In the wake of the tragic bombings that occurred in Boston on Monday, April 15, the IRS announced today a three-month tax filing and payment extension to provide relief to Boston-area taxpayers and others affected by Monday’s explosions.

The relief will give eligible taxpayers until July 15, 2013 to file their 2012 tax returns and pay taxes that were due on April 15th without incurring filing and payment penalties.  Interest penalties, however, will still apply to any payments made after the April 15 tax deadline.

Who is Eligible for Relief?

The relief applies to individual taxpayers who live in Suffolk County, Massachusetts, including the city of Boston.  In addition, victims, their families, first responders, taxpayers whose tax preparers were affected, and individuals living outside Suffolk County who were impacted will be eligible for relief.

How Do You Get an Extension?

If you live in Suffolk County, the IRS will automatically provide you an extension and no further action is necessary.  If you live outside Suffolk County, you can call the IRS beginning Tuesday, April 23 at 1-866-562-5227 to claim relief.

If eligible, you may also receive an additional extension, to October 15, as long as you file extension Form 4868 by July 15, 2013.

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1.  Go Online or Use TurboTax SnapTax to File

Using TurboTax online or SnapTax will make your life easy.  You don’t need to know the tax code.  TurboTax ask you simple questions related to your tax situation, puts your information on the correct tax forms, and gives you the tax deductions and credits you’re entitled to so that you can keep more of your hard-earned money.  You can also use TurboTax SnapTax from your mobile device to conveniently and accurately file your tax return in minutes.

2.  Don’t Miss Out On Filing and Your Money

The tax deadline is just a few weeks away so make sure you don’t miss out on filing your taxes.  Some new filers may end up thinking they don’t make enough money to file taxes, but if you had federal taxes taken out of your paycheck or are entitled to credits like education credits, or the Earned Income Tax Credit you may be missing out on a tax refund by not filing.

3.  Make Sure You Have All of Your Paperwork

I would say the most common problem I’ve heard people have while filing their taxes is that it’s hard to keep track of all of their documents. As the paperwork comes in, please have a folder or a tray ready to keep them safe until you decide to file.

Using tax software like TurboTax can help you get that information accurately submitted in a timely manner.

One note about tip income earned on the job. If you receive tips at your job, please make sure that you report that income when filing your taxes. Keeping a daily log of your tips as they come in can take away the headache of trying to remember everything that you receive. If you keep your employer in the loop, that information should be reflected in your W-2.

4.  If You Have Questions Talk to a TurboTax Tax Expert

If you are preparing your tax return and you have a tax question don’t hesitate to talk to a TurboTax tax expert who is a CPA, IRS enrolled agent, or tax attorney.  You can ask your tax questions for free.

Thoughts on Filing Taxes for the First Time

How many of you are getting your taxes filed for the first time? What is your biggest worry? Are you expecting a refund or do you think you owe money?

If you’re nervous about filing on time or worried about getting your taxes done right, there’s no need to worry.  I have a few tips to make this year’s filing easier on you.

Go Online and E-File

In my opinion e-filing has made getting taxes submitted easier and receiving my refund a bit faster. E-file with direct deposit is the fastest way to receive you tax refund.  The IRS estimates that 9 out of 10 tax refunds will be processed within 21 days.

Submitting tax returns through the mail can be time consuming and paper filed tax returns that are not e-filed are proned to mathematical errors and missed tax deductions and credits.

When you file your taxes with tax software like TurboTax you don’t need to know the tax code.  TurboTax will ask you simple questions so you get all of the tax deductions and credits you’re entitled to so you keep more of your hard-earned money.

Best of all, you may be able to file your federal tax return Free and save more money.

Have a Tax Question? Get Free Help

If you have tax questions don’t worry.  Only TurboTax lets you talk to tax experts who are CPAs, IRS Enrolled Agents, and tax attorneys while you prepare your tax return, free.

TurboTax’s blog is another great free resource that you can use to find tax tips and frequently asked tax related questions answered.

Prepare for Next Year

Though 2013 is still in its first quarter, now is a great time to get your system set up for when you file next time. If you haven’t gotten a smooth system for gathering your financial paperwork, consider using online options like to scan, save, and file these important documents for when you’ll need them.

I’d love to hear from you about how you manage your taxes. What do you do to simplify getting your taxes handled? If you’ve been stressed before, how did you cope? What tips do you want to share with others?

TurboTax CPA Select connects you online to a qualified CPA without having to leave the comfort of your home. Intuit TurboTax has long been the leader in do-it-yourself online tax preparation, now, we’re offering a ‘do-it-for-me’ solution for individuals and small business owners who want a credentialed and highly qualified CPA to prepare their return.

Have a CPA prepare your return in just three easy steps:
1.       Go online to Intuit TurboTax CPA Select to find and choose a qualified CPA. Choose from a national network of CPAs, based on background information and experience, as well as user-submitted reviews and feedback. All of the CPAs are qualified and pre-screened.
2.       Agree on clear, upfront pricing. Receive an estimate of how much the preparation of your taxes will cost and choose to accept or reject the offer, and/or receive a full breakdown of charges.
3.       Securely upload tax documents anytime, from anywhere. Easily upload your prior year return along with any documents for the current year’s taxes – 1099s, W2s, etc – and the CPA will begin working on your tax return.

