| Tax Tip 2002-73 |
Aug. 27, 2001 |
| Teachers Should Save Receipts for New Tax Deduction |
| The Internal Revenue Service advises teachers to save their receipts for purchases of books and classroom supplies. These out-of-pocket expenses may lower their taxes, thanks to a recent change in the law. |
| Tax Tip 2002-72 |
Aug. 28, 2001 |
| Advice to Newlyweds from the IRS |
| It may not be high on the list of wedding planning activities, but there are a few, simple steps that can help keep tax issues from interrupting newly-wedded bliss, according to the Internal Revenue Service. |
| Tax Tip 2002-71 |
April 16, 2001 |
| Appeal Rights |
| Are you in the middle of a disagreement with the IRS? One of the guaranteed rights for all taxpayers is the right to appeal, according to the IRS. If you disagree with the IRS about the amount of your tax liability or about proposed collection actions, you have the right to ask the IRS Appeals Office to review your case. |
| Tax Tip 2002-70 |
April 13, 2001 |
| Tax Tips for Last-Minute Filers |
| With the tax filing deadline close at hand, the IRS offers some tips for those still working on their tax forms. |
| Tax Tip 2002-69 |
April 12, 2001 |
| Refunds - How Long Should they Take? |
| Are you expecting a tax refund from the IRS this year? The IRS says that if you file a complete and accurate paper tax return, your refund should be issued in about six to eight weeks from the date IRS receives your return. If you file your return electronically, your refund should be issued in less than three weeks, and even faster when you choose direct deposit. |
| Tax Tip 2002-68 |
April 11, 2001 |
| Amended Returns |
| Oops! You´ve discovered an error after your tax return has been filed. What to do? You may need to amend your return, according to the IRS. |
| Tax Tip 2002-67 |
April 11, 2001 |
| Haven’t Filed Last Year’s Tax Return? Here’s What to Do |
| The IRS says it hears many reasons from taxpayers for not filing a tax return. You may not have known whether you were required to file. Whatever the reason, it´s best to file your return as soon as you can. If you need help, even with a late return, the IRS is ready to assist you. |
| Tax Tip 2002-66 |
April 11, 2001 |
| Common Errors to Avoid |
| The IRS recommends reviewing your entire tax return to be sure it is accurate and complete. Even a simple mistake can cause problems with your tax return, which might lead to delays in processing your return and receiving your refund. |
| Tax Tip 2002-65 |
April 11, 2001 |
| What to do if You Can’t Pay Your Taxes |
| If this year´s tax filing deadline will be a “pay” day for you and you cannot pay the full amount that you owe, you should still file your return by the due date and pay as much as you can. The IRS may allow you to pay any remaining balance over time in monthly installments through an Installment Agreement or possibly even settle for less than the full amount owed through its Offer in Compromise program. |
| Tax Tip 2002-64 |
April 5, 2001 |
| Ensuring Proper Credit of Payments |
| When the bottom line of your tax return says, "Amount You Owe," the IRS reminds you to be sure to make your check or money order payable to the "United States Treasury." Do not mail cash with your tax return. |
| Tax Tip 2002-63 |
April 5, 2001 |
| Options for Paying Your Taxes |
| If you do not pay your taxes when due, you may have to pay a failure-to-pay penalty. To avoid this penalty, the IRS suggests several ways to pay your taxes. You can pay by check, money order or credit card or use the direct debit method. |
| Tax Tip 2002-62 |
April 3, 2001 |
| Extensions of Time to File your Tax Return |
| If you can't meet the April 15 deadline to file your tax return, you can get a four-month extension of time from the IRS. The extension will give you extra time to get the paperwork in to the IRS, but it does not extend the time you have to pay any tax due. You will owe interest on any amounts not paid by the April deadline, plus a late payment penalty if you have paid less than 90 percent of your total tax by that date. |
| Tax Tip 2002-61 |
March 30, 2001 |
| Need Last-Minute Tax Help? Don’t Panic |
| If you´re trying to beat the tax deadline, the IRS says there are several options for last-minute help. If you need a form or publication, the IRS Web site at www.irs.gov has copies available. If you discover you need more time to finish your return, get a four-month extension with Form 4868. And if you have trouble paying your tax bill, the IRS has several payment options available. |
