From midnight PT on Sunday, 4/14 through 11:59pm PT on Monday, 4/15, we will share one TurboTax #TaxTip every two hours from the TurboTax Twitter handle.

If you want to file now (and we hope you do), you can find the full list of TurboTax #TaxTips below.

1. Be prepared and organized. Bet you didn’t know tax tips and ducks had something in common… Time to get your tax ducks in a row!

2. Make checklists! Keep everything straight with checklists! (And then check “File now” off your list!)

3. Spell Check! We know you know your A-B-Cs! It’s time to file that knowledge.

4. Double/triple check before filing. Santa checks his list twice for a reason! Be sure to double (or triple) check everything before submitting your return.

5. Know your dependents – they are deductions. Claiming dependents can be a tax win. TurboTax can tell you why!

6. E-file with direct deposit. Fast, faster, fastest! Get those taxes filed the quickest way possible by e-filing with direct deposit.

7. Get Help. Taxes can seem taxing, but you’re not alone! TurboTax tax experts are standing by to help.

8. Type in last year’s AGI when signing your electronically. Have you ever signed at the dotted line electronically? Find out just how important that can be to your taxes.

9. There is no $ amount too little for filing. Part-time jobs count! There’s no dollar sign too little to file for taxes.

10. Make a rough draft of your filing to avoid mistakes. Remember what your teachers told you? Rough drafts = no mistakes.

11. Tax benefits for dependents: exemptions for dependents. Dependence isn’t always great, but it is at tax time! Aren’t you curious to find out why?

12. Selling your home. Military friends, selling your home can be stressful, but not if you qualify for a tax deduction! Learn more here.

13. Deduct your volunteering time. Hey do-gooders, this tax tip is for you!

14. Use SnapTax to file from anywhere. It only takes a second to Snap! Use the SnapTax app to file now.

15. It’s never too late to file. It’s crunch time and we’re here to help! Never give up, there’s still time to file now (no appt. necessary!)

16. Don’t forget opportunities for credits and deductions. Credits and deductions, oh my! There are so many tax wins to be had. Don’t miss out.

17. Go online: avoid the time consuming lines and file online. Throw on some PJs, sit on the couch and file your taxes the relaxing way! No appointment necessary.

18. Parents can be dependents. Caring for your parents will always get a high five from us. There are other rewards like saving money at tax time.

19. Collect and save your receipts. Have you ever met a receipt you fell in love with? We bet you will now.

20. Only one person can claim a dependent. Double up when you’re eating cookies, but not when you’re filing taxes! Here’s why!

21. Deduct your student loans interest. Students, you’re not alone with your loans! Get every dollar you deserve here.

22. Use new apps to prepare tax filing. It’s app attack time! Use our new tax filing apps to get your filing done ASAP! No appointment necessary.

23. Make a contribution to Tradition IRA before you file. Make a contribution to get a contribution! Find how here.

24. You can get tax extensions. Procrastination happens! Not to worry tax filers, there is still time left!

• File Online – With no more time to waste, online tax preparation and e-filing are the ways to go instead of waiting for an appointment at the tax store.
• E-file with Direct Deposit for a Faster Refund - E-file with direct deposit is the fastest way taxpayers can get their refunds.
• Find Last-Minute Deductions – Some few tax-saving moves to remember are making an IRA Contribution and deducting your charitable contributions.
• Get Free Expert Answers – TurboTax has certified CPAs, EAs, and Tax Attorneys available to answer taxpayers’ last minute tax questions for free.
• Extend the Deadline - Taxpayers that aren’t going to make the deadline need to file a tax extension, free with TurboTax. And remember: An extension to file isn’t an extension to pay. Taxes owed are still due April 15.

In honor of all you tax procrastinators out there, here is the TurboTax annual list of the Top 10 Tax Procrastinating Cities.

Infographic by Column 5 Media

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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?

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.

Who can I claim as a dependent?

Your significant other is probably many things to you—but is he or she also a tax deduction? The question of who you can claim as a dependent has confused taxpayers for years.

