OFFER EXTENDED - FREE online tax return with H&R Block!

OFFER EXTENDED - FREE online tax return with H&R Block!

Get your taxes filed today - at no cost!

I am pleased to inform you that H&R Block have extended the exclusive offer to file their taxes online with  for FREE*! The offer is now valid through the 2011 tax season and is available to you until April 30.

Remember to enter HB99BT8K96 in the Voucher Code field to take advantage of the offer.

*Offer expires April 30, 2012. Offer applies to single or family returns filed by the same household, up to a maximum of 20 returns, as stipulated by the Canada Revenue Agency (CRA). Individuals can transmit their tax returns using the CRA s free Internet transmission service, Netfile; however, there are some types of tax returns that cannot be submitted electronically. Please visit the CRA website (www.cra-arc.gc.ca) for details.

How to save thousands of dollars in tax using a TFSA

You can save up to $5,000 every year in TFSA. Limits are going to be indexed to inflation in $500 increments, so watch for increases in limits over time. You can have as many TFSAs as you wish, but the $5,000 contribution limit applies across all accounts. Note that Contributions are NOT tax deductible but all the income earned inside a TFSA is earned tax-free. Moreover If you can’t save $5,000 this year, your contribution room can be carried forward to future years. So if you can only stick $2K in for 2012, in 2013 your limit will be $8,000 ($5K for 2013 and $3K carried forward from 2012). One must remember he can take money out of TFSA at any time for any purpose, without losing the contribution room. HOWEVER if you take money out in one year, you CANNOT put it back until the following year. You can hold any investment you can buy for your RRSP inside your TFSA, including stocks, bonds, GIC, and mutual funds. You can, and should, make a beneficiary designation (everywhere in Canada except Quebec) on your TFSA to avoid probate costs. You can contribute to your spouse’s TFSA without affecting your own contribution limits and without any tax attribution. Follow the rules carefully, especially the one about taking money out of a TFSA and then putting it back in. If you try to return money to your plan too soon and you’ve already reached your limit for the year you’ll be hit with an over-contribution penalty

FREE Tax software downloads for 2011 tax year

Shop Amazon - 2012 Tax Software Downloads

TD Ameritrade Online Cash Services $200 Bonus

It looks like TDA is following the trend of combining checking account features with their traditional brokerage accounts. If you have a TD Ameritrade account, this looks like a pretty easy $200 bonus score.


Visit this promotion page to sign up for Online Cash Services and if you (1) sign up for a Visa debit card and make 4 purchases of $10+ by 3/31/12, and (2) enroll in BillPay and pay 4 bills totaling $100 between 1/15/12 and 3/31/12, you will get $100 each = $200 total. Both the debit card and online BillPay are free services.

Many of you many have old, inactive TDA accounts that are still open and you can fund them to take advantage of this promo. Offer not valid for existing debit card holders or bill pay users

Free tax filing for girlfriend

This is a Sponsored Post written by me on behalf of eSmart Tax. All opinions are 100% mine.

This is the most stressful time of the year, since it is the time to get the taxes filed. Every year I look for the free deals on the web for tax filing, and today, I came across an awesome deal where you can file for free. Moreover, if your last name is Johnson, then you can file your federal taxes for FREE, a $9.95 value at eSmartTax.com. My girl friends last name is indeed Johnson and she will be very excited to get the news about this offer for free tax filling. If you are one of the other 2 million Johnsons reading this blog, then you can also file your federal taxes for FREE, courtesy of Daryl Johnson and the eSmart Tax team.
Now all the Johnsons file free as per the new offer. Johnson is the 2nd most popular name in the US and this free initiative by eSmartTax.com is based on the representation of the everyday taxpayer - one who wants to file their return with ease and accuracy while generating the biggest refund they deserve. Well, even if your last name is not Johnson, you can still take advantage of the always-free Basic edition like me, and thereafter save the hassle of getting a refund and avoid any mistakes in your return by their accuracy checks.