| Tax Tip 2002-60 |
March 30, 2001 |
| Where to File Your Return |
| Once you complete your 2001 federal tax return, you can either file it electronically or mail it to the IRS. If you choose to mail your return, use the enclosed mailing label. If you didn´t receive one, be sure to read your tax instruction booklet carefully to find the address of the IRS center for your area. |
| Tax Tip 2002-59 |
March 31, 2001 |
| How to Prepare your Tax Return for Mailing |
| Your tax return is complete and ready to be mailed. Now what? The IRS recommends that you take a few minutes to make certain that all information is complete and accurate before sealing that envelope. This simple precaution could help you avoid mistakes that may delay your refund or result in correspondence with the IRS. |
| Tax Tip 2002-58 |
March 27, 2001 |
| Ten Ways to Avoid Problems at Tax Time |
| Looking for ways to avoid the last-minute rush for doing your taxes? The IRS offers these tips. |
| Tax Tip 2002-57 |
March 27, 2001 |
| Foreign Income |
| With more and more U.S. citizens earning money from foreign sources, the IRS reminds people that they must report all such income on their tax return, unless it is exempt under federal law. |
| Tax Tip 2002-56 |
March 23, 2001 |
| Tax Changes for Business Owners |
| At tax time, many business owners want to make sure they are aware of the latest changes that could affect their taxes. If you are one of these owners, a good source of information is IRS Publication 334, “Tax Guide for Small Business.” |
| Tax Tip 2002-55 |
March 23, 2001 |
| Taxable or Nontaxable? |
| Generally, most income you receive is taxable, according to the IRS. But there are some areas where certain types of income are partially taxed or not taxed at all. A complete list is available in IRS Publication 525, “Taxable and Nontaxable Income.” |
| Tax Tip 2002-54 |
March 22, 2001 |
| Early Distributions from Retirement Plans |
| An early distribution from an Individual Retirement Account (IRA) or a qualified retirement plan need not be a “taxing” experience, according to the IRS. |
| Tax Tip 2002-53 |
March 21, 2001 |
| Gambling Income & Expenses |
| Hit a big one lately? With more and more gambling establishments, the IRS reminds people that they must report all gambling winnings as income on their tax return. |
| Tax Tip 2002-52 |
March 21, 2001 |
| Tax on Child’s Investment Income |
| Part or all of a child's investment income may be taxed at the parent's rate rather than the child's rate, according to the IRS. Because a parent's taxable income is usually higher than a child's income, the parent's top tax rate will often be higher as well. This special method of figuring the federal income tax only applies to children who are under the age of 14. For 2001, it applies if the child's total investment income for the year was more than $1,500. |
| Tax Tip 2002-51 |
March 19, 2001 |
| Deductible Taxes |
| Did you know that you may be able to deduct certain taxes on your federal income tax return? The IRS says you can if you file Form 1040 and itemize deductions on Schedule A. There are three types of deductible non-business taxes: |
| Tax Tip 2002-50 |
March 16, 2001 |
| Charitable Contributions |
| The Internal Revenue Services advises that when preparing to file your 2001 federal tax return, don´t forget your contributions to charitable organizations. Your donations can add up to a nice tax deduction if you itemize on IRS Form 1040, Schedule A. |
| Tax Tip 2002-49 |
March 14, 2001 |
| Gift Giving |
| If you give any one person gifts valued at more than $10,000 in 2001, it is necessary to report the total gift to the Internal Revenue Service. You may even have to pay tax on the gift. For 2002, the amount rises to $11,000. |
| Tax Tip 2002-48 |
March 13, 2001 |
| Do You Have a Deductible Home Office? |
| Whether you are self-employed or an employee, if you use a portion of your home for business purposes, you may be able to take a home office deduction, according to the IRS. |
| Tax Tip 2002-47 |
March 13, 2001 |
| IRA Contributions can be Made until Tax Filing Deadline |
