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Free Tax Software Giveaway At KNS Financial

H&R Block was kind enough to provide us with several free copies of their H&R Block AT Home Tax Preparation software.

Free Tax Software You Can Trust

Many of you already know that H&R Block provides professional tax preparation all across the country. However, like TurboTax, they also provide software with which, you can prepare your own return. H&R Block AT Home is available in a few different flavors depending on your needs.

Here are the variations:

Free – File For FREE:

FREE to prepare, FREE to print, FREE to e-file
FREE expert advice from our community of tax specialists
FREE audit support and representation from an enrolled agent – NEW and only from H&R Block
100% Accuracy Guarantee and Maximum Refund Guarantee

Basic – Simple Tax Situations:

Everything in Free, plus:

Import last year’s return
Step-by-step guidance to maximize your refund
Double check for errors

Deluxe – Homeowners/Investors:

Everything in Basic, plus:

Import your W-2, 1099 and last year’s return
Searches hundreds of deductions
Personalized tax guidance
Mortgage interest and charitable tax deduction maximizers
Sale of stocks, bonds, and mutual funds

Premium – Self-employed:

Everything in Deluxe, plus:

FREE live tax advice2
Schedule C guidance
Tax laws and planning resources
Advanced tax calculators
Rental income assistance

The “Premium” version is what we are giving away here! The normal price is $49.95 just to file your federal tax return. To add on a state return, you have to pay $34.95 for each state! I guess it’s a real good thing that they are allowing me to offer this edition (the federal portion) as free tax software.

Free Tax Software For All?

Alright, maybe not for all, but for six! That’s right, H&R Block was nice enough to provide me with six codes for my loyal readers!

How To Enter To Win Free Tax Software:

Link to any of the following articles from your website using the anchor text provided: http://knsfinancial.com/ira-contribution-limits-for-both-roth-and-traditional (IRA Contribution Limits), http://knsfinancial.com/401k-contribution-limits (401k Contribution Limits), http://knsfinancial.com/should-i-cosign-for-a-loan (cosigner). Please note that if you do not use the anchor text provided in the parenthesis EXACTLY AS IT IS WRITTEN, then your entry will not count! This is worth 5 entries for each article (potential of 15 entries)
Sign up for email updates from KNS Financial (you can use the form at the bottom of this post, or the one in the upper right-hand portion of the website) – 3 entries
Subscribe to the KNS Financial RSS Feed – 3 entries
Follow @KNSFINANCIAL on Twitter and Tweet about this contest to your followers using the following (1 entry) – “Win free tax preparation software from @knsfinancial – http://bit.ly/hXCJ0j”
Follow @FGSW (“Fat Guy Skinny Wallet” my new website about Weight Loss, Diet, Fitness, and Debt Management) on Twitter and Tweet about this contest using the following (1 entry) – “Win free tax preparation software from @knsfinancial – http://bit.ly/hXCJ0j via @FGSW”

So, you can have a total of 23 entries for this giveaway!!!

Here are a few more details about this giveaway:

You must leave a comment for each method of entry
If you win, you will receive a code to use the H&R Block Premium online version for free – keep in mind that the state return is not included
If you have already done one of more of the following, you are still eligible for the giveaway – just be sure to leave a comment stating what you have done (and follow the other rules as well)
If you have signed up for email updates, please use the same email when you leave a comment (or provide me with the email that you used within the body of the comment). I will match up your comment to my email list to be sure that people aren’t trying to “game the system”
If you have tweeted about this giveaway, please provide a link to the tweet as well as your Twitter username so I can match up the entries
Although, I plan to reference my email subscriber list and the Twitter records for both accounts, you will only receive credit for an entry if you leave a comment below. For instance, if you are signed up for emails and you fail to leave a comment telling me that you signed up, then you will not be entered.
The contest will end on Monday February 21 at 11:59 PM EST
I will be using the random number generator found at Random.org to choose the 6 winners.
If you are chosen as a winner, you must respond to the confirmation email within 72 hours – if not, another entrant will be randomly selected to take your place. Please leave an email that you plan to check often!

If you are more comfortable having a professional prepare your return, then be sure to contact us to set up an appointment for tax preparation.

Be sure you are aware of the tax filing delay, as well as the fact that the tax filing deadline has been extended this year. To get the most out of your tax situation in 2011, you should know the IRA Contribution Limits, 401k Contribution Limits, and the Income Tax Rates for 2011!

To Keep Up To Date With The Latest Tax News And Regulations, Sign Up For Our Email Updates:

Which Of The Free Tax Forms Should I Use To File?

By // by Khaleef Crumbley

Many people are confused by the different free tax forms available to use. Of course, if you come to KNS Financial for tax preparation, then you won’t have to worry about finding free tax forms!

Choose The Simplest Free Tax Forms For Your Situation

In order to file a tax return, you will have to determine which form to use (unless you decide to e-file). Since the IRS is no longer mailing out paper tax packages to taxpayers, the choice will become that much more difficult!

