Filing of federal income tax returns by businesses and employers can be somewhat difficult. Many people end up paying higher taxes than necessary because of a lack of proper knowledge on how to reduce their taxes during the preparation of the returns. Consumer reports have created a list of tips on how to reduce your personal tax burden. It is critical for businesses to report their tax numbers on a quarterly basis as many have found out after starting a small shop. This helps you to avoid fines when reporting your complete tax returns at year-end.
Taking advantage of tax credits offered by the IRS standards. It is good to know that businesses can be take a specified tax credit limits. Therefore, a business can enjoy this provision, which relieves the business off the burden. This enables you to plan for your future tax returns.
If you are unable to use your credits, you are allowed to carry forward or back. This means that you still have a room for easing your tax problems.
Taking health plans for your employees
Employers and businesses are allowed to access tax deductions as provided by the tax laws. Health plans provided by the employer is subject to deductions, and so it is essential to offer them the best health plans that they qualify for. If you are not an employer, it is good to know that your own contributions, contributions of your spouse and dependants. The understanding behind this tip is that you are allowed to have 100% deductions.
Take charge of your depreciation
According to consumer reports, 2013 taxes laws laws allow businesses to take advantage of the tax deductions on the property and equipment. The provisions allow businesses to enjoy deductions instead of expenses. This means that instead of retaining old assets that result in depreciation as an expense, businesses can purchase new assets to enjoy these benefits.
There is a new system called the IRS Fresh Start Program which aims to make it easier for people to pay back taxes and avoid a lien coming against them. There are three major parts to the IRS program. Tax liens, installment agreements and offers of compromise are the three features of the program.
The program increases the amount a person can owe before the IRS will file a notice of federal tax lien. Even though the IRS can file before the 10,000 limit this does increase it for the average person.
The IRS has also agreed to more installment options. One can file for an installment plan right over the internet. This could increase monthly payments for up to six years. If the agreement needs to be extended for longer than six years, financial hardship would have to be shown to the IRS.
Offers in Compromise are another agreement for taxpayers to be able to pay off debt but at a lesser amount. The IRS is now more flexible in its way to look at the taxpayers ability to pay. Generally the IRS will accept an offer if they feel it is a fair amount for a reasonable amount of time offered.
This new program will hopefully help taxpayers starting with the 2012 taxes. With compromise from both the IRS and the taxpayer all parties can be satisfied. The taxpayers will also feel less likely that they are being targeted and forced to pay amounts that they can never reach.
Intuit Expected To Announce Lackluster Quarterly Earnings
Intuit is preparing to announce its quarterly earnings on May 21. Recently, the company softened its earnings outlook in a note to shareholders. Investors won’t treat the company very well when it announces lackluster earnings. That doesn’t mean Intuit has lost its value for investors, though. These days, the parent company of TurboTax still has room to grow. It’s already planning changes in the coming years, too. Like my favorite local company, Hollier’s Flooring America in Lafayette, Intuit is able to adapt and offer great products every year. And this last year was no different.
Intuit earnings for the previous quarter are likely to take a slight dip. A lower volume of processed tax returns was cited as the cause for the impending dip in revenue. Of course, tax preparation is a huge industry with tons of competition. TurboTax isn’t the only company that offers free and paid returns either. By expanding beyond this industry, Intuit earnings and growth can continue.
Luckily, Intuit is already pushing projects outside of TurboTax. The company wants to appeal to businesses on top of consumers in order to boost Intuit earnings. Payroll services and mobile banking applications are prime targets for Intuit. By moving into these segments, revenue can be boosted with a new segment of customers. Success isn’t guaranteed with this bold moves, though.
Intuit’s quarterly earnings might falter, but the company shouldn’t be counted out yet. Sure, most of its revenue is generated by TurboTax, but the company holds enough resources to branch out elsewhere. Investors should stick with the company while it transitions to other projects. TurboTax will always be its main source of income. In the end, other projects can rake in the money, too.
Many people make wise choices when it comes to filing their taxes, and this annual activity may happen smoothly and without incident. The popularity of Turbo Tax 2013 may help taxpayers benefit more than ever as they prepare to file their income tax returns for 2012. Lindsay Lohan would do well to heed the advice that many individuals follow each tax season, especially since she faces new tax issues about not paying her 2011 taxes. Most people who may owe back taxes are not lucky enough to have a famous and wealthy friend step in on their behalf, but this is exactly what happened for Lindsay Lohan when she received a six-figure check that allowed her to pay off her tax debt for 2009. This may be one of many financial entanglements that Lindsay Lohan may face, but her problems may serve as an example of what not to do and how Turbo Tax 2013 and trusted tax advice may benefit anyone who is dedicated to doing the right thing with their finances.