| If you haven´t put any money into an Individual Retirement Arrangement (IRA) for tax year 2001, or if you´ve put in less than the maximum allowed, you still have time, according to the IRS. You can contribute to either a traditional or Roth IRA until the April due date of your tax return. |
| Tax Tip 2002-46 |
March 13, 2001 |
| Don't be Taken in by Tax Scams |
| The IRS reminds taxpayers not to fall victim to a variety of tax scams. These schemes take several shapes, ranging from promises of special tax refunds to illegal ways of “untaxing” yourself. If people think something may be unscrupulous, they can report suspected tax fraud to the IRS at 1-800-829-0433. |
| Tax Tip 2002-45 |
March 8, 2001 |
| Tax Assistance for Individuals with Disabilities & the Hearing-Impaired |
| Are you unable to complete your federal income tax return because of a physical disability or hearing impairment? Get help from the IRS through its Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) programs, or through a special TDD phone number available in both English and Spanish. |
| Tax Tip 2002-44 |
March 7, 2001 |
| Notices - What To Do |
| It´s a moment any taxpayer dreads. A letter arrives from the IRS — and it´s not a refund check. But don´t panic. Many of these letters can be dealt with simply and painlessly. |
| Tax Tip 2002-43 |
March 7, 2001 |
| Don’t Overlook Home Mortgage Points |
| Did you buy or build a new home in 2001? Many new homeowners don´t know that they can deduct points paid on home mortgage loans. The IRS reminds homeowners that this can really pay off because some home mortgage points are fully deductible in the year they are paid. |
| Tax Tip 2002-42 |
March 6, 2001 |
| Coverdell Education Savings Accounts can Make Education Costs Less Taxing |
| The Coverdell Education Savings Account is an incentive to help parents and students save for education. Up to $2,000 may be contributed to a child´s Coverdell ESA each year, starting in 2002; the limit was $500 before this year. Earnings on contributions will be distributed tax free, provided that they are used to pay the beneficiary´s elementary or secondary school or college education expenses. |
| Tax Tip 2002-41 |
March 6, 2001 |
| Free Help from the IRS |
| Sometimes you just need a little help preparing your federal tax return. The IRS offers free assistance by computer, telephone, fax, and in person. The IRS can assist you with obtaining forms, publications and answers to a wide range of tax questions. If you qualify, IRS can even help you find free tax preparation. |
| Tax Tip 2002-40 |
March 2, 2001 |
| Taxability of Social Security Benefits |
| The IRS says that whether your Social Security benefits are taxable depends on your total income and marital status. Form SSA-1099, which Social Security recipients receive by January 31, shows your total benefits, but determining your taxable benefits requires putting pencil to paper. |
| Tax Tip 2002-39 |
March 1, 2001 |
| Alternative Minimum Tax |
| Before mailing your federal income tax return, check to make sure you aren´t subject to the alternative minimum tax (AMT). The IRS says that in recent years, more and more people have found themselves subject to the AMT. |
| Tax Tip 2002-38 |
Feb. 28, 2001 |
| Holocaust Survivors May Exclude Restitution Payments from Income |
| Holocaust survivors, their heirs or estates will receive the full benefit of any restitution payment made by governments or industry. Restitution payments are excluded from federal taxes and should not be included as income or listed anywhere else on federal tax returns. |
| Tax Tip 2002-37 |
Feb. 27, 2001 |
| Changing Your Address? Notify the IRS |
| Have you changed your home or business address? If so, you may want to notify the IRS to ensure that you receive any refunds or correspondence. The IRS is now using the Postal Service´s change of address files to update taxpayer addresses, but you may want to notify the IRS directly. |
| Tax Tip 2002-36 |
Feb. 23, 2001 |
| Volunteer Income Tax Assistance |
| Are you puzzled by the tax law and which credits and deductions you can take? If so, then why not take advantage of the IRS Volunteer Income Tax Assistance (VITA) Program or the Tax Counseling for the Elderly (TCE) Program, both of which offer free tax help. VITA and TCE sites are located at convenient community locations. These sites provide free basic income tax return preparation to individuals with low to moderate incomes, individuals with disabilities, non-English speaking taxpayers, and the elderly. In addition to free tax return preparation assistance, many sites also offer free electronic filing (e-filing). |
