Tax Refunds & Advice

If you are self- employed, you need to pay income tax just like everybody else. The best way to do this is to send quarterly payments on both the federal and state level. By doing this, you will keep up with the rest of the tax payers who have this money deducted from their paycheck each month.

Staying organized is essential if you are going to pay your quarterly tax payments on time. Once you get used to paying these taxes it will more or less become a part of your business. But even then, you always need to be organized.

The amount of quarterly taxes that you pay is based on the income that you earn during that particular period. For this reason, it is essential that you keep close track of every dollar that you earn. This will allow you to know just how much money you are supposed to pay. Remember, if you do not pay each quarter you will have to pay at the end of the year. The bottom line is that paying quarterly taxes is a way of life for self-employed workers.

To set up quarterly payments for the first time, visit a tax professional or certified public accountant. They can give you the proper forms, as well as tips on what percentage of your income to pay, etc. After your first year of filing, you will begin to receive the proper paperwork in the mail for paying federal and state income tax.

All in all, staying organized will make it much easier for you to pay your quarterly taxes with success. As you can imagine, this is not something that you want to get behind on. 

Most Americans who qualify for an economic stimulus rebate will not have to do anything other than file their 2007 individual income tax return to receive their payment this year.

Most people are well aware that the Treasury is planning to send economic stimulus tax rebates to more than 130 million Americans. Although there is no way of knowing when your rebate will arrive in the mail, plans are for the checks to be sent throughout the late spring and summer months.

Generally speaking, you do not need to do anything in order to receive your payment. As long as you file your 2007 tax return as usual, you will be in line to receive your check when the time comes. In other words, the entire process is automated, which saves individuals from completing lengthy applications or directly contacting the Internal Revenue Service. As with similar rebates in the past, not everybody will receive the same amount. There is a maximum payment of $600 for individuals or $1,200 for those who file a joint return; the minimum is $300 or $600 for joint returns. Even if you do not think that you earn enough money, you will still want to keep an eye out for a rebate. If your tax return shows income in excess of $3,000, it is safe to say that you will be receiving $300 at the very least.

Parents who are eligible for this payment will receive an additional $300 for each child, with no cap.

Of course, there are income limits that can change the amount you receive. For individuals earning more than $75,000, five percent of the amount exceeding this threshold will be deducted from the payment. For joint filing, the maximum income is $150,000. 

As you can see, there are a few stipulations that will determine how much of a payment you receive. With that being said, more than 130 million Americans will receive an additional rebate by the end of summer. 

For further information on the economic stimulus plan, visit: http://www.irs.com/news/stimulus-rebate-2008.htm

Are you going to be visiting with your tax professional within the next couple of months? If so, you are just like millions of other filers. While there are some personal questions that you are sure to ask, you will also want to consider those that are more general in nature. Here are three inquiries that you do not want to forget this year.

1. Additional Tax Rebates: Ask your tax professional about the additional tax rebates that will be sent out in the Spring. Chances are that you will be receiving one of these checks that are meant to “stimulate” the economy. For many, this is a great chance to get extra money to pay bills, save, or just splurge.

2. Pay Ahead of Time, Don’t Owe: If you owed the IRS money this year, ask what you can do to avoid this in 2008. It is always better to receive a rebate check than to owe money. Make sure that you pay enough in taxes this year so that you can reap the rewards when the 2009 rebates are mailed.

3. Change of Tax Situation: Are you going to be making any changes to your tax situation this year? This could include anything from buying a second home to starting a business. If so, get the advice of your tax professional. He or she can tell you what to watch out for, how to stay on top of taxes, and much more.

All in all, these three general questions are important to keep in mind when you meet with your tax advisor this Spring. Of course, you will also want to ask more personal questions as well. Remember, now is the time to get everything set up for a successful 2008!