Online Tax Preparation

Why choose Online Tax Preparation

As a taxpayer you have many choices when it comes time to file your taxes.

  • You can buy software, install it and file your taxes yourself.
  • Hire an Accountant or a Tax Preparer to file your taxes for you.
  • Use an Online Tax Preparation website and do it yourself.

Let’s take a look at each one of these.

Tax Preparation Software

If you opt for this method you will have to purchase new software every year plus pay any applicable fees for filing your return using their software.

Accountant or Tax Preparer

Choosing this method you will usually have a large fee for the filling out of your tax return and in many cases fees from whatever program or website they use.

I will let you in on a little secret about this method.

Most tax preparers who work out of their home or small business that do this, use the same type of website or software that you could be using yourself.

Quite a few years ago we hired an accountant to do our taxes, he had to leave the room for a few minutes and so I peaked at his computer, guess what I saw?…. He was on the leading tax website; _____tax using their website to do our taxes! He charged us $100 to do our taxes plus we had another $40 or so taken out of our return for him using the website! I wanted to leave right then and there, but the ex-wife…, well we stayed.. enough said. I have been doing my own taxes ever since.

The tax preparer takes your information from your paperwork and just fills in the blanks, just like YOU would be doing yourself in the next type of preparation.

The only people that would require this type of service is people who have a large amount of deductions, combined small business and personal deductions or similar situations.

The vast majority of people filing taxes can do it themselves with very little difficulty. The tax system does all the work, checks the return for errors and efiles the return for the preparer, be it you or a tax professional.

If you are dead set at using a tax preparer do yourself a favor. Try us out for FREE and see what results you get. Then write down your refund amount or what you owe before you visit your tax preparer. When they are done compare what you came up with from our service and what they did. In most cases they will be the same, they might come up with a little more, but remember, you will also be out their fees!

Online Tax Preparation

Online Tax Preparation websites like FileYourtaxesNow.com allows you to file your taxes yourself using the same type of system that tax professionals use. You just gather your w-2s and any other information required and fill in the blanks.

At FileYourTaxesNow.com our system was developed by the makers of one of the number one softwares used by tax professionals and accountants in the USA. You can rest assured that our system will do the best job of filing your taxes correctly while givng you the maximum refund possible.

What if I make a mistake?

Our system will show you any errors on your return and it won’t let you file your return with errors on it.
The key here is to double check your entries to make sure there are NO mistakes in the numbers you entered from your W-2s or other paperwork you have.

Try us for Free!

You don’t have to pay until you officially file your return by efile or you print your return out to file it by mail. Try our easy to use system, see what results you get ~ we believe you will be pleased.

State Availability for eFile of Tax Returns

As a result of a cooperative effort between the IRS and state tax administration agencies, Federal/State e-file is available to taxpayers to file their Federal and state returns electronically at the same time. It is available to you through tax professionals or in most states by filing from your home computer. Find your state below to determine when return processing will be available for your state.

 

State Availability for eFile of Tax Returns

Federal/State e-file allows the electronic filing of both Federal and state income tax returns at the same time. The electronic filing software places your Federal and state return data in separate packets. These packets are transmitted to the IRS in one taxpayer “envelope.” The IRS functions as an electronic post office for the participant state, who receives and processes the state electronic return.

Can I pay both Federal and State balance in one transaction?
Federal tax payments can be made via electronic funds withdrawal or credit card.  Most states are accepting electronic funds withdrawal and credit card payments, but federal and state payments are not combined. For additional information contact your state e-file coordinator .

Note: If your state has not begun processing, you can file your federal return now and come back to finish your state at a later time (*Except AR, HI and OK).