| Tax Tip 2002-35 |
Feb. 22, 2001 |
| Selling Your Home |
| If you sold your main home, you may be able to exclude up to $250,000 of gain ($500,000 for married taxpayers filing jointly) from your federal tax return, according to the IRS. This exclusion is allowed each time that you sell your main home, but generally no more frequently than once every two years. |
| Tax Tip 2002-34 |
Feb. 21, 2001 |
| Roth IRAs |
| Confused about whether you can contribute to a Roth IRA? The IRS suggests checking these simple rules. |
| Tax Tip 2002-33 |
Feb. 21, 2001 |
| Capital Gains & Losses |
| Almost everything you own and use for personal purposes, pleasure or investment is a capital asset. The IRS says that when you sell a capital asset, the difference between the amount you sell it for and your basis, which is usually what you paid for it, is a capital gain or a capital loss. While you must report all capital gains, you may subtract only your capital losses on investment property, not personal property. |
| Tax Tip 2002-32 |
Feb. 20, 2001 |
| Earned Income Tax Credit Available for Working Taxpayers |
| Working parents earned it. Don´t forget to claim it, says the Internal Revenue Service. The Earned Income Tax Credit lowered federal tax liabilities for 19 million lower-income working parents by more than $31 billion last year. |
| Tax Tip 2002-31 |
Feb. 15, 2001 |
| Education Credits Can Help at Tax Time |
| Are you footing the costs of higher education for yourself or your family? The IRS says that education tax credits can help offset those costs. The Hope Credit and the Lifetime Learning Credit are education credits you can subtract in full from your federal income tax, not just deduct from your taxable income. |
| Tax Tip 2002-30 |
Feb. 15, 2001 |
| Tips & Taxes |
| Do you work at a hair salon, barber shop, casino, golf course, hotel or restaurant or drive a taxicab? The tip income you receive as an employee from those services is taxable income, advises the IRS. |
| Tax Tip 2002-29 |
Feb. 15, 2001 |
| What if You Can’t Get a Social Security Number? |
| If you are not eligible to get a Social Security Number but have to file a tax return, you will need to use Form W-7, "Application for IRS Individual Taxpayer Identification Number" to get this number, known as an ITIN. |
| Tax Tip 2002-28 |
Feb. 12, 2001 |
| What to Do if You Haven’t Received a Form 1099 |
| If you received certain types of income, you may receive a Form 1099 for use with your federal tax return. You should receive these forms from the payer by early February, according to the IRS. Payers have until Jan. 31 to mail these to you. If you have not received an expected 1099 by a few days after that, contact the payer. If you still do not get the form by February 15, call the IRS for help at 1-800-829-1040. |
| Tax Tip 2002-27 |
Feb. 12, 2001 |
| What to Do if You Haven’t Received a Form W-2 |
| You should receive a Form W-2, "Wage and Tax Statement," from each employer you worked for to use in preparing your federal tax return. According to the IRS, employers must furnish this record of 2001 earnings and withheld taxes no later than January 31, 2002 (if mailed, allow a few days for delivery). |
| Tax Tip 2002-26 |
Feb. 8, 2001 |
| Credit for the Elderly or the Disabled |
| You may be able to take the Credit for the Elderly or the Disabled if you are age 65 or older, or if you are retired on permanent and total disability, according to the IRS. Like any other tax credit, it´s a dollar-for-dollar reduction of your tax bill. The maximum credit available is $1,125. |
| Tax Tip 2002-25 |
Feb. 7, 2001 |
| Child & Dependent Care Credit |
| If you paid someone to care for a child or a dependent so you could work, you may be able to reduce your tax by claiming the credit for child and dependent care expenses on your federal income tax return, according to the IRS. This credit is available to people who, in order to work or to look for work, have to pay for child care services for dependents under age 13. The credit is also available if you paid for care of a spouse or a dependent of any age who is physically or mentally incapable of self-care. |
| Tax Tip 2002-24 |
Feb. 6, 2001 |
| Child Tax Credit |
