SavvySugar

How and When to File a Tax Return Amendment

SavvySugar — Tue, 28 Apr 2009 08:30:52 -0700

Taxes are no cup of tea in their simplest form, and the mistakes that complicate your return make taxes even less appealing. As luck would have it, I received an email from payroll the day after filing my tax return letting me know there was a mistake on my original W-2. The type of error means I have to file an amendment to my 2008 tax return. You too? Check out the details for filing an amendment below.

You're required to submit an amendment if you have to correct your filing status, tax credits or deductions, dependents, or total income.
If you claimed the original homebuyer credit that included a $7,500 allowance that had to eventually be repaid, you can amend your return to instead claim the $8,000 credit that doesn't have to be repaid.
Use Form 1040X to file your amended return. It must be printed out and mailed to the IRS; you can't file the amendment electronically.
Be aware that the corrections you submit may cause you to owe taxes.

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How to Check the Status of Your Tax Refund

SavvySugar — Thu, 23 Apr 2009 13:30:54 -0700

Most taxpayers e-file tax returns with a big benefit of receiving refunds more quickly than if they filed through the mail. Those who electronically file their returns typically receive refunds within three weeks of the IRS's email acknowledging your return was filed. It generally takes twice as long for the IRS to remit refunds for paper returns. It's tough to keep that antsy feeling at bay when you know the cash should be coming any day.

If you're wondering where your tax refund is, simply head to the IRS website and use the Where's My Refund? tool. The system should have an update on the status of your refund as long as it's 72 hours after e-filing your return, or three to four weeks after mailing your paper return.

Have you received your refund yet?

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How to Request a Tax Extension

SavvySugar — Mon, 13 Apr 2009 16:35:48 -0700

It's one thing to be fashionably late to cocktails when nobody's looking at their watch, but tardiness comes with heavy penalties when you're answering to the IRS. The deadline for filing your 2008 tax return is April 15 - that's Wednesday - and telling the IRS that your dog ate your calendar won't fly. Don't flip out if you can't file your return on time; just file an extension to avoid big trouble.

Here's the big thing to keep in mind about extensions: they only buy you time to file your return, but they don't allow for additional time to pay taxes owed. So, if you won't be filing your return by the 15th but know that you have to pay taxes, you need to pay at least 90 percent of the total amount due by the April deadline to avoid penalties. Asking for an extension will give you six additional months to complete and file your tax return. Learn the details for requesting extension when you read more.

Submit Form 4868, Application for Automatic Extension of Time to File US Individual Income Tax Return, with the IRS by the April 15 or make an extension-related electronic credit card payment (you'll find the details on Form 4868). You can also choose to e-file an extension request through your tax preparation software, and if you choose this method you can authorize the IRS to electronically withdraw funds to cover your expected tax balance. Visit the IRS website if you have questions about requesting an extension.

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6 Smart Ways to Use Your Tax Refund

SavvySugar — Tue, 07 Apr 2009 09:30:20 -0700

The mini-windfall known as a tax refund seems like free money, but really it's part of the salary you earned and the government has been holding for you. Instead of treating the chunk of change like it's a gift from Uncle Sam and spending it without a plan, start the slideshow to see six smart ways for using your tax refund.

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I'm Asking: How Much Is Your Tax Refund?

SavvySugar — Mon, 06 Apr 2009 07:15:30 -0700

According to the tax stats calculated by the IRS, the average tax return last year for individuals was $2,345. That's a pretty big chunk of change to be lending to the government interest free. That being said, owing money is hardly something to look forward to come tax time. How much is your tax refund this year, or did you have to write an unfortunate check to the IRS?

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Top 10 Tax Procrastinating Cities

SavvySugar — Fri, 03 Apr 2009 04:30:23 -0700

Don't fret if you still haven't tackled your 2008 tax return - you still have more than a week to file! April 15 is your deadline, so pencil in a date between now and then to complete what's been hanging over your head since the new year. If you're in danger of missing the big day, do yourself a favor and file for an extension (you're still not excused from paying Uncle Sam on the 15th if you owe money this year).

As an admitted procrastinator when it comes to things I dread, I always feel better knowing that I'm in good company. TurboTax compiled a list of the top tax procrastinating cities using last year's filing data. Check out the top 10 cities below.

San Francisco, CA
Houston, TX
New York, NY
Chicago, IL
San Diego, CA
Phoenix, AZ
Seattle, WA
Los Angeles, CA
Dallas, TX
Las Vegas, NV

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I'm Asking: What Plans Do You Have For Your Tax Return?

SavvySugar — Thu, 05 Feb 2009 11:30:59 -0800

Any time extra money appears in your bank account, it's generally a good day. While I'm an advocate of trying to receive as little of a tax refund possible by properly adjusting your W-4, many of you have said you consider your tax return as automatic savings. My return this year won't be anything to write home about, so I'm wondering, what do you have in store for your tax return?

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Definition: Standard Deduction

SavvySugar — Wed, 04 Feb 2009 13:30:46 -0800

If you're not someone who itemizes deductions on her tax return, then your other option is the standard deduction. Itemized deductions require that you've kept track of deductible expenses throughout the year, and many of us don't have expenses that would add up to more than the standard deduction, anyway.

Standard deductions (as with the itemized kind) reduce your adjusted gross income, and the amount of your allotted deduction is based on your filing status. See the current standard deduction amounts below.

Single: $5,700
Head of Household: $8,350
Married Filing Joint: $11,400
Married Filing Separate: $5,700
Qualifying Widow / Widower: $11,400
Dependent(s): $950-$5,700

If you have questions regarding your specific tax situation, be sure to visit the IRS website or call the agency for help.

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7 Tax Deductions You Might Be Overlooking

SavvySugar — Tue, 03 Feb 2009 04:30:11 -0800

Everyone wants to avoid paying more taxes than necessary, so begin by making sure you're taking all the deductions applicable to your situation. Start the slideshow to see seven commonly overlooked tax deductions to ensure you're not overpaying the government.

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Tax Tip For Married Couples

SavvySugar — Wed, 28 Jan 2009 13:30:56 -0800

Filing jointly isn't necessarily the best option for you and your spouse, even if you have promised to be there in sickness and in health. The goal is to collectively pay the least amount of taxes possible, so run the numbers for both filing scenarios before settling.

Couples may benefit from separate filing if one of you had large medical expenses, high business expenses, or if one of you had significant theft losses. It could be beneficial to seek professional help the first time you file after marriage to prevent overpaying your taxes.

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