Free File Forms - 2008 Tax Year

Good morning Taxpayers, [Happy Superbowl 43! Steelers vs Cardinals]
***Here is an update on the new Free File Forms available from the IRS Free File link.

Go to www.irs.gov, in the Search Box, type Free File. You will be directed to a split page. The top portion of the page gives income limitations for Free File using approved Software. The IRS gives two options with Free File with Software; 1). You choose the Company, 2). The IRS will choose for you after you answer a couple of questions. http://www.irs.gov/efile/article/0,,id=118986,00.html

The next option on Free File using Software is that you choose your own. There are different reasons to choose, but find the one who best suits your needs without charging too much.

On the Bottom half of this page, Taxpayers are given the option of choosing their own forms; 1040, 1040A, or 1040EZ.

***** No income limits for using these forms. Some Forms for the more complicated returns will not be available until March of 2009. This is when Congress is done with 2008 Tax Law, and it is final.

***** Five Star rating for any Dependent who needs to file an income tax return. Remember Parents and Guardians; if you claim a dependent on your Tax Return who has earnings, they are required to File a Tax Return. After working for years at one of the big name tax firms, I can tell you the prices charged for a Dependent 1040EZ is too much. By getting your youngster started with Free Forms, this will give them a better understanding of their 'tax life". Oh yeah; It is completely free to file electronically. I have run into a glitch on the start-up, but on Monday I will be in touch with the IRS to find out Whatz up.

My tax return is more complicated because I legally take every penny possible, and I was up to 8 forms & worksheets last night when I realized I could not locate the place to enter W-2, 1099, 1099R [incoming money] forms. Again, I probably missed something on the sign in, but it should not be so hard to locate these areas of entry. Follow-up Monday night if I can get off of Eternal Hold.

~ Software - TaxSlayer is still my favorite. They are user friendly, provide links to information to what you are doing without charge. Under certain income limits; it is Free Fed & Free State = 9.95 E-File.

Many have used the same company for years. If you have had no problems and you are happy with the ease of use; don't change. Keep in mind when you purchase the Software in the stores, you are paying a lot more than 9.95, or 14.95. As they say, if you don't know how to use it correctly it will be problems without measure and you can be barred from the IRS by doing your own taxes.

Records, Records, Records. You must have them compiled before you File!

If you use a tax professional, do not put them in the position of "guessing" close to your numbers. This year more than ever, your Tax "people" will be held accountable for erroneous numbers. Do not let any Tax 'people' convince you to "use a Dependent" that you cannot prove the dependency.

I heard one guy in a school for a certain Large name firm say, "they told us no one ever goes to jail for that..."

Try this, go to the Department of Justice website, search Tax Firms & Preparers. Perhaps print out the 20 - 30 pages of firms that have been closed, the tax pros that have been fined and their punishments.

Really Free File - Income level much higher - You must know how to do taxes.

I was excited to see the Program just introduced by the IRS. For the first time ever, a taxpayer who knows how to do taxes, or is good at reading instructions can complete a tax return, electronically straight onto the forms.

If you are a Dependent (Someone else is qualified to claim you on their Personal Federal Tax Return), you can fill out your own Tax Return, without having to pay exorbitant prices for a usually simple form.

It is simple to move through the IRS website and find the links to do your own tax return for Free.

Go to www.irs.gov. When you get to that page, it will be on the front page of the Individual Tab Page, where there is an article about Free File, the two different ways you can file electronically for free, or for a very low cost. Click on the Free File link. There will be two choices where you can link to Free File Software offered by IRS Approved Companies. Many are well known. The benefits of using software is; 1). Keep forever records by software company, 2). There is assistance available when you run across a problem you don't know the answer to. 3). If your State requires you to file a State Income Tax Return, the numbers from the Federal Form will roll down into and fill the State Forms. I prefer TaxSlayer.

Disadvantage: Software Problems; think of your worst computer experience, add the Treasury, Social Security Admin, and the IRS, Cost, Security.

The second choice is new: Go to a linked site and pull your forms needed for your return and file it directly to the IRS without a middleman. All of the benefits are obvious.

Disadvantage: It is brand new and has quirks that must be worked out. It could possibly have large or small problems. Refunds could be delayed an unknown amount of time. The problem returns will be few, but it is good to know. I cannot wait to use it. As I update knowledge on this new program, I will update y'all.

Right now it is just me preaching to my own choir, but I can really help. If you leave a comment or a question I will check in and answer you promptly. If I don't have the technical answer, I will get you to a place to get the answer.

Ready, Set, GO! They're off and Running today!

Good Morning tax payers, and tax professionals.

Today is the day it all begins. The I.R.S. will begin accepting all those tax returns from all those who have simple tax returns.

The only individuals who should be ready to file today, 1). w-2's are the only source of income, and you have gotten them all. ["forgetting" about that w-2 from that one little part-time job because they take too long is a bad idea]. 2). Your income is under $32,000.00, you own no home, or any other deductions. 3). You didn't have any unemployment, royalties, investment income or were self-employed.

Keep in mind; Congress is still working on Tax Law and Code changes for 2008 Tax Year. For the $28,000.00 income and up, I would advise waiting until February 15th before filling. The 'tax year' is pretty much solid by then.

For the low income individuals and families who are eligible for large sums of Earned Income Credit, please try to avoid getting your money in 1 day. You can wait 9 more days and save 200.00 - 400.00 in "loan fees". If you could wait an entire year, you can wait 10 days. The tax operations like Jackson Hewitt, H & R Block, JPL, Liberty make their biggest profits off of the poorest people.

Those Rapid or Instant refunds are not refunds. They are loans at 32% - 383.% interest. I have a few words to say about that, but I am keeping this family friendly.

Have Questions? Worried that the tax person you hired is not giving to you straight? Is it better to go "long form" or short? Can I claim my baby momma baby? Please Post your Questions here. If you can get that Let's talk to work, send me your Questions. Normally you would be paying good money for this service, but this is The Year. I am offering these services for Free. The only source of income would be if I get enough traffic coming to this site. My ultimate goal is to build good karma and open my offices next tax season.

I will be offering TaxSlayer, because as a professional, and a tax payer it is the simplest Free File ware out there. When/If you choose Free File, always approach these tax firms through the IRS website. It is safer.

Do not hesitate to let me know if I can be of any assistance to you: WoodSmoke - Lori