| Tax Tip 2003-75 |
Aug. 1, 2002 |
| Advance Child Tax Credit Payments Mailed |
| The federal government has started mailing more than 25 million checks provided under a recent tax law change. According to the Internal Revenue Service, the checks represent an advance of this year´s child tax credit increase and will go to most parents who claimed the credit on their 2002 returns. |
| Tax Tip 2003-69 |
April 8, 2002 |
| 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 2003-67 |
April 4, 2002 |
| 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 2003-66 |
April 4, 2002 |
| 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 2003-65 |
April 4, 2002 |
| 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 2002, 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 2003-64 |
April 4, 2002 |
| 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. |
| Tax Tip 2003-63 |
April 1, 2002 |
| Filing Deadline and Payment Options |
| 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 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 2003-62 |
March 28, 2002 |
| Where to File Your Return |
| Once you complete your 2002 federal tax return, you can either file it electronically or mail it to the IRS. If you choose to mail your return, be sure to read your tax instruction booklet carefully to find the address of the IRS center for your area. |
| Tax Tip 2003-61 |
March 27, 2002 |
| How to Prepare your Tax Return for Mailing |
| Although electronic filing is becoming more and more the filing method of choice for taxpayers, there are still many who file paper returns. If you are one, 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 2003-59 |
March 25, 2002 |
| Foreign Income |
| With more and more United States 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. U.S. citizens are taxed on their worldwide income. |
| Tax Tip 2003-58 |
March 25, 2002 |
| Ten Ways to Aviod Problems at Tax Time |
| Looking for ways to avoid the last-minute rush for doing your taxes? |
| Tax Tip 2003-57 |
March 20, 2002 |
| 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 automatic withdrawal method. |
| Tax Tip 2003-56 |
March 20, 2002 |
| 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 |
| Tax Tip 2003-55 |
March 19, 2002 |
| Early Distributions from Retirement Plans |
| An early distribution from an Individual Retirement Arrangement (IRA) or a qualified retirement plan need not be a “taxing” experience, according to the IRS. |
| Tax Tip 2003-54 |
March 18, 2002 |
| 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 2003-53 |
March 17, 2002 |
| 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? |
| Tax Tip 2003-52 |
March 14, 2002 |
| 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 2003-51 |
March 13, 2002 |
| 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 2003-50 |
March 13, 2002 |
| 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 2002, it applies if the child's total investment income for the year was more than $1,500. Investment income includes interest, dividends, capital gains, and other unearned income. |
| Tax Tip 2003-49 |
March 12, 2002 |
| 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 2003-48 |
March 12, 2002 |
| 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 2003-47 |
March 8, 2002 |
| 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 2003-46 |
March 7, 2002 |
| Gift Giving |
| If you gave any one person gifts valued at more than $11,000 in 2002, it is necessary to report the total gift to the Internal Revenue Service. You may even have to pay tax on the gift. |
| Tax Tip 2003-45 |
March 7, 2002 |
| 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 2003-43 |
March 3, 2002 |
| Check Your Refund Status |
| If you have already filed your federal tax return and are due a refund, you have several options for checking on the status of your refund, says the IRS. |
| Tax Tip 2003-42 |
March 3, 2002 |
| Schedules B & 1 |
| You may be one of about 15 million taxpayers who no longer have to file Form 1040´s Schedule B or Form 1040A´s Schedule 1, according to the IRS. Starting with 2002 tax returns, you will not have to file a separate schedule if your taxable interest is $1,500 or less and your ordinary dividends are $1,500 or less. |
| Tax Tip 2003-41 |
March 3, 2002 |
| 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 was impaired because of their military service. The Soldiers and Sailors Civil Relief Act provides this benefit. |
| Tax Tip 2003-40 |
Feb. 27, 2002 |
| Retirement Savings Contributions Credit |
| This tax credit, which will be available only from 2002 through 2006, could help you offset the cost of the first $2,000 contributed to IRAs, 401(k)s and certain other retirement plans, says the IRS. |
| Tax Tip 2003-39 |
Feb. 27, 2002 |
| 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 2003-38 |
