Advantages of Filing Income Tax Returns Online

In order to fulfill your duty as a responsible citizen of the nation, one of the primary tasks you need to do is to pay for your income tax returns in a timely manner. Failing to do so can add to the taxable amount you need to pay, thereby putting a dent on your pockets, as well as degrade your image in the banking sector, which may lead to rejection of loans, etc. due to lowering of your credit score. This means that filing up for income tax returns should be a priority for every individual, and should be completed well within the given time period in order to avoid interest or penalty payment at a later stage.

In order to provide aid to your tax return filing related woes, technology has provided some great resources. With the advent of the internet era, it is now possible to do e-filing of your income tax returns. This comes as a great boon for most tax payers, as they can simply file for the returns from the comforts of home, after a hard day’s work. And the best part is that it’s totally free of cost. Income tax filing websites provide a simple platform for you to fill in your details and file for income tax.

In addition to saving your time and money, there are a number of other advantages of filing your returns online. Some of these have been shown in the list below:

Intuitive application procedure: This is a highly intuitive online application procedure, which is customized according to the tax payer’s income tax situation.

Income Tax Calculator Tools: If you want to make an estimate of the refund you’ll be receiving, it is a good idea to make use of income tax calculator tools available online. You have to enter your basic details such as Name, Age, Residential Status, etc. After this, you need to make use of your pay slip to give the details of the income you have earned. Please note that you only need to enter your taxable income for the particular year, which is calculated after deducting the various savings and other non-taxable investments you may have invested in. In case if you did not apply these already, the income tax calculator will give you an option to add any tax deductibles at a later stage. You can apply these and calculate your tax refund accordingly.

Free Software Programs: There are various free online programs that are available over the internet to allow you to calculate your tax deductibles for free. New users need to sign up for creating a new account. These free filing programs are much more in-depth than the income tax calculator and these will calculate your return automatically.

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Married Couples Beat The Estate Tax

Next to the Alternative Minimum Tax, the Estate Tax is one of the more brutal taxes we have. If you are married, you can get around it.

When planning your estate with your husband or wife, there are key points to keep in mind. Luckily, the IRS has gone a long way in ensuring that the estate of individuals is able to be dealt with after death. While discussing the future, you and your spouse should look into the various federal estate marital tax deductions. Under this tax law, after the death of the first spouse, expenses and interest related to the estate inherited by the surviving spouse is deducted from the passed spouse’s estate. Simply, this prevents the survivor from being taxed an unfair amount.

This helpful tax tool can be made useful in many ways. Depending upon the way your will is set up, this deduction can save the survivor much burden and cost. If following the rules and complying with requirements completely, this can prevent the surviving spouse from being liable for the deceased’s tax liabilities. This gives the surviving spouse the ability to take his or her time in making important decisions for the left estate. It also gives the surviving partner the money that may be necessary to sustain life standards.

When making arrangements for imminent death, there are several ways to transfer the estate into the surviving spouse’s name. You can either transfer by will or transfer by trust. If you transfer by will, it will be an outright transfer of the estate. While this is the most common way to handle estate transfers, it can also get a bit messier. The survivor will have complete control of the estate and outright ownership responsibilities. Although this sounds preferable, it also means that the surviving spouse will typically end up assuming pressures of maintaining and selling the estate.

Transferring by trust is a preferred method by many in law. With a trust, the spouse is given more authority and long term security over the estate. A trust gives the surviving spouse say, but lessens the burden as a will would entail. Either a Qualified Terminable Interest Property Trust or a Power of Appointment trust can be enacted to ensure wellbeing of the estate and the surviving spouse.

Estate taxation can be costly and difficult. Planning ahead of time and making use of marital estate tax education can help put you at ease. The passing of a loved one is difficult without having to worry about paying taxes and other monetary concerns.

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