Itís that time of the year again, the income tax filing season has begun and important tax documents should be arriving in the mail. Even though your return is not due until April 18th, getting an early start will make filing easier. Here are the US Tax Returns R Usís top 10 tips that will help your tax filing process run smoother than ever this year.
1. Start gathering your records. Round up any documents or forms youíll need when filing your taxes: receipts, canceled checks and other documents that support income or deductions youíre claiming on your return.
2. Be on the lookout. W-2s and 1099s will be coming soon; youíll need these to file your tax return.
3. Use My website: Let http://www.ustaxreturnsrus.com do the hard work for you by downloading check off lists or click on other buttons to view other tax subjects.
4. Try e-file: After 21 years, IRS e-file has become the safe, easy and most common way to file a tax return. Last year, 70 percent of taxpayers - 99 million people - used IRS e-file. Starting in 2011, many tax preparers will be required to use e-file. This is your chance to give it a try. IRS e-file is approaching 1 billion returns processed safely and securely. If you owe taxes, you have payment options to file immediately and pay by the tax deadline. Best of all, combine e-file with direct deposit and you get your refund in as few as 10 days.
5. Consider other filing options. There are many different options for filing your tax return. You can prepare it yourself or go to a Licensed Tax Consultant. Give yourself time to weigh all the different options and find the one that best suits your needs. Iím betting it will be me.
6. Consider Direct Deposit. If you elect to have your refund directly deposited into your bank account, youíll receive it faster than waiting for a paper check.
- Visit the our website again and again. The website is a great place to find everything youíll need to prepare for the 2010 tax filing.
Dr. Jim Greerís
Top 10 Tax Time Tips
This is the direct line to me. If you have any questions that cannot be answered on the web site, call me right away. I may not get back to you immediately, but I will return your call as soon as I can.
attach any forms(pdf or word) and send directly to me over the internet. I also accept FAXís.
put your papers in the fax machine and hit the send button.
9. Review! Review! Review! Donít rush. We all make mistakes when we rush. Mistakes will slow down the processing of your return. Be sure to double-check all the Social Security Numbers and math calculations on anything you provide as these are the most common errors made by taxpayers.
- Donít panic! If you run into a problem, remember US Tax Returns R Us is here to help.
If you wish you can email me at:
If your mortgage debt is partly or entirely forgiven during tax years 2007 through 2012, you may be able to claim special tax relief and exclude the debt forgiven from your income. Here are 10 facts the IRS wants you to know about Mortgage Debt Forgiveness.
1. Normally, debt forgiveness results in taxable income. However, under the Mortgage Forgiveness Debt Relief Act of 2007, you may be able to exclude up to $2 million of debt forgiven on your principal residence.
2. The limit is $1 million for a married person filing a separate return.
3. You may exclude debt reduced through mortgage restructuring, as well as mortgage debt forgiven in a foreclosure.
4. To qualify, the debt must have been used to buy, build or substantially improve your principal residence and be secured by that residence.
5. Refinanced debt proceeds used for the purpose of substantially improving your principal residence also qualify for the exclusion.
6. Proceeds of refinanced debt used for other purposes Ė for example, to pay off credit card debt Ė do not qualify for the exclusion.
7. If you qualify, claim the special exclusion by filling out Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness, and attach it to your federal income tax return for the tax year in which the qualified debt was forgiven.
8. Debt forgiven on second homes, rental property, business property, credit cards or car loans does not qualify for the tax relief provision. In some cases, however, other tax relief provisions Ė such as insolvency Ė may be applicable. IRS Form 982 provides more details about these provisions.
9. If your debt is reduced or eliminated you normally will receive a year-end statement, Form 1099-C, Cancellation of Debt, from your lender. By law, this form must show the amount of debt forgiven and the fair market value of any property foreclosed.
10. Examine the Form 1099-C carefully. Notify the lender immediately if any of the information shown is incorrect. You should pay particular attention to the amount of debt forgiven in Box 2 as well as the value listed for your home in Box 7.