With TurboTax CPA Select, you can be located anywhere in the country and collaborate with the CPA doing your taxes using a secure online connection, with options to also connect via phone, video, text or email. TurboTax CPA Select offers convenience with guaranteed satisfaction and your maximum refund possible from a state-certified CPA, with fixed pricing that does not change.

TurboTax offers a wide range of tax preparation services to meet your needs. No matter what you choose, our experts are by your side, every step of the way so you can be confident you’re getting every penny you deserve.

You may have questions about your parents still claiming you as a dependent, making the required amount of money to file, or knowing about potential tax deductions.

When you’re in the zone between a child and a full-blown adult, it’s good to have some guidance about taxes. Take a look at theses 5 tax tips for students to make sure you’ve got your bases covered.

1.  Go Ahead and File

Ok, so this piece of advice might be on every other list out there, but it’s important enough to repeat here. No matter how much money you made, even if you think it’s not enough to be required to file a tax return, go ahead and file.

If you received a paycheck at all in 2012, even working part time, you probably had taxes taken out. Even if you didn’t make enough money to be “required” to file, you should still file so you don’t miss out on your tax refund. Not to mention, it’s good practice for the future. Face it, you’re approaching the time in your life where you are going to be responsible for yourself.

2.  What’s Your Dependency Status?

Being claimed as a dependent is one of those grey areas for a college student. Should your parents continue to claim you as a dependent, or should you file a tax return yourself?

Sure you might get a bigger tax refund if you take your personal exemption, but that amount may be a small fraction of the amount of tax breaks your parents would receive if they claim you as a dependent for one more year.

One of the great things about software like Turbo Tax is that you can get an estimate without having to pay for it.

3.  Become an Expert at Tax Deductions and Credits

You’re in school, you go to class, and you know what it takes to study and be successful. Why not apply those comprehensive study habits to your tax situation?

As you prepare your taxes by answering simple questions using TurboTax, you will learn what tax deductions and credits you’re eligible for.  You may be able to claim the American Opportunity Credit as long as your parents don’t claim you as a dependent.  This may entitle you to a credit worth up to $2,500

4.  Tax Return Rough Draft

Using an outline and writing a rough draft should be pretty common occurrences for college students. It would be smart and inexpensive to apply those same tactics to your tax return. Instead of flying through the tax process, take some time to iron out the kinks and keep more of your hard-earned money.

You could practice with tax software. You can try TurboTax and let it easily guide you through the process and get an estimate before you file.  It’s free to practice filing your tax return and it’s free to see which tax credits and deductions you’re eligible for.  When your ready to file your taxes, as a student, chances are high that you qualify for the Federal Free Edition; meaning you don’t have to pay to file your federal tax return.

5.  Stop the Insanity

And by insanity, I mean stop procrastinating. No matter what your work ethic looks like at college, don’t let procrastination sneak into your tax life.

Instead of waiting until the last minute to file your tax return, you should start early, stay informed, be prepared, and hammer this thing out. And whatever you do, try give yourself three to four weeks before the tax deadline instead of three to four hours.  If you do wait, you can still file with TurboTax up until the last hour on April 15th.

You can also conveniently file your taxes from your mobile device using SnapTax.  With a quick snap of your W-2 you could file in minutes.

If you have questions, you can talk to TurboTax tax experts who are CPAs, IRS enrolled agents, and tax attorneys while you prepare your taxes.

There are many determining factors that enter into the equation when making the decision about filing a tax return. Such items as filing status, income level, age, and whether or not someone claims you as a dependent play an important role in filing taxes.

Minimums to File

A good rule of thumb to follow when approaching the task of filing taxes is this: When in doubt, go ahead and file.

An important fact to know is that dependents are not always exempt from filing income tax returns. If you happen to be under 65 years old and another person is claiming you as a dependent on their individual tax return, you must also file your own tax return if you have $950 in unearned income or $5,950 of earned income.  Unearned income includes taxable interest and dividends. Earned income includes wages, tips, self-employment, taxable scholarship and fellowship grants.

Special Circumstances

The situations that follow require you to submit a tax return no matter what your income happens to be.

• If you are receiving distributions from a Health Savings Account or a Medical Savings Account.
• If you owe Social Security and Medicare taxes on unreported income from tips.
• Alternative Minimum Tax – if this tax is owed, you must submit a return.
• Retirement Plan and Health Savings Account – if you owe additional taxes on either of these accounts, you must file a return.
• Self-Employment – you have to file if you have earned more than $400 (net).

Not Required, But You Should File to Get a Refund

Yes, there are people who do not meet the minimum requirements, but still find a reason to file. Sound odd? Take a look at some of the circumstances that might give you the rationale to file your tax return…despite not being required to do so.

