A Turbotax refund advance is a simple way for you to get the tax refund that is coming your way without the need to wait months for it to come. Putting off your taxes is probably something that you have done in the past. People usually delay their taxes because of the feeling that they can be very difficult and time consuming. When you use this system to do your taxes, you will find that it becomes something that almost anyone can do. The basic design of this system is intended to function like a GPS by guiding you to where you need to go and providing you with all of the information that you need to know. Increasing your tax savings is simple when you have a program that millions of people use to get their taxes done quickly.
Once you use this program to file your taxes for next year, you will be able to take advantage of a Turbotaxrefund advance that can give you the money that you would otherwise be without for a long period of time. The money that you are getting in a refund belongs to you, getting it today means that you will be able to buy more of the things that you love. Finding extra money on a limited budget can be hard, getting an advance can solve your problem.
The end of the United States tax year has been and gone, so it is surprising to some that there are still a large number of celebrities who are believed to still owe the Internal Revenue Service (IRS) a great deal of money. But are the IRS oblivious to this? Are the celebrities in the US entirely under the radar?
Because there is a considerable amount of money still owed at such a late date by celebrities, it may seem easy to jump to the conclusion that the answer is most definitely ‘yes’. However there have been many highly publicized cases of celebrities being singled out for owing large sums of money, usually due to them not taking enough responsibility for their own tax preparation. One such example is former NFL athlete Warren Sapp, who in April of this year filed for bankruptcy due to his past failure to pay tax catching up with him. The bankruptcy documents indicate that Sapp owes $942,000 in taxes to the IRS which date back to 2006, which he is now unable to pay. Cases like this indicate that celebrities are not free to evade the tax they owe to the IRS. However it is extremely hard for celebrities such as Sapp to pay back money that they owe when they do not have any money to give – usually because they are past their heyday and no longer have a steady income.
The IRS have made it extremely clear that celebrities are far from under the radar. Back in 2007 an Issue Management Team was formed with the specific goal of retrieving unpaid income tax returns from athletes and entertainers within the United States. This has coincided with the laws regarding tax and the IRS becoming stricter and stricter. A bill currently going through the US House of Representatives will allow the federal government to revoke passports of US citizens who the IRS can prove owe them taxes. Also actions have been taken against celebrities who still have unpaid tax returns. Wesley Snipes, a well known movie star who is believed to owe the IRS a staggering $17 million in back taxes, and Rapper Ja Rule are both serving prison sentences due to unpaid taxes.
Unpaid tax returns are of high public concern due to the importance of tax money to the US treasury. Taxes provide income to all levels of government in order for them to be able to provide vital services. Examples of the services they provide are things such as highways, police and hospitals, which benefit all citizens in the US. Without this income, such public services suffer greatly. The problem with celebrities not paying tax is that there is a public perception that they have a great deal of disposable income, so by not paying tax they are portrayed in the media as immensely greedy.
However there are other reasons that celebrities may not pay their income tax, which all need to be considered. One issue is that celebrities tend to have a hard time keeping on top of their finances. This is because unlike the average American citizen who gets paid either weekly or monthly, celebrities tend to get paid in lump sums and often to have to manage this income throughout the year. Because of this issue celebrities often hire financial advisers, but if non-reputable firms or individuals are hired, the trust may not pay off and their finances may become increasingly complex. Actors Nicolas Cage and Wesley Snipes both laid the blame for their financial troubles upon the financial experts they hired.
Another issues is that unlike the average American employee, taxes are not automatically deducted from their wages. This means that the payment of income tax may be delayed, which is when the problems begin to arise. Many years of unpaid tax eventually add up to an incredibly large bill, which the celebrity may not be able to ever repay. To solve this problem, many have suggested that the IRS should put more pressure on celebrities to ensure that they file their income tax returns at the end of each tax year. Another issue of note is to ensure that celebrities hire reputable firms to deal with their finances and any ensuing legal issues, instead of relying on people who they know without the relevant expertise.
Celebrities are far from under the radar of the IRS, but certain situations such as bankruptcy resulting from delayed payment may give this impression. Celebrities status often makes it impossible to avoid issues to do with tax due to the constant media attention which they receive. Before jumping to a hasty conclusion about celebrity greed and their tax evasion, the differences between public and celebrity taxes have to be considered and understood.
Taking Control of Your Back Taxes If you haven’t paid your taxes yet. It’s still not too late to turn them in; however, there are several important steps to take to ensure that all goes well for you on your taxes.
1) Pull out and Examine your Last Tax Return
First, bring to your table a copy of your last tax return. Then, bring together W-2s and other documents that you need in order to file. If you need any tax documents to file, you can get the documents you need from the Internal Revenue Service and these documents are free. Then, you need to prepare your tax returns or seek help from an attorney or other tax professional. A professional tax preparer can help you gather and complete the tax paperwork. In addition, a professional tax preparer can give you advice and counsel on how to prepare taxes that are late.
2) Be Aware of Audits, Refunds and Debt Collection
Keep in mind that, when you prepare late tax returns, you need to follow certain time limits for audits, refunds and debt collection. It will be important to find out how long it will take to receive refund checks because, if you any money on previous tax debts, you will need to know how much your refund checks will be to pay them off.
Individuals that pay alimony (also known as “spousal support” or “spousal maintenance”) to a former spouse can deduct these payments on their personal federal income tax returns. In turn, the alimony recipient is required to claim the payments as income.
