Author Archives: Peter Samuel

Get up to a 6 month Tax Extension automatically!

It’s inevitable: You’re fairly sure you’re going to have all your tax documentation together, and then something goes wrong. You don’t receive all your tax forms, you’ve misplaced a receipt, or you’re otherwise unable to file your return by the due date.

If you need more time to prepare your federal tax return, you’ll need to file an extension.

To get started, you need the following information:

  1. Your personal details, including your Social Security number, address, and the name and taxpayer ID number of your spouse.
  2. A copy of your 2009 tax return.
  3. A list of tax payments made in 2009.

If your tax situation hasn’t changed since last year, you can use your 2009 tax return to estimate your tax liability. You’ll find your total tax liability from 2009 on line 60 for the form 1040, line 37 for form 1040A, and line 11 for form 1040EZ. Subtract any payments you’ve made throughout the year and report your balance due on line 6 of the extension form. Ideally, if you owe a balance, you’ll pay at least that much along with your extension to avoid a potential penalty.

To prepare and file the extension for your federal income tax return, you’ll need to select a method:

File a paper extension. Most taxpayers are eligible for an automatic 6-month extension of time to file. To get the extension, you must file Form 4868, Application for Automatic Extension of Time To File U.S. Income Tax Return, by April 18, 2011. Assuming you file on time, you’ll be extended through Oct. 15. A longer extension may be granted if you’re living out of the country.

File online. You can apply for an extension by filing form 4868 online through www.ExtensionTax.com an e-file service provider. If you want to make a payment with your online filing, you can pay by electronic funds withdrawal or send a check to the IRS. The extension for time must be filed before the end of day on April 18.

www.ExtensionTax.com is an IRS approved e-file provider who is a BBB accredited business with A+ certification. ExtensionTax.com has a LIVE Support Center available at 1-866-245-3918 or simply write your queries to support@ExtensionTax.com

Points to Keep in Mind When Choosing A Tax Preparer

If you pay someone to prepare your tax return, the IRS urges you to choose that preparer wisely. Taxpayers are legally responsible for what’s on their tax return even if it is prepared by someone else. So, it is important to choose carefully when hiring an individual or firm to prepare your return. Most return preparers are professional, honest and provide excellent service to their clients.

Here are a few points to keep in mind when choosing someone else to prepare your return: Continue reading →

Six Important Facts about Dependents and Exemptions

Some tax rules affect every person who may have to file a federal income tax return – these rules include dependents and exemptions. Here are six important facts the IRS wants you to know about dependents and exemptions that will help you file your 2010 tax return.

  1. Exemptions reduce your taxable income. There are two types of exemptions: personal exemptions and exemptions for dependents. For each exemption you can deduct $3,650 on your 2010 tax return. Continue reading →

Do I have to File a Tax Return?

You must file a federal income tax return if your income is above a certain level; which varies depending on your filing status, age and the type of income you receive.

Check the Individuals section of the IRS website at http://www.irs.gov or consult the instructions for Form 1040, 1040A, or 1040EZ for specific details that may help you determine if you need to file a tax return with the IRS this year. You can also use the Interactive Tax Assistant available on the IRS website to determine if you need to file a tax return. The ITA tool is a tax law resource that takes you through a series of questions and provides you with responses to tax law questions. Continue reading →

Tax Season Starts on Time for Most Taxpayers; Those Affected by Late Tax Breaks Can File in Mid- to Late February

WASHINGTON — Following last week’s tax law changes, the Internal Revenue Service announced today the upcoming tax season will start on time for most people, but taxpayers affected by three recently reinstated deductions need to wait until mid- to late February to file their individual tax returns. In addition, taxpayers who itemize deductions on Form 1040 Schedule A will need to wait until mid- to late February to file as well.

The start of the 2011 filing season will begin in January for the majority of taxpayers. However, last week’s changes in the law mean that the IRS will need to reprogram its processing systems for three provisions that were extended in the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 that became law on Dec. 17.

People claiming any of these three items — involving the state and local sales tax deduction, higher education tuition and fees deduction and educator expenses deduction as well as those taxpayers who itemize deductions on Form 1040 Schedule A — will need to wait to file their tax returns until tax processing systems are ready, which the IRS estimates will be in mid- to late February. Continue reading →