Queercents

April 15th is around the corner–29 days and counting. Many of us haven’t started our tax returns yet. Don’t worry. It’s not too late. Just be careful because the most common tax return mistakes occur when we are rushed for time. Simple errors in calculation happen to the best of us. Double checking your numbers can be invaluable.

If you’d prefer to eliminate the stress of the impending date, consider filing a 6-month automatic extension. Use Form 4868 to request the extension. This is one of the simplest IRS forms, as is less than half a page in length.

You can also obtain an extension to file your taxes if you pay all (or part) or your estimated tax due with a credit card. The IRS states your payment must be at least one dollar and you can pay by phone or over the internet. Call 1-800-PAY-1040 (www.pay1040.com) or 1-800-2PAY-TAX (www.officialpayments.com). There will be a convenience fee for these options. However, it will be based on the amount of the payment you are making.

Please be aware that an extension of time to file is NOT an extension of time to pay. If you owe taxes they will begin to accrue huge penalties and interest April 16th! Read the rest of this entry »

Giveaway alert: read this entire post for the chance to win!

Digits is the newly launched site from H&R Block created to extend the tax office experience and offer a place to connect with their customers online. Sounds kind of strange… or boring to say the least, but I have to admit, they’ve done “community” right.

Digits is your community, built with the latest technologies to help you share your thinking through text, images and video conversations. Digits highlights the connections between money, art, politics, the planet and people everywhere. You’ll get access to the tax and personal financial resources you’d expect from H&R Block … but there’s much more here than that. Serious debate? Sure. A little light-hearted banter? Absolutely. Digits is about money. It’s about life. It’s about you. Come be entertained and join in the fun.

The destination serves as a hub where the money talk lives alongside conversations about the rest of life because they’ve figured out that there’s more to life than taxes. Go check it out. By the way, it’s also really well designed in both look and function: gay creative types will appreciate that!

Here’s the win part: For my personal endorsement and this sought after link, they’ve offered Queercents readers three H&R Block Flash Drives containing TaxCut 2007 Premium Federal + State. It’s a $45 value and these reusable 1 GB USB Flash Drives contain everything you need to complete your federal and state taxes. The product demo is here if you’d like to understand what you’re trying to win. Read the rest of this entry »

By now you’ve probably heard of the Economic Stimulus Act, a $152 billion package to provide aid to the U.S. economy, signed into law last month. The new law provides for a credit on your 2008 tax return. Sounds great! But in reality the United States Treasury will be sending advanced payments on that credit. It won’t reduce the amount of tax you pay next year. When you file your 2008 return you won’t actually receive a credit. You’ll have to report that you already received the benefits.

The economic stimulus package has been highly controversial. Many people believe it won’t aid our faltering economy because the “credit” is not enough to offset the losses many of us incurred due to the declining housing marketing and plummeting stock market. Others think we will simply spend the money on items manufactured overseas further diverting the funds from our local economies. And I’ve yet to hear one single person say they won’t cash or spend the check!

It appears as though we can not do anything to prevent this additional debt from plaguing our future. The U.S. Treasury is not even offering the option to refuse this check and hold the credit until we file our tax return. That said, this tax tidbit discusses the basics of the rebate. To begin, it is based on four factors: Read the rest of this entry »

There’s only one activity I enjoy more than the slow, tooth-pulling agony of preparing my taxes: Preparing my taxes twice.

Lucky me! I just found out that I need to file an amended tax return for 2007, a realization that comes shortly on the heels of receiving a huge refund. I want off this emotional rollercoaster!

Why amend? I went back to school in September, so I took the Lifetime Learning Credit, on the advice of my tax prep software. However, yesterday I discovered that the school I’m attending doesn’t participate in federal student aid programs, even though it’s accredited and well-established.

In short: No FAFSA, and no Form 1098-T from the school. I can’t claim a cent in tuition tax credits. This means I will have to pay back a large portion of my refund. ARGH. Read the rest of this entry »

This week’s Tax Tidbit is about electronic filing, or e-filing. There are many reasons and benefits to filing electronically. A Google search will pull hundreds of sites singing the praises of this tax filing alternative. Here are the need-to-know basics:

1. E-filed returns usually contain fewer mistakes. Using tax preparation software greatly reduces errors. They lead you through data entry and conclude with a comprehensive error check. Filing electronically eliminates more potential human error. When you submit a paper return, an IRS representative actually types your return into their system. It is just another possible pitfall.