Feb. 27, 2002 |
| 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; the limit was $500 before 2002. 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 2003-37 |
Feb. 21, 2002 |
| Educator Expenses |
| Starting in 2002, if you are an educator, you may be able to deduct up to $250 of expenses you paid for purchases of books and classroom supplies even if you don´t itemize your deductions, according to the IRS. |
| Tax Tip 2003-36 |
Feb. 20, 2002 |
| 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 2003-35 |
Feb. 20, 2002 |
| 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 2003-34 |
Feb. 20, 2002 |
| Charitable Contributions |
| The Internal Revenue Services advises that, when preparing to file your 2002 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 2003-33 |
Feb. 20, 2002 |
| Free Filing in 2003 |
| You may be one of millions of taxpayers who will be able to prepare and file their 2002 federal tax returns electronically this year — for free. |
| Tax Tip 2003-32 |
Feb. 14, 2002 |
| Refinancing Your Home |
| Taxpayers who refinanced their homes may be eligible to deduct some costs associated with their loans, according to the IRS. |
| Tax Tip 2003-31 |
Feb. 13, 2002 |
| 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 2003-30 |
Feb. 12, 2002 |
| Roth IRAS |
| Confused about whether you can contribute to a Roth IRA? The IRS suggests checking these simple rules. |
| Tax Tip 2003-29 |
Feb. 11, 2002 |
| 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, such as stocks, 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 deduct only your capital losses on investment property, not personal property. |
| Tax Tip 2003-28 |
Feb. 11, 2002 |
| 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 2003-27 |
Feb. 7, 2002 |
| Tips and 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 2003-26 |
Feb. 6, 2002 |
| 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 2003-25 |
Feb. 5, 2002 |
| 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 January 31, 2003, 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 2003-24 |
Feb. 4, 2002 |
| 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 2002 earnings and withheld taxes no later than January 31, 2003 (if mailed, allow a few days for delivery). |
| Tax Tip 2003-23 |
Feb. 4, 2002 |
| Earned Income Tax Credit Available for Certain Workers |
| Workers 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 workers last year. |
| Tax Tip 2003-22 |
Jan. 25, 2002 |
| Child and 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 2003-21 |
Jan. 25, 2002 |
| 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 2003-20 |
Jan. 25, 2002 |
| 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 five tests, according to the IRS. |
| Tax Tip 2003-19 |
Jan. 25, 2002 |
| 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 2003-18 |
Jan. 25, 2002 |
| 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 2003-17 |
Jan. 24, 2002 |
| 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 2003-16 |
Jan. 23, 2002 |
| 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 2003-15 |
Jan. 22, 2002 |
| Forms and 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. |
| Tax Tip 2003-14 |
Jan. 21, 2002 |
| 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, or ask questions about your tax return. Many of these services are available 24 hours a day, seven days a week. |
| Tax Tip 2003-13 |
Jan. 18, 2002 |
| 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 2003-12 |
Jan. 18, 2002 |
| Tax Materials and Assistance in Spanish Ayuda en Espa�ol |
| 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 2003-11 |
Jan. 16, 2002 |
| 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 2003-10 |
Jan. 16, 2002 |
| 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 2003-09 |
Jan. 16, 2002 |
| 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 2003-08 |
Jan. 13, 2002 |
| 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 2003-07 |
Jan. 3, 2002 |
| Point and 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 2003-06 |
Jan. 3, 2002 |
| Recordkeeping |
| You can avoid headaches at tax time by keeping track of your receipts and other records throughout the year, the IRS advises. Good recordkeeping will help you remember the various transactions you made during the year, which may help you out on your taxes. |
| Tax Tip 2003-05 |
Jan. 3, 2002 |
| 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 2003-04 |
Jan. 3, 2002 |
| 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 2003-03 |
Jan. 3, 2002 |
| What is your Filing Status? |
| Your filing status on your federal tax 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 2003-02 |
Jan. 3, 2002 |
| 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 2003-01 |
Jan. 3, 2002 |
| 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. |
