Weekly Favorites: 10 Ways to Change Your Budget, Changes on 2012 W-2 Forms, 6 Items for Financial First Aid Kit

10 Ways Your Budget Needs to Change in 2013 via LearnVest

It’s a new year! And that means … new limits for IRAs, 401(k)s and Flexible Spending Accounts. Although these aren’t exactly the most exciting topics to think about, they do have important implications for the way you handle your finances over the next 12 months. Continue reading…

2012 W-2 Form Changes You Should Know by TaxACT

There’s been some confusion as of late surrounding the 2012 W-2 form changes and the purpose behind such a change.The following outlines what’s new, what it means for your 2012 tax return and what it means for you going forward. Continue reading…

6 Items For Your Emergency Financial First Aid Kit by Ellie Kay

Just as every family needs a good first aid kit for those unexpected accidents, they also need a financial first aid kit, or practical ways to help safeguard their financial future. I believe that every family can be ready for financial emergencies by assembling a well-stocked financial first aid kit. Continue reading…

Here we also provide 2014 IRS tax forms and 2014 Free Taxes

5 Tips for Filing Your Taxes for the First Time

Are you filing your taxes for the first time?

Are you feeling a bit overwhelmed about the whole process?

Filing a tax return for the first time can be intimidating.

Here are 5 tips to help you through the process.

1. Determine if you need to file

Key factors include filing status, gross income, and age. See the section titled Do You Have To File? for details (pg. 7).

Even if you are not required to file, you should file to get a refund of any federal income tax withheld or to take advantage of the Earned Income Credit (EIC), if eligible.

2. Use the IRS instructions and publications

The TaxACT software provides Step-by-Step Guidance through the Federal and State Q&A interview screens.

On each Q&A screen, there is also a Form Instructions link under the blue Help tab which contains additional information about the entries you are making in the program (see below).

IRS Form Instructions

3. Understand the difference between tax deductions and credits

A deduction will reduce your taxable income. From this taxable income amount, you will figure your tax liability.

A credit will then reduce your tax liability. There are nonrefundable and refundable credits.

A nonrefundable credit can reduce your tax liability to zero, however it cannot result in a refund. If your tax liability is zero, you would not receive this type of credit at all, even though you are otherwise eligible.

A refundable credit can increase your refund or decrease the amount you owe. You may qualify for a refundable credit even if you do not have federal income tax withheld.

4. File your return on time

The IRS publishes its filing deadlines each tax year. For the 2012 tax year, the individual income tax return due date is April 15, 2013.

If you are unable to file by this date, you can apply for a 6-month extension. You can do so by filing Form 4868 or paying your estimated tax due, which can be completed in the TaxACT program.

5. Know the record keeping requirements

Please review the record keeping information outlined in Part I of Your Federal Income Tax (For Individuals- pg 15).

Please note, there may be more detailed record keeping requirements depending on the specific items included on your tax return, such as the itemized deduction for charitable contributions.

Get latest information and news of 2013 IRS Taxes & IRS Tax forms 2013

2012 W-2 Form Changes You Should Know

There’s been some confusion as of late surrounding the 2012 W-2 form changes and the purpose behind such a change.

The following outlines what’s new, what it means for your 2012 tax return and what it means for you going forward.

Changes to your 2012 W-2 forms

As a result of the Patient Protection and Affordable Care Act, employers are now required to include health care coverage costs on employee’s 2012 W-2 forms.

The amount in Box 12, code DD, is the sum of what you and your employer pay for your health insurance coverage.

This amount does not impact your 2012 taxable income.

Not all 2012 W-2 forms will have the change

The IRS announced that employers with 250 or less employees are exempt in 2012 and will have an extra year to comply, so those employees may not see the W-2 form changes until their 2013 W-2’s are issued.

Why is this information being added?

Knowing the cost of your existing employer-sponsored health care coverage is helpful to you in the event you need to purchase a health insurance policy in 2014.

The Affordable Care Act, aka “ObamaCare” requires all Americans to carry or obtain qualifying health insurance coverage or face a fine for non-compliance. As part of the Act, the government wants to assure all Americans have access to affordable health insurance.

This reporting is for informational purposes only, to let you know the value of your health care benefits so you can be a more informed consumer.

Now get latest IRS tax forms 2013 and 2013 IRS Tax news