• If federal taxes were taken out of your paycheck, you can only get a tax refund if you file an income tax return.
• If you happen to qualify for the Earned Income Tax Credit, you must file a return to get your refund.
• You must file a return to receive the Additional Child Tax Credit, if you have children (obviously).
• If you adopted a child in the previous year, you need to file a return to receive the Adoption Tax Credit.

Remember, when in doubt, go ahead and file a tax return. Turbo Tax offers a Federal Free Edition of their tax software. It won’t cost you a thing to get started, and the software will help you easily prepare your taxes and help you keep more of your hard-earned money.  Have questions?  Only TurboTax lets you speak to CPAs, IRS enrolled agents, and tax attorneys while you prepare your tax return, free.

In most cases, refunds go unclaimed because taxpayers who don’t make a lot of money and may not meet the IRS requirement to file a tax return are actually entitled to a tax refund, but since they never file a return, they can’t claim that money. Another tax break that taxpayers miss is the Earned Income Tax Credit, or EITC. This is a tax credit, not deduction, that’s available to many lower-income taxpayers, and this credit often goes unclaimed.

If this sounds like you, it’s time to get to work so can you claim what’s rightfully yours this tax season and even for previous tax seasons. One thing to keep in mind is the IRS places just a three year window on claiming these past refunds. After that time elapses, the money goes to the U.S. Treasury. You’ll also want to note that if you want to claim a refund from two or three years ago, you’ll likely need to make sure all subsequent year tax returns have been filed in order for the funds to be released.

Unfortunately, if you’re thinking about claiming a potential refund that may be a few years old, that can be troublesome if you haven’t kept good records. As you know, preparing a tax return takes a little time and usually requires some documentation that records your income and taxes paid throughout the year, so coming up with W-2 and 1099 forms a few years after the fact may be an issue.

This is why it’s important to keep all tax-related documents in a safe place for at least 3-7 years. So, check your file cabinets and dig through the box of papers in the closet to see if you can come up with what you need. If you can’t, the next step would be to contact your employer at the time in question and request copies of the forms. If these efforts are unsuccessful, you can get a free transcript showing information from these year-end documents by ordering it on IRS.gov, filing Form 4506-T, or by calling 800-908-9946.

Keep in mind, the average unclaimed tax refund is over $600. So, think about your situation and decide if doing a little legwork to track down documentation and filing old tax returns is worth it.  Also, don’t miss out on your tax refund for the present tax year.  TurboTax can help you easily file your taxes for this tax year as well as previous tax years.

Fortunately I never had to go through that experience. There are so many advantages to using tax software that I couldn’t possibly name them all. I will, however, name the three biggest reasons why I’ve never been tempted to do my taxes by hand.

With Tax Software No Need to Know the Tax Code

The number one reason why I think tax software is incredible is you don’t have to know the tax code. The software does it for you by asking you simple questions that you can answer. TurboTax walks you through the appropriate questions related to your tax situation and makes sure you don’t miss tax deductions or credits that you’re eligible for.

Tax Software Can Be Updated

This is especially valuable this year because of the fiscal cliff resolution that was passed earlier in the year. If you paper file, your printed forms may be outdated and while the IRS will still accept it, it might be confusing if you review them later on in the year or, should you need to, years in the future.  Tax software like TurboTax is updated with the latest tax laws.

Tax Software Can Collect Tax Information

My favorite feature in tax preparation software is the ability to pull in tax data from outside sources like payroll processors. Instead of having to type in all the data from your W-2, you can download it from a processor like ADP and save yourself time and headache, in case you enter in the wrong numbers.

Software, especially tax software, has really simplified our lives and reduced the potential headaches. If you have been doing them by hand, consider software.

TurboTax is up to date with all tax law changes, so you can file today and feel confident that your will get every tax deduction and credit you deserve.  And remember, if you have any questions, only TurboTax lets you talk to CPAs, enrolled agents and tax attorneys as often as you like while you prepare your return, free.

Even if you plan on filing a simple return with the standard deductions, preparing and organizing will help streamline your tax process.

No, it’s not a case of “easier said than done”. All you need is to follow these four simple and effective tips and ideas to help streamline your tax-season preparation.

1.  Where to Begin

One of the most prominent reasons Americans drag their feet when taxes are on the horizon is that they feel overwhelmed because they have no idea where to begin the organization process. When in doubt, make a list.

To begin your tax organization and preparation efforts, draw up a list of documents and papers you might need. The best way to start your list is by reading through your tax returns from the previous years, taking into account how you filed, which deductions you took, and which documents were necessary in those previous years.

Once you have your list and begin collecting your necessary documents, make sure to arrange them by category. It will be less confusing if you keep all of your deduction paperwork, like the interest on your mortgage and your property taxes, separate from your income, exemptions, and credit documents.

2.  Sort Out the Past

There’s nothing worse than filling out your tax forms with last year’s paperwork. But you would be surprised at how many Americans forget to remove their old files, receipts, and bills.

