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Income Tax Exemptions

2011 personal exemptions can help you get unclaimed IRS money

With the 2012 tax season less than two months away now is the time to brush up on your tax knowledge. One of the most fundamental things you should know about when filing your return is how to claim income tax exemptions.

An income tax exemption allows you to deduct a certain amount of money from your Adjusted Gross Income, thus reducing the total amount of money on which you must pay taxes. Let’s put it this way: income tax exemptions save you money.

And, as it turns out, the federal government holds on to millions of dollars in unclaimed deductions every year. So it’s important to claim every deduction that applies to you in order to keep all of the money you’re entitled to. Continue reading “Income Tax Exemptions”

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Changes to the Estate Tax for 2011

The death tax is back, but it’s not as high as it could have been

The 2010 tax year isn’t behind us yet. For those who opted for an extension, the deadline is this Monday, October 17. But this should not prevent us from looking ahead to the next tax year. After all, returns can be filed as early as January and many people are already wondering what 2011 tax changes are in store.

The short answer is that there are very few 2011 tax changes at all. Thanks to the dramatic, last-minute December compromise in Congress, the Bush tax cuts were extended through 2012. That means that tax rates will stay pretty much the same (the brackets have only been adjusted slightly to adjust for inflation). Continue reading “Changes to the Estate Tax for 2011”

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The 2011 Income Tax Deadline is April 18th!

The income tax deadline this year is April 18th.
You can still file your tax return now.

If you’ve filed recently, are expecting a refund, and are wondering where is my tax refund, you can get a quick read on its whereabouts by using the Where’s My Refund online tool. The IRS Refund Cycle Chart may also prove helpful.

Late filers and procrastinators, you have a week left as of today. This should be enough time to collect your papers, organize them, and get it done, especially if you have a simple return with a single source of income and are opting for straightforward deductions and credits. As such, we urge you to file electronically: it’s fast, easy, safe, and inexpensive. You can get started right here.

If your return is more complicated, for example if you itemize your deductions, it is still not too late in the 2011 Tax season to get going. Remember that even if you choose to file an extension to file your taxes at a later time you will still have to furnish the IRS with an estimate of your tax obligation. So, it’s advisable to get an idea of where you stand tax wise. Continue reading “The 2011 Income Tax Deadline is April 18th!”