Making Cent$ Of It All » Taxes

IRS – Free Tax Info

mksdon — Thu, 06 Jan 2011 21:54:07 +0000

The Internal Revenue Service has free tax forms and publications on a wide variety of topics.

Due to the continued growth in electronic filing, the availability of free options to taxpayers and efforts to reduce costs; the IRS will no longer be automatically mailing paper tax packages.

If you need IRS forms, here are four easy methods for getting the information you need.

On the Internet You can access forms and publications on the IRS website 24 hours a day, seven days a week, at http://www.irs.gov.
Taxpayer Assistance Centers There are 401 TACs across the country where IRS offers face-to-face assistance to taxpayers, and where taxpayers can pick up many IRS forms and publications. Visit http://www.irs.gov and go to Contact My Local Office on the Individuals page to find a list of TAC locations by state. On the Contact My Local Office page, you can also select TAC Site Search and enter your zip code to find the IRS walk-in office nearest you as well as a list of the services available at specific offices.
At Convenient Locations in Your Community During the tax filing season, many libraries and post offices offer free tax forms to taxpayers. Some libraries also have copies of commonly requested publications. Many large grocery stores, copy centers and office supply stores have forms you can photocopy or print from a CD.
By Mail You can call 1-800-TAX-FORM (800-829-3676) Monday through Friday 7:00 am to 10:00 pm local time – except Alaska and Hawaii which follow Pacific time – to order current year forms, instructions and publications as well as prior year forms and instructions by mail. You will receive your order by mail, usually within 10 days.

2011 Social Security Tax

mksdon — Mon, 03 Jan 2011 15:54:04 +0000

For 2011 Only – A reduction in the Social Security Tax payments:

The Act cuts the 6.2% Social Security tax withholding rate on employee salaries from 6.2% to 4.2%.

This temporary change only affects the first $106,800 of 2011 wages (i.e., wages up to the 2011 Social Security tax ceiling). The maximum savings are $2,136 for unmarried individuals and $4,272 for couples.

The Social Security tax component of the self-employment tax is cut from 12.4% to 10.4% for 2011, so self-employed folks will benefit too.

Delayed filing due to new tax law!

mksdon — Mon, 27 Dec 2010 14:50:36 +0000

It’s important to note: Due to the late passage of the December 2010 tax act,

many taxpayers will not be able to file their tax returns until mid to late February.

In other words since of congress cannot play nice together, the rest of us suffer !

2010 December tax act

mksdon — Wed, 22 Dec 2010 13:14:19 +0000

On December 17, 2010, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 was signed into law.

In addition to providing a 13-month extension of benefits for the long-term unemployed, the legislation includes a long-anticipated extension of the “Bush tax cuts” that were scheduled to expire on January 1, 2011.

We will posting information on some of the changes affecting business and individuals in the weeks ahead.

2011 Mileage Rates

mksdon — Sat, 11 Dec 2010 16:49:13 +0000

The IRS has announced the optional standard mileage rates for 2011 for use in computing the deductible costs of operating a passenger automobile for business, charitable, medical, or moving expense purposes.
Effective January 1 through December 31 of 2011, the standard mileage rates are as follows:

Business use of auto: 51 cents per mile may be deducted (up from 50 cents per mile in 2010) if an auto is used for business purposes.
Charitable use of auto: 14 cents per mile may be deducted (remaining unchanged) if an auto is used to provide services to a charitable organization.
Medical use of auto: 19 cents per mile may be deducted (up from 16.5 cents per mile in 2010) if an auto is used to obtain medical care (or for other deductible medical reasons).
Moving expense deduction: 19 cents per mile may be deducted (up from 16.5 cents per mile in 2010) if an auto is used to effect a work-related move to a new home.

2009 Home Buyer Tax Credit – expect Delays

mksdon — Fri, 22 Jan 2010 01:39:23 +0000

2008 gave us the Home Buyer Tax credit for first time home owners. And you know when a new tax credit comes along, fraud can’t be far behind. Reducing fraud and expanding the Home Buyer Tax credit was part of the Worker, Homeownership, and Business Assistance Act of 2009 back in November. And to support new law, the Internal Revenue Service has just released new form (Form 5405) that eligible homebuyers need to use in order to claim the first-time homebuyer credit this tax season.

Here are some highlights taken from IRS news release regarding the new form:

The IRS expects to start processing 2009 tax returns claiming the homebuyer credit in mid-February.
Early taxpayers claiming the homebuyer credit may see tax refunds take an additional two to three weeks.
New documentation requirements mean that taxpayers claiming the credit cannot file electronically and must file paper returns.
In addition to filling out a Form 5405, all eligible homebuyers must include with their 2009 tax returns one of the following documents in order to receive the credit:
- A copy of the settlement statement showing all parties’ names and signatures, property address, sales price, and date of purchase. Normally, this is the properly executed Form HUD-1, Settlement Statement.
- Mobile home purchasers who are unable to get a settlement statement, a copy of the executed retail sales contract showing all parties’ names and signatures, property address, purchase price and date of purchase.
- Newly constructed home where a settlement statement is not available, a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.
- The new law also allows a long-time resident of the same main home to claim the homebuyer credit if they purchase a new principal residence. Certain qualifications apply.

So the bottom line……….

Make sure you have the required documentation to claim the credit and expect your refund to take 8 – 12 weeks ! ! ! ! Once again the innocent pay for those who seek to commit fraud ! ! !

Invesco Funds Payments

mksdon — Thu, 17 Dec 2009 18:02:38 +0000

Recently checks were mailed to former shareholders of Invesco funds.

If you are an eligible investor, you may have received a distribution payment from a Fair Fund established by the U.S. Securities and Exchange Commission (“SEC”).

INVESTMENTS HELD IN A TAXABLE ACCOUNT

If the amount of this payment exceeds your tax basis in your investment, then the excess is includable in your income as capital gain. Any such capital gain is long-term capital gain, unless you disposed of your investment before holding it for longer than one year.

INVESTMENTS HELD IN IRAS OR TAX-QUALIFIED RETIREMENT PLANS

For Checks Payable to the Custodian but Mailed to the Investor

If you held some or all of your mutual fund shares through an IRA, in most cases the distribution check will have been made payable to your IRA custodian but mailed directly to you. You may choose to forward the check to your custodian with a letter of instruction. You should deposit the check in your IRA account. Caution: If the check is cashed or deposited in any account other than an account eligible to receive the check, it may be subject to a 10% penalty and taxed as ordinary income in the year of receipt.

YOU SHOULD NOT RELY ON THIS AS TAX ADVICE.

CONSULT YOUR TAX ADVISOR WITH RESPECT TO THE SPECIFIC TAX

CONSEQUENCES OF THE DISTRIBUTION PAYMENT, INCLUDING THE

EFFECTS OF U.S. FEDERAL, STATE, LOCAL, AND NON-U.S. TAX RULES

AND THE EFFECT OF POSSIBLE CHANGES IN LAWS.

Additional information was mailed along with the payment and should be reviewed.

2010 IRS Mileage Rates

mksdon — Mon, 14 Dec 2009 02:03:49 +0000

Beginning on Jan. 1, 2010, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

50 cents per mile for business miles driven
16.5 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations

The new rates for business, medical and moving purposes are slightly lower than last year’s. The mileage rates for 2010 reflect generally lower transportation costs compared to a year ago.

Revenue Procedure 2009-54 contains additional details regarding the standard mileage rates.