Over (Lindsay Lohan song) (Photo credit: Wikipedia)
Anyone may hope to keep as much of their earnings as possible each year, and working with tax attorneys, CPAs, or other tax experts associated with Turbo Tax 2013 may help you maximize your refund and still stay in compliance with the Internal Revenue Service. What may separate Lindsay Lohan from other taxpayers may be her apparent cavalier attitude towards legitimate job offers and earnings. Having her bank accounts seized by the IRS may not have had an impact on her behavior up to this point, but you may be the one who feels like a superstar at tax time if you avoid the Lindsay Lohan approach to tax payment.
We are in the midst of the 2013 tax filing season. Every year since 1993; Americans have increasingly used e-filing software to file their tax returns. TurboTax 2013 has perfected the process of contemporary electronic tax filing.
Since the IRS introduced electronic filing in 1990, they have securely processed over 1 billion individually prepared electronic tax returns. The IRS touts e filing for the following benefits —
• The Tax Returns are More Accurate and Complete – TurboTax 2013 does all the math calculating and even compares data from previous year’s filings for consistency. TurboTax is able to determine state taxes where that information is required on a Federal return, you do not need a separate resource for that. You do not have to be an experienced tax filer to use TurboTax2013.
• Secure and Confirmed Delivery of Your Return — TurboTax utilizes state of the art encryption technology for the secure web transport of your tax return. You will receive an email within 48hrs from the IRS confirming receipt of your return.
• Refunds are Processed and Delivered More Quickly — E filed returns that indicate refunds are processed more quickly than paper filed tax returns. TurboTax2013 works seamlessly with your bank and the IRS for faster direct depositing of your refund.
• Ease of Use — There is no simpler, easy to navigate and use tax software than TurboTax2013. TurboTax is intuitive and self-correcting. TurboTax will prepare your Federal and state returns simultaneously, alleviating the need to input the same data on two forms. TurboTax software is written with knowledge of all the divergent state laws and procedures for filing and makes those transparent for the user.
• Peace of Mind — In addition to the 48-hour receipt confirmation by email from the IRS, you will have peace of mind that your e filed return is accurate.
E-files dates for 2013 start with the opening date of January 30. The IRS will begin accepting e filed returns after incorporating all the tax policy and law changes that took effect January 2nd. Some e-file dates are later due to late legislation that requires more extensive system testing and programming. Nevertheless, the IRS is prepared to start accepting electronic returns by January 30th, and will process the biggest volume of e filings by late February-early March. That group includes those who will be claiming energy credits, property credits and other business related tax incentives.
The IRS says that the best option is to file electronically. TurboTax 2013 is the safest, quickest and easiest to use software for e filing. You will be assured to meet the e-file dates and have access to TurboTax’s outstanding customer service and support should you encounter an issue with your return that requires expert assistance. TurboTax is the best selling, most trusted e filing software for a reason, the reason is trust; TurboTax gives its users the assurance of an accurate, securely prepared and delivered tax return.
The Internal Revenue Service of the United States(IRS) made the announcement this past week that the season for filing taxes will not begin until January 30th. They are not going to start any processing of individual tax returns until that date.
The IRS had originally announced January 22nd as the date they would be opening tax filing. The reason for the bump back in the date is the changes in the tax law that congress passed on New Year’s Day. This all had to do with the “fiscal cliff” negotiations between house Republicans and the president.
At the current time, the IRS is finishing their testing and programming of their processing systems while also updating their forms. These updates according to the IRS are going to allow the majority of the tax filers to be able to file their returns beginning January 30. Those who require any more obscure types of forms for issues such as general business credits, depreciation of property or energy credit claims to name a few will find that the updating of the processing systems and forms will probably allow them to file toward the end of February or the beginning of March.
Steven Miller who is currently serving as the acting commissioner of the Internal Revenue Service has gone out of his way to reassure the public that all efforts are being made to get the process up to full speed.
The IRS has also stated that before January 30th even paper returns will not be processed and advises the public that electronic returns do in fact speed the process and make for faster refunds to the public. They also point out that last year the percentage filing electronically surpassed 80%.
The bottom line as Mr. Miller reminds the public is that electronic filing is truly the best choice for the taxpayer to make in terms of getting things done efficiently and quickly.