State Availability dates

Alabama – Available Now
Alaska – No State Tax
Arizona – Available Now
Arkansas – Available Now
California – Available Now
Colorado – Available Now
Connecticut – Available Now
Delaware – Available Now
District of Columbia – Available Now
Florida – No State Tax
Georgia – Available Now
Hawaii – Available Now
Idaho – Available Now
Illinois – Available Now
Indiana – Available Now
Iowa – Available Now
Kansas – Available Now
Kentucky – Available Now
Louisiana – Available Now
Maine – Available Now
Maryland – Available Now
Massachusetts – Available Now
Michigan – Available Now
Minnesota – Available Now
Mississippi – Available Now
Missouri – Available Now
Montana – Available Now
Nebraska – Available Now
Nevada – No State Tax
New Hampshire – Available Now
New Jersey – Available Now
New Mexico – Available Now
New York – Available Now
North Carolina – Available Now
North Dakota – Available Now
Ohio – Available Now
Oklahoma – Available Now
Oregon – Available Now
Pennsylvania – Available Now
Rhode Island – Available Now
South Carolina – Available Now
South Dakota – No State Tax
Tennessee – Available Now
Texas – No State Tax
Utah – Available Now
Vermont – Available Now
Virginia – Available Now
Washington – No State Tax
West Virginia – Available Now
Wisconsin – Available Now
Wyoming – No State Tax

To learn about your state and how it is partnering with the IRS, select a category and the provided link for each state.

Filing Season Opens on Time Except for Certain…

Filing Season Opens on Time Except for Certain Taxpayers Potentially Affected by AMT Patch

WASHINGTON — The Internal Revenue Service announced today that the upcoming tax season is expected to start on time for everyone except certain taxpayers potentially affected by late enactment of the Alternative Minimum Tax “patch.”

Following extensive work in recent weeks, the IRS expects to be able to begin processing returns for the vast majority of taxpayers in mid-January. However, as many as 13.5 million taxpayers using five forms related to the Alternative Minimum Tax (AMT) legislation will have to wait to file tax returns until the IRS completes the reprogramming of its systems for the new law.

The IRS has targeted Feb. 11, as the potential starting date for taxpayers to begin submitting the five AMT-related returns affected by the legislation. The February date allows the IRS enough time to update and test its systems to accommodate the AMT changes without major disruptions to other operations related to the tax season. As the IRS has said previously, it will take approximately seven weeks after the AMT patch was approved to update IRS processing systems completely.

Filing Season Opens on Time Except for Certain…

Although as many as 13.5 million taxpayers will not be able to file their returns until Feb. 11, the effect of the delay may be lessened by the fact that under previous filing patterns only between 3 million to 4 million taxpayers file returns with the five affected forms during these early weeks in the filing season.

“We regret the inconvenience the delay will mean for millions of early tax filers, especially those expecting a refund,” said Linda Stiff, Acting IRS Commissioner. “We’ve taken extraordinary steps to figure out a way that we can start the filing season on time for most taxpayers, including some using AMT-related forms. Our goal has always been to make sure we can accurately process tax returns while getting refunds to taxpayers as quickly as possible.”

The February delay caused by the AMT patch will affect taxpayers using these five forms:

  • Form 8863, Education Credits
  • Form 5695, Residential Energy Credits
  • Form 1040A’s Schedule 2, Child and Dependent Care Expenses for Form 1040A Filers
  • Form 8396, Mortgage Interest Credit
  • Form 8859, District of Columbia First-Time Homebuyer Credit

While these five forms require significant additional reprogramming due to the AMT patch, the IRS has been able to reprogram its systems to begin processing seven other AMT-related forms, including Form 6251, Alternative Minimum Tax – Individuals. Taxpayers filing these seven forms should not experience delays in filing, and the IRS expects to begin processing those returns starting on Jan. 14.

Electronic returns involving those five forms will not be accepted until systems are updated in February; similarly, paper filers should wait to file as well. All other e-file and paper returns will be accepted starting in January. The IRS urges affected taxpayers to file electronically in order to reduce wait times for their refunds. E-file with direct deposit gets refunds in as little as 10 days, while paper returns take four to six weeks.

Efile is a great option for everyone, especially if they are affected by the AMT,” said Richard Spires, IRS Deputy Commissioner for Operations Support. “Filing electronically will get people their refunds faster, and e-file greatly reduces the chances for making an error on the AMT or other tax issues.”

In addition to filing electronically, the IRS urges taxpayers to take simple steps to avoid problems:

Taxpayers filing electronically should make sure to update their tax software in order to get the latest AMT updates.

Taxpayers with $54,000 or less in Adjusted Gross Income can use Free File to electronically file their returns for free. Free File will only be available by visiting the official IRS web site at IRS.gov. In all, 90 million taxpayers qualify for this free service.