There are some additional advantage of the free Deluxe edition (for Johnsons) :

> CPA Audit Assistance – If you get audited by the IRS, contact Customer Support, and a Liberty Tax CPA audit specialist will be assigned to your case to support you throughout the process.

› Carry Forward Data - If you e-filed your return with eSmart last year, you can easily transfer data from last year's return into this year's return for faster, easier filing. To take advantage of this feature simply log in with the same username and password as last year and leave the rest to us.

› Compare "What If" Scenarios – Bought a new house, got married, went to college, had some children, or started a new business this year? Each situation can change your tax liability. Run "what if" scenarios to be certain you’re getting the best possible outcome.

So even if your last name is not Johnson, you can buy the deluxe version for a mere $9.95 value at eSmartTax.com.

If you are on Twitter, then simply tweet about this program and use the hashtag #fileforfree. I also read about a promotion where you can get lucky and make $100 from eSmartTax.com by simply becoming a follower of @TheDarylJohnson on Twitter and retweet the following phrase:
@TheDarylJohnson is giving away $100 VISA Cash Cards every day from www.esmarttax.com

See how easy it is to make money by reading tips from my blog.

Stimulus Payment Schedule for Tax Returns

Surely by now everyone has heard of the economic stimulus tax rebate. Below are the schedules for economic stimulus payments related to tax returns processed by April 15, 2008. To get it, though, you have to file a return.

If the last two digits of your Social Security number are:
Your economic stimulus payment deposit should be sent to your bank account by:

00 – 20: May 2

21 – 75: May 9

76 – 99: May 16

Paper Check

If the last two digits of your Social Security number are:
Your check should be in the mail by:

00 – 09: May 16

10 – 18: May 23

19 – 25: May 30

26 – 38: June 6

39 – 51: June 13

52 – 63: June 20

64 – 75: June 27

76 – 87: July 4

88 – 99: July 11

A small percentage of tax returns will require additional time to process and to compute a stimulus payment amount. For these returns, stimulus payments may not be issued in accordance with the schedule above, even if the tax return was processed by April 15.

Reimburse up to $100 in IRS late filing fees

Here's some good news if you missed the tax deadline: Since you’re currently registered for TaxCut Online Premium + State + E-file, H&R Block will reimburse you for up to $100 in IRS late filing fees.

1. To take advantage of this offer, simply log in, then complete and e-file your taxes by 11:59 p.m. CDT, Sunday April 20th.

You can’t go wrong with Premium + State + E-file.

It’s: Our best value — one program to complete and e-file your federal and one state return.

2. Supported — FREE professional tax advice (get your question answered by phone or email – a $19.95 value).

3. Fast — get your refund fast with FREE E-filing.

Easy — imports from TaxCut and other popular tax software.

How to Form an LLC for Your Blog

When I first started making money online, I was doing everything under my name for the first few years. Having a business name not only makes you look more legitimate, but it can also keep your personal assets safe, should you ever be sued. Is your blog or web site is finally starting to pick up? For the past several months or years, you may have been doing everything under your name for business. Now you want to get more legitimate and start your own company and become an LLC. What are the best methods for registering for an LLC and how can you avoid those costly lawyer fees?

The old fashion way to file for an LLC, is to contact your accountant or lawyer and have them do all of the dirty work for you… which will end up costing you a decent amount. Now with the power of the internet, the process of registering for an LLC is not only faster, but much cheaper.

Companies like LegalZoom offer services which range from $139, plus state filing fees (which can range around $200-$500) for a basic LLC registration, and also offer a “deluxe package” for $369. The deluxe package includes delivery of all completed paperwork within a 7-10 day period. Another site, MyCorporation also provides the same type of services, which range in the $200-$300 area, but include state filing fees. You can visit their site and plug in your state to get a full estimate on setting everything up. Lastly, The Company Corporation also has an excellent site. Right off their main page you can select your state and type of entity you are looking for. After clicking submit, the next page will give you an in depth run down on costs and what your package will include.

