Nearly all states offer 529 plans, popular ways to save for a child’s future college expenses. The plans allow
withdrawals for college expenses that are free of federal taxes. Two-thirds of the states also extend state tax deductions or credits to residents enrolling
in their 529s. Read the rest of this entry »

It’s a provocative fact about the tax code: Nearly half of U.S. households end up owing no federal income tax.

But it’s not surprising given the addiction to tax breaks by both Democrats and Republicans, and the fact that the U.S. tax
code is set up to be progressive. Read the rest of this entry »

If you need more time to get your taxes done right, then file a
Form 4868, Application for Automatic Extension for Time to File U.S. Individual
Income Tax Returns. If you don’t file a tax return or at least an extension by
the April 17 deadline, then you’ll owe IRS penalties and interest. Read the rest of this entry »

Although 2011 is way back in the rearview mirror, it’s still not
too late to make some moves that will save taxes on last year’s Form 1040 and
maybe on last year’s state income tax return as well. Here are three possibilities.
Read the rest of this entry »

By Kay Bell | Bankrate.com –

Taxes » Tax
Credits » Tax Credit For Savings Made For Retirement

Contributors to retirement plans already know the long-term tax advantages of an individual retirement account or 401(k). Taxes are deferred, and in some cases never collected, on money put away for the golden years.

Now a tax credit will let some savers reap the rewards of their retirement
thrift early. Read the rest of this entry »

By Laura Saunders

The tax code has gotten so complicated that even smart
people make big mistakes about filing taxes, according to the National
Association of Enrolled Agents. Here’s a list of taxpayers’ common
misconceptions gathered by enrolled agents across the country. (Enrolled
agents, by the way, are allowed to represent taxpayers before the Internal
Revenue Service, after passing a stiff competency exam and a background check;
they also prepare tax returns.)
Read the rest of this entry »

By Barbara Weltman

The tax law sets deadlines for filing income tax returns.
However, there is room to maneuver, and the time you choose to file depends on
your personal situation. Here are some guidelines to help you decide on the
best time for you to file your return. Read the rest of this entry »

By TARA SIEGEL BERNARD

 It’s tax time, which means millions of Americans are probably in the midst
of collecting the many documents needed to prepare their returns.

When I was going through this exercise last week, I had to download a 1099
form from my bank’s Web site, which naturally included all sorts of sensitive
information. So how do you virtually shred these documents after you are done with them? Or how would you securely save a
sensitive document like a completed tax return? Read the rest of this entry »

The IRS is on the prowl–possibly for you. Thanks to improved detection
systems and computerized checks, the IRS can more easily identify red flags
that trigger audits, says Joseph Perry, a partner at Marcum LLP, a public
accounting firm. “They definitely contact taxpayers
more frequently,” he adds. Read the rest of this entry »