Opening Day!!!

Better Refund
01.31.2014

 Today marks the opening day for the IRS to begin their processing of tax returns nationwide! Here is part of the article from the IRS, explaining the event for this 2014 tax year! 





IRS Kicks Off 2014 Tax Season; Individual Returns Can Be Filed Now; Free Online Services Available to Help With Filing, Refunds, EITC


IR-2014-9, Jan. 31, 2014


WASHINGTON — The Internal Revenue Service today opened the 2014 filing season by highlighting a growing array of online services and encouraging taxpayers to check out a variety of tax benefits, such as the often-overlooked Earned Income Tax Credit.


Taxpayers have until Tuesday, April 15, 2014, to file their 2013 tax returns and pay any tax due. The IRS expects to receive more than 148 million individual tax returns this year, and more than four out of five returns are now filed electronically.


About three out of four filers typically get refunds, and the IRS issues more than nine in ten of these refunds in less than 21 days. Last year, taxpayers received an average refund of $2,755. E-file, when combined with direct deposit, is the fastest way to get a refund. More than three out of four refund recipients now choose direct deposit.


“Tens of millions of people will file their taxes in the next few weeks, and we encourage taxpayers to visit IRS.gov as the best place to get quick help,” said IRS Commissioner John Koskinen. “We continue to add features and make it more user-friendly to help taxpayers. People can get everything from answers to tax questions about preparing their tax return to checking the status of their refund after they file.”


The IRS began accepting and processing individual tax returns today after updating tax forms and completing programming and testing of its systems. The IRS also has updated and strengthened its systems to help protect against refund fraud and identity theft. This annual updating process saw delays in October following the 16-day federal government closure.


EITC Awareness Day Highlighted


Today also marks the annual Earned Income Tax Credit Awareness Day. Koskinen and other IRS officials are joining local leaders and community organizations across the country at news conferences and outreach events highlighting the benefits of EITC, which helps working families with low and moderate incomes. Koskinen attended an EITC event today at Baltimore CASH with a variety of local, state and federal officials.


Although an estimated four out of five eligible workers and families get this key work incentive, one in five miss out on EITC. That’s because either they don’t claim it when filing or they don’t file a tax return at all because their income is below the filing threshold. One-third of the population eligible for EITC shifts each year as their personal circumstances, such as work status or family situation, change and can affect eligibility. “We urge people to look into EITC. Many people don’t realize they are eligible and simply overlook this credit,” Koskinen said. “There are easy ways to find out more about this credit, either by visiting IRS.gov, or using Free File or a software package. The IRS is working hard to educate people about EITC while also putting in place processes that identify and prevent improper payments.”



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For the full article, visit the IRS website and following our Blogger/Facebook/website for more daily information!


-Better Refund

Who should file!

Better Refund
01.28.2014

   A recent 'Tax Tip' from the IRS has prompted us to share this valued information to all of our customers! The more you know, the better the chances at a fantastic tax year refund! 


IRS Tips!

Who Should File a 2013 Tax Return?

Do you need to file a federal tax return this year? Perhaps. The amount of your income, filing status, age and other factors determine if you must file.

Even if you don’t have to file a tax return, there are times when you should. Here are five good reasons why you should file a return, even if you’re not required to do so:

1. Tax Withheld or Paid.  Did your employer withhold federal income tax from your pay? Did you make estimated tax payments? Did you overpay last year and have it applied to this year’s tax? If you answered “yes” to any of these questions, you could be due a refund. But you have to file a tax return to get it.

2. Earned Income Tax Credit.  Did you work and earn less than $51,567 last year? You could receive EITC as a tax refund if you qualify. Families with qualifying children may be eligible for up to $6,044. Use theEITC Assistant tool on IRS.gov to find out if you qualify. If you do, file a tax return and claim it.

3. Additional Child Tax Credit.  Do you have at least one child that qualifies for the Child Tax Credit? If you don’t get the full credit amount, you may qualify for the Additional Child Tax Credit. To claim it, you need to file Schedule 8812, Child Tax Credit, with your tax return.

4. American Opportunity Credit.  Are you a student or do you support a student? If so, you may be eligible for this credit. Students in their first four years of higher education may qualify for as much as $2,500. Even those who owe no tax may get up to $1,000 of the credit refunded per eligible student. You must file Form 8863, Education Credits, with your tax return to claim this credit.

5. Health Coverage Tax Credit.  Did you receive Trade Adjustment Assistance, Reemployment Trade Adjustment Assistance, Alternative Trade Adjustment Assistance or pension benefit payments from the Pension Benefit Guaranty Corporation? If so, you may qualify for the Health Coverage Tax Credit. The HCTC helps make health insurance more affordable for you and your family. This credit pays 72.5 percent of qualified health insurance premiums. Visit IRS.gov for more on this credit.