Yes you should keep all of your paperwork together, but you should categorize each tax return (and the supporting documents and receipts) by year. If you keep your past returns, that’s good. If you keep all of your past returns together in one big box with just a few paperclips and sideways layering, that’s not so good.

Before you get too involved in this year’s taxes, take the time to organize your past returns into separate folders labeled by the year. Make sure that none of last years papers, bills, or receipts find their way into the folder for your current tax year.

It’s also a good idea to make electronic copies of all of your tax returns and supporting documents, past and present.

3.  Everything Has a Space

Now that you’ve created a list of the documents that you’ll need based on previous tax returns, and categorized those previous returns by year, it’s time to create a space to sort your tax documents for the current year.

The best way to plan ahead and organize your paperwork is to create a filing system that you’re comfortable with (and that will keep things in order). If you’re comfortable with filing your paperwork in a shoe box, you might want to run down to the store and pick up an accordion folder.

Make it part of your shopping list to purchase a new filing container so you can get an organized start on your taxes. Clearly mark each category and store your filing system in a place where it’s easily accessible. After all, if you can’t get to your tax folders, you won’t sort your paperwork.

Again, it’s a good idea to make an electric copy of each document as you categorize.

4.  Be Vigilant

It’s easy to fall into the procrastination trap. After all, the tax deadline always seems so far away. But, as we all know, it may seem like a long way off, but April comes fast.

Don’t give up on organization, preparation, and control over your own taxes. In the end, you’ll appreciate the work and effort you’ve put forth.

En Español

Tax filing season officially began on January 30, 2013 when the IRS began to accept e-filed individual tax returns. The deadline for filing your taxes is still Monday, April 15.

This year’s tax season started a little later than usual since the IRS was reviewing changes to the tax code stemming from the fiscal cliff legislation, according to an IRS spokesman.

Since no one deserves more money in their pocket than you, it’s important not to wait until the last minute to prepare your taxes so you can get the tax refund you deserve. In fact, TurboTax is up to date and currently accepting individual e-files.

Here are five things you can do to get ready to file your taxes now:

1.  If you still haven’t done so, organize your deductible expenses from 2012 that can help lower the amount you    owe. A good place to start is to remember all of your visits to the doctor or dentist – as well as your dependents’ (i.e., children and elderly parents) – and associated costs. Look for the receipts or invoices that you received for these medical and dental treatments.

2.  The payments you made against the interest on your home mortgage are also deductible. Look out for a letter from your bank or a 1098 form detailing how much interest you paid in 2012. For example, if a family had a household income of $60,000 in 2012 and paid $11,000 in interest on their mortgage, the income on which their taxes will be based will be $49,000. You could then apply additional deductions (like the Dependent Care Deduction, donations and others) on this lower income, ultimately lowering the taxes you owe.

3.  Your donations and contributions to non-profit organizations are also deductible. Donations to your church, and even clothes and toys that you donated to Goodwill or the Salvation Army can help lower your taxes. For this, it’s important to keep receipts for your donations to recognized organizations and assign a real value to the items you donate. TurboTax ItsDeductible can help you correctly value your items at fair market value per IRS requirements.

4.  Determine which deductions and credits you could qualify for based on who your dependents are and how much you invested in them in 2012. For example:

a.  In 2013, we’ll continue to enjoy the benefits of the Child Tax Credit, which can give you up to $1,000 back  for each eligible child. This will lower the final amount of your income susceptible to taxes.

b.  The Earned Income Tax Credit (EITC) continues to be expanded this year to families in the lower income brackets.  This tax credit can be worth a credit up to $5,891.

c.  An education credit called the American Opportunity Credit was also extended, allowing eligible taxpayers to get a credit of up to $2,500 for costs associated with college education.

5.  If you work from home, keep in mind that you might be able to deduct costs associated with it, such as rent, phone and internet services, among others.

The average tax refund was $2,700 in 2012, which is equivalent to three months’ worth of grocery expenses for a family of four! So make sure to take the time to gather all of the documents associated with your expenses and income in one place and take advantage of the tax credits and deductions available to you this year.

TurboTax will guide you step-by-step through all of the tax deductions and credits you’re eligible for.  If you have a question, TurboTax has tax experts who are CPAs, IRS enrolled agents, and tax attorneys available year round to answer your questions for FREE.

To help motivate and educate you on your journey to the reward of filing your taxes, I’ve laid out some strategic tips and tactics that will take you from overwhelmed to empowered.

Never Give Up, Never Surrender

The best advice to offer you is this:  Taxes can sound scary, but persevere and give it a shot. Reading this article proves that you want to learn, so great job!

If you fall into the category of a “new tax filer”, chances are good that you have a simple tax situation (1040EZ/A), which just so happens to be easy and free! If you’re not sure which tax form you quality for, you can start out in TurboTax Free Edition.  Answer a few initial questions and in a few seconds TurboTax will tell you if you’re in the right place, or if you need a different product.

