Written by Hillsboro Free Press Tuesday, 05 February 2013 14:03Making mistakes is one of Americans’ biggest fears at tax time. A single error can delay the processing of your return or even cause it to be rejected by the IRS. If that happens and you’re entitled to a refund, get ready to wait.
Today’s sophisticated tax preparation products make doing your own taxes perfect the first time at an affordable price—or even free—a reality for millions of Americans each year.
“Online and downloadable solutions have everything the vast majority of taxpayers need to file their taxes with complete confidence,” said Jessi Dolmage, TaxACT Spokesperson. “Using do-it-yourself tax preparation software solutions drastically reduces the chance of errors, especially if you import last year’s return...
Written by Hillsboro Free Press Tuesday, 05 April 2011 14:58Taxes can take a big bite out of your total investment returns, so it’s helpful to look for tax-advantaged strategies when building a portfolio.
But keep in mind that investment decisions shouldn’t be driven solely by tax considerations; other factors to consider include the potential risk, the expected rate of return, and the quality of the investment.
Tax deferral is the process of delaying—but not necessarily eliminating—until a future year the payment of income taxes on income you earn in the current year. For example, the money you put into your 401(k) retirement account isn't taxed until you withdraw it, which might be 30 or 40 years down the road!
Tax deferral can be beneficial because:
• The money you would have...
Written by Hillsboro Free Press Tuesday, 01 March 2011 16:23You’ve identified your goals and done some basic research. You understand the difference between a stock and a bond. But how do you actually go about creating an investment portfolio? What specific investments are right for you? What resources are out there to help you with investment decisions? Do you need a financial professional to help you get started?
• Spread your risk. It is almost universally accepted that most portfolios should include a mix of investments, such as stocks, bonds, mutual funds and other investment vehicles.
A portfolio should also be balanced. That is, the portfolio should contain investments with varying levels and types of risk to help minimize the overall impact if one of the portfolio holdings...
Written by Hillsboro Free Press Tuesday, 01 March 2011 16:23The Internal Revenue Service warns taxpayers that a scam e-mail is circulating that fraudulently uses the IRS name and logo as a lure.
The latest scam e-mail targets both businesses and individuals. It claims a federal tax payment has been rejected and directs the recipient to complete an attached form. That attachment contains a virus that may infect your computer so the perpetrators can steal personal and financial information.
“The IRS never sends unsolicited e-mail asking for your financial or detailed personal information,” said IRS spokesman Michael Devine.
If you receive an e-mail from someone claiming to be from the IRS or directing you to a site for a refund or to answer questions about your taxes, Devine warns:
Written by Hillsboro Free Press Tuesday, 04 January 2011 15:32In 2011, personal exemptions and standard deductions will rise and tax brackets will widen due to inflation, an official with the Internal Revenue Service said.
These inflation adjustments relate to eight tax provisions that were either modified or extended by the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 that became law on Dec. 17.
New dollar amounts affecting 2011 returns, filed by most taxpayers in early 2012, include the following:
• The value of each personal and dependent exemption, available to most taxpayers, is $3,700, up $50 from 2010.
• The new standard deduction is $11,600 for married couples filing a joint return, up $200; $5,800 for singles and married individuals filing...
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