How to Check the Status of Your Tax Refund Online – Tax Deduction
How to Check the Status of Your Tax Refund Online
Richard A. Chapo
So, you were pleasantly surprised to learn that you are getting a refund on your taxes. Congratulations! The IRS expects to issue approximately $54 billion dollars in refunds for the 2003 tax year. The question for most taxpayers expecting a return is, "Where is my refund"
Check Your Refund Status Online
The easiest way to check on your refund is to ask the IRS through IRS.gov. On the home page of the site, you will see a "Wheres My Refund" link. Using the service is fairly easy. You will need a copy of your tax return to provide the necessary information to get the status of your refund. Specifically, you need to provide your social security number, you tax filing status and the exact amount of your refund. The reason the IRS requires all of this information is purely for security purposes, to wit, the agency wants to make sure it is giving access only to the taxpayer. Again, all of this information should be on your return. If it is not, something is very wrong!
Once you submit the required information, the IRS will provide online results typically showing:
1. That the return was received and is in processing;
2. The expected mailing date or direct deposit date of your refund; or
3. Whether your refund could not be issued because of a delivery problem.
In some cases, the results may alert you to the fact that the IRS is reviewing your tax return because of errors or questionable entries. In such a case, it is highly advised that you review your return with a qualified tax professional and make absolutely sure that the return will stand up to scrutiny.
How Long Do You Have To Wait Before Checking
If you filed your tax return electronically, you should be able to access the status of your refund within 48 to 72 hours. Since the return is coming into the database electronically, it should be assimilated into the system fairly quickly. If you do not file your return electronically, you are going to have to wait three weeks or more before the status of your return can be checked. As you can imagine, the IRS is receiving an enormous amount of paper tax returns and it takes time to organize and enter the returns into the system.
How Long Should It Take To Receive Your Tax Refund
If you are expecting a refund, the time to issue the refund will depend upon how you filed your return. If you filed a paper return via regular mail, you refund should be issued in six to eight weeks from the date it was received by the IRS. Alternatively, if you filed your return electronically, you should expect to receive your refund in three to four weeks. If you elected to have your refund directly deposited in your banking account, you should take one week off of the above estimates.
About The Author
Richard Chapo is President of BusinessTaxRecovery.com. Visit BusinessTaxRecovery.com to subscribe to a free newsletter offering monthly tax deduction tips for small businesses or contact Richard at Richard@businesstaxrecovery.com.
What Students and Parents MUST Know about Student Loans – Tax Deduction
What Students and Parents MUST Know about Student Loans
John Williams
A student loan helps you get through college. Then you come out into a high-paying career. Its a great investment in your or your sons/daughters future.
Student loans generally give you a good deal. You get below-market interest rates, and you get a $2500 federal tax credit on interest paid over any period of time previously first 60 months only
It doesnt matter if the student, or parent takes out the loan; tax deduction remains the same.
* Did you know the federal government has a $50 billion student loan program
Not surprisingly, the federal government provides the largest percentage of student loans. Other student loans may come direct from colleges, private lenders or state governments.
One of the key advantages to a federal guaranteed loan is exactly that - its guaranteed. That means you dont need collateral. It also means the terms are kinder than a typical lender might offer. Of course, your educational program has to be approved by the government.
Types of student loans
* Federal Stafford Loan - for undergraduate or graduate students
A popular and cost-effective source of a student loan. Stafford loans provide low-interest, government guaranteed funds.
Stafford Loans come in two types, subsidized or unsubsidized. Whether or not youre eligible for subsidized depends on household income. The school ought to advise on this.
For subsidized, the government covers the interest right up to start of repayment i.e. they pay interest incurred during the course, in deferment and during the grace period before repayment begins. If you qualify for subsidized, its a great deal
For unsubsidized, the student must pay all interest incurred at all times, though they dont start repaying until after grace period.
* Federal PLUS Loan - for parents of undergraduates
Parent Loan for Undergraduate Students PLUS allows parents to take a loan on their Childs behalf. They can contribute to their Childs future, and get a great low- interest loan with continuing future tax relief.