If you would like to take on the task yourself, you can still file for an LLC without going through another party. You can go to Google and search for the Secretary of your state, then you will find the necessary paper work. It is still recommended that you hire a laywer to go over the benefits and non-benefits of moving over to an LLC. Moving over to an LLC, can/will also change your current tax setup and preparations. Without paying the additional fees to use a company like LegalZoom or MyCorporation, the paper work isn’t that tough… but I personally would rather pay the extra bucks to have it done correctly and not have to worry about it.

Tax advantages of owning a Blog

Running a blog has many tax advantages.
Here are some of the more creative deductions one can use when trying to reduce blog income taxes.

1) Blog about dinning out
By blogging about your dinning, the entire night out becomes deductible for income tax purposes. This is an even better deal than taking a client out for dinner. In Canada, the CRA allows only 50% of the bill to be deductible. This dine research is a business expense and is 100% deductible.

2) Blog about traveling
Want the government to subsidize your vacation? Start a travel blog and start packing. This is one of the reasons why some business seminars are held in sunny locals like the Bahamas. The seminar would be a deductible expense for the attendees. If you’ve ever been to these types of seminars then you’ll know there are a lot of free time in between the sessions so you can network or, more likely, relax in the sun. For people who like to cruise, you’ll be happy to know there are a bunch of seminars aboard cruise ships as well.

3) Blog about cars
There was a loophole in the US tax laws (I’m sure it’s been corrected by now) concerning the use of cars for business. To prevent people from buying a Ferrari and witting it off, the IRS placed a limit on how much you can capitalize a passenger car for. This limit doesn’t apply to commercial vehicles like 18 wheelers, bulldozers, buses, etc. The IRS uses gross vehicle weight to determine whether a vehicle is a passenger car or a commercial vehicle.

FREE Software from State Farm Insurance : FREE 2007 TurboTax Online Federal

State Farm is offering free TurboTax Online for their customers. It’s a great deal given the tax season is around the corner, the deal includes both Federal and State software with eFile. You must be registered on StateFarm.com and have "at least 1 product (Bank, Insurance and/or Mutual Funds) displaying on My Account page". To verify if you qualify for this offer, just log into your account and look for the link to TurboTax

If you see the link, then Click on the "FREE tax filing" link and you’ll get a popup with a special link to turbotax that will give access to turbo tax promotion codes.

You should always go through the turbo tax promo codes link in the future as well in case you close your State Farm page.

If you’re not a State Farm customer, you can still get Federal + eFile for free at TaxAct, with State filing being an extra $13.95. No rebates required!

$500 Tax Rebate for Everyone!

I couldn’t believe it. I was sitting in the airport the other day and downloading turbo tax in the background while seaching for turbotax promotion code and suddenly CNN mentioned that the government is seriously considering helping our economy make it through this credit crunch by giving each of us a check for $500. This was such a great news that I got even more profit whem I tried to even use tubotax promo code while doing my taxes.

Here is a quote from The Associated Press about it.

WASHINGTON (AP) — United for urgent action, the White House and Congress raced toward emergency steps Thursday to rescue the national economy from a possible recession, including tax rebates of at least $300 a person — and maybe as much as $800. Federal Reserve Chairman Ben Bernanke endorsed the idea of putting money into the hands of those who would spend it quickly and boost the flagging economy.

and

Aides to lawmakers involved in the talks said the White House is pressing for tax rebates of $800 for individuals and $1,600 for married couples. Lawmakers were likely to settle on a $500 rebate for individuals, said an aide involved in the talks, with details for couples and people with children still being negotiated. Full Link: http://ap.google.com/article/ALeqM5h19_YeGzwzlmJhx42iIA7nJF0_UAD8U80C3O1

Take advantage of more tax cuts that are underway

That's the word from the White House.

Yep, Dubya apparently wants to take one more shot at tax cuts before he has to vacate 1600 Pennsylvania Avenue.

A presidential spokesman said this afternoon that Dubya will meet with Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben S. Bernanke to examine whether he should propose an economic stimulus package to jumpstart the economy.

Afterwards, the prez, flanked by members of his Working Group on Financial Markets, plans to meet with reporters.