The short answer: You can claim a “qualifying child” or “qualifying relative” if they meet specific requirements related to residence, relationship to you, age, financial support provided and income. And yes, you may be able to claim a girlfriend, boyfriend, domestic partner or friend as a qualifying relative in some cases. Claiming dependents can give you a tax deduction worth up to $3,800 per dependent and also make you eligible for many other tax deductions like the Earned Income Tax Credit.

What is the Earned Income Tax Credit and How Do I Claim it?

The Earned Income Tax Credit is a tax credit for low to middle income wage earners that has lifted nearly 7 million people out of poverty, however many people still miss it. Why do so many people miss it? Many think they don’t make enough to file their taxes so they don’t claim it. You have to file your taxes to get this valuable tax credit, which may help a family with three dependents receive a credit worth up to $5,891.

Does healthcare reform impact my 2012 taxes?

There’s been a lot of confusion about healthcare reform and taxes. Rest assured, the requirement to purchase healthcare does not impact your 2012 or 2013 taxes. You do not have to purchase health insurance until January 2014 and there may be a few exceptions based on income, religious beliefs, and citizenship. You will not see changes to your taxes related to the purchase of health insurance until your 2014 taxes are filed in 2015 if you buy healthcare coverage at a health insurance exchange.

Are unemployment benefits taxable?

The unemployment rate has dipped to 7.9 percent vs. 8.3 percent in January 2013. But that’s little comfort to the jobless who find out their unemployment income is taxable income. The good news is that job search and moving expenses may be tax-deductible. See the next question for more details.

Can I deduct the cost of searching for a job? Are moving expenses for my new job tax deductible?

Job seekers may be able to deduct many expenses related to their search: printing resumes, fees for employment and outplacement agencies, career seminar costs and business-related travel. Moving expenses relevant to your job search may be deductible if you meet the distance and time test.

What are the tax implications of withdrawing money early from a retirement account to pay bills or debt?

In difficult economic times, many people start eyeing their retirement accounts to pay off bills or debt. While it is your money, you may be unaware of the impacts of withdrawing from your nest egg. Withdrawing money early from a retirement account comes with a 10 percent tax penalty in addition to the regular income tax on the amount withdrawn. There can be other consequences, too. The retirement money may bump you into a higher tax bracket, which can result in the taxation of other income, such as social security, that you wouldn’t have been taxed on otherwise.

What are qualified education expenses? And when can I file?

College tuition skyrockets every year, but the U.S. government provides incentives with education credits and deductions. For example, the American Opportunity Credit, which was extended through 2012, benefits full-time and part-time college students with a maximum $2,500 credit per student, provided you meet modified adjusted gross income requirements.

My house foreclosed, how does that impact my taxes?

The Mortgage Forgiveness Debt Relief Act survived the recent ‘fiscal cliff,’ receiving a one-year extension through 2013. This means you don’t have to pay taxes on the loss of your home through foreclosure or short sale, up to $2 million (or $1 million if married filing separately).

I started my own business; can I deduct my home office expenses?

Many entrepreneurs are reluctant to write off the business use of their home for fear of being audited. But home office expenses are a legitimate tax deduction you shouldn’t miss out on. Keep in mind the space you claim as a home office should be used exclusively and regularly for that purpose.

Will January tax law changes impact my taxes?

On Jan. 1, 2013, Congress kept the U.S. from going over the ‘fiscal cliff’ by passing The American Tax Relief Act of 2012. The act includes a permanent extension of the Alternative Minimum Tax (AMT) patch, the permanent reduction of tax rates and the reinstatement of several tax deductions, including the Educator Expense Deduction, the Tuition and Fees Deduction, and state sales taxes in lieu of state income taxes.

I was impacted by a natural disaster in 2012. What tax breaks are available to me?

Hurricane Sandy and other natural disasters last year left many picking up the pieces, filing insurance claims, and wondering how it will affect their taxes. It’s possible to take a tax deduction for property loss claims not compensated by insurance, or in some special cases, when you’re still waiting for compensation. These are known as casualty losses and include hurricanes, floods, earthquakes, tornadoes, fire—even vandalism and shipwrecks.

What if I still have questions?

TurboTax is here for you. Only TurboTax let’s you talk to tax experts who are CPAs, IRS enrolled agents, and tax attorneys while you prepare your taxes, 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.

