Tax Refunds - Online Income Tax Return Filing, Fast Tax Refund.
What is a Federal Income Tax Refund?You are getting an income tax refund! Those are the words that every taxpayer would love to hear. A federal incometax refund occurs if the tax you owe is less than the sum of the total amount of refundable tax credits claimed and the total amount of withholding paid. For many individual taxpayers those federal tax refunds can be obtained through Earned Income credit, a real refund of overpayment of tax, or through an overpayment from previous years. Some people really believe that getting a large income tax refund is not the greatest thing. Instead they feel that the tax refund represents a loan paid back by the government interest free. Others use their IRS tax refund as a simple savings plan where they are surprised to get money back each year. Always remember that it is still better to get an IRS tax refund than to owe money to the government. Once you determine you are receiving a tax refund, there are several options for actually putting that money in the taxpayers hands. Standard paper filing, electronic filing with direct deposit, rapid refunds, and refund are the options we have the choice of exercising, and for many refund anticipating individuals, the rapid refund or the refund is the refund of choice. Since the advent of the computer age, and the great invention of the internet, the Internal Revenue Service (IRS) has been fairly quick to react to the benefit of electronic filing. The income tax returns are filed much faster, tax refunds are made faster, and money due the IRS can be obtained faster. Let us take a minute to look at the different IRS refund options, and what each offers the individual taxpayer. The standard paper filing, although many are more familiar with this method of filing, is slowing reaching obsolescence. There will soon come a time that the old system of paper tax filing will be entirely eliminated and replaced by the electronic tax filing methods. If you are still one of the dying numbers of Americans who files a paper tax return, you should anticipate receiving a tax refund in about six weeks; today, thanks to the great use of the internet, six weeks to receive a tax refund, seems like an extremely long time. The Rapid Tax Refund, that is rapidly replacing the standard paper filing, is an electronic method used for filing your federal income tax return, and allowing you to receive your refund in about 10-14 days. Much faster than the six weeks it used to take. There are usually no excess fees attached to this type of filing, and returns may be filed for free through many local, public access facilities. The refund, however, is a little different. These must be administered by a tax professional through an established alliance with a financial and lending institution. There are several excellent choices available, and many qualified tax professionals to complete your tax return, you will however be required to pay a loan fee or a small interest fee for the opportunity to obtain an refund. There are several restrictions placed on receiving a refund , and some of the restrictions may affect many people. For example, if you owe back taxes, back child support, or liens and judgments, you can’t qualify for the refund. Most often, the individuals who apply for and use the refund are recipients of earned income credit, and their tax refunds are usually well into the thousands of dollars. The refund can be processed in as little as three hours, and back in the hand of the taxpayer by late afternoon; this is provided everything works exactly as planned. The higher interest rates charged by the bank product providers, and the higher processing fees charged by the tax preparers, equate to less money for the taxpayer, but many of these individuals don’t even blink when told how much it will be to process their federal tax return, they just want the refund immediately. This is just one more example of the instant gratification upon which our society chooses to operate. Even for individuals filing with the electronic returns, and choosing to have their funds direct deposited, the turn around time is usually no more than 10 to 15 days. You would think that a turn around of less than two weeks would be quick enough for many taxpayers, but typically, the bigger the federal income tax refund, the faster the necessary return. It would seem to me that this is just another way for the system to profit from the poor; as it is usually the poor that qualify for the earned income credit tax refunds, and these can be extremely large, especially for families with two or three dependents. In all reality, avoid refund loans if possible. They are highly expensive. Wait patiently for your federal income tax refund and keep every penny for yourself. Telephone Excise Tax RefundTelephone tax refund is the one time tax credit that you can claim to IRS for your 2008 income tax return. It will represents an amount ot tax refund of excise taxes paid on long distance talephone services. This year IRS expects to refund near about $10 billion in telephone excise taxes. You can choose between the standard amounts set by the IRS or the actual amount of excise taxes you paid.
