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IRS Refund Problems Cause Delays

Many taxpayers are frustrated by IRS delays and a lack of information from Where’s My Refund

Going into this tax season we knew that refunds were going to be delayed. Right off the bat the IRS increased the time frame within which most people can expect their refund. Instead of the old 8-15 days it suddenly became “under 21 days.”

Then the fiscal cliff nuttiness in Congress pushed the start of the season back two weeks to January 30th. These two changes alone meant that lots of people would be getting their money 2-3 weeks later than usual.

But as the tax season has progressed, the IRS has run into even more problems. Before the start of the season this year the IRS made some changes to its system to try to cut down on instances of tax fraud and identity theft, which affected over a million taxpayers last year. This is a huge relief to anyone who’s had their Social Security number or refund stolen.

Once the season started, however, the IRS discovered some problems with this new system that required a little fine-tuning. These adjustments caused many returns to be delayed for an additional week. Continue reading “IRS Refund Problems Cause Delays”

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2013 Income Tax Rates

Here’s the individual income tax rates for 2013

If you still need to file your 2013 taxes, you may need a reminder of the 2013 income tax rates. These rates will play a major role in how much your 2013 tax refund or tax due total will be.

2013 Income Tax Rate Table

The 2013 tax rates for the bottom six brackets remain unchanged from 2012. The biggest change is the addition of a new rate of 39.6% for individuals with incomes above $400,000 and married couples filing jointly with incomes above $450,000. Continue reading “2013 Income Tax Rates”

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iPad Tax Deduction

How to deduct your tablet computer on your taxes

All you Apple addicts out there will be happy to know that you can deduct the cost of your iPad. In order to take the deduction, however, you must actually use your iPad for business. If all you do is play Angry Birds on the subway or entertain your petulant children in the backseat you won’t get any tax benefit.

Business Expense

If you operated a business or practiced a profession as a sole proprietor than you can very likely claim the cost of an iPad as a business expense.

As far as the IRS is concerned, the same rules that govern computers also govern iPads. In order to deduct your iPad (or anything else for that matter) it must be usual, necessary, customary, and reasonable for the type of business that you are engaged in.

In order to take a deduction you must have acquired your iPad specifically for use in your trade or business. You can use your iPad for personal purposes too, but at least 50% of your use must be for business. Continue reading “iPad Tax Deduction”