Newlyweds

With reality comes taxes and the challenges that a newly married couple must face. Once the honeymoon is over, it’s time to start getting serious about your finances as a couple. And that includes getting your tax situation in order. Remember that your marital status is determined by your status on December 31. So if you marry on December 31, you are considered married for the whole tax year.

As the year draws to a close, and as you consider your new married filing jointly status, here are five tips to keep in mind:

1.  Change Your Name with the Social Security Administration

Changing your name on your Social Security Card is step one. You want the name the Social Security Administration has to match the name on your tax return. If you have changed your name as a result of the marriage, you need to make sure that is reflected with all of the proper agencies. You need to fill out and file a Form SS-5 with your local Social Security Administration office. You’ll receive a new card, but your Social Security number will remain the same.

If you didn’t change your name as a result of the marriage, there is no need to file with the Social Security Administration.

You’ll want to change your name at the SSA before you try to change it on your driver’s license or any other documents. It can save you a lot of time because the SSA document can be used as proof for the license, which is then used as proof for everything else (utility bills, banks, credit cards).

2.  Double Check Your Tax Withholding

Now that you have a new tax status, it’s important to review your tax withholding. Does your combined income with your spouse put you in a higher tax bracket? If so, you might not be withholding enough. TurboTax has a great calculator that can help you figure out if one or both of you need to make changes to your tax withholding amount. You want to make sure that you begin withholding more from your paycheck, or you could be surprised by your higher tax bill come April.

3.  Consider the Possibility of Filing Separately

In most cases, it makes sense to file jointly. However, depending on your individual tax situations this year, it might make sense to file as married filing separately – at least at first. Take the time to figure your taxes with both scenarios to see what your tax bill ends up being. You can re-evaluate your tax filing status next year to see if the best option has changed.  You can use TurboTax TaxCaster for free to check both scenarios.  TurboTax also makes it easy when figuring out both scenarios.

4.  Look at ALL Your Possible Tax Breaks

If you file jointly, your spouse’s tax breaks are yours as well. Make sure that you review ALL of your tax breaks from the past year. If you just got married, you might be able to take advantage of your spouse’s generous charitable donations to help lower your bill. Consider investment losses, dependent care credits, education credits, mortgage interest, and other tax breaks. Go back through the finances for both of you and identify your joint tax breaks – and see if you have time to rack up a couple more tax breaks before the end of the year.

I’ve always found that the simplest way to do this is with software. Tax preparation packages make this dead simple because they walk you through everything – trying to figure it out by reading IRS publications is usually a time consuming and difficult process.

5.  Understand that Same-Sex Couples Can’t File Federal Taxes Jointly

Same-sex newlyweds need to be aware that they can’t file their federal tax return jointly. The Defense of Marriage Act, passed in 1996, prohibits federal recognition of same-sex couples. So, even if same-sex marriage or civil unions are legal in your state of residence, as far as the federal government is concerned, they are not recognized. Same-sex couples have to file as single when filling out a federal tax return.

These are just a few of the tax tips I’d give my newly married friends.

Enjoy the holidays!

We’re approaching the end of the year, and in a effort to save you plenty of time, frustration, and even some of your hard earned money, we’ve assembled some very useful and insightful advice to help with your end of year tax planning.

Knowing Your Dates and Deadlines

It’s important to keep in the forefront of your mind that, although the filing deadline is April 15, you’re actually filing your income taxes for the previous year – January to December. It sounds like common sense, but it can get tricky at times to remember this small detail.

Reminding yourself about tax deadlines not only motivates you to get a head start, but it helps you stay focused and organized – which is always a good thing.

If you want to get a jump on your end of year tax planning (and not wait until April 14 to get everything together), use a checklist for your W-2s, 1099s, and other employer paperwork that you’re expecting from of all of your sources of income over the previous year.

Trust me, it’s easier to remember your 2012 income while it’s still 2012, and not in April 2013.

Investing and Giving

Another important aspect about end of year tax prep and planning is the December 31 deadline for investments or charitable contributions. Unless the government issues a specific law about an extension, you can be assured that December 31 is the cutoff date. This means that any payments, contributions, or giving on January 1 won’t offer you a tax benefit until 12 months down the road with the exception of IRA contributions.