Taxpayers who use tax software to print out paper copies of tax forms should make sure they update their software before printing out forms. Taxpayers using paper forms can also visit IRS.gov to get updated copies of AMT forms.

The IRS has created a special section on IRS.gov to provide taxpayers with additional information and copies of updated forms affected by the AMT. In recent days, the IRS has posted updated copies of all forms affected by the late enactment of the AMT patch by Congress.

The IRS also reminds taxpayers that printed tax packages, which will begin arriving in the mail around New Year’s, went to the printer in November before the AMT changes were enacted. The packages reflect the law in effect at the time of printing. The tax packages include cautionary language to taxpayers that late legislation was pending.

The IRS is also working closely with tax professionals and the tax preparation software community to make sure they can help taxpayers with all of the latest developments on the enactment of the AMT patch and other tax changes.

“The IRS is going to continue to do everything it can to make this a fully successful filing season for the nation’s taxpayers,” Stiff said. “We will continue to work to keep taxpayers up to date and make this situation as easy as possible for everyone.”

Some Tax Refunds To Be Delayed

Over 3 million refunds will be delayed until february due to congress’ late fix to the AMT bill, according to the IRS late thursday.

We regret the inconvenience the delay will mean for million of early tax filers, especially those expecting a refund,” acting IRS Commissioner Linda Stiff said.

Will my refund be delayed?

The majority of tax returns will not be affected by this delay. If you didn’t have to pay the AMT last year then you probably won’t have to this year, unless your financial situation has changed.

If you are affected by this, we can help you. Just file your taxes as usual with FileYourTaxesnow.com and we will walk you through the process. Going to a brick and mortar tax preparer won’t speed this process up, all those effected by the AMT have to wait, no matter how the forms are filed. Efile is still the fastest way to file your taxes.

Some Tax Refunds To Be Delayed

If you efile taxes online then you are using the best way to file your taxes.

The five forms affected by the delay are:

  • Form 8863, Education Credits.
  • Form 5695, Residential Energy Credits.
  • Form 1040A’s Schedule 2, Child and Dependent Care Expenses for Form 1040A Filers.
  • Form 8396, Mortgage Interest Credit and
  • Form 8859, District of Columbia First-Time Homebuyer Credit.

Any taxpayer using those tax forms will have to wait until February to file their taxes, the IRS said. The IRS will begin processing those forms on Feb. 11, and the first tax refunds for those people who efile taxes online will start going out 10 to 14 days later and those who file with paper tax forms can expect a wait of as long as six weeks.

Tax refunds face a delay

WASHINGTON – President Bush on Monday pushed Congress to pass a one-year fix to the alternative minimum tax, which threatens to hit 23 million federal tax filers, warning that failure to do so could delay tax refunds next year.

The alternative minimum tax, or AMT, is calculated alongside the income tax, with the taxpayer paying the higher of the two calculations.

The AMT was passed in 1969 in a bid to close tax shelters for filers with incomes above $200,000, the equivalent of $1.2 million today. But it wasn’t indexed to rise with inflation, so what was a fortune then is upper-middle income today in expensive parts of the nation.

Congress typically freezes the number of AMT payers at 4 million by passing annual legislation to “patch” the AMT. Absent the fix, about 70 percent of tax filers with incomes between $75,000 and $100,000 could face the AMT.

But “patching” the AMT deprives the treasury of about $50 billion that the AMT would otherwise raise, and that complicates Congress’ effort to reduce budget deficits.

 

Tax refunds face a delay

The Democrats running Congress are feuding over the AMT patch. The House wants to offset the lost AMT revenue with taxes on private equity firms and other businesses. But Senate Democrats favor passing a fix that wouldn’t offset the lost revenue and thus would add $50 billion to the federal deficit.

Bush warned Monday that “the longer they delay, the more likely it is that there’s $75 billion of refund checks that will be late” in arriving. That’s because tax forms can’t be printed and prepared until Congress finishes changing the tax law. The Internal Revenue Service won’t be able to process the refunds of Americans who file mortgage interest credits or any one of the 11 forms and deductions used in calculating the AMT.

