Tax Refunds & Advice

Did you recently file your taxes for 2007? If so, there is no time to wait when it comes to getting organized for next year. The longer you wait to do this, the more difficult it is going to become when you finally decide to move forward. The biggest mistake that you can make is waiting until the beginning of 2008 to attempt to get your tax information in place.

There are several things that you can do in order to start the planning process off on the right foot. First and foremost, did anything go wrong with your taxes this year? If so, you need to make sure that you protect against this during the upcoming year. For instance, if you did not pay enough tax during 2007, you should find out how to make a positive change this year. If you do not protect against the mistakes you made last year, you are bound to repeat them this year.

Staying organized month in and month out is also crucial. Make sure that you are filing your pays stubs, keeping receipts, and staying on track if you are in charge of making your own tax payments. Obviously, the way that you stay organized will be based largely on the type of job that you have. If you are self-employed you will spend much more time organizing and dealing with taxes on a regular basis.

You should always plan for next years tax season as soon as possible. The work that you put in now will pay off when you sit down with your tax professional early in 2008. 

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

Preparing a tax return can be difficult. Luckily, there are tips that you can implement to make things as easy as possible on yourself. Even if you do not use all of the following tax tips, you should be able to make a couple of them work for you.

• Hire a Tax Professional - If you do not know what you are doing, hire a tax professional or accountant to help. Professional assistance can come from a CPA or a tax franchise that specializes in individual returns.

• Use Tax Software - Tax software can help if you plan on filing your own return. As long as your tax situation is not overly complex, tax software will work wonders for you.

• Schedule Some Time for Taxes - Give yourself plenty of time. If you start to file your tax return the day before it needs mailed, you will be up against a wall. Instead, leave several weeks or months so that you do not get stuck in a bind.

• Keep Good Records - Keep good records during the year. This will help to cut back on your stress level when filing your return.

• Organize Everything Organized - To go along with tip number four, keep your records organized. This includes everything from receipts to bills to paperwork from the IRS. Anything you think you may need to file your tax return should be kept in an organized fashion.

• Obvious Deductions - Do not overlook obvious deductions. This is a common mistake made by people who file their own return.

• Defer Income to Next Year - If possible, defer income to next year. Of course, this is not always as easy as it sounds, but if you ask your employer to pay a year end bonus in January instead of December, it could help your tax situation immensely.

• Mistake Free Tax Return - Double check your return before sealing and sending it off to the IRS. The only time that it is too late to fix a mistake is when your return is in the mail. You want to make sure that your tax return is mistake free.

• Report All of Your Income - Do not forget to report all of your income. Do you have a part-time job that you work from home? If so, you need to report this as additional income. It may not sound fair, but it is the law.

• More Tax Deductions for Business Owner or Self-Employed - If you run your own business, or are self-employed, there will be many more deductions available to you. They include everything from office expenses to health insurance premiums and more. Ask your tax advisor which expenses you can deduct.