Before a payor takes an alimony deduction they should make sure that their payments meet the IRS qualifications for alimony. Ideally, this was addressed and discussed in detail with their divorce attorney to ensure that the alimony was structured in a way that would allow a deduction. If you are not sure whether your payments are deductible you should consult with a family law or tax attorney. Here are some tips regarding what does and does not meet the general requirements for payments to qualify as alimony under the Internal Revenue Code.
Alimony is Formally Mandated
According to the IRS, alimony payments must be mandated by a legal settlement agreement or court order to qualify for the tax deduction. This means that there must be a legally binding agreement, such as a temporary support order, separation agreement or divorce decree, that describes and mandates the support provided by one spouse to the other. The IRS does not consider voluntary, informal payments of money to a spouse or former spouse to be alimony.
Child Support Is Not Alimony
Child support is not alimony and those who pay child support cannot deduct these payments from their income. Under federal tax laws, child support is not tax deductible by the parent who pays it, and does notneed to be reported as taxable income by the parent who receives the payments.
Cash Payments Only
Non-cash property transfers don’t count as alimony and cannot be deducted from one’s taxable income. Alimony must be paid in cash, or by check or money order, in order to satisfy the statutory requirements.
Third Party Payments
In some cases, court-ordered payments to third parties can be considered alimony and are therefore tax deductible. Examples of this include rent or medical expense payments. In addition, payments made on taxes, mortgages or insurance may also be entirely or partially tax deductible if treated as alimony under a divorce or separation agreement.
Complications Can Arise if You Still Live With Your Ex-Spouse
According to the IRS, a person who is legally separated from his or her spouse, yet still lives in the same home with him or her cannot normally claim a tax deduction on alimony payments. An exception to this rule exists when one spouse leaves the home within one month after receiving an alimony payment. In those states that recognize legal separation, those who are still living with their former spouse and have a legally binding support agreement but are not legally separated, should talk to their attorney or tax adviser to find out whether their payments qualify for a deduction.
About the Author
Scott Morgan is a board certified Austin divorce lawyer who regularly blogs on the subject of divorce and family law. You can read his blog at AustinDivorceSpecialist.com.
There are many tax breaks that get overlooked, but homeowners often overlook the most obvious deductions. The truth is, as a homeowner, you stand to save hundreds if not thousands off your taxes. However, it all boils down to knowing what you qualify for. The following are just some of the tax breaks homeowners may be missing out on.
The interest you pay on your mortgage should be one the first tax breaks you take advantage of. Those filing single can deduct mortgage interest on homes up to $500,000 ($1 million for married couples). This will require a bit more work because you will need to itemize your deductions, which means you should see an accountant.
Sometimes people are required to pay points on their mortgage to get better rates on their loan. These points may offer a tax break if they meet certain requirements. First of all, points must be allowed in the area where the home was purchased. Second, the mortgage must be for a home that is being bought or built as a main residence. The deduction must also be taken the year the loan to buy a home was obtained and the points cannot be out of the normal range.
Each year, for as long as you own your home, you can deduct the amount of your property taxes. With most loans these taxes make up a percentage of your monthly payment and are set aside to be paid once a year. You will receive information on the cost of these taxes when you receive information about the interest from the lender.
The Mortgage Forgiveness Act extends through 2012 and allows those that fell into foreclosure the ability to not pay taxes on the forgiven amount. In most cases, forgiven debt is taxed as income. Those that restructured their loan also qualify. The amount forgiven is up to $2 million for married couples and $1 million for single homeowners.
Tax-Free Capital Gains
A capital gain occurs when something is sold for a profit. With most capital gains, the seller is taxed on the amount gained. However, with residential real estate, the homeowner may qualify for a tax break on the first $250,000 ($500,000 if married) of the gain.
Energy Saving Improvements
Last, but certainly not least, homeowners making improvements to their property, in order to have a more energy efficient home, can also take advantage of tax breaks. There are a number of items that qualify ranging from windows to roofing and you may be able to deduct up to 30% of the costs from your taxes up to $1500.
As a homeowner, it pays to take advantage of these tax breaks. While this may mean getting the assistance of a professional accountant, it also means saving hundreds, if not thousands, of dollars.
About the Author: Dennis Allenbaugh is a mortgage specialist who loves seeing people benefit from homeownership each year. He recommends sites like Home Loans Australia and others to those looking to qualify for a home loan. Now’s the time to start thinking about purchasing a home.
Filing taxes can be a frustrating experience. Hiring a professional for tax filing is not an option for some people. It is easy to file your own taxes with TurboTax. In fact, it is possible to file right from an iPhone.
Since many people use their smart phones to do virtually everything, tax filing should not be left out. That is why TurboTax has a app for easy filing. It is as easy as snapping pictures of required documents and the app turns them into proper forms.
There is a small charge for electronic tax filing. If the taxpayer falls below a specified income they may not have to pay a fee at all to file. Even so, filing electronically is a quick way to file. If money is owed to the taxpayer it can direct deposited right into their account. If there are no problems, the money can be in the bank in less than two weeks.
The entire process of electronic tax filing and TurboTax in particular is completely safe. Some people worry about the privacy of their documents when filing electronically, but the information sent is safe and kept confidential. Errors are also minimal with electronic filing. There is actually a greater chance for errors when filing a paper return.
Many people are switching to electronic filing over the older paper way of filing. It is more convienent, quicker and easier than traditional paper filing. TurboTax is an inexpensive way to file on-line. Try out the program and take the stress out of tax filing this year.