Welcome. We admit it! No one likes doing taxes. Some of you may be done -- congratulations! And some of you may be looking at piles of information from work, banks, and investment firms wondering when you're going to have time to figure it all out. This month we're taking a look at how the new and much improved IRS.gov website can help you. They've even added an an app that might make it a little more fun.
The good thing about taxes is that it's a time when you have a good snapshot of all your finances. Take the next steps after you file to improve retirement savings and tune up your spending for 2011. Always remember that we're here to help you stay On Course.
-Jennifer Lane, CFP |
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IRS.gov -- Can filing taxes be fun?
The IRS has improved their website. Here are some highlights. |
IRS2Go If you own a smart phone, the IRS has created an app for you. Go to your app store (iTunes for iPhone; Marketplace for Android) to download IRS2Go. Then you can:
- Get your refund status
- Get tax updates
- Follow the IRS
Electronic filling now requires a PIN - The IRS is requiring a self-selected PIN in lieu of signature for electronic filing this year.
- You can file electronically if you filed a 2009 Form 1040, 1040-A, 1040-EZ and the IRS processed the form by 12/10/10.
- You need your social security number or TIN, first and last name, date of birth, filing status, and complete mailing address as it appeared on your 2009 tax return.
- Go to Electronic Filing Pin-Help tool or call 1-866-704-7388.
IRS -- Free File This year you can file for free with brand-name software or online fillable forms. sorry, this applies only to federal -- not state -- returns. - Eligibility: Using your 2009 tax return, look at your adjusted gross income (AGI). If it's $58,000 or less, then you're eligible to use the free file. If your AGI is greater than $58,000 and you are comfortable preparing your own taxes, you can use the IRS Free File Fillable Forms.
- With e-file, you can file for free, use direct deposit, and pay electronically.
And, finally, good news for filing -- this year's deadline for federal filing is April 18, 2011. Note: even though Massachusetts residents can file their state taxes on April 19, they must file their federal taxes on Monday, April 18.
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Q&A
Q: The tax preparation service I use will charge me $500 this year. Can I use an online service?
-- Charles from Burlington
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A: You need to understand what you're getting with each option. If you have a straightforward situation and understand how the taxes work, then an online service will probably be fine. If you have tax situations with which you're unfamiliar, then it may make more sense to have a tax preparer do them. In some cases, preparers can save you money by finding deductions your missed. |
What's New
- Jennifer's Compass. Jennifer recently spoke with NECN on how to plan for buying a home. Click here to watch the information-packed video on her blog.
- Jennifer is now appearing on NECN every other Monday morning at 9:30 am in addition to her Tuesday 5:00 pm and 6:30 pm appearances.
- On May 12, 2011, Jennifer will be on a panel for Adler Blanchard & Freeman's Entrepreneurial Series: Women in Business -- Startup to Success.
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Compass Planning Associates helps families, individuals, and small-business clients achieve financial security, knowledge, and control over their money. Our fee-only, client-centered approach provides education and guidance for achieving financial goals and dreams.
All contents of this newsletter Copyright 2011 Compass Planning
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Jennifer's Hint
Your annual contribution limit applies to all your IRA accounts, not each individual account if you have several. You will be penalized for over-contributing only. If you contribute under the maximum, there are no penalties. If you do find that you over-contributed, you can avoid penalties if you withdraw the excess before you file your tax return.
Get more tips in
Jennifer's book
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