Help Along the Way

If you hit a speed bump along the tax highway, don’t pull over and give up on your trek. One of the benefits to using TurboTax is the abundance of assistance offered to each and every customer. If you do happen to get stuck, you can talk to an experienced TurboTax tax expert either by chatting on the website (directly on the screen where you’re stuck) or on the phone, free.  All TurboTax tax experts are CPAs, Enrolled Agents and Tax Attorneys, so you know you are getting quality answers.

Stay Organized

Although you should be very careful to organize all of the tax information and documentation you receive leading up to April 15, good organization starts early, even at the beginning of the new year.

Make sure you keep all of your important documents related to income and expenses.

Keep them in a safe and secure place. Once you begin filing your taxes, continue to keep everything tax-related and income-related together for safe and easy access.

How Much of My Income Gets Taxed?

Now that you’ve found about your tax situation, you need to know what and how much of your income is taxable.

Here’s just a sampling of what the IRS can tax:

• Pay from your job, whether you earn a salary or hourly rate, including any tips you receive.
• Sick pay from your job, company bonuses, or severance pay.
• Unemployment benefits.
• Interest from bank accounts and dividends from investments.
• Gambling and lottery winnings.
• Withdrawals from IRAs and annuities.

Deductions: Should You Itemize or Take the Standard Deduction

When you start filing your taxes, you’ll soon come to realize that your new best friend is the deduction. A deduction is basically an expense that you’ve had in the past year to which the IRS has given permission to be subtracted from your overall income total.

In other words, the cost of something you had to pay for can be subtracted (or deducted) from your taxable income. Since the expense was subtracted from your income, you’ll likely owe a little less. See, I told you – new best friend.

There are two basic categories of deductions: standard and itemized.

The standard deduction is exactly that – its standard, the same for everyone across the board, depending of course on your marital status and how you’re filing.

And guess what, TurboTax walks you through this entire process with simple questions to answer and will tell which one will help you keep more of your money.

US tax law is exhaustive. But you don’t necessarily have to be a tax professional to file your own taxes. Follow these tips, continue to educate yourself, and you’ll soon be on your way to tax filing success.

La temporada de impuestos comenzó oficialmente el 30 de enero del 2013, día en que el Servicio de Impuestos Internos (IRS) empezó a aceptar las declaraciones de impuestos electrónicas para reembolsos individuales. Tienes hasta el lunes, 15 de abril para declarar tus impuestos del 2012.

Este año la temporada de impuestos inició un poco más tarde de lo normal, ya que el IRS estaba revisando los cambios a la ley tributaria provenientes de la legislación del abismo fiscal, según dijo un vocero del IRS.

Ya que nadie más que tú merece tener tu dinero, es muy importante que no esperes hasta el último momento para preparar tus impuestos, y así poder obtener el rembolso que te corresponde. De hecho, TurboTax ya está aceptando declaraciones individuales.

Empieza con tu declaración de impuestos hoy mismo, siguiendo estas cinco recomendaciones:

1.   Si aún no lo has hecho, organiza tus gastos deducibles del 2012 que pueden ayudarte a reducir el monto final que debes.  Empieza por recordar todas tus visitas al médico o al dentista, así como las de tus dependientes (ej. hijos o padres), y los costos que representaron.

2.  Los pagos por intereses de tu hipoteca también son deducibles. El banco te enviará una carta o el formulario 1098 detallando los intereses que pagaste en el 2012. Por ejemplo, si tu familia tuvo ingresos de $60,000 dólares en el 2012 y pagó $11,000 dólares en intereses de hipoteca, el ingreso sobre el que se determinarán sus impuestos sería de $49,000 dólares. Además podrías aplicar a otras deducciones sobre este ingreso menor, tales como la deducción por el Cuidado del Dependiente, donaciones y entre otras, disminuyendo la cantidad final de impuestos que debes.

3.  Tus contribuciones y donaciones a fundaciones sin fines de lucro también cuentan. Las donaciones que hiciste a tu iglesia, la ropa y los juguetes que donaste a Goodwill o al Ejército de Salvación, pueden ayudarte a disminuir tus impuestos. Es clave tener los recibos de tus donaciones  a entidades reconocidas y asignarle un valor real a lo que donaste. TurboTax ItsDeductible puede ayudarte a calcular el valor correcto de cada objeto de acuerdo a los requerimientos del IRS.

4.  Determina cuales son las deducciones y créditos a los que podrías calificar, de acuerdo a tus dependientes y cuanto invertiste en ellos en el 2012. Por ejemplo:

a.  En el 2013 seguiremos disfrutando de los beneficios del Crédito Tributario por Hijos,  el cual podría valer hasta $1,000 dólares por cada hijo. Esto reducirá tus ingresos sujetos a impuestos.

b.  Este año, el Crédito por Ingreso de Trabajo (EITC) siguió siendo extendido a familias de pocos ingresos. Este crédito puede valer hasta $5,891 dólares

c.  También fue extendido el Crédito de la Oportunidad Americana, para que los contribuyentes elegibles puedan obtener un crédito de hasta $2,500 dólares por gastos relacionados a la universidad.

