Why You DON’T Want a Large Income Tax Refund

You’re probably wondering, “Why wouldn’t I want a large tax refund?”  Short Answer: You’ll have more cash in your wallet all year instead.,.. Consider this… Most people don’t want to give the government an interest free loan for more than a year. They’re holding your money hostage while you may be cutting corners to cover all your expenses. You are not in any way required or obligated to overpay your taxes every year, so why put yourself at a disadvantage unnecessarily? Large Tax Refund Cases Over the past 30 years I have seen a few instances where taxpayers need to have a large refund. It comes down to one factor –… Read More

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New 2018 Tax Law Standard Deductions and Itemized Deductions Guide

Did You Know??? Itemized Deductions are NOT Just For Homeowners with Mortgages. For 2018 tax returns Standard Deductions have increased substantially. The biggest question individuals have when preparing their tax returns is whether to take the Standard Deduction or claim the mysterious Itemized Deductions on the IRS form Schedule A. Here’s the info that can help you save you the most tax dollars, taking the higher of the standard or itemized deductions.. :First, identify your Standard Deduction based on the chart below, taken from the IRS Publication 501.   Table 6. New Standard Deductions for 2018 Tax Returns If your filing status is … Your standard deduction is… Single or Married filing… Read More

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Tax Tip If You Moved Into A New Home

Have You Moved? Or Are You Planning To? If you recently moved into a new home, no matter the reason, it can be very disruptive. You have to change addresses for everything – banking and investment institutions, credit card companies, and so many other businesses. So who would even think about the IRS???  There’s great news! You don’t have to worry about telling the IRS that you’ve moved right away, although if you make estimated payments, you may want to, just to avoid confusion. And with the caliber of those at the IRS, the last thing you would want is to take a chance on them becoming confused. I’ll get… Read More

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Estimated Tax Payments – The Real Deal

What Are Estimated Tax Payments? Some people don’t have to even think about what estimated payments are all about. They have their federal and state income taxes withheld by their employers, retirement payouts, and even Social Security benefits. However there are many who have no withholdings and face an excessive tax balance at the end of the year when they file their tax returns. In addition to self-employed folks, this occurs when people have income from investments, such as bank and bond interest, sales of stocks, and rental income to name a few. Many retirees and senior citizens make estimated tax payments. The Internal Revenue Service is a “pay as… Read More

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Additional Refunds With Amended Tax Returns

Did you know that once you file a tax return you have more time to claim additional refunds by filing an amended tax return? You may not have received documentation of a deduction by the filing deadline, or maybe you didn’t realize there was a deduction you were entitled to that you didn’t claim. Either way, there is a remedy… and in addition to the correction reimbursement, the IRS will pay you interest on any payment beyond June 1st after that particular tax return was due.  When Should I File Amended Tax Returns? This is how “THEY” explain it: “Generally, for a credit or refund, you must file Form 1040X… Read More

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