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.

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

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.

Dear Reader,
These articles will provide a step by step guide on how to start and run a home based business based on my experiences and other home business owners. This is part 2 in a series of 5 articles. They are written in a basic format and where possible main points are summarised in an attempt to be understood by all. I have tried to minimise the technical jargon as much as possible.
So lets jump right in and see what we need to know about starting and running a home based business.
Regards,
Alvin

http://www.parttimeincome.org

Legal Structures
The legal structure of your business is very important as it is a function of liabilities and tax deduction. The most common structures are:

Sole trader
Partnership
Company
Trust

Sole Trader
When you are a sole trader you are personally responsible and liable for the business and its activities. Commonly you may start out as a sole trader, and as you expand, you will need to seek out partners or investors. Your accountant is the best person to advise you if this is the best structure for your business.
Partnership
This arrangement is where you and your partner are liable for anything related to your business. It is a very good idea to get a solicitor to write up a partnership agreement to avoid disputes down the track.
Company
This is a legal entity liable for the debts it incurs and paying tax on income. Your accountant can help you set a company up, or you can buy one off the shelf, which may be more cost effective.
Trust
Depending on your personal circumstances, and the country you live in, trusts can be useful in business and estate planning. They can be quite complex, and again, your accountant is the best person to speak too.
Registering Your Business Name
You can operate a business under your own name or register a business name. Registration of a business name allows you to operate under that name.
Select a name for your business that describes to your customer what you do. A descriptive name promotes and advertises your business more effectively.
Licences And Permits
Depending on your municipality, you may need licences and permits. Do the right thing and check with your local council. Doing the right things now will save you a lot of unnecessary leg work later.
Insurance
Often overlooked, insurance is an important part of your risk management plan. There are two types of insurance: general insurance for loss/damage of assets and risk insurance which is your personal insurance cover.
Ensure your business insurance is separate to your personal insurance.
To establish the type and amount of insurance you need for your home based business, check with an insurance broker.
Managing Risk
You must have a risk management strategy for your business. Your SWOT Strengths, Weakness, Opportunities, Threats analysis from article one, will show what could expose your business to loss and what actions to take to reduce that loss.
Marketing
As a home business entrepreneur, you must understand what your customers want and give it to them. You must strive to have a service or product that meets and excels your customers needs and expectations. This is what makes them come back to buy from you, and this is how you grow your profit. Try and think like your customers and you will find they want:

Satisfaction
Value for money
Performance
Reliability
Presentation

Don

When I was a very small child, I discovered that I had a love for reading. There was nothing better then spending an entire afternoon engrossed in a good novel. Reading for me was a pleasure, and magically transported me all over the world. My love of reading from an early age sharpened my vocabulary skills, my spelling, and my ability to learn, without me even realizing it.
Up until the time that I had decided to start a home based business on the internet, I didnt feel that my love of reading played a role towards increasing my finances...how wrong I was.
When I started a home business on the internet, I knew absolutely nothing about network marketing, advertising, building websites, search engine optimization, tax deductions, or the millions of other things needed to run a successful business from your home. And the affiliate program that I had signed up for provided me a mentor who was basically non-essential towards me being successful and moving up the ranks.
Although the program that I had signed up for provided all kinds of training material, I didnt find it to be in a logical step by step order and became very confused at where I was to begin and what my ultimate goal was to be.
Through much trial and error, I had given up on someone helping me and decided that if I was going to be successful, it was going to be up to me whether I succeeded or failed. At that point I returned to my roots and my love of reading. I started watching the people who were successful online and started reading their articles on how they got there. I started visiting various online and webmaster forums also. You would be surprised how much free information is out there if you just take the time to look for it and read. People who have made a fortune on the internet are only too happy to share their experience and knowledge with you.
From that point, I started immitating the steps that they had taken, and before long, I had created a successful online business of my own without any help from anyone besides the webmasters who had decided to post free information on their websites.
I recently started creating an easy to follow tutorial for my own affiliates and the response has been positively overwhelming, and has taken my business to new heights. http://www.101homebusiness.org/tutorial.html
If you have a love for reading, I can already predict your online success. Even without a mentor, you can create a successful business from your home by simply reading.
Best wishes for you future success and prosperity!
Sincerely,
Rebecca Gilbert