5.  Si tienes una oficina en casa, ten en cuenta que podrías deducir una parte de los gastos de esta como la renta, el teléfono e internet, entre otros.

En el 2012, el promedio de devolución de impuestos fue de $2,700 dólares, ¡que es el equivalente a tres meses de compras de supermercado para una familia de cuatro! Así que date un tiempo para reunir todos los documentos relacionados con tus gastos e ingresos en un solo lugar y toma ventaja de los créditos y deducciones disponibles para ti este año.

TurboTax te guía paso por paso a través de todos los créditos y deducciones a los que podrías ser elegible. Si tienes preguntas, TurboTax tiene entre sus expertos a Contadores Públicos Certificados (CPAs), agentes registrados del Servicio de Impuestos Internos (IRS) y abogados tributarios que están disponibles para responder a tus preguntas durante todo el año SIN NINGÚN COSTO ALGUNO.

Jaime Mejia es graduado de periodismo de la Universidad Central de Bogotá en Colombia. También cuenta con una Maestría en economía de la Universidad Javeriana en Bogotá y un MBA de la Universidad del Sur de California en Los Ángeles. Su pasión es el periodismo de negocios, economía y finanzas personales. Vive en Estados Unidos desde 2000. Es periodista free-lance y tabaja como columnista de finanzas personales para el HuffPost Voces y para la Associated Press. Puedes leer más de sus artículos a través de http://voces.huffingtonpost.com/jaime-mejia.

The IRS anticipates that it will be able to process tax returns for about 120 million taxpayers, including those affected by AMT, the educator expense deduction, the higher education tuition and fees deduction and the state and local sales tax deduction.

Even though the IRS does not anticipate any tax refund delays due to the week slip in accepting refunds, there are some simple steps you can take to make sure you get your tax refund back as quickly as possible:

1.  File Now!  Don’t wait!

•      TurboTax is up-to-date with all recent tax law changes and has been accepting e-filed tax returns since January.

•    TurboTax will hold and securely submit your tax return to the IRS on a first-in, first-out basis. So filing now puts you first in line for your tax refund.

2.  E-file and Use Direct Deposit

•   E-file and direct deposit are the fastest way to get your tax refund.

•  The IRS does not anticipate any associated tax refund delays once processing begins on January 30. The IRS expects to issue 9 out of 10 tax refunds in 21 days or less.

• The IRS will not process paper returns before January 30.

3.  Get Expert Answers to Your Tax Questions

•     Taxpayers wondering how recent tax law changes may impact their taxes can contact TurboTax tax experts, who are available year round to answer taxpayer questions, free.

•   Only TurboTax lets taxpayers talk to certified public accountants, Internal Revenue Service enrolled agents or tax attorneys as often as they like while they’re preparing their tax return, free.

According to IRS, taxpayers claiming the residential energy credit and businesses claiming depreciation and amortization and general business credit will be able to file tax returns in late February or early March due to additional forms and processing requirements.

There’s no need to wait to file your tax return. Get started now to get a jump on your tax refund.

Tax Filing After Deadline

I missed the tax deadline. Should I still file?

Yes, you should still file your taxes as soon as possible.

How should I file my taxes?

IRS e-file is now closed, but there is good news.  You can still file using our downloaded TurboTax software and mailing in your tax return.

Will the IRS charge penalties for not filing by October 15th?

If you have a tax refund coming, there is no penalty for filing late.  Penalties are calculated based on amounts due.

If I owe money, will I be charged penalties and interest?

Unfortunately, you will receive three separate penalties on balances due on late tax returns as follows:

• Failure-to-file penalty
• Failure-to-pay penalty
• Interest

The failure-to-file penalty can be the most steep, as it starts out at 5% for each month the tax return is not filed, up to a total penalty of 25% of your balance due, which is why you should file your taxes as soon as possible.  Even if you owe money and can’t pay it you should still file to eliminate this penalty.  In addition, you may be eligible for other payment options under the IRS Fresh Start Initiative.

If I have a hardship will I still have to pay penalties?

If you show the IRS reasonable cause for not filing on time, you may not have to pay penalties.

In addition, 2011 tax deadlines for individuals and businesses impacted by Hurricane Isaac have been extended to 1/11/2013.

Hopefully this puts your mind at ease and moves you closer to filing your taxes. Just because you didn’t make the tax deadline doesn’t mean you should forget about filing altogether.  Who knows?  You may be missing out on a tax refund.

Tax Form Checklist

When filing taxes, it is important to make sure that you have all the documents that you need. The good news is that for simple tax filers there isn’t a whole lot that you need. If your taxes are relatively simple to prepare, here are the documents that you should gather in order to be properly prepared:

• W-2: Gather up any W-2 forms. This is the form your employer issues to you in order to let you know how much you made during the year. This form also includes how much money was withheld in taxes, as well as any amount of money withheld for other purposes.

