Tax Return

2012 Tax Rates and Tax Brackets for Filing Taxes in 2013

May 9, 2012
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It’s April and 2011 regular tax filing window is closed. I did my taxes in February this year and started looking at various changes for the 2012 tax year. I thought of documenting the ‘must to know’ things for 2012 tax filing here. We will have a discussion around the 2012 tax brackets, tax rates and standard deduction. Fortunately  this year there were no increase in taxes as such, perhaps it’s due to presidential election year. The (in)famous ‘Bush era tax cut’ still continues. But, the ultra rich, watch out for next year though. Note: This article covers tax information for 2012 tax year. which will apply to the returns due Monday, April 15, 2013.  2012 Tax Brackets Hope this helps determining your tax bracket for 2012 Tax Bracket Single Married Filing Jointly Head of Household 10% $0 – $8,700 $0 – $17,400 $0 – $12,400 15% $8,700 – $35,350 $17,400 – $70,700 $12,400 – $47,350 25% $35,350 – $85,650 $70,700 – $142,700 $47,350 – $122,300 28% $85,650 – $178,650 $142,700 – $217,450 $122,300 – $198,050 33% $178,650 – $388,350 $217,450 – $388,350 $198,050 – $388,350 35% Over $388,350 Over $388,350 Over $388,350 A guide to help you determine your correct filing status is here.

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The Pro’s and Con’s of Preparing Your Own Taxes

February 15, 2012
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With the economic crisis hitting a big part of the world, spending that extra few dollars on filing tax returns can be something you should consider saving. But, before that, let’s consider when its better to prepare your own taxes. MSN Money suggests asking three question to yourself 1. Do you have time to prepare your tax? On average simple tax return takes 20+ hours of preparation. If you can’t spend that much time, I suggest you hire a professional 2. Do you have fees to pay the consultant? One thing to remember, the tax preparation fee can be waived from your taxable income. On average the tax can be filed with $200 fee 3. Do you know the tax codes? Do you know what deductions to claim and income is taxable? If not, don’t take risk, hire an expert. If you have answered all the above questions in affirmity, you can go on reading the benefits and drawbacks of preparing your own tax return. Pro’s With all of the new programs available to individuals these days, even small businesses, there is no reason to have someone else file your taxes. These software programs are designed for the NON business

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2011 Tax Rates, Tax Brackets and Top Tips for Filing Tax Return in 2012

January 16, 2012
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2011 Tax Rates, Tax Brackets and Top Tips for Filing Tax Return in 2012

Note: This article covers tax information for 2011. which will apply to the returns due 4/17/2012. It’s January. Another tax filing season is here. As my tax filing preparation is on, I thought of documenting a few key aspects of tax filing here in this blog. We will discuss the tax brackets, tax rates, 2012 tax changes and other sound tax tips that I have followed over the years. Although I have always self prepared and filed my return, I don’t know what I am missing, may be I would have more return through an H&R Block etc, may be not. It’s not a simple task either as being tax expert is a profession of its own. I won’t advocate for self filing your return. This year, remember to file your tax return early, do not wait for the cut off date of 04/17/2012.  2011 Tax Brackets Hope this helps determining your tax bracket for 2011 Tax Bracket Single Married Filing Jointly Head of Household 10% Bracket $0 – $8,500 $0 – $17,000 $0 – $12,150 15% Bracket $8,500 – $34,500 $17,000 – $69,000 $12,150 – $46,250 25% Bracket $34,500 – $83,600 $69,000 – $139,350 $46,250 – $119,400 28% Bracket $83,600 – $174,400 $139,350

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File Your Tax Return As Early As Possible

April 11, 2011
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This will be a very short blog. Every year we see a splurge of tax returns during April. Do we really need to wait this much long to file our taxes? I can give my personal example, this year I filed my tax return in Early February, got $2.5K back, invested in a high yield bond and now it’s market value is $2687. Is it a nice decision to file your tax return as soon as the window opens. Do not wait for the April rush, and do not even think about requesting for exception. If government owes tax money from you, then it makes sense, but for most of us salaried employees, it just do not make sense. Except few exceptions, employers generally tend to deduct enough taxes from your salary that at the end of the year when you calculate those medical expenses, home improvements, education and other eligible expenses, you will more likely to owe money from excessive tax paid from your salary. As mentioned in the post highlight, you can invest your money as soon as you get it in your account, even if you invest in 1% saving bank account, you will get a pizza

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