Q: Why are $75 billion in refund checks at stake?

A: The IRS says it needs up to seven weeks from the passage of any AMT fix to finish changing electronic and paper tax forms. Bush’s numbers imply that the tax filing season, which normally begins on Jan. 13, wouldn’t start before Feb. 18.

Q: Will Congress pass a fix this year?

A: There’s no guarantee, but House and Senate leaders pledge to do so before they recess this weekend for the holidays.

Q: If they succeed, when will the tax season begin?

A: Seven weeks from the end of this week would be the second week in February. That would be a four-week delay from the scheduled Jan. 13 start of tax filing. But Democrats insist that by law, companies have until Jan. 31 to send employees their W-2 forms. So technically, they say, the delay is really only about two weeks.

Q: Will the IRS extend the April 15 deadline to file taxes because of the AMT delay?

A: Right now, there’s no discussion of that. The IRS is ramping up computer systems and manpower to make up for the delay in its ability to process tax filings. The agency historically gets refunds to electronic filers more quickly than to paper filers.

Q: Who gets hurt by the delay?

A: The IRA Oversight Board estimated in late November that if tax filing season began on Feb. 4, it would result in delays for 15.5 million tax refunds out of about 130 million tax filings. Almost 12 percent of all tax filers could see their refunds delayed, totaling about $39 billion.

Q: Will electronic filers be spared delays?

A: No. The IRS said that by last Feb. 16, it had received 38 million tax returns, and almost 32 million were owed refunds. About 80 percent of these were filed electronically. That suggests that electronic filers will be delayed in greater numbers than paper filers.

Q: Which 12 forms are affected by the AMT delay?

A: According to the IRS Oversight Board of the House Ways and Means Committee, they are Form 6251 – AMT form; Form 1040, Schedule R – credit for the elderly or disabled; Form 1040-A, Schedule 2 – child and dependent care credit; Form 1116 – Foreign Tax Credit; Form 2441 – Child and Dependent Care Credit; Form 5695 – Residential Energy Credits; Form 8396 – Mortgage Interest Credit; Form 8839 – Qualified Adoption Expenses; Form 8859 – District of Columbia’s First-Time Homebuyer Credit; Form 8863 – Education Credits; Form 8880 – Credit for Qualified Retirement Savings Contributions; Form 8801 – Credit for Prior Year AMT.

Source: The Sacromento Bee
About the writer:
Call Kevin G. Hall, McClatchy Washington Bureau, (202) 383-6038.

2008 IRS eFile Refund Cycle Chart

The IRS does not guarantee a specific date that a refund will be deposited into a taxpayer’s bank account.