• 1099: You might have 1099 forms if you did work on the side. Also, there are different versions of the 1099 form for interest earnings, dividend earnings, and other sources of income that you need to report.

• Other income information: Don’t forget about other income you might receive, such as alimony.

• 1098: If you have been paying mortgage interest, this is the form that shows the amount of mortgage interest you paid and can deduct.  It may also show property taxes you paid and can deduct.

• 1098-E: Details your tax deductible student loan interest payments paid over $600.  If you paid less than $600 you may not receive a 1098-T, but don’t forget your interest.  You can still deduct it.

• 1098-T:  Details tax deductible eligible education costs you paid for higher education.

• Supporting information for tax credits: If you are eligible for tax credits, you will need to get information from supporting documents. Whether it’s a credit for installing solar panels, or information needed to claim a dependent care credit, you will need to refer to related documents. For example, you need the tax ID number for facilities that provide dependent care.

• Social Security numbers for family members: In order to file your taxes, you need your social security number. You also need the correct social security numbers for your spouse, as well as for anyone you are claiming as a dependent.  This information is necessary if you want to take the Earned Income Tax Credit and other available tax credits for dependents.

• Contribution information: Don’t forget information about retirement plan contributions that may be deductible.  Also, if your state offers you a tax benefit for contributing to a 529 plan, you’ll want that for your state taxes (it doesn’t apply for your federal taxes).

• Receipts: Charitable contributions require receipts. If you are itemizing and want to deduct charitable contributions, or if you have other tax deductible expenses, you need proper receipts to fill out information when preparing your tax return.  You don’t have to include these receipts with you tax return, but you need to keep them for your records to prove your donations or other expenses.

The basic rule of thumb for documentation is: If you claim it on your tax return, get the documentation to back it up.

If you follow this checklist and prepare your taxes using TurboTax, preparing your tax return will be even easier.

Tax Refund

Why You Should File (Even if You Don’t Think You Have To)

Even if you don’t think you make enough money to file an income tax return, it’s still a good idea to file. There are some circumstances in which you might actually be eligible to get some money back, and if you don’t file your tax return, you won’t get that money. Here are two good reasons to file:

1. Tax withholdings: Is your workplace withholding money from your paycheck for federal income taxes? If so, then the government may owe you money. If you want that tax refund from your withholdings, you need to file a tax return.

2. Refundable tax credits: There are a number of tax credits offered to those with lower incomes. These tax credits are refundable, or partially refundable, meaning that you may get excess money refunded even if there is no tax liability to apply the tax credit to.

Credits like the Earned Income Tax Credit and the Child Tax Credit can mean more money in your pocket. The average EITC is $2,000.  Each year, there are different tax credits and opportunities and TurboTax gets you the refundable tax credits available if you qualify. It’s worth it to file a tax return in order to get that money.

Filing your tax return is one way to make sure that you are getting the money that you are entitled to. Double-check your situation. Even if you don’t have to file a tax return, it might be to your financial benefit if you decide to file anyway because of over withholding and refundable tax credits.

Tax Deadline

Besides procrastination, some are delaying getting their taxes completed because they are worried about getting them done correctly. Fortunately there are ways to help with both.

Tips on Getting Your Taxes Done

If you’re worried that you won’t get your taxes done on time, here are a few tricks you can use to get it completed and off your already full plate.

• Create Your Own Deadline: October 15th is the official tax deadline, but you can do yourself a big favor and pick an earlier date to be your deadline. Mark it on your calender (offline or online) and make sure it’s listed as a big event. You don’t want to miss the date. Just think of it this way – the sooner it’s over, the sooner you can relax.
• Break It Down: Do you feel overwhelmed at the amount of work ahead of you? Break it down into little pieces of work. Get your W-2s in one day, take care of your 1099s the next, and so forth. When we were doing our taxesthis year, I simply entered the information bit by bit into TurboTax online as it came in. No stress, no mess.
• Enlist an Accountability Buddy: If you need a bit of a push, ask a friend or relative to keep tabs on you until you filed your taxes.

Try out any one of these tips starting today and add another if you need a bigger boost.  Don’t avoid filing your taxes even if you didn’t properly file an extension.  You may be missing out on a nice tax refund.

Thoughts on Tax Extensions

Please remember that the tax extension is an extension of time to file and not an extension to pay. If you owe money and you don’t have the total amount, please go online to the IRS.gov or call them (800-829-1040) to request a Online Payment Agreement and get on a payment plan. If you have any questions, please leave it in the comments below.

I’d love to hear from you about how you’re doing this year. How many of you had filed an extension for your taxes? How many of you still need to file before the deadline? What is the biggest barrier for you?

Saving Tips

After you file your tax return, it’s a good time to step back and consider your options. Your tax filing provides you with an opportunity to reflect on your financial situation, and decide what moves you can make going forward.

