You Need To File A Tax Return If....

by Norine Peardon

1. You have income exceeding the standard deduction plus your allowable dependent exemptions. For a single individual this amount is currently, $9,350.00. Reference: IRS Information

2. You worked for an employer and received a W-2 showing your earnings. A copy of your W-2 is submitted to the federal government and your state government. It also reveals the amount of taxes withheld by your employer for the year.

3. You worked as an independent contractor and received a form 1099 from the firm who employed you as an independent contractor. This includes consulting work and other services.

4. You may be elligible for earned income credits. If you worked for an employer and did not make enough wages to produce income for federal tax purposes, you may be elligible for an earned income credit and a refund on withheld taxes. Qualification for the earned income credit can also affect subsequent tax withholding.

5. You may have overpaid your withheld taxes or estimated tax and are due a refund. Remember withheld taxes are "your money"! Large amounts of expenses, i.e..medical, charitable, property tax, and interest are just some of the expenses which could offset your income, causing no tax to be paid or resulting in a refund.

6. You have sold or redeemed stocks, bonds, mutual funds or received dividends or capital gains. The brokerage companies sent you another type of form 1099.

7. You are retired and have income from IRA's (individual retirement plans)or pensions.

8. You are a student who worked for an employer, either full time or part time, and have education credits reported to you by your school.

9. You were self-employed.

It's the law!

Sources for more information are:

IRS Forms and Publication
Your financial consultant or tax attorney

About the Author
© Norine Peardon, 2010
The author, Norine Peardon has written many articles and blogs for the Internet. Visit her other publications at the following:
Buying Your First House Bulletin Board
Guide To Buying Your First House

Selecting a Quality Tax Attorney

by Cat Tikison

If you're looking for a tax attorney there are a few things to consider before making a decision. This guide will help you locate a tax attorney and choose someone that can aid with tax related problems or questions.

Things to Consider When Selecting a Tax Attorney

First off, not all tax attorneys are equal. You want someone that has experience in the tax law field. Many lawyers may advertise themselves as tax attorneys but do not have specialized knowledge in this area. Why is a professional tax attorney better than just a general lawyer working in tax law? A tax lawyer that has experience with tax law will be able to help you with unique tax situations that a normal lawyer cannot.

Places to Look for a Tax Lawyer

There are several places you can find a tax attorney. Get out your favorite phone book and browse the yellow pages under attorneys. There will probably be hundreds of listings, depending on the size of your city. The Web is the next place you should search and probably the best. Do an Internet search with your favorite search engine for 'tax attorneys' or 'tax lawyers'. The nice thing about searching the Web is you will find directories that list only tax attorneys, usually grouped by state or city. You can quickly find someone to help with your tax problems by using this method to locate tax lawyers.

Tips on Choosing a Tax Lawyer

A good strategy is to pick two or three final candidates and then setup interviews with them to make a final choice. Have a list of questions ready for the tax attorneys you are meeting with to find someone that can help with your special needs. Having a budget in mind is another important factor as tax attorneys may have higher rates than regular lawyers. Above all, use common sense and only work with someone that appears to have your best interest in mind.

About the Author
You can browse tax attorneys and locate a lawyer to assist with your tax issues now at http://www.taxattorneys4u.com .

Estate Planning - Key Tax Changes - Florida

by Robert Fowinkle

Taxation of property transfers at death can be traced back to ancient Egypt as early as 700 B.C. Nearly 2,000 years ago, Roman Emperor Caesar Augustus taxed estates of the wealthy at death.

Federal estate tax was implemented by the U.S. Congress in 1916. There was an exemption of $50,000 for residents at that time. Estate tax exemptions have risen over the years from $600,000 in 1987 to $2 million in 2008.

The exemption beginning in 2009 is $3,500,000 and a 45% tax on estate dollars above the exemption. Bush's tax cuts set into motion a gradual phase-out of the estate tax.

"Death should not be a taxable event, and government should not be profiting from death," Republican, Senator Grassley of Iowa, said.

Critics of the current system say it effectively taxes income twice, first when it is earned and again when the earner dies and leaves it to an heir.

Officially as it stands, in 2010 there will be no estate tax, but tax experts generally don't believe that will happen under the new administration. If no congressional action takes place it will revert back to 2001 levels in 2011.

Jonathan Weisman of the Wall Street Journal writes: Democrats in Congress will move quickly to block the estate tax free year of 2010. The Democratic stance on the estate tax contrasts with Mr. Obama's reluctance to press forward with his campaign pledge to raise income-tax rates on top earners. Under the Obama plan detailed during the campaign, the estate tax would be locked in permanently at the rate and exemption levels that took effect this year. That would exempt estates of $3.5 million -- $7 million for couples -- from any taxation. The value of estates above that would be taxed at 45%.

I personally have to agree with Senator Grassley's statement above. "Death should not be a taxable event". However if we must have a tax on estates the exemption of $3.5 million per individual and $7 million for couples -- from any taxation and 45% on amounts above would be acceptable at this time.

The element of automatic increases or indexing of the exemptions on individuals and couples is very important and should be implemented into the law. This would certainly help stabilize the estate planning process. Our current system has created a nightmare of changes in the planning process.

I would be remiss if I did not cover one very important issue of the heirs paying the estate taxes. There are four methods of paying federal estate taxes (1) current cash (2) borrowing money or arranging payments to the IRS (3) selling off assets (4) life insurance. The first three methods are the most expensive ways to pay federal estate taxes. Life insurance is by far the least expensive.

If you are in need of an estate planning review I recommend you use a team of three or four professionals. The team should consist of your CPA or accountant, estate planning attorney, estate planning life agent and financial adviser, if you use one.

About the Author
Robert "Bob" Fowinkle, CIC, CLU is the president of Moore, Fowinkle, & Shroer Agency in Bradenton.