Feb 20 2009
Time to Think about Filing Income Taxes
The April 15th deadline isn’t even close, but everyone should have received their W-2’s and finished all their year-end business by now. So it’s not too early to get out the old shoe box full of receipts and start sorting. If you’re a do-it-yourselfer there are several software programs that promise they are so easy your fifth grader could do your taxes. That might not really surprise you if you ever watched that show “Are You Smarter than a 5th Grader?” Now all I need is a 5th grader; anybody have a kid that needs to earn a little extra cash?
All kidding aside, those tax software programs really do help because they kind of lead you through the process. They ask you questions so you won’t miss deductions, but the best part is they do the math then print you a nice copy as well as help you file the return electronically. I have personally used Turbo Tax and found it really easy, but this by no means an endorsement for them because I think probably most of the tax software programs are probably a lot alike. If you don’t want the satisfaction of slaying the tax dragon by yourself, and just want a little help from your friends, it won’t take you long to find a friendly tax preparer. You can get one of those guys that work “magic” and get 9 out of 10 of their customers a refund. It may sound like I am taking this lightly, but filing your taxes is a serious matter and if you are going to trust someone else to prepare your tax return it would be a good idea to check to make sure the preparer is licensed by the California Tax Education Council CTEC.org or is a Certified Public Accountant. Just remember that even if you have someone else prepare your taxes you are still responsible and must sign the return acknowledging that the information is true and correct. In other words you are untimately responsible for your tax return and payment of taxes.
Believe it or not the best deal I found was with the IRS. Sounds like one of those oxymorons doesn’t it; I’m with the IRS and I’m here to help. How many people believe that one? But just follow this link to IRS.gov for a look at freefile. If your adjusted gross income (after deductions) in 2008 is $56,000 or less you can prepare and file for free. What could be better than that, file for free with the blessing of the IRS?
Tax Time Again
If anyone bought their first home in 2008 depending on their income, they may be eligible for a $7,500 tax credit.
And those buying in 2009 can take $8,000 tax credit with stipulations on income, as well. I believe this tax credit can also apply to the 2008 tax return.
Something to ask their tax consultant about and take full advantage of.
One good thing to know about this credit is that even if you have bought a home before, if you been a renter for the past three years you can qualify as a first time buyer. The same rules apply for the 2009 credit. Sort of gives a second chance to someone who may have had to sell or hasn’t owned a primary residence for several years.