Each year the Internal Revenue Service (IRS) reports the most common tax deductions taxpayers forget about when submitting their income tax return.  Among one of the most common mistakes taxpayers make is they forget to place their Social Security number on the form or they make a mistake when entering the information.

It is possible for some taxpayers to be overpaying so it helps to make sure you review deductions available and understand how to claim them correctly to obtain the credit.  Below is a list of the most common deductions overlooked by taxpayers:

1. State sales tax: Taxpayers who live
… Read more at 2009 Taxes

The Internal Revenue Service (IRS) Form 990 is the return for those organizations which are exempt from income tax. It still must be filed. This includes tax year 2009 and tax year 2010, and others of course.

Even though such organizations are not paying taxes, income remains important.

The Internet is a great resource for making extra money for many types of businesses and of course, nonprofits are no exception. There are several ways for nonprofits to make money online including soliciting donations, selling merchandise, and attracting sponsors or visitors.

Using the Internet to solicit donations can be extremely … Read more at 2009 Taxes

2 Good Reasons to Trust Turbo Tax This Year

It is estimated that 3 out of every 4 returns filed has a computing or typographical error that can end up costing you hundreds if not thousands of dollars down the road. Turbo Tax proofs all your tax information so you can make sure that everything you enter is accurate avoiding legal ramifications down the road and earning you the refund you deserve. As an added bonus, Turbo Tax regularly updates all the new tax laws that affect the tax credits you may be entitled to under the law.

The Easy … Read more at 2009 Taxes

Tax Changes in the American Recovery and Reinvestment Act

A number of tax law changes were made in the recently passed and signed American Recovery and Reinvestment Act also know as the Federal Stimulus Bill. Those changes include Income Tax reductions, Unemployment taxes, Cobra Health Insurance subsidies, and number of other important changes.

Income Tax Reduction

Individuals and couples will get a $400 income tax reduction through their payroll per person for the 2009 and 2010 tax years. The reduction phases out for individuals that make more than $75,000 or couples earning over $150,000 a year.

Unemployment Tax

Those … Read more at 2009 Taxes

Credits to Reduce Your Taxes

A tax credit reduces your tax bill by the exact amount of the credit and is therefore the number #1 way to reduce your tax burden. And for some will little income, credits can actually create a refund beyond what was paid to the government for the tax year.

Child Tax Credit

For each child an individual or a couple have, they receive a tax credit of $1,000 above the $3,500 child tax exemption. There are income limits on the $1,000 credit which are $75,000 for single tax payers and $110,000 for married couples. At … Read more at 2009 Taxes