Information about Form 1041 in detail

June 29th, 2011 -- Posted in Help Filling Tax Forms, How to file Taxes | No Comments »

1040 Federal Income Tax Form:

Why should you file a 1040 Federal Income Tax Form? Here are some reasons:

  • Additional child tax credit
  • Earned income credit
  • First time home purchase credit
  • Health coverage tax credit
  • Recovery rebate credit

There are some exceptions for the children under the age of 19 and also for full time students. Under these types of situations, the parent or parents can include the dependent child’s income onto their tax return. You will want tax Form 8814 if you choose this option.

Resident Alien, Non-Resident Alien or Dual-Status Alien

Things can be different if you are a resident alien, non-resident alien or dual-status alien. In most of the cases non-resident aliens and dual-status aliens are required to use different forms. You may need to use the 1040NR or the 1040NR EZ tax form in such cases. For more detailed information on that you may take a look at Publication 519. This tax publication will help you to understand the necessities you to comply with the United States tax laws.

1040 Federal Income Tax Form Due Date is April 15th

If you haven’t filed your tax till April 15th, you can file for an extension using tax Form 4868. You must file this tax form by the original due date. Do not get filing your tax form and paying any taxes owed baffled in your mind. They are two very separate issues. If you owe, you must pay on time. The extension will give you six months to send in the paperwork but, if you owe, you must pay on time or else you will deserve penalties and interest on what money you owe.

Do You Need help To File The 1040 Federal Income Tax Form?

Our advice is to ask you to take a break and let the tax experts handle the tax area. They are fast, easy, secure, some of them guarantee the largest refund possible and they will do all of the hard work for you; while you can sit back and wait. They are always up-to-date with the latest tax laws. You can even try some of them for free. You do not pay unless you choose to file. Get started now!

Here are some tips for Free tax preparation

June 29th, 2011 -- Posted in Help Filling Tax Forms, How to file Taxes | No Comments »

e-file is becoming very popular these days for filing Income taxes. E-file is a very convenient method to take care of your money matters and you might be able to e-file your taxes for free, if you meet the criteria.

Free Tax Preparation:

This year, many companies are providing you a chance to file your tax returns for free. If you meet certain requirements, then you can also avail this benefit. Many companies are offering discounts too. You can find the list of free tax return preparers on the IRS website. Apart from e-filing, the IRS provides free fillable forms. The Free Fillable Forms can be a great help to get your taxes done quickly and with great convenience.

Some Important Tips:

· If you want to get your purchases financed, you should make use of free tax estimator tools. The tax calculator is based on RS 1040, 1040A, and 1040EZ federal income tax forms. You do not need to add any confidential personal information to make use of tax estimator tools.

· Another advantage of using the tax calculator or tax estimator is that it does not store any information and is not intended to manually file (mail in) or electronically file (efile) your tax return with the Internal Revenue Service (IRS).

· When you enter the most important tax information, the tax calculator will provide you with a tax estimate instantly.

· It also helps to find how your federal income taxes will be affected. It also helps you to plan and take important decisions like new job, marriage, divorce, mortgage refinancing, home or property purchase and much more.

· Your state income taxes may not be included while you go for free e-file. Some charge might be applicable to e-file you state tax return.

Need help with your taxes?

You can get free help for filing your tax. You can call up IRS taxpayers Assistance Centers for getting help on the same.

Beware of Scams:

Since the Tax season is in the air, you may find many scams rolling around. Be careful while choosing a reputed company. Before you start working with them, make sure that it is an “Authorized IRS e-file Provider”. If you can’t confirm something, call up an IRS Taxpayer Assistance Center.

Some useful information for taxpayers

June 29th, 2011 -- Posted in Help Filling Tax Forms, How to file Taxes | No Comments »

Several taxpayers search for relief to file their tax returns. It had been announced that the federal government will provide security this year. Many new programs will be introduced which will accredit, examine and monitor all the work of the taxpayers.

Now, the tax return preparers would have to pass a minimum of tests to prove their reliability and dependability. This will confirm whether they are capable of preparing the tax returns precisely.

IRS will provide funding to three non-profits that help the residents of South Bronx with their returns: the Food Bank for NYC/Food for Survival, Inc., the NYC Financial Network Action Consortium, and SEEDCO.

The money will support VITA grants through which volunteers provide free income tax preparation aid to low-Income, elderly, disabled and limited-English speaking people across New York.

The people found “in low incomes” and “from minority neighborhoods” need the tax benefits. The taxpayers who earned $ 49,000 or less during the year 2009 are eligible for the aid.

Tax Form 1040:

The standard form 1040 consists of few pages, but taxpayers need to fill some extra sections called “SCHEDULES”. Form 1040 comes with 12 optional Schedules. You won’t need all the schedules; you may need a few of them.

Whether you need Form 1040 or 1040A, you must find that out first. Standard deductions would mostly Form 1040.