IRS Acceptance Date
(by 11:00 am) between…

Direct Deposit Sent*

Paper Check Mailed*

Jan 11 and Jan 17 2008

Jan 25, 2008

Feb 1, 2008

Jan 17 and Jan 24 2008

Feb 1, 2008

Feb 8, 2008

Jan 24 and Jan 31 2008

Feb 8, 2008

Feb 15, 2008

Jan 31 and Feb 7 2008

Feb 15, 2008

Feb 22, 2008

Feb 7 and Feb 14 2008

Feb 22, 2008

Feb 29, 2008

Feb 14 and Feb 21 2008

Feb 29, 2008

Mar 7, 2008

Feb 21 and Feb 28 2008

Mar 7, 2008

Mar 14, 2008

Feb 28 and Mar 6 2008

Mar 14, 2008

Mar 21, 2008

Mar 6 and Mar 13 2008

Mar 21, 2008

Mar 28, 2008

Mar 13 and Mar 20 2008

Mar 28, 2008

Apr 4, 2008

Mar 20 and Mar 27 2008

Apr 4, 2008

Apr 11, 2008

Mar 27 and Apr 3 2008

Apr 11, 2008

Apr 18, 2008

Apr 3 and Apr 10 2008

Apr 18, 2008

Apr 25, 2008

Apr 10 and Apr 17 2008

Apr 25, 2008

May 2, 2008

Apr 17 and Apr 24 2008

May 2, 2008

May 9, 2008

Apr 24 and May 1 2008

May 9, 2008

May 16, 2008

May 1 and May 8 2008

May 16, 2008

May 23, 2008

May 8 and May 15 2008

May 23, 2008

May 30, 2008

May 15 and May 22 2008

May 30, 2008

June 6, 2008

May 22 and May 29 2008

June 6, 2008

June 13, 2008

May 29 and June 5 2008

June 13, 2008

June 20, 2008

June 5 and June 12 2008

June 20, 2008

June 27, 2008

June 12 and June 19 2008

June 27, 2008

July 4, 2008

June 19 and June 26 2008

July 4, 2008

July 11, 2008

June 26 and July 3 2008

July 11, 2008

July 18, 2008

July 3 and July 10 2008

July 18, 2008

July 25, 2008

July 10 and July 17 2008

July 25, 2008

Aug 1, 2008

July 17 and July 24 2008

Aug 1, 2008

Aug 8, 2008

July 24 and Jul 31 2008

Aug 8, 2008

Aug 15, 2008

Jul 31 and Aug 7 2008

Aug 15, 2008

Aug 22, 2008

Aug 7 and Aug 14 2008

Aug 22, 2008

Aug 29, 2008

Aug 14 and Aug 21 2008

Aug 29, 2008

Sep 5, 2008

Aug 21 and Aug 28 2008

Sep 5, 2008

Sep 12, 2008

Aug 28 and Sep 4 2008

Sep 12, 2008

Sep 19, 2008

Sep 4 and Sep 11 2008

Sep 19, 2008

Sep 26, 2008

Sep 11 and Sep 18 2008

Sep 26, 2008

Oct 3, 2008

Sep 18 and Sep 25 2008

Oct 3, 2008

Oct 10, 2008

Sep 25 and Oct 2 2008

Oct 10, 2008

Oct 17, 2008

Oct 2 and Oct 9 2008

Oct 17, 2008

Oct 24, 2008

Oct 9 and Oct 16 2008

Oct 24, 2008

Oct 31, 2008

Oct 16 and Oct 23 2008

Oct 31, 2008

Nov 7, 2008

*The IRS does not guarantee a specific date that a refund will be deposited or mailed.

2008 IRS eFile Refund Cycle Chart

Taxpayer should wait at least three weeks from the time the electronic return is accepted by the IRS before checking the status of a tax refund. To check the status of a tax refund, call 1-800-829-4477 (toll free) or check the official IRS website www.irs.gov

Tax News for November 2007

Honda Hybrid Begins Phase-Out on January 1
IR-2007-191, Nov. 19, 2007 — The IRS announced today that American Honda Motor Company, Inc, has submitted quarterly reports indicating that its cumulative sales of qualified vehicles to retail dealers reached the 60,000-vehicle limit during the calendar quarter ending Sept. 30, 2007.

IRS Reminds Charities and Churches of Political Activity Ban
IR-2007-190, Nov. 19, 2007 — The Internal Revenue Service today reminded section 501(c)(3) organizations, including charities and churches that federal law prohibits them from becoming directly or indirectly involved in campaigns of political candidates.

IRS Has $110 Million in Refund Checks Looking for a Home
IR-2007-189, Nov. 14, 2007 — Each check is worth $953, on average.

2008 Nissan Altima Certified as Qualified Hybrid Vehicle
IR-2007-188, Nov. 13, 2007 — The IRS has acknowledged the certification by Nissan North America, Inc., that its 2008 Nissan Altima Hybrid vehicle meets the requirements of the Alternative Motor Vehicle Credit as a qualified hybrid motor vehicle.

Plan Now to Get Full Benefit of Saver’s Credit; Tax Break Helps Low- and Moderate-Income Workers Save for Retirement
IR-2007-187, Nov. 9, 2007 — The saver’s credit is an added bonus for many eligible workers who contribute to retirement plans. Like other tax credits, the saver’s credit can increase a taxpayer’s refund or reduce the amount of taxes owed.

2008 Hybrids Certified As Tax Credit For Toyota and Lexus Comes to an End
IR-2007-186, Nov. 8, 2007 — The IRS acknowledged the certification by Toyota Motor Sales U.S.A., Inc., that several of its Model Year 2008 vehicles qualify for the hybrid vehicle tax credit. Only vehicles purchased prior to Oct. 1, 2007, qualify for a credit.

