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Entries in Incomes Taxes (2)

Thursday
Mar242011

Tax Tip: Where to Get the Best, Cheapest Online Advice

Comstock/Thinkstock(NEW YORK) -- The Internet is filled with tax advice -– some of it good, some of it just a big advertisement. The first place to look for good tax advice is on the Internal Revenue Service’s website.

“IRS.gov has a wealth of information,” said Jodie Reynolds of the IRS. “We have earned income tax credit calculators, we've got withholding calculators, if you have tax law questions.”

Accountant Janice Hayman says that's where she sends some of her clients.

“I am constantly surprised with their updates,” Hayman said. “They have wonderful features now.”

Many tax preparation companies also have their own websites, and most will answer some of your tax questions. Their main goal, however, is to sell their product.

“We have a lot of additional tax tips and information,” said Kathy Pickering, referring to her company’s site, HRBlock.com. “We've got calculators, and of course, that's where you would go if you want to prepare your taxes yourself.”

Copyright 2011 ABC News Radio

Wednesday
Mar162011

Tax Tip: An Unwelcome Tax Bill for the Unemployed

Comstock Images/Thinkstock(NEW YORK) -- Millions of Americans received unemployment benefits in 2010, and for many of them, there's going to be a tax surprise.

In 2009, the first $2,400 of unemployment was untaxed, but that break was not extended last year.

"There's no taxes withheld from unemployment income when you register for it," said Kathy Pickering with H&R Block. "You need to request that they withhold taxes on your behalf from that income."

Pickering said that means you will get a tax bill this year for that income.  And you might owe more than that, according to accountant Janie Hayman.

"They may have had debt forgiveness with credit cards and this could be an area of concern as well.  It could be taxable," Hayman said.

It's a hard pill to swallow for some who are barely scraping by, but Eric Smith with the Internal Revenue Service says the agency will work with you.

"Contact the IRS if you're having financial difficulties and let's see what may be possible to make sure the taxes aren't an undue burden," Smith said.

Copyright 2011 ABC News Radio







ABC News Radio