If you’re always kicking yourself in April for not making smarter financial decisions during the previous December, kick that habit this year by making the maximum contributions before this year is up and lower your tax bill.

Some things to consider are: making the maximum contributions to your IRA, 401(k), and your child’s 529 college savings plan, or finding a church or charity to help with your donations or financial gifts. It’s a good idea to research the charity you choose and make sure to keep your paperwork and receipts.

No matter how much you usually put off filing taxes, remember that preparation and end of year tax planning will reduce your frenzied April frustration while helping you stay organized and focused.

Tax Deadline

Time can get away from us and even those extra six months can fly by and leave you scrambling come October. If so, here are 3 last minute tax tips to help take some of the stress out of this tax deadline.

1. File Electronically

The last thing you want to be bothered with on the tax extension deadline is finding time to get to the post office and mailing out your tax return. Your life is busy enough, and if something comes up at work and you can’t get your tax return sent out in time you’re potentially setting yourself up for additional penalties.

So, stick to filing electronically so that you know your return gets into the hands of the IRS before the deadline passes. Luckily, if you are using TurboTax, you can e-file your tax return any time up until the October 15^th deadline.

2. Review Carefully

Since you are not allowed any additional extensions on personal income taxes past the October 15^th deadline, you’ll want to spend the time to make sure you’ve got everything correct on the return. Even if you find yourself rushing on the tax deadline day, it’s a good idea to make sure it’s accurate to avoid any further issues with the IRS.

Go through your tax return and double check all of the names, social security numbers, and wages reported from your W-2s and 1099s. Then be sure to go over all of your potential tax deductions and check that you’ve included everything and the numbers are correct.

3.  Get Organized

If going through the extension process stressed you out, then now is a good time to get organized so that it doesn’t happen next year. By the time the October 15^th tax deadline passes there’s less than three months until the close of the current tax year. That leaves little time to get things together, but if you take the time to start now, you’ll find that you probably won’t need to rush around in the spring and won’t need to file an extension.

Start by gathering any expenses or deductions from the past year. This is especially important if you’re self-employed and have a lot of expenses to track. By getting those items gathered and put aside today, you won’t need to dig for them in the spring.

Finally, start thinking about year-end tax moves you can make that will reduce your tax bill. This may include making IRA contributions or scheduling January’s mortgage payment to come out of your account at the end of December. Preparing for these tax moves today can help lower your tax bill tomorrow.

Tax Tips for Newlyweds

Have a Financial Game Plan Ready

Before you two start tinkering on your finances, having an overall plan for your money and your goals can be incredibly helpful and empowering.

• Do you want to eventually own a house?
• Do either one of you want to start a business?
• Do you want to have children?
• What are your goals for work and retirement?

Get Your Withholding Squared Away

Once you’re married, you may want to update your withholdings. If you’re an employee, you should check out changing your W-4 with Human Resources. Going back to your goals that you’ve discussed, you may want to adjust your withholdings so you get more per paycheck throughout the year.

Perhaps you two may want to get a big tax refund so you can use that lump sum for a big financial goal. Each has its pros and cons, so the two of you have to decide what is the best match for you.

If you do expect a refund or you’re getting a slight increase in your paychecks after the adjustments, here are some suggestions on how you two can use the money:

• Build savings. Having a financial cushion in case of emergencies, a house down payment, or for starting a business can be a smart move.
• Pay down or knock out debt. Starting off your marriage with less debt can be a great financial win. Even if you can’t completely pay off the debt, paying down a bit can save you on interest charges.
• Boost your IRA. If you haven’t created one already, you can use the money to boost your retirement accounts.

Make Taxes Easier Next Year

Even though it’s a bit before you have to file your income taxes, it doesn’t hurt to get prepared now. It’ll make it easier for the two you and it could speed up process (and a refund) if done now.

When you file your taxes your name should match what the Social Security Administration has on record. If they don’t match, you’ll have problems with getting your taxes processed.

Just fill out a Form SS-5 (the application for a Social Security Card) and submit it either in person at the local U.S. Social Security office or U.S. Embassy. You must also submit proof of the name change, so have a certified copy of your marriage license. You can also mail it to the office along with the required documentation.