Another Record-Breaking Number of Taxpayers Choose to Electronically File in 2007
IR-2007-185, Nov. 7, 2007 — The IRS this year received nearly 80 million tax returns through e-file, breaking the record set last year.

IRS and States to Share Employment Tax Examination Results
IR-2007-184, Nov. 6, 2007 — Officials from the IRS and more than two dozen state workforce agencies have entered into agreements to share the results of employment tax examinations.

IRS Warns of E-mail Scam Soliciting Donations to California Wildfire Victims
IR-2007-183, Nov. 2, 2007 — Don’t be fooled by a scam e-mail that appears to be a solication from the IRS for donations to victims of the recent California wildfires.

IRS Announces New Chinese, Korean, Russian and Vietnamese Tax Glossaries to Assist Taxpayers
IR-2007-182, Nov. 2, 2007 — Five new publications will meet growing demand for non-English language tax information.

News Release and Fact Sheet Archive
News releases and fact sheets from November 2002 forward and an archive of news releases and fact sheets in PDF format back to 1997.

Track Your IRS Tax Refund Online

Wondering where your refund is or when you can expect to recieve it?The IRS should issue your refund check within six to eight weeks of filing a paper return. If you use e-file and you chose to receive your refund through direct deposit, you should receive it within a week. If you use e-file and a check, your refund should be issued between two and three weeks.Track your Refund here.

 

When to check status…

  • Within 24 hours after we’ve received your e-filed tax return
  • 4 weeks after you mail your paper return
  • “Where’s My Refund?” is updated once every 24 hours

 

What you need…

  • Social Security Number
  • Filing status
  • Exact refund amount

2007 Federal Tax Rate Schedules

 2007 Federal Tax Rate Schedules

Note: These tax rate schedules are provided so that you can compute your federal estimated income tax for 2007. To compute your actual income tax, please see the instructions for 2007 Form 1040, 1040A, or 1040EZ as appropriate when they are available.

Schedule X — Single

If taxable income is  over–But not over–The tax is:

$0 $7,825 10% of the amount over $0
$7,825 $31,850 $782.50 plus 15% of the amount over 7,825
$31,850 $77,100 $4,386.25 plus 25% of the amount over 31,850
$77,100 $160,850 $15,698.75 plus 28% of the amount over 77,100
$160,850 $349,700 $39,148.75 plus 33% of the amount over 160,850
$349,700 no limit $101,469.25 plus 35% of the amount over 349,700

Schedule Y-1 — Married Filing Jointly or Qualifying Widow(er)

If taxable income is over–But not over–The tax is:

$0 $15,650 10% of the amount over $0
$15,650 $63,700 $1,565.00 plus 15% of the amount over 15,650
$63,700 $128,500 $8,772.50 plus 25% of the amount over 63,700
$128,500 $195,850 $24,972.50 plus 28% of the amount over 128,500
$195,850 $349,700 $43,830.50 plus 33% of the amount over 195,850
$349,700 no limit $94,601.00 plus 35% of the amount over 349,700

Schedule Y-2 — Married Filing Separately

If taxable income is over–But not over–The tax is:

$0 $7,825 10% of the amount over $0
$7,825 $31,850 $782.50 plus 15% of the amount over 7,825
$31,850 $64,250 $4,386.25 plus 25% of the amount over 31,850
$64,250 $97,925 $12,486.25 plus 28% of the amount over 64,250
$97,925 $174,850 $21,915.25 plus 33% of the amount over 97,925
$174,850 no limit $47,300.50 plus 35% of the amount over 174,850

Schedule Z — Head of Household

If taxable income is over–But not over–The tax is:

$0 $11,200 10% of the amount over $0
$11,200 $42,650 $1,120.00 plus 15% of the amount over 11,200
$42,650 $110,100 $5,837.50 plus 25% of the amount over 42,650
$110,100 $178,350 $22,700.00 plus 28% of the amount over 110,100
$178,350 $349,700 $41,810.00 plus 33% of the amount over 178,350
$349,700 no limit $98,355.50 plus 35% of the amount over 349,700