The Tax Preparation Blog

Posts Tagged ‘tax’

Question: Where can i find a “accurate” income tax return calculator?

I have tried 3 different tax calculators online, and it get an estimated tax return of $6,000 to $7,000 and was wondering which one would be most accurate. A $1000 is a big margin, so i was wondering what a true estimate would be.

I used H&R Block Tax calculator, which gave me the return of around $7,000 and i used Taxbrain.com which gave me a return of around $6,000. I used a 3rd that i found on a seach engine which said i should get a refund somewhere in between. I thought all tax returns were the same, and i put in basically the same info in all 3 with the exception of h&r blocks, which asks how much stimulus rebate was.

So which one is most accurate? Does it matter who i file through to get a larger return?

Answer: You mean tax REFUND calculator. A tax return is the forms and schedules that you file with the IRS and your state tax authorities.

Like any automated system, garbage in – garbage out. Make SURE that you are putting in the correct information in the correct format. The most frequent cause of errors with most of the on-line tax guesstimators right now is putting in bad information for the Recovery Rebate Credit. You MUST enter the correct amount of the rebate that you received last year in order to get anything close to a correct answer.

Another problem that I’ve seen with some of them — and Block’s is a good example — is that they don’t property account for taxpayers who can be claimed as a dependent. Other than that glaring omission, Block’s calculator is very accurate; I use it frequently for “cocktail napkin guesses.” Just be SURE that you enter the correct amount of your stimulus rebate on the first screen. Put in the wrong information there and your answer WILL be wrong!

If you want to get a better “guess” then go through the actual tax return preparation process. Just don’t submit your return for processing. If you get 3 different answers that way, you’ve fouled something up with your data entry.

ProAPOD Offers a Unique Online Real Estate Calculator

Users can make dozens of computations related to real estate investment at their finger tips plus learn the meanings and formulas while they calculate totally online.

Fast Tax Refund Online 2010, Tax Refund Calculator 2010

Question: Student loan interest deduction causing negative adjusted gross income?

Hi, I am in my 20′s and I’m a student first time filing my 2009 taxes. I worked one week, and earned 760. I paid 5000 in student loan interest and the IRS allows students to claim up to 2500 student loan interest deduction. So if i enter 2500, my adjusted gross income is -1740 (adjusted gross income) and my effective tax rate is 0%. If i leave out the student loan interest deduction, the effective tax rate is -7.76%. My federal tax refund is the same $186 whether i input my paid student loan interest or not. Should i take out or enter the student loan interest deduction? It doesn’t seem to look good to have a negative adjusted gross income. Any advice would be greatly appreciated. Thanks!

Also, is it better to choose Federal standard deduction or itemized deduction?

Answer: scholarships.onlinewebshop.net – it provides some tips about applying to US federal and state grants for college students.

Top tax questions for 2010

Questions about debt, starting businesses and multiple-generation households make it clear that the economy is shaping how people think about taxes.

IRS Gift Tax Limit for 2010, 2011

Question: How do I file mine & my new PR husband’s taxes this year?

My husband just arrived in Canada as a new immigrant. We’ve been married since May 2006. He has received his SIN but has no employment or anything for taxes.
Also, this is the first year I have contributed to my RSP.
Maybe not, but I feel that our taxes are too complicated to do ourselves. Should we go to an accountant? Does anyone know of an accountant in Victoria, BC that specializes in new immigrants?
Thanks

Answer: As indicated above you will be allowed to claim your husband as a dependant in 2006 . He should also file a nil return to go on record as a BC resident for 2006. This may be of use later on when you go to calculate the number of years he was a resident for pension purposes.

There are two solutions to your problems with the complexity of the tax return. The first would be to look up the accounting associations in BC ( CA, CGA, etc) and see if they have a referral for an accountant that specializes in immigrants and/or speaks your language if that is a problem. This could be expensive. If you have minimal income the accounts sometimes have volunteer clinics.

The second alternative and the one I would reommend is to go out and by a tax package like quick tax or even search on line for one. These are very simple to use and in effect walks you through the process by asking questions.

Cut the shady out of your deductions

After doing tax returns for nearly 16 years, certified public accountant Melissa Seaver has seen more than her…

Professional Touch Accounting – Victoria

Opposition will support Liberal non-confidence motion

The New Democrat and Bloc Quebecois leaders said Wednesday they would support a Liberal non-confidence motion to bring down the government, if it were put to a vote.

Alan Mulally of Ford: Leaders Must Serve, with Courage

Question: How much federal tax will i owe?

I made w-2 $11,588 interest income $4,466

total income $16,054

30 years old, single, no dependants.

If possible can you provide me a link to a tax estimator or calculator?

Answer: your non taxable income is $9350, leaving $6704 as taxable and the lowest rate is 10%, which would be $670(could be slightly higher)
you also have Sch M. to help you ease the tax pain(a little)

Gillard reveals carbon price scheme

Julia Gillard is staking her political future on billions of dollars worth of compensation designed to help households offset the impact of the new carbon tax.

UIC Financial Aid Webinar Part One: Myths of Financial Aid