First Things First: Consider Adjusting Your Withholding

Once your taxes are filed, and you know how much money you owe, or how much money the government owes you, it’s the perfect time to evaluate your income tax withholding. If you have a huge refund, you might consider reducing your withholding by filling out a new Form W4. That way, you have more money each month to use to your advantage, rather than simply giving an interest-free loan to the government. While it might be nice to get a fat refund check, the reality is that you are simply giving your money away to the government. Forced savings is better than no savings, but discipline will trump all that.

If you underpaid by quite a bit, you might consider increasing your withholding so you don’t owe as much next year. While it’s not terrible to owe at tax time, if you owe too much, the IRS will assess penalties and take even more of your hard earned cash. Planning to owe is a fine line to walk, and it’s one to consider carefully. If you are self-employed, and you owe quite a bit, increase what you pay each quarter so that you don’t as much next year.

Smart Moves for Your Tax Refund

If you are receiving a tax refund, you need to figure out what you will do with the money. Some of the smartest things you can do with your tax refund include:

1. Pay down high-interest debt – If you have high interest debt, such as credit card debt, you should make it a priority to pay some of it down with your tax refund. High interest debt is like an anchor on your finances, help yourself out by paying it down as much as you can afford.
2. Increase your retirement account contributions – Saving for retirement should be second on your list, behind paying down debt. Make a contribution to your Roth IRA or IRA, increase your contributions to 401(k), or simply put a little extra away in a savings account. You won’t see the benefits of these savings for many years but the earlier you start, the better.
3. Contribution to a Health Savings Account – An HSA, if you are eligible, is a great way to save for your future medical costs. While it’s not a priority, like the first two are priorities, it is smart and something to consider if you are eligible.
4. Use some of the money to start a passive income stream/invest – If you’re fortunate enough to have avoided debt, juiced up your retirement accounts, start looking at ways to invest those funds to create an income stream for the future.
5. Make home improvements that can add to the value of your home – This one falls into the category of treating yourself while doing something financially smart. If there have been some home improvements you’ve had your eye on, like redoing your kitchen or bathroom, take some of the cash to do the job. It’ll improve your enjoyment of your home plus increase it’s value.
6. Take a vacation – Finally, try to enjoy some of it. If you’re responsible enough to pay down some debt, increase retirement savings, and do all of the other responsible things on this list, take some of the cash and enjoy it. Take a vacation, buy something you’ve had your eye on, and live life. Think of it as an investment in yourself. You know what they say about all work and no play!

Consider How to Pay What You Owe

Many people find that they are unable to pay their taxes. Once you file, it’s important to figure out how you discharge your obligation. The good news is that the IRS and most state governments offer payment plans. This can make it more affordable for you to pay what you owe. If you find yourself overwhelmed, the smart play is to set up an installment plan. You’ll pay interest, but it’s usually a better option than being charged fees due to late payments or paying high interest by putting it on a credit card or taking a payday loan.

Prepare for Next Year

Once you are squared away with this year’s taxes, the smart move is to prepare for next year. Plan ahead for specific spending that can result in a deduction, or a tax credit. You should also consider organizing your finances so that you are keeping track of your tax-related receipts throughout the year. This will help you minimize your tax liability and help you avoid the last-minute rush each year.

Tax Refund

However, what happens if you don’t have to have money withheld from your paycheck? Can you still get a tax refund if you are considered exempt?

What Qualifies You as Exempt?

When you fill out your W-4 from your employer, you add in your exemptions. Normally, there is a standard deduction ($5,090 for single, $11,900 married filing jointly, in 2012), and a personal deduction ($3,800 for 2012). If your income is less than your standard deduction minus your personal deductions (you take one for each dependent, including yourself and your spouse), then you are exempt – you don’t have to pay taxes.

However, if you have any tax liability at all in the previous year, you can’t be considered exempt for the current year, and your employer will automatically take taxes out of your paycheck. Those who are exempt, though, won’t have taxes taken from their paychecks. And, normally, since you didn’t pay taxes, you aren’t eligible for a tax refund. But there are conditions that can result in being able to receive a tax refund, even if you are exempt from paying taxes.

Refundable Tax Credits

Even if you are exempt, you can still receive a tax refund if you qualify for a refundable tax credit. Some tax credits are only applied up to the point that you zero out your tax liability. Refundable tax credits, on the other hand, can result in cash back. These are tax credits that can create negative tax liability, resulting in a refund, even if you haven’t paid taxes.

One of the most common refundable tax credits is the Earning Income Tax Credit. This is a tax credit you receive for working and earning low to moderate income. If you have earned any income at all, even if you are exempt, you can claim this credit if you qualify. And, it can result in receiving a tax refund – even if you didn’t have taxes withheld from your paycheck.

Another popular credit is the American Opportunity Credit. This education credit is available to help offset certain costs of higher education. The maximum amount of the credit is $2,500. However, this credit is only partially refundable. Only 40% of it ($1,000) will be paid out to you if you don’t owe taxes.

Before you think that you won’t get any back from the government, double check your eligibility for refundable tax credits. There are instances where even being exempt from paying taxes can still result in a tax refund, but you won’t get your money unless you file a tax return.