Because of this, the IRS has released the following guidelines to follow in order to determine which option is best for your tax situation when looking at the free tax forms:

What To Look For When Choosing Your Free Tax Forms

Use the 1040EZ if:

Your taxable income is below $100,000

Your filing status is Single or Married Filing Jointly

You and your spouse – if married — are under age 65 and not blind

You are not claiming any dependents

Your interest income is $1,500 or less

Use the 1040A if:

Your taxable income is below $100,000

You have capital gain distributions

You claim certain tax credits

You claim adjustments to income for IRA contributions and student loan interest

If you cannot use the 1040EZ or the 1040A, you’ll probably need to file using the 1040. Among the reasons you must use the 1040 are:

Your taxable income is $100,000 or more

You claim itemized deductions

You are reporting self-employment income

You are reporting income from sale of property

Now that you know what to look for, here is a link to get the Internal Revenue Service Tax Forms that you need. If you don’t want to deal with the headache of checking these figures, then be sure to contact us for tax preparation!

If you are brave enough to prepare your own income tax return, then I would recommend using TurboTax – this software will actually choose the correct paperwork for you!

Be sure you are aware of the tax filing delay, as well as the fact that the tax filing deadline has been extended this year. Also, you should know the IRA Contribution Limits, 401k Contribution Limits, and the Income Tax Rates for 2011!

photo by Arvind Balaraman

Why You Should File A Tax Return Even If You Are Not Required!

By // by Khaleef Crumbley

In a previous article, we discussed the fact that many people are not required to file an income tax return. However, there are some instances when you may want to file a tax return even though you are not required to do so.

Why You Should File A Tax Return:

Recently, the IRS gave seven reasons for doing so:

Federal Income Tax Withheld – You should file to get money back if Federal Income Tax was withheld from your pay, you made estimated tax payments, or had a prior year overpayment applied to this year’s tax.

Making Work Pay Credit – You may be able to take this credit if you had earned income from work. The maximum credit for a married couple filing a joint return is $800 and $400 for other taxpayers.

Earned Income Tax Credit – You may qualify for EITC if you worked, but did not earn a lot of money. EITC is a refundable tax credit; which means you could qualify for a tax refund.

Additional Child Tax Credit – This refundable credit may be available to you if you have at least one qualifying child and you did not get the full amount of the Child Tax Credit.

American Opportunity Credit – The maximum credit per student is $2,500 and the first four years of postsecondary education qualify.

First-Time Homebuyer Credit – The credit is a maximum of $8,000 or $4,000 if your filing status is married filing separately. To qualify for the credit, taxpayers must have bought – or entered into a binding contract to buy – a principal residence located in the United States on or before April 30, 2010. If you entered into a binding contract by April 30, 2010, you must have closed on the home on or before September 30, 2010. If you bought a home as your principle residence in 2010, you may be able to qualify and claim the credit even if you already owned a home. In this case, the maximum credit for long-time residents is $6,500, or $3,250 if your filing status is married filing separately.

Health Coverage Tax Credit – Certain individuals, who are receiving Trade Adjustment Assistance, Reemployment Trade Adjustment Assistance, or pension benefit payments from the Pension Benefit Guaranty Corporation, may be eligible for a Health Coverage Tax Credit worth 80 percent of monthly health insurance premiums when you file your 2010 tax return.

Well, there you have it…seven reasons why you should file a tax return even if you don’t have to do so.

photo by JD Hancock

To Keep Up To Date With The Latest Tax News And Regulations, Sign Up For Our Email Updates:

Do I Need To File An Income Tax Return?

By // by Khaleef Crumbley

By this time, most people should have received all of the necessary tax forms in order to prepare their income tax return. Many people have questions about various deductions, credits, and exemptions. However, there are a large number of people who never get that far, because they have one major question: Do I need to file an income tax return?

Well, the IRS has provided a couple of resources to help you understand if you need to prepare a tax return.

What Determines If I Need To File An Income Tax Return?

According to the IRS, “you must file a federal income tax return if your income is above a certain level”. How do you know what that “certain” level is? Well, that varies depending on a few factors:

Your Filing Status
Your Age at the End of the Tax Year
The Type of Income You Receive

Is There An Easy Way To Determine If I Need To File An Income Tax Return?

There are two main methods that the IRS lists that you can use to figure out if you must prepare a return:

Check the Individuals section of the IRS website or consult the instructions for Form 1040 (opens PDF), 1040A (opens PDF), or 1040EZ (opens PDF) for specific details that may help you determine if you need to file a tax return with the IRS this year.

Use the Interactive Tax Assistant available on the IRS website to determine if you need to file. The ITA tool is a tax law resource that takes you through a series of questions and provides you with responses to tax law questions.

