Although it may seem tiresome, accurately filing your paperwork goes a long way to ensuring you get the correct refund from the IRS.
One of the most crucial documents involved in the tax declaration process is the IRS 1040 form. It forms the foundation of the tax process, and all US taxpayers should be familiar with the document.
It is simple to use – there are separate sections to fill in your income and deductions, and to outline what you think you should be refunded for.… Read the rest
Even if you have the best insurance plan, you still might end up paying medical bills. However, all hope is not lost. You can still get a tax break from your medical expenses that can help reduce your overall medical costs.
In 2018, the IRS allowed you to deduct medical expenses that exceeded 7.5% of your adjusted gross income.
Beginning Jan. 1, 2019, all taxpayers may deduct only the amount of the total unreimbursed allowable medical care expenses for the year that exceeds 10% of their adjusted gross income.… Read the rest
What are the 2021 Tax Refund Schedule Dates?
The IRS tax refund schedule dates according to the IRS are 21 days for e-filed tax returns and 6 to 8 weeks for paper returns.
So, in theory, if you e-file your tax return, on the starting day of January 27th, 2021, you should receive your tax refund by February 16th or a paper check between March 9th and March 23rd.
When Can You Expect to Receive Your Tax Refund?
… Read the rest
Under current IRS rules, you can deduct a certain amount in mileage rates if you are using your vehicle for business reasons. Every year, the IRS publishes a list of the current standard mileage rates and the amount you can deduct on your taxes.
Let’s look at the standard mileage reimbursement rate and the types of mileage that are tax-deductible.
How Much is the Current Standard Mileage Rate?
The current standard mileage rate is calculated through an annual study of businesses, where the fixed and variable costs of operating a vehicle for business is calculated.… Read the rest
A tax refund can go a long way in changing the life of its receiver, whether it is saving or paying debts. In fact, in 2019, the total tax refund amount was approximately $2800 for almost 75% of taxpayers receiving a tax refund. So, how to do you get your tax refund faster?
The recommended way is to efile and use direct deposit to get the fastest tax refund.
During the last tax season, 58% of taxpayers received their tax refunds through this method.… Read the rest
If you are planning to paper file, you should know that the IRS no longer sends your paper tax packages in the mail.
If you file your taxes with H&R Block Online, you will find that it is super easy when it comes to getting the right tax form.
This is because the online tax software automatically selects the form that is the best fit for your unique tax situation.
Alternatively, you can order the forms and have them sent to you in the mail by calling the IRS, 1-800-TAX-FORM.… Read the rest
The new Form 1040 is different from the old one. This new draft may seem confusing, but we are going to help you understand it. Here are the five things all Americans should know about the new IRS Form 1040.
The New 1040 Form is the Size of a Postcard
One of the main promises Donald Trump made during the 2016 presidential campaign is he wanted to change the tax code to make it simpler. He said that he wanted the average American to be able to file their taxes on something the size of a postcard.… Read the rest
Do you want to reduce your tax bill this year? You can maximize your tax savings by checking to see if you’re eligible to claim any of the new expanded tax credits.
The difference between a tax credit and a deduction is a deduction reduces your taxable income, whereas credits reduce the amount of tax you pay directly. Refundable credits are even better because they can reduce your tax bill even if the credit is worth more than you owe. Non-refundable credits are only valid up to the amount you owe.… Read the rest
Form 1040A is one of the forms that can be used when filing federal taxes in the US. This form is shorter than the original 1040 form; however, it is more complex than the 1040EZ form. All taxpayers can use form 1040, yet there are restrictions as to which taxpayers can use Form 1040A.
For example, you have to have a taxable income of less than $100,000; you have to take the standard deduction instead of itemizing your deductions.
Filing Status & Exemptions
When preparing this form, you have to list your exemptions and select a filing status before you start reporting your income.… Read the rest
IRS Form 1040 is the basic tax form many Americans will use. It also recently received an overhaul.
The new Form 1040 is now going to be the size of a postcard with 1040EZ and 1040-A removed from circulation entirely. However, there are a variety of new schedules, so you need to be aware that you don’t need to give less information; they’ve just been moved to other forms.
So, let’s look at where you can find IRS Form 1040 and instructions.… Read the rest
The brand-new Form 1040 has simplified the form and moved many of the original lines to separate schedules. The philosophy behind it is to make filing easier for most Americans, who tend to have extremely simplified tax affairs.
Most taxpayers never have to use anything other than the new Form 1040. But for those who do need the schedules, we’re going to go through the six new schedules and what they do.
Schedule 1 – Additional Taxes and Adjustments to Income
If you need to report certain types of income or any adjustments, you’ll use this form.… Read the rest