by steve | Feb 11, 2010 | Tax Help, Uncategorized
IRS WEBSITE HAS COME OUT WITH SOME INFORMATION ABOUT UNEMPLOYMENT BENIFITS. FACT FROM THEIR SITE.
Taxpayers who received unemployment benefits in 2009 are entitled to a special tax break when they file their 2009 federal tax returns. This tax break is part of the American Recovery and Reinvestment Act of 2009.
Here are five important facts the Internal Revenue Service wants you to know about your unemployment benefits.
Unemployment compensation generally includes any amounts received under the unemployment compensation laws of the United States or of a specific state. It includes state unemployment insurance benefits, railroad unemployment compensation benefits and benefits paid to you by a state or the District of Columbia from the Federal Unemployment Trust Fund. It does not include worker’s compensation.
Normally, unemployment benefits are taxable; however, under the Recovery Act, every person who receives unemployment benefits during 2009 is eligible to exclude the first $2,400 of these benefits when they file their federal tax return.
For a married couple, if each spouse received unemployment compensation then each is eligible to exclude the first $2,400 of benefits.
You should receive a Form 1099-G, Certain Government Payments, which shows the total unemployment compensation paid to you in 2009 in box 1.
You must subtract $2,400 from the amount in box 1 of Form 1099-G to figure how much of your unemployment compensation is taxable and must be reported on your federal tax return. Do not enter less than zero.
SHOULD YOU HAVE ANY QUESTIONS PLEASE CALL
by steve | Feb 10, 2010 | Tax Help, Uncategorized
Getting ready to file your tax return? Make sure you have all your documents before you start. You should receive a Form W-2, Wage and Tax Statement from each of your employers. Employers have until February 1, 2010 to send you a 2009 Form W-2 earnings statement. If you haven?t received your W-2, follow these four steps:
1. Contact your employer If you have not received your W-2, contact your employer to inquire if and when the W-2 was mailed. If it was mailed, it may have been returned to the employer because of an incorrect or incomplete address. After contacting the employer, allow a reasonable amount of time for them to resend or to issue the W-2.
2. Contact the IRS If you do not receive your W-2 by February 16th, contact the IRS for assistance at 800-829-1040. When you call, you must provide your name, address, city and state, including zip code, Social Security number, phone number and have the following information:
Employer’s name, address, city and state, including zip code and phone number
Dates of employment
An estimate of the wages you earned, the federal income tax withheld, and when you worked for that employer during 2009. The estimate should be based on year-to-date information from your final pay stub or leave-and-earnings statement, if possible.
3. File your return You still must file your tax return or request an extension to file by April 15, even if you do not receive your Form W-2. If you have not received your Form W-2 by April 15th, and have completed steps 1 and 2, you may use Form 4852, Substitute for Form W-2, Wage and Tax Statement. Attach Form 4852 to the return, estimating income and withholding taxes as accurately as possible. There may be a delay in any refund due while the information is verified.
4. File a Form 1040X On occasion, you may receive your missing W-2 after you filed your return using Form 4852, and the information may be different from what you reported on your return. If this happens, you must amend your return by filing a Form 1040X, Amended U.S. Individual Income Tax Return.
Form 4852, Form 1040X, and instructions are available on the IRS Web site, IRS.gov or by calling 800-TAX-FORM (800-829-3676).
This message is brought to you on behalf of the IRS.GOV The information is taken directly from their site. With more and more businesses belly up more people will not get there W-2’s. This is great information to have.
by steve | Feb 8, 2010 | Tax Help, Uncategorized
The Obama administration Feb. 1 released its fiscal year 2011 budget requests, asking for more than $12.6 billion for the Internal Revenue Service to implement programs to meet its key strategic goals.
The IRS budget request?an increase over Obama’s fiscal 2010 request for $12.147 billion?includes an allocation increase of $293 million to IRS’s enforcement program to continue work to close the tax gap, which the administration called an investment in a strong compliance program.
The administration requested $386.9 million for IRS’s business systems modernization program to finish the new taxpayer account database and maintain investment in electronic filing systems. Completion of the database will expedite refunds to 140 million individual taxpayers and will allow IRS to broaden its online services to manage growing taxpayer service demands, according to the budget.
The administration’s budget proposes an increase of more than $43 million to IRS’s taxpayer services account, providing more resources for ?high-quality phone service? and technological enhancements that will boost electronic filing capabilities by making more electronic forms available. Presumably, this will help address the pesky situation where the IRS is unable to even answer ?much less respond to?30% of the telephone calls it receives.
If only the people answering the telephones would be happy-priceless
by steve | Feb 5, 2010 | Tax Help, Uncategorized
While most income you receive is generally considered taxable, there are some situations when certain types of income are partially taxed or not taxed at all.
