SavvySugar

4 New Tax Deductions and Credits For a Bigger Refund

SavvySugar — Tue, 02 Mar 2010 06:00:43 -0800

As a lovely, law-abiding citizen, you pay your taxes. But as someone who's savvy, you certainly don't want to part with more money than is necessary. There are a handful of new tax deductions and credits that have been introduced to give you a bigger refund (which the government hopes you'll use to stimulate the economy). Find out four ways to pocket more of your money this tax season.

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Tax Season Don'ts

SavvySugar — Mon, 08 Feb 2010 08:00:00 -0800

A fifth season exists, and it's one that isn't defined by the weather. Tax season has arrived and will hang around until April 15, the deadline for filing your 2009 income tax return. It doesn't have to be complicated. Keep these six don'ts in mind as you prepare and file your taxes to make this season as seamless as possible.

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Are You Doing Your Own Taxes or Hiring Someone Else?

SavvySugar — Mon, 25 Jan 2010 14:45:16 -0800

I haven't sat down with my tax man yet, but our official date is approaching. I consider myself a tax smart gal - I'm SavvySugar, after all - but when it comes to getting my financial business finished I turn to a professional. He's the keeper of great advice (for example, last year he suggested taking pictures of donations) and he knows the nitty-gritty details that I don't. Of course, I know millions of Americans prepare their taxes alone, or with the help of online services and do just fine. What's your plan for this year?

How Many W-2 Forms Do You Have For 2009 Taxes?

SavvySugar — Sun, 24 Jan 2010 04:00:49 -0800

Many of us have taken on second (or third) jobs as the economy has worsened, which means multiple employers were responsible for reporting your taxes. How many W-2 forms do you need to file your tax return this year?

Tax Tip For Married Couples

SavvySugar — Thu, 21 Jan 2010 06:00:23 -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.

Tax Tip: Set a Date With Your Taxes

SavvySugar — Mon, 18 Jan 2010 12:00:02 -0800

Procrastinating is an art for many, and even more people assume the skill when it's time for filing our tax returns. Completing tax returns is tedious and can be time-consuming - it's not exactly the way I want to spend my precious free time.

Set a date with your taxes to prevent the April 14 panic. I can't promise it will be painless, but you will be productive during your tax appointment. I prefer to schedule my tax time during the weekend to avoid a time crunch and the frustration that follows. When is your tax date?

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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