No worries, just file an amended return (1040x). This is a perfectly normal thing to do, and could save you money, or correct a problem that the IRS will find anyhow.
Let’s say you forgot to report a W2 — it’s no problem to file 1040X and report that income and withheld tax — you may get a bigger refund. However, if you don’t file an amended return, rest assured that the IRS will catch the error via their computers — and you’ll get a letter from them with the corrections.
For more information on filing amended returns, see this article, or call us at Denny & Company.
Washington, D.C. (March 18, 2008)
The Internal Revenue Service said it would begin sending out more than 130 million economic stimulus payments in weekly installments starting May 2, with the distribution schedule based on the last two digits of the recipient’s Social Security number.
The initial recipients will be those whose Social Security numbers end between 00 and 20, and who have elected to receive their tax refunds by direct deposit. For those who don’t use direct deposit, paper checks will be sent starting May 16.
See the rest of the article here
According to the AP:
WASHINGTON - Don’t be alarmed. More than 130 million households will get letters from the Internal Revenue Service beginning next week and the news is good.
The letters are part of an effort to ensure people do not miss out if they are eligible for a tax rebate check under the recently passed $168 billion economic aide plan.
The IRS is reminding people to file a 2007 tax return so they will receive the payment.
Treasury Secretary Henry Paulson said his department and the IRS would work hard to get the word out. “For the majority of Americans, all they will need to do is file a tax return,” Paulson said in a statement.
He said the IRS would work with the Veterans Affairs Department, the Social Security Administration and private groups such as AARP to “reach those who do not normally file a return and ensure they know how to get their stimulus payment this year.”
AOL-Money & Finance has a nice little quiz to query your knowledge of tax deductions. You might be surprised at some of them.
For even better help with maximizing your deductions and minimizing your taxable income, call the experts at Denny & Company, LLP.
We make life less taxing.
In a recent article on MSN Money, Jeff Schnepper lists ten common tax mistakes people make, and how to avoid them. One really good way to avoid them, and relieve the stress of preparing your taxes, is to have Denny & Company, LLP, prepare your taxes for you.
His top ten list:
1. Claiming the wrong filing status
2. Omitting or using the wrong Social Security numbers
3. Failing to use the correct forms and schedules
4. Failing to sign and date the return
5. Claiming ineligible dependents
6. Misusing or not using the earned income credit
7. Losing receipts
8. Failing to report domestic workers
9. Failing to report all income
10. Failing to check for the alternative minimum tax
Follow the link above to see a further explanation of these common mistakes, or give us a call at Denny & Company, LLP (661)286-8860.
We make life less taxing.
There’s an interesting (and in my opinion very thoughtful) take on the question of whether you should bail out of the stock market at Motley Fool. For more information on how you should proceed in these turbulent economic times (or are they?) give us a call.
Let’s say it’s getting on April. You’ve finished your return, and you’re still in shock. You made a lot of money and paid a lot of bills. But now you’re looking at a tax bill that you just can’t afford to pay.
Check out the rest of this informative article. And remember, Denny & Company, LLP can help you with all the paperwork and arrangements with the IRS. We’ve been doing it now for over 24 years.
In an effort to boost the U.S. economy, Congress passed the Economic Stimulus Package Act of 2008 on February 7. The legislation will provide tax rebate checks to about 130 million households, starting sometime in May.
The package also contains business tax incentives and help for distressed homeowners. Here are the major provisions in the law.
Single individuals may be entitled to receive a one-time tax rebate of up to $600; joint filers may qualify for up to $1,200. The rebate amount begins to phase out for higher-income taxpayers, beginning at $75,000 of adjusted gross income for single filers and $150,000 for joint filers (based on 2007 tax returns). People who don’t pay income taxes may qualify for $300 rebates if they had at least $3,000 of earned income or tax liability of at least $1 in 2007. Social security income and federal payments to disabled veterans and their widows count as earned income for rebate purposes. Those who qualify for the basic rebates are also eligible for an additional $300 for each dependent child under age 17. Businesses may qualify for 50% bonus depreciation on qualifying new equipment purchases in 2008. The Section 179 expensing limit for 2008 is increased from the previous $128,000 to $250,000, and the 2008 phase-out threshold is increased from $510,000 of total equipment purchases to $800,000. The loan limits for Fannie Mae, Freddie Mac, and the Federal Housing Administration are increased, a provision intended to assist taxpayers during the sub-prime mortgage crisis.
If you need further details on the new law as you do your tax and business planning for 2008, please give us a call.
Here’s a great article on common deductions that taxpayers miss when filing their tax returns. Luckily, if you’re a client of Denny & Company, LLP, you haven’t been missing them. And there are many others, as well, that are commonly overlooked.
Occasionally, our clients find old Series EE bonds in their firesafe. To find out how much your government paper bonds are worth, the Treasury Department provides this simple-to-use calculator.
