5 Tax Tips You May Be Forgetting

A recent article in The Street offers up a few overlooked but highly effective tax tips for Americans looking to save time and money, from Michael Gutter, an associate business and finances professor at the University of Florida:

1. Get free help. If you earn less than $51,000 per year, you likely qualify for help from the IRS volunteer income tax assistance (VITA) program.

2. Tax credit for kids. The tax code allows plenty of good deductions for parents with children — even kids in college.

3. Direct to savings. Gutter advises having your tax refund sent right to your bank savings account. That protects you from making “impulse purchases.”

4. Take a mulligan. Amend previous years’ tax returns to grab deductions or tax credits you missed the first time.

5. IRA contributions. Gutter reminds tax filers that the deadline for making tax-deductible IRA contributions from income earned in 2012 is April 15.

For more detail, read the full article.

Free online tax return preparation

EVERYONE is eligible to Free File! Let Free File do the hard work for you with brand-name software or online fillable forms. You can prepare and e-file your federal tax return for free. Participating software companies make their online tax return preparation software products available through the IRS. Some of the tax software also supports state tax returns. Review the three-step process below, and you’ll be on your way to e-filing your tax return–for free!

1. Get Ready

• Gather your tax information. You need a copy of last year’s tax return and your W-2s, 1099s, etc.
• Determine your AGI. Check your last year’s tax return for a quick estimate of your adjusted gross income (AGI). Did you know that approximately 70% of all taxpayers have an AGI of $60,000 or less?
• Review the Free File FAQs. Read the Free File FAQs and Free File Fillable Forms FAQs (PDF) for more information about the program.

2. Choose a Free File Option

• Use Free File Tax Software. This program is available if your AGI for 2014 is $60,000 or less. Free tax software makes it easier to prepare your own tax returns. State tax returns are also available and, in some cases, free.
  • Get help finding Free File software that’s right for you.

–OR–

• Use Free File Fillable Forms. Everyone is eligible to use Free File fillable forms, which are online versions of the IRS’ paper forms designed for people comfortable preparing their own tax returns. There is no AGI limitation for using the free fillable forms. This option does not offer state tax returns and performs only basic calculations.

3. e-file Your Return for Free!

• e-file with Free File. Transmit your return electronically by using secure IRS e-file.
• Use direct deposit. Get your tax refund quickly and safely, and you can track your tax refund status within 72 hours after you e-file.
• Pay electronically. Find out more about available electronic payment options.

For more information on using Free File, or to start the process of preparing your tax returns online, visit www.freefile.irs.gov.

Source: IRS
Last updated or reviewed: January 28, 2015

Emancipation Day gives extra day to file 2011 tax returns

Taxpayers will have until Tuesday, April 17, to file their 2011 tax returns and pay any tax due because April 15 falls on a Sunday, and Emancipation Day, a holiday observed in the District of Columbia, falls this year on Monday, April 16. According to federal law, District of Columbia holidays impact tax deadlines in the same way that federal holidays do; therefore, all taxpayers will have two extra days to file this year.