With just a little effort now you two can make filing taxes less stressful.

Thoughts on Taxes and Marriage

How many of you recently married? How are you two merging your finances? How’s the process going for you?

Get organized!

Setting up a filing system with all your tax information, from receipts to statements to last year’s tax return – is the best way to avoid scrambling at the last minute. If you’re not organized you might miss out on significant tax breaks, make math mistakes, or improperly estimate what you owe (and thus get hit with penalties and fees).

Last Minute Tax Tips

Don’t overlook valuable credits…

According to the IRS, an astounding 25% of taxpayers who are eligible for the Earned Income Tax Credit fail to claim it. This credit, designed for lower income working families and individuals, is worth up to nearly $6,000 for those who qualify. Other credits that are often missed include the Child and Dependent Care Credit, which is worth between 20%-35% of what you pay for child care while you work, and the American Opportunity Credit, which is worth up to $2,500 of your college tuition, course materials, supplies and related expenses paid during the taxable year.

 …or deductions

People tend to remember cash donations they made to their favorite charities, but they frequently overlook out of pocket charitable contributions. Granted you can’t deduct your time, but if you drove your car for charity in 2011, you can deduct 14 cents per mile plus any parking and toll fees faced during your philanthropic journeys. Other deductions often overlooked include things such as student loan interest, property taxes, moving expenses, and job hunting expenses, which, by the way, are deductible even if the hunt was not successful.

Just don’t go overboard!

This is where many self-employed individuals (which are a lot of us these days) tend to run into trouble, whether it’s merging their business and personal expenses, claiming large deductions for business travel and entertainment, or taking massive write-offs. Don’t get carried away – especially if you can’t back it up with proper documentation! – or the IRS will take notice, which may increase the odds of an audit. Remember: the key is to look like other taxpayers in your income bracket.

Contribute to your IRA

The maximum contribution is $5,000 for the 2011 tax year; $6,000 if you’re 50 or older. You have until April 17^th to make these contributions. Part – or all of it – may be deductible.

Lastly..

Don’t wait any longer!  If you aren’t going to make the tax deadline you’ll need to file an extension by April 17, you can do it online for free.  And remember, an extension to file isn’t an extension to pay, so if you owe money, that payment still needs to be sent to the IRS by April 17.

If you are just one of the 28% of taxpayers out there that wait until the last minute to file, no more excuses.  Go online and file today!  With TurboTax you could even be done in under an hour.

Blogger Tax Tips

As I continued writing I noticed opportunities came up to earn some extra money. - advertisers paying for small banner ads on my blog, offers to write on other sites, and even assisting others on getting their sites up and running.

When I quit my office job a couple of years ago, I used the income I received from helping a friend with his website business and the blog to take care of my portion of the bills. Over time I realized I could be self-employed if I got a bit more organized and so I decided to go out on my own.

Decide How You’re Going to Do Business

Before you can take care of your taxes you need to make sure your business is correctly registered. For many starting out, sole proprietorship is easiest and cheapest option. However you need to see what makes the best sense for your particular work.  Possible ways to run your business include a partnership, a limited liability company, or a corporation.

Look at the legal and tax requirement of each type of entity to determine what the best option for you. I’ve found the limited liability company to work well for my circumstances.

Pay Your Quarterly Taxes

As a business that earns income, you’re expected to pay your taxes regularly in the form of estimated taxes. General quarterly taxes are due:

• April 15th - 1st quarter of the current year
• June 15th - 2nd quarter of the current year
• September 15th- 3rd quarter of the current year
• January 15th - 4th quarter of the previous year

Please keep in mind the dates may be slightly off if the 15th due date falls on the weekend or federal holiday.

The good news is that there are several ways you can pay your quarterly taxes.

• Online -Electronic Federal Tax Payment System
• Phone – Please choose the option applicable to your business:
  • 1-800-316-6541(individuals)
  • 1-800-555-4477 (businesses)
• Mail - Check the IRS to see which location is appropriate for you.

Personally I prefer using the online option – it’s quick and easy and I can immediately print out a receipt for my records. However I should point out you need to register first which takes a couple of weeks, so sign up BEFORE you need to pay your taxes.

