Taxpayers who Itemize must wait until February 15, 2011 to file

There are many people in an uproar over this, here January 18, 2011. So many Americans are in the rut of over withholding all year long, they are desperate to get this big payoff, right in January. This is the same as it always is, except, before Taxpayers could rush in, with partial information, getting large loans on a projected income, that never comes, saying they will just do a 1040X. 


In order to itemize, when you prepare, or pay someone else to file your 2010 taxes, you will be required to produce that evidence to the preparer, or IRS. Tax preparers, will no longer take the risk that the taxpayer has all of the figures needed, and lets file those taxes. It has become a mad game of give and git. The American taxpayers are doing themselves a grave injustice with financing the US Treasury.


Many American Taxpayers do not realize they can be fined for over withholding as easily as under withholding. The IRS does not prefer taxpayers to use the US Treasury as a savings account. Why, would anyone loan out thousands of dollars per year interest free, while paying around 23% interest to use their own purchasing power or money?

For those who think they are benefiting their financial means at all, I must say, NO! You are robbing yourself of Double the money! 


I have heard, listened and given some understanding to the practice, but it is a very harmful financial practice. What has started taxpayers on the road to poverty, are these type of practices, without realizing how much they are shorting themselves. Most Americans live on credit, or they did until 2009.


Millions of Americans loan thousands of dollars per year to the US Treasury, interest free. The thing that is strange, is that these same individuals pay around 23% interest to use their own money, all year long.

Paying tax on income, means you do your best to break even, or be very close. A taxpayer who has worked in the same income for more than one tax year, knows what he/she was required to pay in taxes. Or what their taxable income was for the prior year. This means, that the next year, you must pay in at least 90% of the taxes you paid the previous year. No more, no less.


There are reasons why one year can change drastically from the next. By keeping up with how much income tax, social security and Medicare, is being paid in through the year, one may stay within dollars of what they will owe, or be refunded when it comes time to divvy up at the tax table.


The IRS website, located at www.irs.gov has all the tools a taxpayer, or prospective taxpayer would need to keep up with how to optimize their entire financial outlook. The one tool that is rarely used, is the IRS Withholding Calculator. When using the IRS Withholding Calculator, found under the Individual Tab, and about 5 paragraphs down, you will know how much you have paid in, and how much is required, depending on your projected income. Projected is important, because you may like to do the majority of your withholding from day one of the new tax year. Something can happen, where your income increases, or decreases greatly. When this happens, it is time to adjust withholding correctly. At the end of each session of the IRS Withholding Calculator, you are offered an opportunity or chance to print off and download a new W-4. 

It is important that the taxpayer keep up with their own withholding throughout the year. If an employer under withheld, or did not pay in the Social Security, and/or Medicare, the individual taxpayer will be held responsible.


I understand it is not prestigious to live within ones means. It seems an illusive image American taxpayers have created for themselves. Somehow it is more fab, more popular, more 'with it' to charge purchases, living on credit, until someone else pulls the plug.


The average refund of those getting money back is about $3,000.00 per year. That is about $57.00 per week, $250.00 per month extra each taxpayer could have throughout their year. The only thing is, it isn't flashy, or doesn't carry with it some kind of image Americans think they must fit. Double your money, stop over withholding, and cut up those credit cards. They are NOT for Emergencies.

Deductions: The Facts about Tuition & Fees

**this notification is simply an attempt to convey IRS meaning into a language the common hillbilly can understand. I follow due diligence practices and will not be held responsible for a mis-interpretation of my posts. I adhere as closely and often more stringent than IRS tax codes. It is always advisable to verify tax advice, as it is always the taxpayer who is responsible for their tax returns. this blog is an effort to perform a free service to those who would pull their hair out as they listen to yet another song on 1-800-829-1040.

1) Many people (taxpayers) miss deductions because they have to take the Standard Deduction, and are not itemizing. They think, "since I can't itemize, I cannot count my Fees, or Tuition for last year", - Hold up! Yes, you can claim a tuition and fees deduction.

1). The way to take this deduction is to get Form 8917. If you are doing your own taxes, search Form 8917, 2008. Follow the Form 8917 Instructions. This will be included with your regular Form 1040 (The Blue One - Long Form) or Form 1040A. (The Pink One - Average Tax Payer Form - usually with Attachment(s) A and / or B). Some software will have this listed as Expenses, Expenditures, Tuition, Fees.

2). You may be qualified for a deduction on tuition and fees expenses. This might be an adjustment to income, a Hope or Lifetime Learning credit, or – sometimes – as a business expense.

3). Reason A. You are not eligible = MFS - Married Filing Separate

4). Reason B. You are not eligible = If you are a Dependent on someone else's taxes. If you do not claim yourself, or if you are not qualified to claim yourself on your tax return.

5). Reason C. You are not eligible = The evil AMT & your filing status has cut into your tax liablilty, it could reduce the amount you can deduct for medical expenses. [very good reason to contact your Rep or Senators] Write or call your representatives and repeal the AMT now.

6). Reason D. Limitations = You cannot claim the tuition and fees deduction if you or anyone else claims the Hope or Lifetime Learning credit for the same student in the same year.

7). Reason E. Limitations = If you can take the educational expenses & are also allowable as a business expense, or the Tuition and Fees deduction may be claimed in conjunction with a business expense deduction. Decide which one and stick with it. One entry for these expenses.

8). You cannot claim a deduction or credit based on expenses paid with tax-free scholarship, fellowship, grant, or education savings account funds such as a Coverdell education savings account, tax-free savings bond interest or employer-provided education assistance.