Tax Form 1040A:

This type of simpler form has four different schedules:

  • Schedule 1: Interest and Ordinary Dividends
  • Schedule 2: Child and Dependent Care Expenses
  • Schedule 3: Credit for the Elderly or the Disabled
  • Schedule EIC: Earned Income Credit Qualifying Child Information

If you need to claim anything which is not mentioned in the above list, you should use Form 1040. A simple rule to find whether you need Form 1040A is that your taxable income has to be below $100,000.

Tax Form 1040EZ:

This is the simplest type of form. If your taxable income is below $100,000, you are filing single or married filing jointly, you (and spouse if applicable) are under 65 and not blind, you are not claiming any dependents, and your interest income is $1,500 or less, you can use this form.

Some FAQs about income tax returns

June 8th, 2011 -- Posted in How to file Taxes, Tax Form Questions | No Comments »

1.    What is the income amount that does not require me to file an income tax return? If I made $14,000 that year, would I need to file an income tax return?

Yes, you have to file a return. If you are a dependent on your parents return you must file if your income is over $5,150.


In case, if you are not a dependent, then you must file if your income is over $8,450.
You should file form 1040 EZ. If you are a dependent on your parents return make sure that you check the box on line 5 and fill out the worksheet on the back.

2.    I have a few hundred dollars in box 2 of my w-2 (federal income tax withheld). How can I file for my income tax return?

·    1 Go to the website
·    2 Click on the box- e-file
·    3 Or you can look for a company on their site which can provide free e-filing for you.
·    4 Go to the website through of the company that you will be using to file your tax return.
·    5 Set up an account with the tax preparation company you chose on their website
·    6 Follow the directions on their website to complete your return and e-file it.
·    7 wait for the check to either be mailed to you or direct deposited to your account if you get a refund

3.    I did my income tax return last month and got my refund I have not cashed it yet. However, I got a revised w2 in the mail that shows that I did not make any owed tips, and in the original w2 it says that I made 50 dollars of allocated tips. so I basically did my income tax 50 dollars over. What do I do now? Am I going to have to pay a penalty for this?

You are required to file a Form 1040X to modify what you filed by $50. When you finish the 1040X, it will indicate how much of a difference in your tax the $50 makes. After you send in the 1040X, the IRS will tell you if there is a penalty. If there is a penalty, it will probably be less than a dollar.

visit the site tax form assistance for more help..

Documents Needed for Filing Tax Returns

December 22nd, 2008 -- Posted in Help Filling Tax Forms | 2 Comments »

One of the most common questions related to tax form assistance is what records to bring in order to file tax returns without any further trouble. Filing tax returns can be daunting, but when you prepare the right documents, you can have a relatively easy time and be done with the task sooner than you think. Furthermore, when you prepare the necessary documents, they will be readily available and you can be as organized as possible.

There are different kinds of documents you must have at hand when you decide to file your tax returns. Of course, the first thing you need is proof of identification, which may be any valid ID card. You’ll also need the required earnings and wages statements, namely Forms 1099-R, W-2, W-2G, and others. You’ll need a copy of your tax return last year, bank routing and account numbers, and dividends and interest statements given to you by banks, brokerages, and other relevant financial institutions. Naturally, you’d want to claim exemption for yourself, your spouse, and people you can claim as your dependents. Thus, you’ll need your, your spouse’s, and your dependents’ birth dates, which you may verify through birth certificates. If you paid for childcare, you’ll need the amount you spent, as well as the tax identification number of the childcare provider whose services you chose to hire. Finally, if you took part in any charitable work, you’ll need to present the receipts for all the charitable donations you made.

With preparation, you can beat the expected hassle that comes with filing tax returns. For more questions on anything related to tax form assistance, search the worldwide web.

When to File Form 1040A

December 21st, 2008 -- Posted in Tax Form Questions | No Comments »

There are three types of form that you should consider when you set out to file your tax return. These forms are Form 1040, Form 1040EZ, and Form 1040A. This article gives you tax form assistance by telling you when you can file Form 1040A. If you don’t wish to use Form 1040EZ, which is used in filing simple tax returns, you can turn to Form 1040A and use it only if every circumstances listed below are true.

You can file Form 1040A if your income comes only from wages; salaries; tips; Alaska Fund dividends; any dividends; IRA pensions, distributions, and annuities; mutual fund capital gain distributions; taxable railroad retirement benefits; taxable social security benefits;  pay from jury duty; interest aside from exempt private activity bonds; or unemployment compensation. Moreover, the adjustments to your income must only come from IRA deduction; penalty from early withdrawal of your savings; tuition and feeds deduction; student loan interest deduction; or pay from duty pay given to your employer, if any.

Aside from these, you also have to check if the tax credits you claim are child tax credit; additional child tax credit; education credit; childcare and dependent care expense credit; earned income credit; or retirement savings contribution credit. Plus, your taxes should only be from the tax table; advanced earned income credit payments; alternative minimum tax; recapture of education credits; qualified dividends tax worksheet; capital gain tax worksheet; and Form 8615.

