7 Steps To Reduce Your Tax Related Stress

7 Steps To Reduce Your Tax Related Stress

If you have your own business what may haunt you most is the stressful task of filing your tax returns at the end of the year. Every year brings you the harrowing experience of piling up your financial documents and preparing your tax return. It adds to your worries if you have earnings in other countries as well, as you need to file your tax return from those countries as well.

Here are seven gradual steps that will certainly minimize your tax returns related hassles.

1. Maintain your accounts accurately. Buy a … Read more at 2009 Tax.

7 Steps To Reduce Your Tax Related Stress

If you have your own business what may haunt you most is the stressful task of filing your tax returns at the end of the year. Every year brings you the harrowing experience of piling up your financial documents and preparing your tax return. It adds to your worries if you have earnings in other countries as well, as you need to file your tax return from those countries as well.

Here are seven gradual steps that will certainly minimize your tax returns related hassles.

1. Maintain your accounts accurately. Buy a ruled ledger from the nearby stationery store and keep a record of your accounts.

2. Keep your receipts/bills in a safe place. Enter the finer details of the receipts into your accounts book once a week.

3. When you receive a payment, don’t forget to record that payment in your accounts system.

4. Browse through various accounting software packages available with your software retailer. Don’t go for a complex accounting software that may make your accounting more complicated instead of simplifying it. Choose a simple application. If spreadsheets and cell formula work better for you, keep your accounts in a spreadsheet program.

5. Now, open your tax return envelope without any delay. Check if all the sheets are there that you may need. If you find that any sheet is missing, you can download it.

6. Don’t leave your tax return job for the eleventh hour. Try to file your tax return well ahead of time. This will give IRS or the revenue department time to check your forms to ascertain how much you owe them. This is rather less stressful than calculating it yourself and continuing to doubt your calculations skills.

7. Analyze steps 3-6 again. If you feel they are not your cup of tea, you can hire an accountant. Of course, you will have to pay the accountant for keeping your accounts and for preparing your tax return. How much you will pay will depend on the complexity of the work the accountant will have to complete. If you have a habit of keeping a neat and clean accounts book and keeping a safe copy of each of your receipts, you may not have to pay a higher fee to your accountant.

When Should You File Your Tax Return?

When Should You File Your Tax Return?

It’s a routine affair for millions of US citizens to get ready every year by collecting their records and receipts for filing their federal income tax returns. Do you know when the first tax season got started? Let us have a look at this peculiar day of “April 15th” and see the reason behind it being selected as the tax day.

In the 1860s, under the presidency of Abraham Lincoln, income tax payments became mandatory. The Congress and the President jointly selected the Commissioner of the Revenue and formulated the federal income … Read more at 2009 Tax.

When Should You File Your Tax Return?

It’s a routine affair for millions of US citizens to get ready every year by collecting their records and receipts for filing their federal income tax returns. Do you know when the first tax season got started? Let us have a look at this peculiar day of “April 15th” and see the reason behind it being selected as the tax day.

In the 1860s, under the presidency of Abraham Lincoln, income tax payments became mandatory. The Congress and the President jointly selected the Commissioner of the Revenue and formulated the federal income tax law for funding the expensive Civil War.

Originally, April 15 was not the deadline but March 1, which is when you were supposed to submit all your income taxes by. But in 1918, the date was shifted to March 15 by the Congress. Again in 1954, the tax date was changed and moved to April 15, which is still prevailing and is known as the tax deadline ever since.

Individual taxpayers need to file a return or take an extension of date (Form 4868) by the 15th of April. March 15 is the deadline for the legal or corporate sector for filing their tax return or taking a date extension. What this extension gives you is some extra time for filing the tax return, not for paying the money that you owe.

Post Second World War, for a few years, the whole of the country’s tax responsibility was almost equally divided between the individual and corporate taxpayers. Today, this tax burden seems to be moving away from the corporate, and individuals are getting hard-pressed.

Around 1918, while the income tax laws were formulated in America, an interesting event occurred. Till that time, sale of alcoholic beverages contributed a major portion of revenues for the government funding.

Just at that time, the law of Prohibition came into force. The Constitution was amended in 1919 to prohibit the sale and manufacturing of alcohol in the country. Income tax was proposed as the solution for the revenue lost; and in spite of the abolishment of Prohibition, income tax payments were made compulsory.

With the advent of the “New Deal” age after passing the 1942 Revenue Act, there was continual exponential increase of government expenditures and control, and now the average American taxpayers are supporting the million billion dollar National Debt.

Presently, the IRS is taking care of all sorts of tax regulations in the country; the IRS has got 4 departments or divisions: Large and Mid-size Business, Small Business Self-Employed, Tax Exempt and Government, and Wage and Investment. It is the responsibility of each department to govern the relevant tax laws as well as the taxpayers.

IRS Free File Is Available To Many

IRS Free File Is Available To Many

In 2003 the IRS began a program to provide free e-filing options to US citizens that need to file tax returns. The program has been widely successful with over 20 different tax filing programs taking part and over 27 million tax returns filed with the program. Individuals wishing to take advantage of the program can select a tax preparation software package and file their return with the application. Or tax filers can use electronic versions of IRS forms and file directly with the IRS.

Just access the IRS.gov website and select a … Read more at 2009 Tax.

IRS Free File Is Available To Many

In 2003 the IRS began a program to provide free e-filing options to US citizens that need to file tax returns. The program has been widely successful with over 20 different tax filing programs taking part and over 27 million tax returns filed with the program. Individuals wishing to take advantage of the program can select a tax preparation software package and file their return with the application. Or tax filers can use electronic versions of IRS forms and file directly with the IRS.

Just access the IRS.gov website and select a tax preparation software program that you want to use. As long as your income is below $57,000 you can use the 3rd part software tools. If your income is above this line established by the IRS, you will have to use the IRS forms online to file for free.

Make sure you start with the IRS.gov website to claim the free filing option. And sometimes filing with the IRS fill-in forms can be difficult if your return is complex. Paying for professional assistance or a complete software package can be beneficial in getting the most return available to you.