Tuesday March 11, 2014
Fourteen software companies make their tax software available to prepare a federal tax return at no cost through the IRS's Free File Alliance. Through Free File, individual taxpayers with adjusted gross income under $58,000 can use one of the participating Free File software to prepare their federal tax return for free. Each software company sets its own eligibility criteria, however, so people might find that they are eligible for only some of the fourteen software. Also, most Free File software charges for preparing a state tax return.
We tested each of the Free File software, and we posted our reviews of the Free File tax software.
Monday March 10, 2014
The IRS will grant a person an additional six months to file their tax return. To request this extra time, file an extension with the IRS on or before the deadline.
Filing an extension provides several benefits. Besides extra time to file the tax return, an extension also provides extra time to fund a self-employed retirement plan and to recharacterize IRA contributions.
For individual taxpayers, an extension is requested using Form 4868. The IRS will extend the filing deadline from April 15th, 2014, to October 15, 2014.
For corporate taxpayers, an extension is requested using Form 7004, and the IRS will extend the filing deadline from March 17th, 2014, to September 15th, 2014.
Friday March 7, 2014
If you, or someone you know, still needs to file a tax return for the year 2010, listen up. There is an important deadline approaching. Read More...
Thursday March 6, 2014
Health savings accounts (HSA) provide an opportunity for people to save up for medical expenses using pre-tax dollars.
"A health savings account is an account that is specifically designed to be used with a high deductible insurance policy," notes Miriam Caldwell.
Contributions to a health savings account are tax-deductible. And as long as the funds are used to pay for medical expenses, distributions from a health savings account is tax-free. There are no restrictions on when the money must be spend, so the savings can accumulate from year to year until needed for a major medical expense.
This combination of tax-deductible savings plus tax-free distributions is a powerful money-saving combination, as Dana Anspach explains.
To be eligible for the deduction, individuals need to be covered by an HSA-compatible high deductible health insurance plan.
Digging deeper, Trisha Torrey explains how health savings accounts work, and Bobbie Sage answers the top 10 frequently asked questions about HSAs.