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    We are devoted to providing both individuals and small businesses with articles and information that will help you in making the decision to prepare your own taxes or to use a tax professional. Please feel free to browse our numerous articles that we have assembled dealing with taxes.
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  • New Software Makes It Easier

    New tax planning software makes it easier than ever to now do your own taxes online. One of the primary advantages of this is that many of the software packages will expedite you filing your return online, thereby saving both time and postage as well enabling you to perhaps receiving your refund quicker if you're entitled.
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Featured Post

Tax Preparation Software Saves You Time & Money

By admin On February 15, 2012No Comments

With the start of a new tax season here upon us, many people are looking at using tax preparation software. Though still a novelty as recently as five years ago, tax prep software has become big business offered by many well known names.

There are a number of reasons that ‘do it yourself’ tax software has taken off despite tax forms that seem to get more complicated, with that in itself, perhaps being one reason. As more and more people have begun using ‘at home’ tax software, news of use has traveled virally as more people now feel comfortable with it’s use as  others confirm it’s validity. Accountants, as with many professionals, have slowly been raising their rates and the cost for an individual or family tax return has become a significant expense in many cases. This is especially true for small businesses.

Pulling Your Hair Out at Tax Time by Nick See

Another significant problem is that many qualified accountants get inundated by their larger corporate clients, and individuals as well as small business clients get shuffled to the rear. This is somewhat understandable from the accountants standpoint, but this doesn’t help relieve the stress and concern of the smaller client. In fact this just increases their frustration level.

The primary reason for the growth in the tax preparation software niche has been both the price and the features. As we’ve seen in many other software products, the price has slowly come down while the features with most on the market, have increased dramatically. In fact, many vendors now offer an online free version for very basic returns. Now most the top brands offer good, intuitive navigation, even for the beginner. They also offer tax planners, IRS publications, deduction finders, error checks and a host of other features.

They all offer the ability to e-file your taxes which is a big advantage and cost savings, since you now don’t have to worry about sending by certified mail, not to mention that you should receive your refund much quicker. Plus they all offer the ability to do your state returns also, usually for a small extra charge.

What’s even more amazing is that the price from most the leading vendors is almost nothing or even free for a basic federal filing. But the price for even the full blown version from most the bigger names is less than $120.00. That’s less than an hours time with most accounting firms. Some services also offer phone or online support if you have questions while using the software.

The result is that you’re now seeing the online tax services and software reach far beyond just filing your tax returns and tax preparation software as more of them now offer everything from retirement advice to family tax strategies. Even industry leader H&R Block is now strongly pushing its ‘at home’ service for even investors and rental property owners. Both them and industry leader TurboTax spend heavily on promoting their product during tax season.

You can expect to see the market for tax preparation software continue to grow as the features continue to grow, as well as the fact that you can now download it right off the internet in just a few minutes doesn’t hurt either. The net result is that the software can save you both time and money. Price is no longer prohibitive and as more and more people become familiar with the products and what they offer then I expect to see this market continue to grow.

Recent Posts

Check if Your Boss Has Filed Taxes For Your Wages

By admin On Comments Off on Check if Your Boss Has Filed Taxes For Your Wages

There are many ways to find out if your boss had filed taxes for your wages or not. The easy way, is to ask your boss if the tax filing has taken placed. However, you may not wish to take your boss’s word for something that is as important as taxes. The only way to find out, for sure, is to get the information from the official source – the IRS. So how do you go about doing it?

Go to the government security website, socialsecurity.gov Note the extension at the end of the domain name. It has to be .gov, and not .com, .net or any other extension. If it’s not a .gov, do not leave any sensitive information through the website. Leave the website immediately.

Locate and click the link to the section on “Questions about: Earnings and Employment”.

Choose the “Earnings and Employment” category, then from the drop down menu, choose: General-Earnings & Employment.

Next, click on the question “How can I check my Social Security earnings for accuracy?”, and you will be presented with further instructions.

You may then proceed to check your Social Security Statements for last year, and for years prior to last year. When you are checking the Statement for the previous year, your earnings should be reflected in this years statement. Sometimes, while you are checking, you may discover that the earnings reflected is not complete. This may be because some of the earnings filed for the last year is still in process.

However, earnings for years prior to the last year may also be incorrect. When that happens, you need to take corrective measures immediately. The number to call is 1-800-772-1213 (7 a.m – 7 p.m). Have your W-2 and your tax returns with you so that you can clarify the mistakes during the call.

If you do not have your most recent Social Security Statement, you can request for one online by downloading the SSA-7004 form. You can also request for the form to be sent to you by calling 1-800-772-1213. Alternatively, you may take some time off and take a trip to the local Social Security office to fill up the form. Once you submit a request for the Statement, you won’t receive another Statement automatically till the year is over.

Once you receive your report, you will be able to check if your boss had filed taxes for your wages. Refer to W-2 for any particular year. If taxes had not been filed, you will have to provide the Social Security office with copies of the W-2 as well as copies of your tax filing.

With the Internet, making a request for the report is very fast and convenient. This will give you the opportunity to erase any inaccuracies in your previous years’ tax filings.

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For more information on State tax return and efile tax returns, please visit our website.


Paying Taxes on Michigan Lottery Winnings

By admin On Comments Off on Paying Taxes on Michigan Lottery Winnings

All lottery prize money is subject to local, state, and federal income taxes just like any other income you may take home during the year. If you jackpot is large, you may be required to make anticipated tax payments to the Internal Revenue Service before the end of the year. This is a common procedure that is more often than not taken care of for you by your employer. If you talk to any small business owner, they can tell you all about quarterly tax payments.

