What is the Earliest Date I Can File My Taxes for 2009?

Eager to get those tax forms filled out? Ready to get your tax refund now? You can start filing your taxes as early as Janurary 1, 2010. In order to file taxes, you must have all your tax forms from your employer in hand — that is any W2s or 1099s from all jobs you worked in the past year. It’s unlikely that you will have received these forms by January 1, as they are not required to be mailed until the end of January.

Once you’ve received your W2 or 1099 from your employer, you can immediately begin to file your tax return using an efile program. We recommend TurboTax which includes a free federal efile. See our other recommendations on tax software.

Best Free eFile Tax Programs

Now that you’re ready to begin your taxes, the next step is to choose an eFile program. Many are free for Federal returns, and charge a fee for state filing. We recommend the following tax software:

• TurboTax – Free Federal and $29.95 State
• H&R Block At Home – Free Federal and $29.95 State

Both TurboTax and H&R Block at Home offer great solutions no matter the complexity of your tax returns. For basic filers with limited deductions, the free versions of these programs will be acceptable. But if you run a small business, have a lot of investments, or a lot of deductions, you will want to upgrade to a more comprehensive package.

Tags: 1099, dates, earliest date to file 2009, tax refund, w2

File Without 1099s

Just like your W2’s, you can file your taxes without your 1099 forms. A 1099 form is used to track your stocks sold, interest or dividend income, or your income if you worked as an independent contractor. It is always better to wait for the forms if at all possible, to ensure accuracy on your return, but with a little bit of information, you don’t need to have the actual forms to do your taxes.

1099s come in a lot of different forms. Below is just a few of the different 1099 forms:

**1099-B Proceeds from broker and barter exchange transactions.
**1099-C Amount of canceled debt.
**1099-DIV Dividends and distributions.
**1099-G Certain government and qualified state tuition program payments (this includes refunds of state income taxes paid).
**1099-INT Interest income.
**1099-LTC Long-term care and accelerated death benefits.
**1099-MISC Miscellaneous income.
**1099-OID Original issue discount payments.
**1099-Q Payments from qualified education programs (Section 529 or 530 plans; Coverdell account distributions used to be included here, too, but now have their own Form 5498-ESA).
**1099-R Distributions from pensions, annuities, retirement or profit-sharing plans, IRAs, insurance contracts, etc. This is an exception to the nonfiling rule. You will need to send in a 1099-R with your return if the statement shows income tax was withheld.
**1099-S Proceeds from real estate transactions.
**SSA-1099 Social Security benefits statement.
**RRB-1099 Payments by the Railroad Retirement Board.

You should be receiving these forms in the same time frame as the W2’s (mid January through beginning of February). If you do not see your forms by early February, you should attempt to contact your employer or bank to find out if the forms have been sent out. You can also get the figures from these agencies that you need to plug into your return if your forms have gone missing. Just like W2’s, you do want to send a copy of your 1099 form with your return so the IRS can double check your figures, however this is not required. If you were missing forms and they finally show up in the mail, do not throw them away. Double check your numbers and if there is a discrepancy, you must file a 1040X to reconcile the difference.

Like before, wait if you can. It is always better to have the exact figures and save yourself from costly mistakes.

Tags: 1040x, 1099, 1099-B, 1099-C, 1099-DIV, 1099-G, 1099-INT, 1099-LTC, 1099-MISC, 1099-OID, 1099-R, 1099-S, RRB-1099, SSA-1099

When should I expect my W2 tax form?

Your W-2 tax form will be mailed to you by the end of January. If you have not received your W-2 form from your employer by February 1, you should contact your employer and see what’s up. Maybe they mailed it to the wrong address?

If you still haven’t received your W-2 by February 15, you better give the IRS a call: 800-829-1040. When you call, make sure you have all your personal information together — address, phone, social security number, etc. You’ll also want to have a rough estimate of your earnings, dates of employment, and how much income tax was taken out.

Lost your W-2? Dog ate your W-2? Just contact your employer — they can replaced your lost form with a “reissue statement.” (Of course, they might charge you for it)

Remember, you need a W-2 (or a 1099) from all jobs you’ve worked in the past year. So don’t forget about that little stint as a circus seal wrangler you did six months ago — circus income is taxable income. And as for that circus, they still owe you a W-2.

Tags: 1099, circus, IRS, w2

Reasons You Could Be Audited…and How to Avoid Them

The concept of being audited by the IRS scares most people, including me. Even though I follow the rules and pay my taxes on time, there is always that worry that the IRS will come a knocking. The word has gotten itself a frightful connotation, but the audit is really just justifying your deductions to an investigator from the IRS. That still doesn’t mean I want that headache and I assume neither do you. Here are some things to avoid that just scream “AUDIT ME.”

• You Are Already Being Watched If you receive the bulk of your income in cash (e.g. servers, dancers, etc) the IRS already tends to keep an eye on you. It’s important to try to get a 1099 from employers who compensate in cash to have exact documentation of your income, but we all know that this is not always an option. People who are self-employed and own small businesses are also on this radar.
• Errors in Calculation The main reason citizens receive letters from the IRS is due to simple errors in their calculations. Goofs in your addition and subtraction could lead to a full audit. Though math errors alone are rarely cause for a full fledged audit, check yourself before sending in your forms.
• Interest and Dividend Report Discrepancies Basically, this means that all those W2s and other paperwork you have sent the IRS does not match the figures you have put on your tax forms. There are a great deal of reasons for this to occur (1099s being one of the culprits) but you should always make sure that what you have recorded and what your employer(s) has reported match.
• Whistleblowers So, you have fooled the IRS. The worst thing you could do now is tell someone. Most people don’t realize that the IRS offers rewards, as much as 15-20% of the additional tax owed, to everyday citizens who inform on their peers’ tax evasions. If you know of someone who has been ”cheating” on their taxes, you can report it with Form 211: Application For Award For Original Information or call the IRS hotline at (800) 829-0433.
• The “DIF Score” This is an interesting one. The IRS has come up with a computer program that uses a secret IRS equation that will compare your deductions to those of other people in your income bracket. This way they can quickly see the DIF-ference and flag for audit returns that have exceptional deductions for their bracket.

So, do your best to avoid these red flags. You can’t really control if the government decides to audit you, but you can try to give them the least amount of reasons to suspect you. Good luck!

Tags: 1099, audit, audited, cash income, DIF score, Errors in Calculation, Form 211: Application For Award For Original Information, income bracket, Interest and Dividend Report Discrepancies, IRS hotline, red flags, self-employed, small business owner, tax evasions, w2, Whistleblowers

Tax Calendar…Important Dates You Want to Know

So we all know that we have to have our taxes in the mail to the IRS by April 15th. Did you know there are a great deal of other dates worth noting on your calendar that can help you from making some costly tax mistakes. Get a pen and your day-planners now!

12/31/08: Deduction Deadline
This is your absolute last day to make all those payments that can be deducted from your 2008 return.

1/15/09: Fourth Quarter Estimates Due (an extension can be requested, however, using the 1040ES form)

2/2/09: 1098s, 1099s, and W2’s all should have arrived

2/15/09: New W4’s for continued exemption
Even if you were exempt last year, you still need to fill out a new copy of the W4 form to continue your exemption into 2009.

4/15/09: TAX DAY!
All federal and state taxes due (or extension papers filed)

Mark ‘em down! Don’t cost yourself money in penalties just because you missed a deadline!

Tags: 1/15/09, 1098, 1099, 12/31/08, 2/15/09, 2/2/09, 4/15/09, deduction deadline, fourth quarter estimates, tax calendar, w2, w4