9). The same rule applies to expenses you pay with a tax-exempt distribution from a qualified tuition plan, except that you can deduct qualified expenses you pay only with that part of the distribution that is a return of your contribution to the plan.

10). IRS Publication 970, Tax Benefits for Education, can help eligible parents and students understand the special rules that apply and decide which tax break to claim. The publication is available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).

Issue Number: TT-2009-52 - March 17, 2009 is where I got my info. :8 - >

Free File - Fillible Forms From the IRS!

It's your Birthday - It's your Birthday - It's your Birthday - It's Your Birthday!!!! WEE HO!

If you can read instructions, you can file your Tax Return for ***FREE***

The Year of the Taxpayer!

• Low Income, you are eligible for Earned Income Credit, in 8 days you can have your Federal Tax Return for 2008 for Free. This means the $300.00 - $600.00 you would be charged in preparation and loan fees will be back in your home and family where it belongs.
• Consider yourself middle class in terms of pay? Do you know you are going to owe a little cheese to SAMMY, and now you are hacked off because you know you gotta pay some little twerp who just learned how to enter data in a machine around $100.00 bucks [or for some of us the $30.00 we may pay for "Free File" using other companies software] to do your return - AND have to pay in too...You can file free. All the forms you need are there. All instructions for each form are viewable while you are on that form. FREE *
• Tax person * hate filing your taxes where you work? Like keeping your financial business to yourself? YOU WILL LOVE THIS.
• Old School? - You know how to do your simple tax return on paper and by-Jobie that is the only true way? If you aren't familiar with the computer, ask that grand baby to show you how to get to the IRS website. Instructions are to follow:
• Haven't done your taxes for a few years? You can go back and do every year FREE. Do you know how much money this will save you? For those who were scrambling to file for the Stimulus check, and you didn't get it done, now is a good time to finish. If you can read instructions. You can do this.
• Rich? HATE giving anyone a penny to do what you may be able to do yourself? Do you wait until April 15Th [traditionally] to do your taxes to put off paying Uncle SAMMY, and the Big Twerp CPA who has been gouging you every year and you are ready to put it in his/her eye? Here is your chance...If you are High Income, you probably need to wait until the middle of March 2009 to do your Tax Return. This is when 2008 Tax Law Changes are done, and all Forms will be available.
• Love to File Extensions? Hate to pay $25.00 - $50.00 or more for that pleasure? You can electronically file an Extension. How much? FREE!
• Seniors - Disabled - Not required to file, you can file if you want to, just to stay in the system. Free * Free * Free

Go to www.irs.gov click on the "Individual" Tab. Under the picture of the happy mixed family at the picnic table, the third item down (02/02/09) is a Link to Free File. At the top of Free File page it gives options for Your choosing a Tax Software or letting the IRS find a company for you. The next option is Choose Your Forms, click on that. It will advise you that you are leaving the IRS website, go ahead. You will come to a simple pretty blue form 1040. Have your last year Adjusted Gross Income (AGI) - that is the bottom line on the front page of your Last Year's Tax Return (2007). Come up with a pin number. Most choose last 5 of the Social Securtiy Number, because you always have it and can remember it. Choose your forms. If you are not sure if you will need a form, go ahead and choose it, you can delete it later. Come back later for further instructions....

If you have any questions. Leave them here, and I will do my best to get your Answer - This Year is the Year of the Tax Payer, because I am working for Free doing this as well. Any income I would earn is by over a thousand visits to my page...[maybe April 14Th huh?]. Really, let me help, this Old Grizzly knows her stuff! I have resources and training, that I get from the IRS. I am an approved e-file company. This is my Karma building year, and Americans and Visitor workers need all the Helps and benefits they can get.

For confidentiality - email: grizzly.bear@att.net

***Case examples from all past years may be used without names or any identifying features. Due Diligence is Primary! Any questions intended to commit fraud? Don't ask me, because I will advise you to the illegality and possible punishments. -0- Tolerance. Honest questions - Priceless! :8 - ) ***

While Congress is in Session...

~ Part of Lesson One: If you don't know 'how' you get taxes, then you cannot understand that as a Citizen, you have more influence than you realize when it comes to Tax Code, and Tax Law & Rule Changes.

The reason Tax Payers and Tax Services have to wait until the middle of January to start the Tax Filing Season is because the Congress, the House of Representatives and the Executive Branch (President and Crew) have to finalize and agree with what your 1040 is going to say, what Exemptions will be given, any Credits, Changes of Tax Rates etc.

One thing I will ask those who are able: Contact your State & Federal Representatives and voice your loud Concern over the Alternative Minimum Tax (AMT). If it is not repealed, or another "fix" put on it, for the Tax Year of 2008, it will be the final straw for many Middle Class Taxpayers.

Incomes from $19,000.00 - $155,000.00 are paying an inordinate rate of their entire income in Taxes. [Remember the tax paid on everything; utilities, state & local, goods, bonuses, fuel, phones, license, registrations, etc].

If the AMT goes on without attention, many of those in the income brackets listed previously will have their usual deductions partly or completely phased out - in other words...Your Mortgage Interest, College Tuition etc will no longer be a deduction for you. For those who will have a huge loss on Schedule D this year, the final straw will be how much tax you will still have to pay.

At present, those making over $200,000.00 pay less as it goes up. Please talk to your Tax Professional, CPA or Accountant about the AMT, then your Congressional Representatives. We are the People and we have a voice, we just don't remember how to use it.