Tax Info!

As the tax deadline of April 18th draws near, my office would like to pass along a few online tax resources that may expedite your filing process. The IRS website has a host of online tools to help you submit your tax information, track your refund, and more. Keep in mind the following things for this 2011 tax season:

*Updated Tax Tips 2011 page on the IRS website.

*Cut down on the paperwork. If you make less than $58,000 gross income, you can use the IRS’ new tool called Freefile that allows you to file your tax forms online without the hassle of mailing.

*Track your refund. Where’s My Refund? is an online tool that allows taxpayers to track your refunds. To get your refund faster through setting up direct deposit, click here.

*Tax credits for small businesses. In response to the recession, Congress implemented new tax credits to spur economic growth and recovery. The Small Business Jobs Act of 2010 created additional tax credits for small businesses. Click here to see if your small business qualifies for any of these new tax provisions.

*Tax credits for students. Parents and students may qualify for the American Opportunity Credit that may be claimed for the first four years of college expenses. Taxpayers are eligible for full credit if they are individuals earning less than $80,000 a year, or a couple earning $160,000 or less. Even if you make above these levels, you may qualify for a partial tax credit. For more information, click here.

*Understand the Earned Income Tax Credit. Earned income is the taxable wages and income you receive from working or owning your own business. To see if your earnings fall into this category, click here. Individuals earning less than $43,352 and couples earning $48,362 with children may qualify for The Earned Income Tax Credit. To see if you qualify, use the IRS’ Earned Income Tax Credit Assistant. To claim the Earned Income Tax Credit, you need to fill out Form 8862.

*You may qualify for free tax assistance. For low- and middle-income taxpayers with an annual income of $49,000 or less, you may qualify for free tax help through the Volunteer Income Tax Assistance Program. If you make less than $49,000 a year and believe your tax questions cannot be handled over the phone, you can visit a Taxpayer Assistance Center for free face-to-face tax help. Use the IRS’ Office Locator to find a center nearest you.

*Know how unemployment benefits are taxed. Unemployment compensation received from the government is taxable as income. If you have received unemployment compensation during the year, you will be given a Form 1099-G indicating the amount you were paid. This amount must be included in your income. If you have received unemployment benefits, you may decide to have federal income tax withheld by filling out a Form W-4V.

Source: Congressman ben Chandler, e-mail