| With the Child Tax Credit, you may be able to reduce the federal tax you owe by $600 for each qualifying child under the age of 17, according to the IRS. |
| Tax Tip 2002-23 |
Feb. 5, 2001 |
| Dependents |
| So your daughter is off to college and you're wondering if you can still claim her as a dependent? To be claimed as a dependent, a person must meet the following five tests, according to the IRS. |
| Tax Tip 2002-23 |
Feb. 4, 2001 |
| What To Do If You Haven’t Received A Form W-2 |
| You should receive a Form W-2, "Wage and Tax Statement," from each employer you worked for to use in preparing your federal tax return. According to the IRS, employers must furnish this record of 2003 earnings and withheld taxes no later than February 2, 2004 (if mailed, allow a few days for delivery). |
| Tax Tip 2002-22 |
Feb. 5, 2001 |
| Rate Reduction Credit & Rebate |
| The IRS says there´s a new line on the federal income tax form this year, but many people won´t have to use it. This line – line 47 on the Form 1040, line 30 on the 1040A and line 7 on the 1040 EZ – is for the Rate Reduction Credit. |
| Tax Tip 2002-21 |
Feb. 2, 2001 |
| Alimony Payments Have Tax Implications |
| When the end of matrimony leads to the start of alimony, how does it affect your taxes? Alimony payments you receive are taxable to you in the year received, according to the IRS. |
| Tax Tip 2002-20 |
Feb. 1, 2001 |
| Marriage or Divorce: Check Your Social Security Number |
| The IRS reminds newlyweds and the recently divorced to make sure names on their tax returns match those registered with the Social Security Agency (SSA). A mismatch between a name on the tax return and a Social Security number (SSN) could unexpectedly increase a tax bill and reduce the size of any refund. |
| Tax Tip 2002-19 |
Jan. 30, 2001 |
| Reservists, New Enlistees May Get Deferral for Back Taxes |
| The IRS reminds reservists called to active duty and new enlistees in the armed forces that they might qualify for a deferral of taxes owed if they can show that their ability to pay taxes is impaired because of their military service. The Soldiers and Sailors Civil Relief Act provides this benefit. |
| Tax Tip 2002-18 |
Jan. 29, 2001 |
| Charitable Donations to Victims of Terrorist Attacks |
| If you made a charitable donation to a qualified organization providing disaster relief to victims of the September 11, 2001 terrorist attacks, include the amount with your other contributions listed on Schedule A of Form 1040. |
| Tax Tip 2002-17 |
Jan. 27, 2001 |
| EFTPS-Online: Pay Your Taxes Over The Internet |
| If you´re going to owe taxes when you file your federal tax return, consider paying over the Internet through the Electronic Federal Tax Payment System (EFTPS). EFTPS-OnLine is fast, easy, convenient, and secure. The government does not charge for this service. |
| Tax Tip 2002-16 |
Jan. 27, 2001 |
| Faster Refunds through Direct Deposit |
| Want a faster refund? The IRS says that more taxpayers are choosing direct deposit as the way to get their federal tax refunds. The payment is more secure — there is no check to get lost. And, it´s more convenient — no special trip to the bank to deposit a check! To request direct deposit, follow the instructions for “Refund” on your tax return. |
| Tax Tip 2002-15 |
Jan. 24, 2001 |
| Forms & Publications - How to Order |
| The Internal Revenue Service has many forms and free publications on a wide variety of topics to help you understand and meet tax filing requirements. These forms and publications are available on the Internet, on CD-ROM, through fax on demand, over the telephone, through the mail, at local IRS offices, at some banks, post offices and libraries, and even at some grocery stores, copy centers and office supply stores. |
| Tax Tip 2002-14 |
Jan. 23, 2001 |
| Toll-Free Telephone Service |
| Free tax help from the IRS is just a phone call away. The IRS provides various services through its toll-free telephone numbers. You can order forms and publications, listen to prerecorded tax information, check on the status of your refund, ask questions about your tax return or inquire about a letter or notice you may have received. Many of these services are available 24 hours a day, seven days a week. |
| Tax Tip 2002-13 |
Jan. 23, 2001 |
| Need a Copy of Your Tax Return Information? Call the IRS |