If you have determined that you have to prepare a return, then be sure to contact us to set up an appointment for tax preparation. If you decide to file your own taxes, we recommend using TurboTax to do so. Also, keep in mind that there are many benefits when you file a tax return, even when you are not required to do so.

photo by JD Hancock

To Keep Up To Date With The Latest Tax News And Regulations, Sign Up For Our Email Updates:

Federal Income Tax Rates For 2011

By // by Khaleef Crumbley

The Income Tax Rates for 2011 haven’t changed much from 2010. This is because the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 was signed into law on December 17, 2010 (Click here if you would like to read the full bill). This Act included a last minute extension of the Bush-era tax cuts, which in turn confounded most projections regarding the federal tax rates for 2011.

If you recall, this is the reason for the income tax filing delay, but not the reason for the extension of the tax deadline.

First I will give you the income tax rates for 2011 in the form of a basic chart with the dollar range and the marginal tax rate. Then I will list the income tax rates using the form of the IRS rate table showing exactly how much you will pay in taxes.

Single: Income Tax Rates

Taxable Income is	Taxable Income is
Over	But Not Over	Tax Rate
$0	$8,500	10%
$8,500	$34,500	15%
$34,500	$83,600	25%
$83,600	$174,400	28%
$174,400	$379,150	33%
$379,150	Unlimited	35%

Below is the actual dollar amount that “single” taxpayers will owe:

If Taxable Income Is Over	But Not Over	The Tax Is:
$0	$8,500	10% of the taxable income
$8,500	$34,500	$850 plus 15% of the excess over $8,500
$34,500	$83,600	$4,750 plus 25% of the excess over $34,500
$83,600	$174,400	$17,025 plus 28% of the excess over $83,600
$174,400	$379,150	$42,449 plus 33% of the excess over $174,400
$379,150	Unlimited	$110,016.50 plus 35% of the excess over $379,150

Married Filing Jointly: Income Tax Rates

Taxable Income is	Taxable Income is
Over	But Not Over	Tax Rate
$0	$17,000	10%
$17,000	$69,000	15%
$69,000	$139,350	25%
$139,350	$212,300	28%
$212,300	$379,150	33%
$379,150	Unlimited	35%

Below is the actual dollar amount that “married filing jointly” taxpayers will owe:

If Taxable Income Is Over	But Not Over	The Tax Is:
$0	$17,000	10% of the taxable income
$17,000	$69,000	$1,700 plus 15% of the excess over $17,000
$69,000	$139,350	$9,500 plus 25% of the excess over $69,000
$139,350	$212,300	$27,087.50 plus 28% of the excess over $139,350
$212,300	$379,150	$47,513.50 plus 33% of the excess over $212,300
$379,150	Unlimited	$102,574 plus 35% of the excess over $379,150

Head of Household: Federal Tax Rates

Taxable Income is	Taxable Income is
Over	But Not Over	Tax Rate
$0	$12,150	10%
$12,150	$46,250	15%
$46,250	$119,400	25%
$119,400	$193,350	28%
$193,350	$379,150	33%
$379,150	Unlimited	35%

Below is the actual dollar amount that “head of household” taxpayers will owe:

If Taxable Income Is Over	But Not Over	The Tax Is:
$0	$17,000	10% of the taxable income
$17,000	$69,000	$1,215 plus 15% of the excess over $12,150
$69,000	$139,350	$6,330 plus 25% of the excess over $46,250
$139,350	$212,300	$24,617.50 plus 28% of the excess over $119,400
$212,300	$379,150	$45,323.50 plus 33% of the excess over $193,350
$379,150	Unlimited	$106,637.50 plus 35% of the excess over $379,150

Married Filing Separately: Federal Tax Rates

Taxable Income is	Taxable Income is
Over	But Not Over	Tax Rate
$0	$8,500	10%
$8,500	$34,500	15%
$34,500	$69,675	25%
$69,675	$106,150	28%
$106,150	$189,575	33%
$189,575	Unlimited	35%

Below is the actual dollar amount that “married filing separately” taxpayers will owe:

If Taxable Income Is Over	But Not Over	The Tax Is:
$0	$8,500	10% of the taxable income
$8,500	$34,500	$850 plus 15% of the excess over $8,500
$34,500	$83,600	$4,750 plus 25% of the excess over $34,500
$83,600	$174,400	$13,543.75 plus 28% of the excess over $69,675
$174,400	$379,150	$23,756.75 plus 33% of the excess over $106,150
$379,150	Unlimited	$51,287 plus 35% of the excess over $189,575

A Quick Note About Marginal Tax Rates:

As you can see from the tables above, a marginal tax system works very differently than a flat tax system. If the United States used federal tax rates based on a flat tax, then once you crossed over into a new tax bracket, all of your income would be taxed at that higher rate. For example, once a single taxpayer earned over $34,500 in taxable income, then they would pay 25% on all of their income.

However, due to our marginal tax system, this single taxpayer only has to pay 25% on taxable income over $34,500. You must keep this in mind when you evaluate whether a raise, bonus, or investment is as good or bad as it seems (especially when compared to a flat tax system).

photo by Infrogmation

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photo by alancleaver_2000