Don't expect any big announcements, though. The White House is juggling political expectations (and fears) in this presidential election year, along with the harsh realities of just how much can be done in light of budgetary concerns.

And, of course, he doesn't want to spoil the surprise of what he'll say in the annual State of the Union Address on Jan. 28.

Tons of tax talk: But that hasn't stopped the tax cut rumors from swirling.

There is speculation that Dubya could harken back to the early days of his presidency and call for a temporary cut a la the $300 tax rebate issued in 2001.

Or he could put on a concerted push to make permanent at least some of his tax cuts that are set to expire in 2011.

Of course, the fiscal and political realities of 2008 will make both the substance and style of trying to accomplish any tax cuts quite interesting.

You can read more on the possibility of tax cuts in these stories:

New York Times
Washington Post
WebCPA
CNNMoney
Bloomberg
Business Week
Tax News.com

Charity Boat Donation IRS Tax Benefits 2007

Boat Donations to "boats with causes" charity is a fantastic way to get a deduction on your federal income taxes. All Charity Boat Donations and any other items donated to charity are 100% tax deductible. This includes Trailers, Sail kits, and any electronics such as fish finders, GPS, Radar autopilots and other marine accessories.

The IRS allows you to deduct for your boat donation, the actual market value of your boat donation or other vessel donation. There are rules that apply to this process however. Any boat donation to Boats with Causes and the With Causes charitable organization is accepted running or non-running (in most cases).

Boatangel accepts boat donations and sells them on ebay at www.charityboatsales.org for the purpose of creating and distributing charitable donations absolutely free of charge (even free shipping and 100% free towing.) No passing the costs to you! Boatangel Carangel has less than 5% overhead.

Some of the Benefits of donating boats to Boats with Causes are:

1. Outstanding opportunity for a tax deductible gift that benefits numerous individuals throughout the United States and abroad.

2. Saves precious time, sweat and expenses: dock fees, maintenance, storage, insurance, gas and classified ads or brokers fees.

3. Your income tax deduction is based on a fair market value as established by one of our qualified marine surveyor. You can get an idea of your boat donations value by visiting this site: Free Boat Appraisal Guide

4. Your boat donation helps the Charities and charitable programs we support, enhance programs, and substantially increase resources of many charitable causes needed to support our communities.

5. In many cases the financial benefits of donating boats to Boats with Causes outweighs the effort and money spent trying to sell your used boat yourself.

Carangel also offers Children's Christian Animations on DVDs. Order the Free DVDs and preview them at www.carangel.com/projects.html. Moreover they have just completed an AntiDrug use Documentary www.dopethemovie.org. Starring skateboard legends Jay Adams from Dogtown's Z Boys, Christian Hosoi, Dennis Martinez (world champion), Bruce Logan (world skateboarding champion) in their rise to fame, fall from drugs and redemption, free screener DVDs are available for groups.

Kiddie Tax Loophole Soon to Disappear

Here's a piece courtesy of Marotta Asset Management on the kiddie tax loophole that is soon to expire.

Income-shifting is one of several tax planning tools families have used to lower their tax bill. Historically, parents could save a bundle by transferring highly appreciated investments to their children who are in lower tax brackets. However, this year, Congress has made income-shifting a dream of the past, trapping more kids in the dreaded "kiddie tax." Beginning January 1, 2008, children under 24 will owe taxes on unearned income at their parents' higher tax rates.

The "kiddie tax," or so it has been affectionately named, is a tax on children's unearned investment income or capital gains. Instead of taxing income and capital gains based on the child's tax bracket, the kiddie tax requires unearned income to be taxed at the parents' income and capital gains rates.

Before the expansion of the kiddie tax, parents turned to Uniform Transfer to Minors Accounts (UTMAs) or Uniform Gift to Minors Accounts (UGMAs) to move appreciated investments out of their estate. Once in the child's name, the assets were taxable at the child's - typically much lower - tax rates.

Shifting appreciated assets to a child could save a family 10% in capital gains taxes. Since most children earn little income, they usually fall into the lowest marginal tax brackets of 10% or 15%. Capital gains in these lowest two brackets are taxed at just 5%, compared to the typical 15% rate paid by many parents.