Claim for the standard amount is the easiest method, but the actual amount may be higher. You have to claim by those method in which you get the large tax refund for your telephone excise tax. Eligibility Criteria: If you are paying these taxes for such services in between February 28, and August 1, 2008, then you are eligible for the excise tax refund. How to Claim Telephone Excise Tax Refund; You can claim your tax refund directly through your tax return online. Standard Refund Amounts You can claim a standard amount of tax refund of the telephone excise tax. The standard amounts are based on the number of personal exemptions you claim on your tax return. Taxpayers have choices :A standard amount of tax refund between $30 to $60, based on the total number of exemptions claimed on their 2008 income tax return. to eliminate the need to locate old phone bills; or they can locate those bills and use the actual amoun Tax Refunds of Actual Amounts Paid To get this amout you will need to to dig your telephone bills from March 2003 to July 2008, and have to report the actual amount you paid as excise tax using Form 8913 and Attach this form to your tax return. Refunds for Self-Employed Individuals If you file a Schedule C (business income), Schedule E (rental income), or Schedule F (farm income) and you have more than more than $25,000 in gross receipts, then you will be eligible to use a simplified method for calculating your actual expeneses. Businesses and Nonprofit Organizations Business taxpayers can either tally up their actual expenses using their phone bills, or can use a simplified method for calculating their telephone tax refund. Businesses attach Form 8913 to their business tax return. Nonprofits attach Form 8913 to Form 990-T. Simplified Method Here's the IRS Instructions for calculating the telephone tax refund using the simplified method. 1. Take the April 2008 phone bill (this is the bill with an April 2008 statement date) and divide the total federal telephone excise tax by the total phone bill (including federal telephone excise taxes) to arrive at the percentage of the bill attributable to federal telephone excise tax. If you have more than one type of service or service provider (land line, fax, cell, local, long distance, bundled, etc.), combine all bills dated in April before making this computation. For this purpose, there is no need to separate the taxes paid on long-distance service from those paid on local service. April is a representative month during which the government was still collecting the excise tax on long-distance service. 2. Take the September 2008 phone bill and divide the total federal excise tax by the total phone bill to arrive at the percentage of that bill attributable to federal telephone excise tax. The percentage should be lower because the government was only collecting the federal excise tax on local telephone service. 3. Subtract the September percentage from the April percentage to arrive at the percentage that represents the federal long-distance tax. This is the percentage businesses and tax-exempt organizations will use to figure their refunds (capped as discussed below). 4. Multiply the long-distance tax percentage by the total phone expenses shown on telephone bills dated after Feb. 28, 2003, and before Aug. 1, 2008. The refund is capped at 2 percent of phone expenses for small businesses (those with 250 or fewer employees) and one percent for large businesses (those with more than 250 employees). Labels Telephone Tax Refund Maximize Your Federal Income Tax RefundLearning how to maximize your tax refund, can pay you big money at tax time. With the help of a tax deduction maximizer you can increase your Federal Tax refund by 15%, 25% or even 50%.
How does a deduction maximizer work to gain my tax refund? Tax deductions and credits are what changes you to reduce the amount of tax you pay, or to get a larger tax refund. You may be invited to settle for standard tax deductions and credits, and curve up paying the IRS more than you should. The deduction maximizer will alert you to dropped tax deductions and credits you may qualify for. Here are a few of the over 350 free tax deductions and credits available to you: * Education expenses * Energy tax credits * Home office deduction * Medical and dental expenses * Home mortgage interest, real estate taxes, property taxes * Earned income credit, child tax credit, child care credit * State and local income taxes * Charitable contributions You could spend a lot of money, paying a tax accountant to find these overlooked tax deductions and credits, but you no longer have to. There are tools on the internet that can help you can master the skill of finding tax deductions and credits, and achieve a triple or even quadruple digit increase in your income tax refund. Many taxpayers settle for the standard deduction rather than exploring the many tax deductions available to them. Before you settle for the standard tax deductions, take a few minutes to explore the over 350 Federal tax deductions and credits. It is a great way to fatten your income tax refund! |
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