Tax time is here so hopefully you all have your ducks in a row to prepare your federal income taxes. By now you should had received your W2-forms from your employer and hopefully it is correct before you start one of the big steps to prepare your federal income taxes. Always make sure that your W-2 forms have the correct name, identification number or social security number, correct address and correct wages on it before you begin.
In preparation, have a list of all your exemptions that you can claim.
How should I file my taxes?
Single, married, married filing separately,head of household, qualifying widow (er),or married filing jointly.
How am I going to file my taxes?
File taxes online or pay an accountant to do my taxes. Am I going to use Tax preparation software or go old school and use a calculator, pen, paper and mail it in?
Wages are reported on your W-2 forms. Any interest that you have accumulated over this fiscal year will need to be added as income rather it was dividends from a checking account or a savings account, alimony received, social security,retirement pensions and annuities, capital gains, IRA distributions,and taxable refund from a state and local tax that has been reported to the IRS.
Hopefully you will have all your deductions on hand and apply them a 1040A tax form.
Some of these deductions are home mortgage interest reported to you on a 1098 form, real estate taxes,personal property taxes,state and local income taxes, charity contributions, casualty of theft losses, medical and dental expenses, miscellaneous expenses such as safety shoes,union dues,job travel,job education, and tax preparation fees.
If you have losses, report it on your itemized form, example is gambling losses but no more than your winnings reported as income and a percentage of your adjusted gross income.
Whether you prepare you own taxes or use a professional tax preparer, using E-filing online is fast, quick access on your tax refund, and very accurate, just prepare, print, and e-file your tax return.
Several years ago, I had a Suzuki Samurai vehicle that was a very fun car in the summer and winter and then the sad thing happened, the engine had blown and I took it about 45 miles from where I lived to a car shop that installed used engines in my vehicle, that's right, not once, but twice used engines were installed..
The first engine had a thirty day warranty and it was leaking oil badly , so I took it back to the shop and the repairman said it was the gasket, so I left it with the shop, thinking the used engine's shop would repair it.
They finally called me and said my car was ready for pick up. I drove it home and thought everything will be okay since used engines had been installed twice in my vehicle and nothing else would be happening to my engine.
I drove the vehicle for a short period and then it all started again, engine leaking oil, smoking like a chimney, and wouldn't start half the time, so I contacted the shop that sold me used engines twice and they told me that this engine has no warranty so you know I was ticked. I drove the car for a while, supplying its necessary thirst (OIL) and finally decided used engines weren't going in my Suzuki Samurai again, so I donated that car that had had two used engines installed to the Kidney Foundation and took the write off as a deduction on my federal tax.