When to File Form 1040

December 20th, 2008 -- Posted in Tax Form Questions | No Comments »

In filing tax returns, three types of forms are offered to taxpayers. Each of these forms is to be used only when all the requirements for using them are satisfied. Basically, there’s Form 1040, Form 1040A, and Form 1040EZ. Tax form assistance is given to taxpayers who are confused and do not know which type of form they can file. This article provides information about Form 1040 and when you can use it when you file your tax return.

Form 1040EZ is the simplest type of form there is and can be used when filing simple tax returns. Form 1040A primarily takes into consideration the income source of the taxpayer, as well as his or her credits, deductions, etc. If you are not eligible for Form 1040EZ and Form 1040A, your only option is to use Form 1040 in filing your tax return. However, any of the following circumstances must be true: that your taxable income amounts to at least $100,000 or more; that you are itemizing your deductions; that you received the amount of $20 or more in tips in any single month but did not employ such to your employer; that your form W-2, box12, shows a code A; that your form w-2, box12, shows some uncollected tax on group term life insurance or tips; that you are in debt on excise tax made on insider stock compensation from a corporation that has been expatriated; or that you are considered a debtor in a Chapter-11 bankruptcy case (filed after the date of October 16, 2005).

Different Tax Statuses

December 19th, 2008 -- Posted in Tax Form Questions | No Comments »

The only sure things in life are death and taxes, so the old adage says. Of the two, many would rather meet the first one than comply with the second one. This is because filing tax returns can be such a hassle, not to mention a burden on your finances. When you file tax returns, one of the things that need tax form assistance is your tax status. What status are you going to put on your tax form? You can file as single, married filing jointly, married filing separately, or head of household. This article talks about the first three possible tax statuses.

Filing singly needs no long explanation. You can file as single if you are not married or considered not married for the entire duration of the year. If you have dependents who you can claim as exemptions, you may be qualified to file your tax return as head of household, which can lead to a lower tax. Filing as married is more complicated and needs further explanation. Basically, there are two types of married statuses available for your choosing. You can either file as married filing jointly or married filing separately. If you are married or can be considered married, you and your spouse may both agree on using the married filing jointly status. Compared to married filing separately, married filing jointly is a status that results in a lower tax. You and your spouse can be held responsible (separately or together as a couple) for the tax, as well as any penalty or interest due on your tax return. However, you and your spouse may also agree on using the married filing separately status. By doing so, you each file a separate return and report only your own income, exemptions, credits, and deductions. This usually leads to a higher combined tax.

How to e-file Tax Forms

December 18th, 2008 -- Posted in How to file Taxes | No Comments »

When it comes to filing tax forms, most people get so confused and distraught. They worry about not filing the right form, not filling out the forms correctly, not filing with the right government agency, not filing on time, and many other things. Some people choose not to file their tax forms at all because of the hassle that filing entails. When you file your tax forms, you usually have to go through a number of processes that can leave you perplexed and utterly tired. You have to stand in line for the longest time or deal with people who cannot give you the tax form assistance you are looking for.

Thankfully, you don’t have to go through all that anymore. You don’t have to stress yourself out just because you decide to be a good citizen and file your tax forms. Now, the state rewards your patriotism and diligence by offering you a service that can provide extreme convenience: tax e-filing. As its name suggests, tax e-filing allows you to file your forms from the comforts of your home. All you need is a computer and an Internet connection, and voila! You can file your taxes via cyberspace within a matter of seconds.

In order to file your return, you must prepare it using a tax preparation program or software package. There are several tax preparation programs that cater to those inclined to DIY challenges and are easily available for your choosing. Some of these tax preparation programs come with a price, so be ready to purchase them online.  Or, if you wish, you can hire a professional to prepare your tax forms or return for you. Either way, you can be sure that with the tax e-filing system, you won’t need as much tax form assistance as before.

Who Qualifies as Head of Household?

December 17th, 2008 -- Posted in Tax Form Questions | 1 Comment »

Many people wish to file as head of household; filing as such typically results in a lower tax compared to filing singly or filing separately even though married. Not all taxpayers can file as head of household, of course. There are requirements to be satisfied. People seeking tax form assistance usually wonder what these requirements are and try to see if they can somehow become qualified as the head of their household.
If you are single or unmarried, you can file as head of household if you pay more than half of the cost needed to maintain a home, had a qualifying child or relative that lived with you in said home for more than half of the year, except when the qualifying relative is your parent, in which case he or she does not have to have lived with you for any period at all. If you are married, you can only file as head of household if you can somehow be considered unmarried, such as when all of the following circumstances prove true: that you and your spouse file separately; that you pay over fifty percent of the expenses needed to maintain your household; that your spouse did not – for at least the past six months of the year – live in the home; that your household is the principal home of a qualifying child or person; and that you have the option to claim an exemption for that qualifying child or person. If you meet these requirements, you can file as head of household and enjoy a lower tax.