Savings could be even greater on short-term gains and investment income which are taxable at ordinary income tax rates. A child in the 10% bracket would pay 10% tax, instead of rates as high as 35% if mom and dad own the asset.

A once-in-a-lifetime kiddie tax loophole made intergenerational transfers even more appealing. In 2008, 2009, and 2010, capital gains rates are set to drop from 5% to 0% for individuals in 10% and 15% tax brackets. In other words, before the recent changes to the kiddie tax law, children 18 and over in the lowest two tax brackets could expect to pay no capital gains taxes in the next three years.

The new kiddie tax rule closes this loophole forever. If you were waiting for the days of 0% capital gains tax, you can kiss that dream good-bye.

Through 2005, the kiddie tax was limited to kids under 14. Last year, Congress cast the tax net wider, requiring children under age 18 to pay the kiddie tax. And this year, with the passage of the Small Business and Work Opportunity Tax Act of 2007, children under 19, or full-time students up to 24, will be subject to the kiddie tax. The good news is the new kiddie tax law doesn't take effect until January 1, 2008. If your child is between the ages of 18 to 23 this year you can still realize gains at your child's lower rate, if you act now.

After January 1st, children under 19, or full-time students under 24 will be stuck paying income and capital gains at their parents' tax rates. The kiddie tax applies as follows: No tax on the first $850 of earnings. Income between $851 and $1,700 is taxed at your child's tax rate. Any unearned income over $1,700 is taxable at the parents' marginal tax rate. However, children who provide for more than half of their own support will not be subject to the new law.

The expanded kiddie tax law now makes UGMA and UTMA a poor choice for college savings. Instead, 529 college savings accounts provide tax-free growth on contributions, allowing families to reduce their exposure to income and capital gains taxes. Qualified expenses such as college tuition, books, room and board can be withdrawn tax-free. And unlike UGMA and UTMA accounts, the college savings accounts are owned by the parent.

Recordkeeping Guidelines

If you are confused as to which records are important to keep and for how long, this may help. You need to keep records of all of your earnings, usually some type of 1099 form. You also need to hold onto records of expense if you plan to itemize deductions or claim exclusions or credits. Remember to send copies, never originals, to the IRS if asked for backup. Below we list the typical types of tax records.

Form What It Reports
1099-R Retirement income or distributions
1099-DIV Dividend earnings
1099-INT Taxable interest
1099-B Capital gains
1099-MISC Miscellaneous earnings
1099-S Proceeds from real estate transactions
1065/Schedule K-1 Partnership gains or losses

How long to keep your records?

The IRS typically has three years to audit your tax return, so keep anything relevant at least that long. If you underreport income, they have six years to audit you. If you don’t file or file falsely, they have forever. We list general guidelines.

Type of Record How Long to Keep
Records of income & expense 3 years, 7 if possible
Investments other than real estate Until you sell
Real estate 7 years after you sell
Tax returns 6 years

Tax Mistakes To Avoid

The IRS audited 1.3 million taxpayers in 2007, an increase greater than 5 percent more than the previous year. With Bush’s new budget, more audits may be on the way. Watch that the new tax rules don’t trip you up this season. Avoid these mistakes that are likely to trigger an IRS audit this year.

1. Earning too much money
Once an income reaches the $100,000 range, the chance of audit increases. Most people would hate to have this problem, but high income earners are more likely to end up on the IRS’s audit list.

2. Giving too much to charity
Charitable contributions in excess of 5 to 10 percent of the taxpayer’s income may concern the IRS. The rules for charitable deductions have become more strict and require more documentation, a reaction to suspicions of abuse by taxpayers.

3. Taking too many credits
Tax credits are another flag, especially earned income credits and credits for education and seniors. People often take credits they’re not entitled to so the IRS monitors this closely.

4. Careless errors
Something as slight as a sloppy return can call attention to your return. Incorrect Social Security numbers, errors in math, and misspelled words are details that the IRS scans with care.