To sum it all up, check to see if you would benefit from filing a federal tax return. You may qualify for a tax refund even if you don’t have to file. And remember, if you do qualify for a refund, you must file a return to claim it.

The instructions for Forms 1040, 1040A or 1040EZ list income tax filing requirements. You can also use the Interactive Tax Assistant tool on IRS.gov to see if you need to file. The tool is available 24/7 to answer many tax questions.

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For more information on the details of each topic,  visit the IRS webpage or email us with your question and we will be sure to get back to you asap!

-Better Refund

Reminders!

BetterRefund
01.27.2014

 This is a reminder of the necessary requirements needed for filing purposes! 


    Before visiting our office, we want our clients to be prepared to prove the following expenses (if they should apply) to the IRS! Keeping receipts or some form of listing for these expenses is a recommended choice! Please take the necessary time to prepare something for your own filing (should you ever need them).




Here are some important categories:



-Medical expenses. (This includes Dentist and Eye care expenses.)


-Property tax/personal taxes.   ( These taxes are most typically annual purchases of vehicles & DMV expenses)


-Work expenses (This category is based on the expenses you may obtain when at work. Example: Uniform/Shoes/Tools.)


-Student expenses/ College expenses.  (Typically these expenses are confirmed by the form 1098-T, however, if you do NOT receive that form, please keep a log of your expenses and receipts to confirm any education amounts.)



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We encourage everyone to have some form of record during the next 3 years to ensure the highest deduction credit possible! For any questions, please give us a call or email us!


-Better Refund

Health Care Affordable Care Act

Better Refund
01.24.2014

Obtaining premium health care for 2014

Like most tax years, receiving credit for medical is a process of ensuring the correct information and sources are established. This season we giving you a few tips on the following requirements for beginning the application of Premium Health Care.

Eligibility

In general, you may be eligible for the credit if you meet all of the following:

-buy health insurance through the Marketplace;
are ineligible for coverage through an employer or government plan;

-are within certain income limits;

-file a joint return, if married; and
cannot be claimed as a dependent by another person.


If you are eligible for the credit, you can choose to:

Get It Now: have some or all of the estimated credit paid in advance directly to your insurance company to lower what you pay out-of-pocket for your monthly premiums during 2014; 

or

Get It Later: wait to get all of the credit when you file your 2014 tax return in 2015.

For extended information on the IRS's credit changes or requirements, please visit us our website!

 www.BetterRefundIncometax.com

Guide to Education Credits

       
Better Refund
01.23.2014
         

Student Expenses 

This year we will be looking forward to aiding our clients with the best education credit possible. Before you come in to process your Federal and State income tax for 2013, these are just a few things you will need to have with you for the preparation.

- Form 1098 T 
            (EIN number necessary for filing.)

- A complete record (for your own filing) of all education expenses for the 2013 tax year.

- Name and Address of institution/college for filing.

-Limit on expenses for American Opportunity Credit: $4000

-Limit on expenses for the Lifetime Opportunity credit:  $ 2,000 or  20%  Max. 10,000


Please be aware that with any expense towards education, there is always the chance that the IRS will require extra information, so it is recommended that you keep all receipts!

THEFT PREVENTION AND ID SECURITY

 

    As you might of read from the IRS.org, this year has had a pivotal focus on a new theft prevention system. The IRS has increased its survey on ALL necessary requirements for proving personal identification with 2014 tax preparation and what requirements are critical for implementing dependent credits.  With many of the standards becoming reinforced by the IRS, Better Refund wants to keep clients aware of the changes as they continue to happen for this tax year. Specifically, ID theft tax filing. 

Here is what you need to know if you have been subject to Identification theft for 2014:


-Your current (up to date) Identification Card. 

- Identity Theft letter/statement issued by the IRS.
                 Identity Pin number: ( Required for filing ).

- Maintaining a copy of your Identity Pin Number. 
                 (You will need this Pin in order to file taxes for the next 3 years.)

- If you are filing any dependents (of child status), be sure to bring in one proof of ID & one proof of living address, corresponding to the tax payers residency.



Other Tips: 

- Make sure that you keep a strong record of your annual expenses.

- Bring in all forms. (You don't want to deny yourself the credit on any missed W2!)  








For any other information, visit our website at:        www.BetterRefundIncometax.com



See you soon!


-Better Refund

Welcoming all returning clients and our new customers to a new income tax year!

 On behalf of all of us here at Better Refund, we want to thank everyone for their continued business! We want to continue making things as simple and easy to file for this year and invite anyone to experience our business with continued FREE Estimates!

 Changes for this year will include ID (identification card) copies for filing. Birth certificates and ID cards for dependents considered under-age for tax purposes. And finally maintaining estimates of all deductions (work expenses, medical, vehicle expenses) for the 2013 tax year.

  If there are any other questions or concerns over any of these topics, please let us know and we will be sure to answer your questions as soon as possible! Contact us via EMAIL, Facebook or Website!

See you all soon!


-Better Refund