Even Albert Einstein lamented that “the hardest thing in the world to understand is the income tax.” Though taxes are complex and tedious, the number one reason we dread April 15th is simple: Nobody likes to pay tax.
Here’s how to get over procrastination and take the sting out of doing taxes:
Step One: Put Emotions Aside.
When we’re stressed out or on high alert, it is much harder for our brains to weigh options, predict consequences, and solve complex problems. No matter how good you are at multi-tasking, it’ll be much harder to think clearly when your brain is engaged in a [...]

Continue Reading

You’ve come to us with tax questions, and we’ve heard you. That’s why we sat down with Inna Merzheritsky, a partner specializing in international tax at accounting firm Burr Pilger Mayer in San Francisco, to answer YOUR questions about taxes.
I love getting cash back from my refund, but some of my friends say it’s a bad thing. Why?
Don’t think of your refund as some sort of bonus. It’s your own money that you’re getting back, which means that you’ve basically given an interest-free loan to the government. Put it this way: If you could stash money under your [...]

Continue Reading

Audit. Not a word anyone wants to hear. Of course, considering that the IRS audits about 1% of individual tax returns the general odds of being audited are very low. The IRS says it uses a complex computer model to determine who it will audit, but we can understand more generally how it picks that 1%. After all, no matter what the result, being audited is time-consuming and can do take an emotional and financial toll. Who needs that?
Here’s what puts you at risk:
Making An Error In Your Return.
Check your math. Then check it again. Having a mistaken calculation on [...]

Continue Reading

In 2009, about 95 million people (about 31% of the U.S. population) filed their taxes electronically, a route which has numerous benefits: You can submit your taxes at any hour of the day, receive confirmation of receipt within 48 hours, and get your refund money within ten days via direct deposit. But, there’s more.
Get FREE Tax Software If You Made Less Than $57,000 In 2009.
You may be eligible for free tax preparation software under the IRS Free File program. Companies such as TurboTax and H&R Block have partnered up with the IRS to grant free tax filing help to citizens [...]

Continue Reading

There’s no reason to pay more than you owe in taxes, but every year, millions of people do just that. Don’t leave money on the table because you neglect to claim deductions that could cut your tax bill and earn you a bigger refund check.
Check out these seven commonly-missed tax deductions:
Write Off Your Travel Expenses.
Not only can you earn a mileage deduction when you use your car in the course of doing your job, but you can also take deductions for medically-related or charitable travel. For 2009, the deduction for work travel is $0.55 per mile, whereas it’s $0.24 per [...]

Continue Reading