| There may be times when you need a copy of your prior year federal tax return, a transcript of a return or tax account information. A phone call to the IRS or a visit to the IRS Web site may easily solve your problem. |
| Tax Tip 2002-12 |
Jan. 18, 2001 |
| Tax Materials & Assistance in Spanish |
| If you need federal tax information in Spanish, you can find it in the form of recorded tax topics, free tax publications and toll-free telephone assistance from the Internal Revenue Service. |
| Tax Tip 2002-11 |
Jan. 17, 2001 |
| Taxpayer Rights: a Priority for IRS |
| The law requires the IRS to protect taxpayer rights, and in its day-to-day operations, the IRS and its employees make taxpayer rights a top priority. This includes explaining those rights to taxpayers, keeping taxpayer information private and confidential and being professional and courteous. |
| Tax Tip 2002-10 |
Jan. 15, 2001 |
| E-File Helps Refunds, Payments |
| Are you one of the almost 100 million taxpayers who will receive a refund this year? The IRS says that requesting direct deposit and filing your tax return electronically (e-filing) will put that money in your pocket faster and easier. |
| Tax Tip 2002-09 |
Jan. 15, 2001 |
| Publication 17 - One Stop for Tax Help |
| Facing a lot of different tax questions this year? IRS experts have pulled together an overview of common tax issues in one convenient place — Publication 17, “Your Federal Income Tax.” This updated publication, available on the IRS Web site, contains a vast array of helpful information in one guide. |
| Tax Tip 2002-08 |
Jan. 13, 2001 |
| IRS Has Free Publications on Every Topic You Need |
| From aardvark to zyzzyva, the IRS has a publication that covers it — free for the asking. The IRS has numerous publications on a variety of tax-related topics available by phone, fax, or the Internet at www.irs.gov. |
| Tax Tip 2002-07 |
Jan. 11, 2001 |
| Point & Click Your Way to A Trouble-Free Tax Season |
| Need a tax form? Have a question about changes to tax law? Want to find the nearest IRS taxpayer assistance center? Now anyone with a personal computer and Internet access can point and click their way to trouble-free tax filing at www.irs.gov. |
| Tax Tip 2002-06 |
Jan. 10, 2001 |
| Record Keeping |
| You can avoid headaches at tax time by keeping track of your receipts and other records throughout the year, the IRS advises. Good record keeping will help you remember the various transactions you made during the year, which may help you out on your taxes. |
| Tax Tip 2002-05 |
Jan. 8, 2001 |
| Should I Itemize? |
| Whether to itemize deductions on your tax return depends on how much you spent on certain expenses last year. According to the IRS, money paid for medical care, mortgage interest, taxes, contributions, casualty losses, and miscellaneous deductions can reduce your taxes. If the total amount spent on those categories is more than the standard deduction, you can usually benefit by itemizing. |
| Tax Tip 2002-04 |
Jan. 8, 2001 |
| Which Form 1040, 1040A, or 1040EZ? |
| If you are filing a federal income tax return on paper, use the simplest form you can, the IRS advises. The simpler the form, the less chance of an error that may cost you money or delay the processing of your return. The simplest is Form 1040EZ. Form 1040A covers several additional items not addressed by the EZ. |
| Tax Tip 2002-03 |
Jan. 5, 2001 |
| What is Your Filing Status? |
| Your filing status on your federal ax return is a category that identifies you based on your marital and family situation, according to the IRS. It is an important factor in determining whether you must file a return, the amount of your standard deduction and your correct amount of tax. If more than one filing status applies to you, you may choose the one that gives you the lowest tax obligation. |
| Tax Tip 2002-02 |
Jan. 4, 2001 |
| Who Must File a Tax Return |
| There are some instances when you may not be required to file a federal income tax return. But keep this in mind — more than 70 percent of those who file are due a refund, so it may be to your advantage to file even if you are not required to. |
| Tax Tip 2002-01 |
Jan. 3, 2001 |
| Avoid Headaches, Prepare Taxes Early |
| Earlier is better when it comes to working on your taxes. The IRS encourages everyone to get a head start on tax preparation. Not only do you avoid the last-minute rush, early filers also get a faster refund. |