About The Author

Rebecca Gilbert has been a successful internet entrepreneur since July, 2002. Visit her at: http://www.101homebusiness.org for the best internet ventures available. For more articles by Rebecca, please visit: http://www.101homebusiness.Org/home_based_business_articles.html

Do You Qualify For Home-Based Tax Deductions
New changes in the tax laws have made it easier than ever to claim Home Office Deductions and keep more of what you earn.
If your home is a place of business, many of your personal expenses can be deducted as business expenses resulting in lower taxes.
You may be thinking, "I have an Accountant/CPA/Tax Preparer/Tax Software who knows all about tax deductions so I dont have to know anything about them."
There are several reasons why that thinking could be costing you thousands of tax dollars. Some of those reasons are:

Most Accountants/CPAs/Tax Preparers do not "specialize" in Home-Based Businesses and do not keep up with the ever-changing laws pertaining to them.
You are ultimately responsible for knowing what you can and cannot deduct as business expenses. Why YOU are accountable to the IRS for your deductions, not the tax preparer.
If you pay someone to do your taxes you still need to know what you can deduct so that you can gather all relevant paperwork.
The most compelling reason: Getting the greatest benefit from your deductions.

To qualify for these deductions you must meet 2 conditions, which most, if not all, Internet Marketers meet.
Condition 1: Do you work as an Internet marketer out of your home on your "home computer
To qualify for deducting expenses related to using a workspace for business in your home, your home must be

Your "principal place of business " or you must use the space only to earn your business income.
Use it on a regular and ongoing basis to meet your clients, customers, or patients.

AND
Condition 2: Are you in business to make a profit
Whether you made a profit or not is immaterial. Even if you lost money but intended to make a profit these deductions are still available to you.
If you answered yes to both of these questions then you do own a Home-Based Business and as such you are qualified to deduct Business Assets, Direct and Indirect Expenses.
Business Assets include business equipment such as computer, fax machines, business furniture such as desk your dining room table for instance, desk chair and filing cabinets. These are 100% deductible if they are used "exclusively" for business purposes.
If these assets are not used "exclusively for business the amount you can deduct is proportionally related to how much these things are used in your business. It is possible to deduct a portion of your living room, sofa, DVD player etc if you meet certain conditions.
Direct Expenses are those directly related to conducting your business. This would include office supplies, telephone service,, cellular phones, ISP service, hosting, advertising etc. Direct expenses are generally 100% deductible.
Indirect Expenses include such things as rent on your home, utilities including heating and air conditioning and general repairs such as replacing a roof or repainting the exterior of your home.
These are authorized legal deductions passed into law specifically for Home-Based Businesses by congress.
If you use your home for business purposes, many of your personal expenses can legally be converted into deductible business expenses including utilities such as heat and electricity, cleaning materials, house insurance and property taxes.
Learn all you can about what you can deduct and you will consistently save thousands on your income tax each year.
"Im proud to pay taxes in the United States; the only thing is, I could be just as proud for half the money." - Arthur Godfrey

About The Author

© 2004 By Karin Workman, A 30-year veteran Home-Based Business Owner who specializes in Tax Preparation for Home-Based Businesses. Karin also wrote the Hot New Ecourse: "Reap the Rewards!" Designed to help you save tax dollars and put more money into YOUR pocket. The course is Free so do yourself a favor and subscribe today. http://reaptherewards.businessoppsunlimited.com

The best advantages of owning a home-based business are you can turn non-deductible expenses into tax deductions. The deductions you create for your Schedule C have a more significant impact on the total taxes you pay than do deductions on Schedule A. Schedule C deductions not only reduce federal income tax, they also reduce self-employment tax, Medicare tax, and state and local taxes.
Some favorite tax deductions for home-based businesses include the following:

Meals and Entertainment can be 50% deductible when you are with prospective or existing clients, vendors, etc. If you are in a service business or sell products, most everyone is a potential client. It is important to follow the simple documentation guidelines issued by the IRS and to understand there are limitations. An example of a deduction you cannot take is dining out with your spouse. Even if you are business partners, the IRS says no to this. If together, you take a potential client to lunch then the meeting expense is deductible.
Trips must be mostly business-related to be deductible. If a small element of fun is involved, you will most likely have a completely deductible trip. The deductions will not apply to a spouse who tags along, unless it is also a working trip for the spouse. Compliance with IRS regulations can be tricky, so it is best to check with your tax advisor before assuming your trip to Hawaii will be deductible.
Utilities and other expenses for the portion of your home or apartment you use exclusively for business are powerful deductions. Without a home-based business, the most one can deduct is interest and property taxes on Schedule A. In relation to a home-based business, a portion of utilities, maintenance, cleaning, lawn service, pest control, etc. can be deducted on a Schedule C.
Income Shifting. Let us say you have three kids who are ages 10, 12, and 14. You can pay them to work in your business. Children must be eight years old to be paid for working in a family-based business. Each child can earn up to $4,700 in 2002 without paying income tax. You also have the advantage of not paying Social Security or Medicare taxes on your dependent children who work in your business. In this example, you have shifted $14,100 tax-free dollars to your kids. This is clearly better than allowance! There are rules, however. The kids have to actually work and be paid fair not excessive wages for their services

These are just a few of the many tax advantages available to owners of home-based businesses. It is strongly recommended you enlist a qualified tax advisor to help you learn how to document your expenses and how to legally take every deduction to which you are entitled.
This article has been provided by Vicky Collins, The Financial Center Director for the Direct Selling Women

Running a home based business reaps many wonderful tax deductions that other businesses some times may not claim. Unfortunately to many small business owners end up paying the government taxes every year because they are unaware or several small business deductions that are available.
Most of the time any expenses that are related to your business can be added as a deduction on your taxes. If you do not pay taxes through out the year, deductions can help you from paying a large amount of taxes each year and can also adjust earned income. Try to avoid paying large amounts of taxes or owning any money by keeping track of simple things!
Each business is a bit different so be sure to mention these ideas to your tax advisor or accountant to see if your business can qualify for these deductions.
1- If you join any business or purchase into any franchise, the expenses such as kits, or franchise fees may be claimed as a deductions.
2- Business Supplies. Be sure to save all receipts for any supplies you purchase for your business use. Computer paper, business cards, pens, catalogs, or any items you purchase and use for your business.
3- Advertising- Most advertising can be claimed on your taxes. Keep all receipts for any newspaper ad

Even if you work out of your home, most cities and/or counties require you to have a business license and/or permit. Check with your local government municipalities to find out what the requirements are for where you live. Depending on where you live, you should be able to get this information from your local courthouse or townhall.
Zoning may also be an issue. Municipal ordinances can be very restrictive about what types of businesses are allowed in a residential district. This also applies if you plan on placing a sign outside of your home. Again, check with your local government municipalities to find out what the requirements are for where you live.
In addition, depending on how your home business is structured--as a sole proprietorship, partnership or corporation--there may be forms to file with the state. The legal structure affects taxes and the liability of the owner and the home business, so its important to follow the appropriate procedures. Contact your states Department of Revenue for filing fees and information.
If you plan to operate your home business under a name other than your own, you will have to register a fictitious name with the county--usually referred to as a DBA filing Doing Business As. The exceptions to this regulation are corporations and partnerships doing business under the umbrella of the corporate or partnership name.
As a home business owner, you may be required to file estimated tax returns and pay estimated taxes quarterly. If you have employees, you also have to submit taxes withheld from employee paychecks. Here are some of the taxes you may be responsible for:
Employment taxes -- Federal income taxes, Social Security and Medicare, federal unemployment and state income taxes.
Federal self-employment tax--Required by those who work for themselves to cover Social Security and Medicare contributions.
Sales tax--Each state requires a sales tax number for any company involved in selling tangible items. Sales tax is collected, reported and paid to the state either monthly or quarterly.
Unemployment insurance tax -- You are required to pay federal and state unemployment taxes if you have more than one employee on the books for at least 20 weeks in a calendar year, or if they have paid more than $1,500 in gross wages in a calendar quarter.
Again, check with your states Department of Revenue for more information.
A home business qualifies for all of the same tax deductions regular businesses do. In the eyes of the IRS, the only difference between most home businesses and Fortune 500 Companies is their size, and the fact that home businesses can also deduct many household and living expenses.
Owning a home business will entitle you to deduct thousands of dollars in every day expenses. After all, why pay more in taxes than you have to
Listed below are just some of the items you are allowed to deduct:

Your car and car expenses.
Your mileage.
Your home computer, printer and other office equipment.
Your home. If youre not a homeowner, you are allowed to deduct the area where your home office is set-up.
If youre a homeowner, you may deduct a portion of your property taxes and utilities.
Your travel expenses.
Your restaurant meals, entertainent, dinner parties.
You may pay wages, tax free, to two of your children, if they are involved with the business.
You may deduct your families health insurance.

NOTE: To qualify for the above tax deductions, you must be actively working your home business.
In closing, since tax laws are continually changing, I highly recommend you consult with your accountant or tax advisor to learn more about applying the aforementioned deductions to your home business.

About The Author

Dean Phillips is an Internet marketing expert, writer, publisher and entrepreneur. Questions Comments Dean can be reached at mailto: dean@lets-make-money.net
Visit his website at: http://www.lets-make-money.net

When you say "end of the year", most small business owners think of two things immediately. The *second* is the holidays. The *first* is taxes! While almost all of us pay taxes quarterly, we still have to file in January. That means November and December are spent getting ready. When youre gathering all your information together for your accountant, dont forget about these regularly overlooked deductions.
Mileage
Sure, most of us already know that we can deduct a mileage allowance from our taxes. However, many of us especially dot coms who dont travel much dont bother to keep track of our travels thinking it wont be worth the trouble. Oh, but it is!
I had the same mind-set, but - at the urging of my accountant - decided to keep track and see for myself. Ill never neglect to do it again! Even though almost every place that I travel is nearby, when I added up all the 10-mile trips to the office supply store, the bank, etc., it turned out to be a hefty total. Havent kept track this year Start now.
Go back and look for deposits in your check register. This would have meant you traveled to the bank on that date... write it down. Do you have receipts from the office supply store You must have traveled on that day, too. Write that down. Keep all your information on a log sheet with the date, number of miles traveled round trip, and the purpose of the drive i.e., office supply store, bank deposit, etc.. Youll be pleased to find that even short, weekly trips all throughout the year can add up to 800 - 1,000 miles or more. Multiply that times the 2002 allowance of 36.5 cents per mile and you get a $292 - $365 tax deduction!
Bad Debt
Did you sell products or services to someone who did not pay you Have you tried to collect the money without success You can write those losses off and get a deduction for them. No, it wont equal the total amount of the money you lost, but it is better than nothing.
Simply gather the information about the sale, the invoice you submitted to the customer, and documentation of your attempts to collect the amount owed. You do not have to file bad debt deductions in the same year they occurred, so if you have old losses, gather the information now so you can include it on your 2002 return.
Travel
Almost any trip can become a business trip if you plan it right. Even if youre traveling to your 20-year high school reunion, you can write off your travel expenses IF you play your cards right.
While mingling with your old chums, collect some business cards, and hand out a few of your own. Ask people what they do for a living in tax talk that relates to "market research", and set up a phone call or two for when you return home.
I know one woman who took a pleasure trip to England. However, while she was there, she took tons of pictures of museums, landscapes, etc. She gathered brochures and picked up some information from a few local vendors. She used these things to justify her trip as business travel for her set design theater company.
No, you dont have to spend the entire trip talking/doing business. Just be able to document that you did some business while you were there. You can also take deductions for lodging and meals while youre on your trip so save your receipts!
As you can see, there are many tax deductions available to you. To find out about more, set up a "pre-tax" appointment with your accountant or tax pro. They can give you information on additional tax deductions that might apply to your particular industry. When you add up all the small stuff, you can end up with some major tax savings!
Copyright 2004 Diane Hughes

About The Author

Diane C. Hughes * ProBizTips.com
FREE Report: Amazingly Simple Yet Super Powerful Ways To Skyrocket Your Sales And Build Your Business Into A Tower of Profits! ==>> http://madmarketer.com/diane