Please also check your specific state’s requirements on taxes as it can vary.

Blog Related Business Expenses

Running and earning income from a blog does take work and keeping documents on the related expenses can help you come tax time. The good news to keeping good records is that you can deduct your qualifying business expenses from blogging when you file your taxes.

While not a complete list, here are a few business expenses I’ve had over the years:

• Office Equipment:  Office equipment like the computer and printer depreciate, which you can include on your taxes (provided they are devoted to business use).
• Office Supplies: While most of my work is done online, I do have to replenish my office supplies like copy/print paper, printer ink, and pens.
• Subcontractors: I have a staff writer for one of my sites that I pay monthly. We both keep records of the invoices and the payments.
• Website Expenses: Running a website often means paying for hosting, the domain name, and possibly privacy services.

As your business grows, you’ll probably have more expenses, but I wanted to list a few that I started off with when I made blogging my business instead of a hobby.

I use tools like Evernote and DropBox to keep records and backups of my files. They’ve been reliable and very affordable options for me. For the last few years we’ve used TurboTax Home and Business to take care of our family’s taxes and have been pleased by the ease of use of the program.

More Blogging Tax Tips?

If you’re a blogger and have been doing business for a while, what tax tips would you like to add? What tools do you use to keep everything organized?

New Year Tax Tips

From a tax perspective, the beginning of a new year is the best time to identify and correct bad habits, take stock of your current financial situation, and set goals to help you stay better prepared when it comes to filing your taxes. After all, New Year’s tax resolutions shouldn’t be overlooked.

With these tax tips you’ll be sure to plan ahead, stay tax alert, and save a bundle of money on this year’s income.

File Your Taxes and Pay On Time

This article would not be doing the reader justice if there was no mention about finalizing last years taxes. Just because the calendar says 2012, don’t forget about all of the work yet to be completed from the 2011 tax year.

Yes, April 17th is the last day to file taxes. Yes, we are sometimes held hostage as we wait for every piece of tax information to be mailed to us. Yes procrastination can be a sultry temptress. But nothing feels better than taking care of your tax paperwork and getting everything filed and paid on time.

Plus, with TurboTax you don’t always have to wait for your tax documents to arrive.  TurboTax 2011 transfers information from more than 400,000 employers, banks, and financial institutions so you can automatically access your tax information, accurately and quickly.  With this feature, you may have all the information required to file your tax return and receive your tax refund before people receive their tax information in the mail.

Double-Check Your Income Tax Withholding

Remember when you were hired and you had to fill out that W-4 detailing just how much money you wanted to withhold from your paycheck for income tax purposes?

Well, if you got hit with a tax bill last year and your income and deductions did not change, you probably need to double check your withholding amount and make sure that you’re not taking too little out.

If you’re not withholding enough money from your paycheck, then it’s almost a guarantee that you’ll owe on your tax return instead of receiving a tax refund. The Employee’s Withholding Allowance Certificate (Form W-4) will allow you change your withholding amount by changing your claimed tax exemptions.

Prepare, Organize, and Keep Excellent Records

Nothing will help you stay on top of your taxes better than developing an excellent strategy of preparation, organization, and record keeping. It may sound dull, but the benefits can save you a bundle of money.

Keeping tax information organized and well-documented can not only help you avoid owing more taxes in April, but it will arm you with piles of necessary information in the unfortunate event of an audit.

Using a tracking system like Quicken throughout the year is a great way to keep track of income, payments, expenses, and deductions. Not only is such a system convenient and easy to use, but Intuit (who makes Quicken and Turbo Tax) has made the transfer of information from Quicken to Turbo Tax virtually seamless.

Don’t Overpay for Unnecessary Tax Preparation

You may think your taxes are complex and find it necessary to go to a tax store to prepare your taxes, but you don’t have to overpay to have your taxes prepared.  Tax software like TurboTax makes tax preparation easy with step-by-step guidance.

TurboTax gives you all of the tax deductions and credits you deserve in compliance with IRS tax laws, giving you your maximum tax refund.  What’s even more extraordinary?  TurboTax now offers free, one-on-one tax advice from highly qualified tax professionals who are CPAs, Enrolled Agents, and tax attorneys.

