Tax Refunds & Advice

Both H&R Block and Intuit are making big changes when it comes to their federal tax return desktop software. Intuit, the creator of TurboTax software, and H&R Block were charging customers fees for electronically filing federal returns. To make things worse, those using these services thought that they were doing so for free.

Although the IRS does not require companies to offer e-filing for free, it has become a hot topic of discussion as of late. There is a chance that in the future the IRS will have to offer individual taxpayers a way to file their electronic return free of cost. This legislation was introduced in the Senate in early 2007 and made its way to the House in 2008. Although a decision has yet to be made, there is a good chance that this will change in the near future.

Intuit never charged fees for the online version of their software, but did do so for those using the desktop version. In fiscal year 2008, Intuit sold more than seven million copies of their popular TurboTax software.

On the other side of the story, there are some companies that have never charged e-filing fees. For example, eztaxrefunds.com has been a major player in this industry for a long time but has never charged similar fees. As you can imagine, more and more taxpayers would have moved towards other options had they known they were being charged excess fees.

Although H&R Block and Intuit have finally decided to cut out all e-filing fees, there is a good chance that duping customers in the past will come back to harm them in years to come.

The Senate voted 93-2 to pass a bill which will provide tax breaks to individuals and businesses totaling more than $100 billion. Tax breaks will be provided for renewable energy, while also holding back the alternative minimum tax from reaching millions of taxpayers this year. Additionally, it also extends several business tax provisions that were set to expire.

Harry Reid (D., Nev.), Senate Majority Leader, asked the House not to make any changes to the version of the legislation set forth in the Senate. Reid said, “Don’t send us back something else. We can’t get it passed.” He added, “If they try to mess with our package, it will come back here, it will die, and we…will have snatched defeat from the jaws of victory.”

On the other side of things, Steny Hoyer (D., Md.), House Majority Leader, said the House would vote on the tax bill but one “that does not add to the national debt.”

With all of this in mind, the AMT provision is one area on which both sides agree. If Congress does not step in approximately 26 million people will owe additional money in taxes. This is a huge increase when compared to the four million from last year.

For businesses, the bill will extend the research and development tax credit. Additionally, a provision geared towards multinational financial-services firms would allow foreign branches to defer paying United States taxes. 

It will be interesting to see if the tax break package moves forward in this capacity, or if major changes are made.

It is not difficult to find an online tax calculator that can help with any issue that you are facing. You should definitely use these tools no matter who you are, or what tax situation you are facing. They are free to consumers, and you can easily learn to use them in no time at all.

The question is: which online tax calculators are best and how can you use them to your advantage? Simply put, the best tax calculators are those that will make your job easier. In other words, the calculator that you use the most may not ever suit somebody else.

Are you worried that you have too much or too little income being withheld by your employer? If so, you will want to use an online withholding calculator. This will allow you to crunch the numbers, and in turn determine just how much money your employer should be taking out for taxes. You will want to use this calculator before you fill out Form W-4 for your employer.

An earned income tax credit calculator may also come in handy. Are you eligible for the earned income tax credit? Most people do not know the answer to this question. It is based on many factors, and if you use the right calculator you can determine your eligibility in no time at all.

Don’t stop here! There are many free online tax calculators that you can use throughout the year as well as when you are filing your final return. The more calculators you are comfortable using the better off you will be. And since most of them are self-explanatory you will never have a difficult time getting started.