One Cent At A Time

A Personal finance blog for saving money and earning more and thus having a better life

What to Do if You Face Tax Charges from the IRS

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Today’s topic is income tax and what one could do when you face a tax audit or a notice to pay more taxes. If you’re reading this article via Google search, then chances are you’re facing tax charges from the Internal Revenue Service. Or, you are skeptical while filling your tax return. Either way, you’re at the right place. So keep on reading.

In 2018, on a March morning, I was delivered an IRS letter. It was a fat envelope and I was sure this was related to my last year’s return. It was a notice to pay additional taxes. I missed out reporting my income from two sources. The total bill was for $820, towards a dividend income from two of my brokerage accounts. The envelope contained a detailed tax calculation breakdown. We have around 15 different financial accounts making the paperwork lengthy and making the IRS envelop a fat one.

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The 8 Features of All the Best Tax Relief Companies

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There is no shame in having problems with tax debt. This is a common worry across people of all different backgrounds and income levels. Everyone experiences financial issues throughout their lifetime. A solution is to find companies that will work to relieve your tax debt without causing more stress.

Tax

Look for specific services offered by tax relief companies to determine if they can help solve your situation. Begin by understanding exactly what the best tax relief companies offer to make the most ideal decisions.

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Tax Season Tips

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With just a few weeks left to file taxes, the pressure is mounting. Nearly a quarter of all taxes are filed in the last two weeks, so don’t worry if you fall into that category. Everyone dreads the process. There is nothing fun about digging through old records, organizing under pressure, and possibly finding out how much you owe after the painstaking process.

Tax Season Tips

If by chance you waited too long and are scrambling for time to get your documents in order, you can file for a 6-month extension, by filing form 4868 with IRS.

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Investment Strategies to Lower Your Tax Burden

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Every year I file my tax returns early. But this year one of my stock broker’s delayed issuing a 1099 DIV statement. I had to wait this long. Hopefully this coming weekend I’ll be all done with this year’s taxes. In case you are not aware, you have to file your taxes by April 15th unless you want to apply for extension.

Every year I file my return alone. I don’t go to a tax consultant. But I strongly suggest you should consult with a certified and registered tax consultant, if you feel the slightest of unease. While you go to a tax preparer to file your taxes, there are certain steps that you can take yourself to lower your tax burden for the coming years.

If you’re an E*TRADE customer, check out the company’s Tax Center, which provides an array of tools and resources for customers, all in one place. This includes important information on everything from cost basis reporting and tips on managing capital gains and losses, to frequently asked tax questions.

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10 Tax Code Changes for the Common Man in 2015 That We Should Keep in Mind

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As you are probably gearing up and readying your papers for 2015 tax filing, I thought of listing out some 2015 tax code changes that you should keep in mind while filing your tax returns in 2016. All of these changes affect common man, people like you and I.

Tax codes changes in 2015

The tax brackets and rates have all changed as we already know, but there are some minor, hidden and not-so-well-known facts that we often fail to identify and point out to our tax consultants. Hope this can help many among us.

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Income Tax Documents and Forms Needed To File IRS Return

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There is a huge list of documents that are needed for filing taxation in 2014. Now is the right time to get prepared. Along with the documents, you also have to make it 100% sure that you have all the IRS forms that are needed.

Before moving on to the checklist of documents and forms, I would like you to consider the following steps and read these other important resources.

  1. Read 5 things to bring to tax preparer’s office.
  2. Add the H&R Block checklist and this checklist in file of your important documents, or attach it to the outside of the folder.
  3. When you receive or locate tax documents, make sure to check them off the list and place them in your folder.
  4. Remove anything on the list that you do not need for your tax situation.
  5. Add a page to your documents file to enter all the information and amounts that are not already available on other documents. For example, you may not find bank routing number for direct deposit on any of the documents you have gathered for tax preparation.

Forms you Need for Filing IRS Tax Return

Here are the most common forms a tax payer needs to file return. all documents are in pdf version, you’ll need acrobat reader software on your computer to open. All documents are linked to IRS official site.

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Protecting Your Tax Refund From Cyber Criminals

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No one enjoys handing over the year’s tax payment to the Internal Revenue Service on April 15. However, most people expect their tax dollars to be used by the U.S. government, not handed back to cybercriminals that file fraudulent tax returns. Every year, according to an estimate from the Treasury Inspector General’s office, the IRS loses $4 billion because of fraudulent tax returns. Cybercriminals stealing personal taxpayer information have become a major force behind tax fraud.

Tax and fraud

Research on cybercrime demonstrates that phishing scams and fraud are higher at tax time than at almost any other time of year. In fact, people are only targeted more often for scams during the holiday shopping season. Fortunately, by exercising just a little cyber savvy, taxpayers can keep their personal information from becoming entangled in a case of tax fraud.

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Tax Extension Frequently Asked Question

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I did file our taxes for this year already. I hope you have done so as well. Filing tax return is probably the most important financial responsibility we have. If you haven’t done so, there are only two more days (when this blog post goes live). If you can’t complete the filing in next two days. You should ask for an extension.

Tax Extension

In this post we will talk about some important aspects of tax extension. By regulation any one and every one can file for tax filing extension and there is no eligibility criteria. the applications that get rejected every year are basically due to data entry errors, not by qualification. If you feel you need some more time to gather the paper work, you should file for an extension.

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Remember all Bad Financial Decisions for Taxes

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I often mention about my biggest financial mistake till date, it was buying shares of a falling company while knowing it was too big to fail. When the company went in to bankruptcy, I lost a huge sum of money. That was the bad part. A not-so-bad part was the tax write-offs I claimed for next few years on that loss. This article is to remind you making note of all financial losses in 2013 and use them to lower tax burden.

Tax Tips

If you haven’t done so, now is the time to file our annual tax return. There are two very important aspects you should understand before submitting your return this year.

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