To ensure taxpayers are familiar with the difference between taxable and non-taxable income, the Internal Revenue Service offers these common examples of items that are not included in your income:
Adoption Expense Reimbursements for qualifying expenses
Child support payments
Gifts, bequests and inheritances
Workers’ compensation benefits
Meals and Lodging for the convenience of your employer
Compensatory Damages awarded for physical injury or physical sickness
Welfare Benefits
Cash Rebates from a dealer or manufacturer
Some income may be taxable under certain circumstances, but not taxable in other situations. Examples of items that may or may not be included in your income are:
Life Insurance If you surrender a life insurance policy for cash, you must include in income any proceeds that are more than the cost of the life insurance policy. Life insurance proceeds, which were paid to you because of the insured person’s death, are not taxable unless the policy was turned over to you for a price.
Scholarship or Fellowship Grant If you are a candidate for a degree, you can exclude amounts you receive as a qualified scholarship or fellowship. Amounts used for room and board do not qualify.
Non-cash Income Taxable income may be in a form other than cash. One example of this is bartering, which is an exchange of property or services. The fair market value of goods and services exchanged is fully taxable and must be included as income on Form 1040 of both parties.
All other items?including income such as wages, salaries and tips?must be included in your income unless it is specifically excluded by law.
IRS is doing a good job trying to educate the public regards all issues. The information above comes from the IRS NEWSWIRE site that FRESHSTARTTAX receives from the IRS. Should you need other qualifying information, please call us today. We will constantly inform you on all relative information coming out on NEWSWIRE from IRS.
by steve | Feb 5, 2010 | Tax Help, Uncategorized
While most income you receive is generally considered taxable, there are some situations when certain types of income are partially taxed or not taxed at all.
To ensure taxpayers are familiar with the difference between taxable and non-taxable income, the Internal Revenue Service offers these common examples of items that are not included in your income:
Adoption Expense Reimbursements for qualifying expenses
Child support payments
Gifts, bequests and inheritances
Workers’ compensation benefits
Meals and Lodging for the convenience of your employer
Compensatory Damages awarded for physical injury or physical sickness
Welfare Benefits
Cash Rebates from a dealer or manufacturer
Some income may be taxable under certain circumstances, but not taxable in other situations. Examples of items that may or may not be included in your income are:
Life Insurance If you surrender a life insurance policy for cash, you must include in income any proceeds that are more than the cost of the life insurance policy. Life insurance proceeds, which were paid to you because of the insured person’s death, are not taxable unless the policy was turned over to you for a price.
Scholarship or Fellowship Grant If you are a candidate for a degree, you can exclude amounts you receive as a qualified scholarship or fellowship. Amounts used for room and board do not qualify.
Non-cash Income Taxable income may be in a form other than cash. One example of this is bartering, which is an exchange of property or services. The fair market value of goods and services exchanged is fully taxable and must be included as income on Form 1040 of both parties.
All other items?including income such as wages, salaries and tips?must be included in your income unless it is specifically excluded by law.
IRS is doing a good job trying to educate the public regards all issues. The information above comes from the IRS NEWSWIRE site that FRESHSTARTTAX receives from the IRS. Should you need other qualifying information, please call us today. We will constantly inform you on all relative information coming out on NEWSWIRE from IRS.
by steve | Feb 5, 2010 | Tax Help, Uncategorized
IRS has just released the latest about Frivolous Tax Arguments. The IRS is dealing more sternly about the issue and raising the fine. See below from the IRS New Wire
The Internal Revenue Service today released the 2010 version of its discussion and rebuttal of many of the more common frivolous arguments made by individuals and groups that oppose compliance with federal tax laws.
Anyone who contemplates arguing on legal grounds against paying their fair share of taxes should first read the 80-page document, The Truth about Frivolous Tax Arguments.
The document explains many of the common frivolous arguments made in recent years and it describes the legal responses that refute these claims. It will help taxpayers avoid wasting their time and money with frivolous arguments and incurring penalties.
Congress in 2006 increased the amount of the penalty for frivolous tax returns from $500 to $5,000. The increased penalty amount applies when a person submits a tax return or other specified submission, and any portion of the submission is based on a position the IRS identifies as frivolous.
IRS highlighted in the document about 40 new cases adjudicated in 2009. Highlights include cases involving injunctions against preparers and promoters of Form 1099-Original Issue Discount schemes and injunctions against preparers and promoters of false fuel tax credit schemes.
There is a lot of time wasted on these arguments and the truth be told, most of these arguments are a waste of time and taxpayer money. We applauded the IRS.
