Archive for the ‘Tax’ Category
Proper tax preparations can help you optimize the value of your money and reduce the annoyances commonly caused by computing for your tax obligations.
Here are some tips on tax preparations that can help improve your experience in accomplishing your tax forms.
1. Writing a tax preparation checklist is one of the most effective ways to ensure that you include all the required information in your tax computation. Some individuals maintain more than one employment or business which means that they have twice as much requirement that they need to secure as part of their tax preparation. By keeping a tax preparation list all the required information such as tax exemptions and tax deductibles are properly utilized and taken into consideration during tax computation.
2. Individuals with limited experience in terms of filing for their task payments may seek assistance from reputable experts such as accountants or employ highly efficient tax preparation software that can help you on your tax computations. Tax preparation programs can also help keep you updated on how much money you need to save to pay for your tax dues.
3. Always check your computations and other details included on your tax return. This is to help you correct any erroneous data that you may have accidentally included in your return before you file them. Filed tax returns with erroneous information such as SSS ID number often have to endure slower tax refund process.
4. Adapting a filing system or method is also a good tax preparation technique. This can help you compile all the receipts and documents that you need even before the date of actual filing of tax return. This way you can easily access them as soon as you start computing for your tax dues.
5. Keep yourself informed of the deadlines set by the IRS in terms of submitting your tax returns. Some taxpayers need to prepare multiple tax returns based on the nature of their business or employment. Knowing the dates when these tax returns must be submitted can help avoid unnecessary delays and penalties of late filing.
Submitting our tax returns is a mandatory obligation given to every citizen of the country. This is designed to ensure that everyone is doing their part according to their own capacity to keep the countrys best interest. By properly computing for your tax dues you can ensure that you are honestly taking your fair share with regards to this purpose.
Form 1042 pertains to the Annual Witholding Tax Return for US Source Income of Foreign Persons. It is used for reporting tax withheld on the income of foreign persons. This also includes foreign partnerships, non-resident aliens, foreign corporations, foreign trusts and foreign estates.
Form 1042 is due for filing every 15th of March of the year after the calendar year where the income subject for reporting was paid. Should March 15 fall on a weekend or legal holiday, the due date is moved to the next business day. Since this form is a calendar year tax return, no provisions are set for filing a fiscal year for Form 1042.
The people responsible for filing Form 1042 are withholding agents or intermediary who has receipt, control, disposal, custody or payment of any determinable or fixed; periodic or annual US source income. Annual return is filed the preceding calendar year. It is important to file Form 1042-S even if there are no taxes withheld or was necessitated to be withheld. Filing is also required if you pay gross investment income over to foreign private foundations which are subjected to tax following section 49489(a).
Only file one Form 1042 to consolidate all Form 1042-S recipient information. This is regardless of the number of different branches, divisions, types of income and even clients where you are the withholding agent. If ever you are acting on behalf of more than one capacity, it is important to file a separate Form 1042 for every capacity you are acting on.
One of the important information in Form 1042 is the TIN or Taxpayer Identification Number. It is the SSN or Social Security Number issued by the SSA or Social Security Administration. It may also be the ITIN or IRIS Individual Taxpayer Identification Number or the EIN / Employer Identification Number issued by the IRS. This, together with the name, address and contact number of the recipient should eon the annual information forms for proper identification of the payee. Any failure on your part to report a correct TIN would result to penalties from the IRS.
Also, since there have been reports of withholding agents reporting substantial excess gross income paid & tax withheld where software programs tend to delete the decimal point (resulting to amounts that are a hundred times over the actual amount that was paid or withheld); withholding agents should review their own programming documentation. This way, they can ensure that theyre not transmitting the error over to the IRS, especially since the information you will put here will be the basis of exchange of information for the United States tax treaty partners.
For late filing of Form 1042 or if there is failure on your part to deposit or pay tax when due, you will be required to pay interest and penalties that is unless you can show that the failure to pay or file was because of reasonable causes and not due to willful neglect. If your looking to file taxes then best way to do is filing online taxes.
TurboTax is probably the most popular tax filing and preparation software being used in the US today, with most of its competitors lagging far behind. According to most user and professional reviews, TurboTax delivers the goods as wellor in this case, the refunds, coming up with tax refunds close to the numbers that would be posted by very experienced accountants. Furthermore, a quick glance through the software is enough to convince anyone that it is the top-ranked tax preparation application nowadays: with an extremely user-friendly design and interface as well as excellent Help functionality for questions that might see users scratching their heads without assistance, TurboTax is definitely a quality program. The only catch? TurboTax comes with a price, which gets higher the better the version of the program you choose to download.
Now TurboTax is available in several version that can are supposed to be tailored to specific brackets, with the cheapest being the cost-free Simple version and the most expensive being the Home and Business version coming in at just under $100. There are gradations in between those two ends, but users have noted that the middle versions seem to have a sort of push for the user to graduate to the highest-end version. Whether this is true or not is debatable, but let us take $100 as the marker for the TurboTax price: is it really so expensive? It might seem to be at first glance, but not if you consider it more carefully. TurboTax serves you much the same way a top-notch accountant would, and hiring such an accountant would often run up a tab of several hundred dollars. Yes, it would have its own benefits (the human discernment can bring up matters and detect refunds a machine cannot, on occasion), but TurboTax has its own as well, and even professional accountants have admitted to the softwares efficacy.
TurboTax is quite easy to pay for as well. You pay for it when you file, as the site makes clear, and you can file be either of these two choices: through your credit or debit card, or through refund transfer, where the TurboTax fee shall be deducted from your tax refund (presuming you have one large enough to withstand the deduction). All you have to do is select the option you prefer using the TurboTax interface and then follow the instructions that tell you how to achieve the goal. File yourÂ 2010 taxes and 2009 taxes.