doing taxes! Wheee! To help you along, I wanted to outline all the free resources you have for tax preparation. By this I mean I’m listing every single way I think you can get absolutely free tax preparation based on your financial situation. Some tax prep companies offer free tax filing if your situation is simple (1040EZ, or plain 1040), the IRS offers free tax filing if your adjusted gross income was under $54,000 in 2007 (it’s through third party companies), and some other companies offer free tax preparation for their customers as a fringe benefit. I’ll try to list them all. If I miss one that you know of (one that expands on the group of eligible taxpayers, we don’t need another company that offers free tax prep for the same groups already covered below), please leave a comment or email me and I’ll add to this list.

(Click to continue reading…)


 Taxes 
4
comments

Comprehensive Guide to IRS Income Phase Outs Rules

As you may well know, your modified adjusted gross income (MAGI) will determine what sort of tax benefits you’ll be eligible for. What you may not know, is how your MAGI will determine those benefits and what benefits fall under the phase out rules. You probably don’t know that because it’s not all written down in one place… until now. The majority of these fall into one of two categories, education-related or retirement-related, and it’s a great example of how you can change behavior through tax laws. The government wants to help you prepare for the future and stop being stupid.

First off, the IRS defines adjusted gross income as your gross income minus adjustments, which happen to all be deductions but do not include the standard or itemized deductions. Some of these adjustments are the IRA deduction, student loan interest deduction, tuition and fee deduction, moving expenses, etc. The modified adjusted gross income is your AGI plus some of the stuff that you deducted put back. For more information, please refer to IRS.gov on both topics.

(Click to continue reading…)


Advertising Disclosure: Bargaineering may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website.
About | Contact Me | Privacy Policy/Your California Privacy Rights | Terms of Use | Press
Copyright © 2014 by www.Bargaineering.com. All rights reserved.