How Much?
Depending on what your monetary situation is, you could pay as much as 50% in taxes on your lottery prize money. That would include state, local, and federal taxes. If you opt to receive your disbursement in installments, you must account for annual payments and any sum marked as interest on the unpaid fraction of installments in income, as received. If you elect to take delivery of the payout as a lump sum, you must include the entire lump sum in income in the year received. By law, if you win $5000 or more in the Michigan Lottery, 28% must be withheld for federal income tax payments.

Youre kidding?
Nope. Thats right, its a complex mess when you win a lot of cash from the state lottery. And it gets even worse if you buy the tickets with a group of people and want to hand out the money after the fact. If youre not cautious, youll get taxed for the initial jackpot, and then the payments as charitable gifts. This is why its very essential to appropriately form a lottery club if you frequently purchase tickets with a group of people.

Estate Tax on Lottery Winnings
With huge jackpots it gets even more complex, as the disbursement may be over an extended period of time. If a lottery winner were to pass away near the start of that payout period, their estate would be valued at the present value of the sum of all lottery winning payments yet to come. That means, its likely that your relatives may have to pay a huge sum of estate taxes on lottery winnings that they wont have access to. You can see the difficulty – they may not have the funds to pay the taxes.

Proper Planning
The bottom line is, get acquainted with what youre doing. If youve won a large disbursement, get professional help from an estate planner and tax attorney. The IRS does not acknowledge any excuse when it comes to tax payments, and will have no compassion when prosecuting you to get the funds they believe you owe.

All lottery prize money is subject to local, state, and federal official income taxes just like any other income you may take home during the year. If you jackpot is large, you may be required to make anticipated tax payments to the Internal Revenue Service before the end of the year. This is a common procedure that is more often than not taken care of for you by your employer. If you talk to any small business owner, they can tell you all about quarterly tax payments.

How Much?
Depending on what your pecuniary situation is, you could pay as much as 50% in taxes on your lottery prize money. That would include state, local, and federal taxes. If you opt to receive your disbursement in installments, you must story for annual payments and any sum marked as interest on the unpaid fraction of installments in income, as received. If you elect to take delivery of the payout as a lump sum, you must include the total lump sum in income in the year received. By law, if you win $5000 or more in the Wolverine State Lottery, 28% must be withheld for federal income tax payments.

Youre kidding?
Nope. Thats right, its a coordination compound mess when you win a lot of cash from the state lottery. And it gets even worse if you buy the tickets with a group of mass and want to hand out the money after the fact. If youre not cautious, youll get taxed for the initial jackpot, and then the payments as sympathetic gifts. This is why its very necessity to fittingly form a drawing club if you ofttimes purchase tickets with a group of people.

Estate Tax on Lottery Winnings
With huge jackpots it gets even more complex, as the disbursement may be over an extended period of time. If a lottery winner were to pass away near the start of that payout period, their estate would be valued at the give value of the sum of all lottery winning payments yet to come. That means, its likely that your relatives may have to pay a huge sum of estate of the realm taxes on lottery winnings that they wont have access to. You can see the difficulty – they may not have the funds to pay the taxes.

Proper Planning
The bottom line is, get acquainted with what youre doing. If youve won a large disbursement, get professional help from an estate contriver and tax attorney. The IRS does not acknowledge any excuse when it comes to tax payments, and will have no pity when prosecuting you to get the funds they trust you owe.

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About the Author (text)

Allen Wright is a freelance writer who follows whatever topics hold his interest. More information on retractable awnings can be found at michiganlotteryinfo.com/

best publisher for my play


Learn How to Reduce Your Taxes

By admin On Comments Off on Learn How to Reduce Your Taxes

Everybody is seems to be grumbling when that time of year comes – filing for taxes. But this is not a time to be grumbling. After all, all responsible citizens need to pay taxes in order for the country to continue functioning. So there is little use for grumbling. What you can do, however, is to arm yourself with the right type of knowledge – knowledge to reduce taxes. Here are some suggestions on how you can reduce your taxes.

Step 1: Planning for next year’s taxes.

This is the very first step that everyone should take. Having a plan is helpful because you may then keep track of all your outgoing expenses. Some of these expenses are tax deductible. That means the more you spend in those areas, the more you save in taxes. Keep all the transactions that are tax deductible in a separate folder. When the time comes for filing taxes, it’s easier to compute the total amount that you will be saving in taxes.

Step 2: Getting to know your deductibles.

This is the step that will get you into the lower income bracket and thus help you save on taxes. Here are some items that are likely to qualify as deductibles:

Dependents – Dependents can be your parents or your children. How many children do you have? Do you support a disabled person? The amount you qualify for depends on the number of dependents that you have.

Education – Some educational or training courses are tax deductible as well. For example, the amount you spent on a training course can qualify as a deductible. This may be the government’s policy to encourage self-training or re-training. Whatever the agenda, be sure to take advantage of it!

Starting a business – A hobby or a business may give you some tax breaks. However, a hobby type of business is very different from a full-fledged legitimate business. If yours is the latter, always seek tax advice from professional tax consultants.

Buy a house – When you own houses, you are required to pay monthly mortgage payments. Part of that payment is interest that is paid to the lender. Such interest can sometimes be considered as deductibles. Again, you need to keep track of all mortgage payments.

Buy a new car – Some environmentally friendly cars qualify for tax reductions. These are mostly alternative fuel cars that help protect the environment. Always check with the car dealer before making a purchase.

Donations – Giving to charity is a great way to reduce taxes. You can choose any charitable organization to donate to. The organization that you choose depends on the cause that you would like to help. Of course, these charity organizations have to be recognized by the country as an official charitable organization.

Besides the list above, there are other items that may be tax deductible. The important thing to remember here is to keep proper records of all transactions. You never know when you can use them as proof to reduce your taxes.

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Learn how to efile.123easytaxfiling.com“>Prepare taxes. Here are more Tax Tips.