2. Faster transmittal of your returns. No waiting for snail mail. Once you click the send button on the e-file software your return zips across the internet, directly to the IRS. You’ll also receive an e-mail from the IRS confirming their receipt of your return within 48 hours. This benefit is lost if you file a paper return. (Unless you add postage and mailing your documents “certified with return receipt”.)

3. Receive your refund quicker. Typical refunds from a paper filed return take about Read the rest of this entry »

Many taxpayers file their returns the old fashioned way, paper copies via the mail. In fact, 43% of people choose this route. While there are other options, something just feels great about putting postage on your return and dropping it in a mailbox.

This year the IRS is warning taxpayers to check the mailing address for their returns carefully. The mailing addresses have changed for several states. If you are filing a paper return (with or without a payment) check the address carefully. The nearest filing center may not be in your home state–it may be in a neighboring state. Read the rest of this entry »

Back in the bad old days, when I was freelancing in college and didn’t know what the heck I was doing, I got burned badly one year when tax time came around. To the tune of several thousand dollars, which I’d neglected to put away in savings because I was young and naive and didn’t understand the concept of “self-employment tax.” Ouch.

I understand it now, boy howdy, which is why I’ve been trying to see the future and plan for it. Since I started my freelancing business, I’ve been carefully putting away 45% of each freelancing paycheck into a special savings account, and trying desperately not to touch that money.

I haven’t always been successful about keeping that money separate (sometimes a girl’s gotta pay rent), which gave me serious jitters about doing my taxes this year. Read the rest of this entry »

Last weeks Tax Tidbit prompted a great question. Nina asked if there were any tax tips for those of us with un-reimbursed business expenses. If you spend your personal money for business expenses, and your employer does not reimburse you, you may be able to deduct those expenses on your personal tax return.

The IRS Publication 529 outlines details about un-reimbursed employee expenses. A few rules apply. First, you can only deduct expenses which you paid or incurred during your tax year. Second, the expense must be for carrying on your trade or business or being an employee. And finally, the expense must be “ordinary and necessary”. The IRS defines ordinary as being a common expense in your trade, business or profession. The expense is necessary if it is appropriate and helpful to your business. (The expense doesn’t need to be “required” to be considered necessary.)

Here are a few types you may be able to deduct: Read the rest of this entry »

“Next to being shot at and missed, nothing is really quite as satisfying as an income tax refund. – F.J. Raymond

It’s refund time which happens to be my favorite money moment of year. Why? I’ve always received a refund… big refunds, little refunds, and just about every amount in between. In the past twenty years, I can’t recall ever writing a check to the IRS.

I used to have heated debates when my sister, the CPA was my tax preparer. She’d always ask why I’d let the government have my money throughout the year. Many financial experts agree that if you’re getting a refund then you have given your money to the government interest-free for a year and this is just plain wrong.

But I beg to differ and here’s why: most people lack the discipline to save. Of course, I save using an automatic deposit plan. But I consider my tax refund a windfall (there are a few benefits of a windfall) and for some reason when it comes in a lump sum, it seems so much more satisfying and usable. Read the rest of this entry »

The other day on Sirius satellite radio, Howard Stern was complaining about the fact that the merger between XM and Sirius has not yet been approved by US government regulators. The National Association of Broadcasters, which is made up of companies such as Clear Channel who compete against satellite radio, has been lobbying against the merger. Stern was indignant that his competitors would blatantly use the government to harm their competition. It’s hard for me to believe that this was a new revelation for a man over the age of 50, especially one who has been the focus of so much government scrutiny. Maybe he was feigning surprise for his show.

The US government has two things people want - money, which comes from taxes, and power, which comes from the ability to change the laws of the entire country. Both of these products are up for sale by members of the legislative and executive branches of government. The importance of getting a piece of this money and power has given rise to a career - the lobbyist. In fact, many former members of the government become high-paid lobbyists because of their relationships with those still in positions of power. Read the rest of this entry »