PLUS actually allows parents to borrow the total cost of their childs education, minus any grants or other financial aid awarded. All tuition fees, meals, books, transport etc. can be included in the loan.
This really is a great deal, and has no income or asset requirements. Even poor credit history may be overcome. Repayment is flexible, and can include zero payments for up to 4 years.
Only one drawback to the Federal Stafford and Federal Plus loan - your school must be approved to participate in these programs. If your school isnt approved, then youve got some other options...
* Banks
Many banks offer unsubsidized Stafford loans. You still get the money, which you must have to attend college, but repayment options are more limited. Some deals offer you an interest rate reduction if you make payments on time.
* State Loans
Most states offer guaranteed student loans. Apply direct to Banks, wholl administer the State program. Its usually a more expensive way to borrow than Stafford.
* College Board Extra Credit Loan
Administered by your college. Can be expensive, and best used only in an emergency e.g. your aid is withdrawn.
* Other Loan Sources
A number of other sources may be worth trying if you get a problem with your first choice lenders. Academic Management Services affiliates with approx. 2000 schools. AMS pay your tuition fees if you repay them in less than a year. College Resource Center also has loans available.
If your parent served in the military, then a military loan should be investigated.
College can be the experience of a lifetime. A child starts college as a high school kid, and emerges a full grown adult with high-earning potential
Deadlines Approaching For Filing 1099s For Independent Contractors – Tax Deduction
Deadlines Approaching For Filing 1099s For Independent Contractors
Richard A. Chapo
While the middle of January may seem a bit early to begin thinking about taxes, 1099-MISC filing deadlines are looming for businesses. Generally speaking, IRS 1099-MISC is the form used to report miscellaneous income that you paid to persons during 2004 in the course of your trade or business.
Does This Apply To My Business
The 1099-MISC forms must be issued to any person that you have paid at least $600 in rents, services or other income payments. Typically, you should issue the form to any independent contractor that you paid $600 to during 2004. For example, if you paid a designer $1,500 to build and maintain a website in 2004 for your business, a 1099-MISC filing would be required. As with practically any IRS filing, there are additional situations that require a 1099 filing [ex: any fishing boat proceeds], so make sure you cover your bases by looking at the relevant instructions. Generally, you are not required to report payments to a corporation.
When and What Must Be Filed
The 1099-MISC form is a multi-layered carbon form, so make sure the information you provide appears clearly on all of the copies. Once you have filled out the form, you must provide Copy B to the person that you are reporting to the IRS by January 31, 2005. Using our previous example, you would mail Copy B to your website designer before the end of January.
Copy A of the 1099-MISC form is intended for the IRS. You are required to file it by February 28, 2005 if you are sending the form by mail. If you prefer to file electronically, you have until March 31, 2005 to file the form.
Revealing a particular flair for red tape, the IRS requires you to file an additional form if you are filing Copy A of the 1099-MISC by mail. In such a situation, you must file an "Annual Summary and Transmittal of U.S. Information Returns" form. This summary is better known as Form 1096 and you should have already received a copy of it in the mail from the IRS.
Where To Find These Forms
To the surprise of many people, the IRS has an excellent website containing information and tax forms. Unfortunately, the site is fairly useless when it comes to obtaining tax forms that you can actually file. You cannot download and use any 1099 form from the website. If you try to print forms from the site and use them, you run into two problems. First, the IRS computers will not be able to read the forms and will reject them. Second, it is doubtful that you will be printing on multi-layered carbon paper, which means you will have no Copy B of the 1099. Obviously, either situation can attract unwanted attention from the IRS.
You can order forms from the IRS by calling 1-800-tax-form or ordering them off of the IRS website [do not download]. The IRS suggests it typically takes at least two weeks for the forms to be delivered, but keep in mind that it may take longer. If you need the forms sooner, you usually can find them at libraries and post offices.
About The Author
Richard Chapo is CEO of http://www.businesstaxrecovery.com -
Obtaining tax refunds for small businesses by finding overlooked tax deductions and credits through a free tax return review. He can be reached at richard@businesstaxrecovery.com.