Posts Tagged ‘income tax return’
Should Filing Taxes Be Done On Time Or Is Applying For A Time Extension A Better Choice?
Posted by admin in US Tax Questions on February 11th, 2011
More than 10 million people file taxes every year, and at this time of year with the April 15th deadline coming very close, many people are starting to think about the dreaded chore of filing taxes. There are so many things to take into consideration, like tax credits, allowable tax deductions and many more variables to be taken into consideration before finally submitting your tax return.
If you are feeling under stress about your income tax return then there is possibly a ray of hope for you that you may not be aware of, it’s a time extension. This option was simplified and made approachable just a couple of years ago and now all taxpayers are entitled to fill out a Form 4868 before April 15th, and they can be granted an extension of 6 months. If you decide to do this then you do gain a $8000 tax break on an extension, but that is not an extension granted so you can simply sit back and relax for another 6 months. You must remember that whatever it is that you feel you will need to pay given a 6-month extension, you must file taxes to that effect. If you are found to have underpaid, then they can either charge you interest, or alternatively they will fine you.
One great advantage of this is for people who have just recently bought a house, but now wish to be allowed to wait a while before they file taxes so that they can take advantage of federal tax credits for home buyers.
The popular opinion among expert tax circles is that filing for an extension gives you the most breathing space, and the best benefits, even if it means getting a tax refund takes that much longer. A time extension is definitely preferable considering the other choice – filing on time on April 15th, and then going on to make changes in an amended filing afterwards. An amended return is, in fact, an open invitation to be audited.
However, there is one type of taxpayer who probably shouldn’t wait too long on an extension. It is people who have offshore accounts. If you don’t do that by the end of June, the IRS usually be very displeased.
To find out more about filing taxes and allowable tax deductions please visit WhatCanIDeductOnMyTaxes.com for more informative and helpful information.
Article Source: http://EzineArticles.com/?expert=Beth_Montana
tax deductions for non-residents?
Posted by admin in US Tax Questions on November 25th, 2010
I am a non-resident who worked in the USA for three consecutive years for 4 months. After filing for a tax return after my last year (2006) I found out that my tax preparer has filed for {content} taxable income (00 gross income) and therefore I got 100% of the taxes paid as a refund. I know that non-residents are not entitled to all of the tax exemptions and deductions as US citizens and residents are and were very surprised. I thought that my tax preparer could be incorrectly filed for me as a resident, until I found out that:
The Green Card Test – You are considered a U.S. resident for tax purposes beginning on the day you are issued an alien registration card by the Immigration and Naturalization Service (INS). Use Form 1040: U.S. Individual Income Tax Return to prepare and file your taxes.
The Substantial Presence Test – You are considered a U.S. resident for tax purposes if you were physically present in the U.S. for at least:
31 days of the current year, and
183 days of the three-year period that includes the current year and the two years immediately preceding, including:
- all of the days you were present in the current year (2006)
- 1/3 of the days you were present in the first preceding year (2005)
- 1/6 of the days you were present in the second preceding year (2004)
Does this mean that every non-resident, who has stayed for more than 31 days in the USA during any calendar year, could be considered as a resident for tax purposes and therefore could take advantage of all exemptions and deductions, which residents and citizens are entitled to?
Are non-residents generally entitled to itemized standard deductions and personal exemption deductions?
Personal income tax return deductions?
Posted by admin in US Tax Questions on July 7th, 2010
what is considered a Personal income tax return? interest income? gratuities? med. expenses? I’m confused! Thanks