Make Estimated Payments

For those of us who are self-employed, making estimated tax payments is a very smart way to stay ahead of the tax game. And, if your income is high enough, the IRS can even require estimated payments to be made. Instructions about estimated payments can be found on Form 1040-ES.

Regularly Contribute and Donate

If you have an IRA, 401k, 529 plan, or any other savings/investment accounts, be sure to find out what the maximum yearly contribution limits are and develop a monthly deposit plan to ensure that you can maximize the benefits of those accounts.

Also, consider giving to charity on a more regular basis. Many people/businesses wait until the end of the year to make charitable contributions. But you don’t have to wait. Not only do many qualifying organizations have automatic monthly donation systems, but many charities need financial assistance throughout the year, not just in November and December.

Whatever your plans may be, if you can find a way to incorporate these tax tips into your tax life, you’ll be better suited to take on whatever tax-related situations come your way.

Section 179 Expenses

One of the toughest obstacles for any new business is finding the capital required to make the appropriate investments your enterprise needs to position itself for the long-term – and to get to the point where it finally becomes profitable.

In the case of certain major expense outlays, Uncle Sam can help through what is known as a Section 179 election.  Typically, major expenses such as machinery and equipment are required to be depreciated over a term of years dictated by the IRS to approximate the useful life of the purchase.

If your small business spends $7,000 on equipment the IRS considers to be 7-year property, you can take a $1.000 ($7,000 cost divided by 7 years) depreciation deduction each year for seven years. If the business is in the 25% tax bracket, the depreciation deduction saves $250 in taxes annually.

However, certain expenses qualify for the Section 179 expense election.  If so, the business can choose (or, in IRS-speak, “elect”) to immediately expense (rather than depreciate) the purchase. Consequently, the entire $7,000 purchase could be written off this year. For a taxpayer in the 25% tax bracket, the immediate tax savings generated by the Section 179 election are $1,750.

What Purchases Qualify for Section 179 Expensing?

For the vast majority of small businesses, the key Section 179 opportunity areas are tangible (i.e., you can see it, you can touch it) personal property. Examples include not only machinery and equipment but also office equipment, including furniture, and off-the-shelf software.

When Can You Elect to Take the Section 179 Deduction?

You are eligible to take the Section 179 expense for the tax year in which you first put the item(s) purchased in service. Said another way, you can choose to take the Section 179 election when you file your tax return (Form 4562) for the year in which you purchased (not received via a gift) an item which you began to use in your business.

Are There Any Limits to the Section 179 Deduction?

The following limits to the Section 179 deduction apply:

• Dollar Maximum
• Business Income
• Percentage Use

Section 179 Maximum Dollar Limit

The maximum dollar amount you can expense via Section 179 varies by tax year and is currently $500,000.  Regardless of the amount you buy and put into service during 2011, you can’t expense more than the 2011 limit of $500,000. Furthermore, if you invest more than $2,000,000, you won’t be able to expense anything over that amount via Section 179.

The larger Section 179 tax benefit is set to expire on December 31st, 2011 and will be reduced to a $125,000 dollar limit and a $500,000 investment limit beginning tax year 2012. So if you have been debating about buying that computer equipment, you may want to go make that purchase today!

Section 179 Business Income Limit

The amount of your Section 179 expense election is further limited to the amount of net income (profit) you have from your businesses. So if using all of your Section 179 expenses would put your company in a loss position, you can only elect to expense an amount equal to what it would take to make your businesses break-even. Any unused Section 179 amount can be carried forward indefinitely and used to offset future year’s business income.

Section 179 Percentage Use Limit

Certain types of equipment, most notably computers used in home offices, are used partially for business purposes and partially for personal benefit.   Provided you use the item at least 50% for business, you can still take the Section 179 expense. However, the amount of the Section 179 expense election is limited to the percentage of time the item is used for business.  So if your new $1,000 laptop is used 75% for business and 25% for video games and looking at the weather in Ann Arbor, Michigan, you can expense $750.

Make sure you take the time to keep good records throughout the year. You’re sure to enjoy the tax savings, helping keep your business on the right track and don’t forget, TurboTax easily guides you through Section 179 deductions.