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Have you ever sat down after submitting your income tax return and found that there were moves that you could have made in the previous year that would have saved you money on taxes? If your answer is yes, you are not alone. There are resources that you can use today that will help you to get better tax results in the future. Three tools are layed out for you inside this article.  

1. Automated Tax Reminders. With all the important tasks that you need to keep up with, adding income tax reporting and filing requirements is an important reason to have a good scheduling system in place. One action that you can take is to sign up for free emails alerts that will remind you of upcoming tax filing and reporting dates. Do this soon so to stay in compliance with tax reporting requirements.

2. Income Tax Organizer. If you are like many others looking to reduce the amount of taxes you pay each year then a good resource for you is a tax organizer. This tool will help you maximize the allowable deductions and credits that you can take but the key to its success is the commitment that you are willing to make in using it. Although most people reserve the use of the tool for tax filing it is also a handy aid in tax planning. Take it along with you to quarterly tax reviews so that you can discuss any questions you have with your accountant. Then make sure to take it with you when its time to prepare your return.

3. Tax Refund Tracker. Have you ever filed your income tax return and expected to receive a refund on a certain date but it never arrived? If you follow-up to check the status by phone then you may experience long hold times when call volumes are high. One solution to this is to track your refund online. You will need a copy of your income tax return handy and internet access. The process is very simple and it will save you lots of time. You can check the status of your federal refund and most states offer the feature, as well.

Now that you know about some of the tools that you should have in your tax planning toolkit, here’s the next step. Visit http://tbsusa.com/taxcenter2.php and start using the resources that will streamline your list of tax To-Do’s.

Article Source: http://EzineArticles.com/?expert=Benita_Tyler

When it comes to income taxes many people want to know what are their options. It’s simpler to maneuver through the filing process when you know what your entitlements are. This article will highlight 7 rights that you should know as a tax payer.

You can choose how to file. The Internal Revenue Service provides filing options to make it convenient to send in tax information. Three ways to submit tax forms include E-file, mail, and in-person. If you need to take your tax return in person, check with the IRS to find the local office in your area. The preparer is up to you. The IRS does not mandate that you hire someone to process your tax return. Although many people do their own taxes, there are reasons, such as complexity of tax law and inexperience with tax forms, that you may choose to have someone do the work for you. Someone can represent you in an audit. There may come a time when you need to go before the IRS which may require an added layer of expertise. You can opt to have a tax attorney, enrolled agent, or CPA to represent you. Likewise, you can elect to have your tax preparer handle communications on your behalf. You can pay fewer taxes. Don’t wait until tax season to complain about the amount of taxes that you pay. Take advantage of strategies throughout the year that are legally within the law to lower your taxable income and keep more of what you earn. You can more time. Don’t think you can file by April 15? No problem. Get an 6 additional months by completing Form 4868 Automatic Extension of Time to File. You can revise a return. Forgot to include something when you filed? The IRS provides the right to amend your income taxes. And you can go back as far as three years to claim deductions that could qualify you for a refund. You can appeal. Receiving a notice from the IRS with changes showing a higher tax due is no fun. But if you do receive a notice you can choose to accept or disagree with the change by completing the forms that they send. You can also ask the Appeals Office or a court for a tax review.

And now that you know some taxpayer rights, you can start lowering your taxes by downloading a free tax organizer for individuals and business owners here.

The inevitable cycle of tax prep season comes upon taxpayers each year. Before spending time preparing a return you need to know the basics. Here are some tips to help make sense of income tax return filing requirements.

Do You Need to File?

Before submitting an income tax return be sure to find out if you have income that is subject to tax. Filing requirements vary with your age, filing status, and gross income. Single persons under age 65, for example, must file if gross earnings are at least $9,350. For the 2010 filing season, others who must file a tax return include self-employed persons with earnings of at least $400 and church-employees with earnings of at least $108.28.

So you need to file. Now What?

The tax filing season officially kicks off in January but submitting returns too early can cause them to be incomplete. For example, if you performed contract work this year then your clients may issue a 1099 for payments made to you. If the statements do not arrive before you file it can cause underreporting of income and owing taxes. The best option is to confirm that the income on your books match the 1099′s reported to the IRS. While waiting for tax statements to arrive, stay ahead of the game with good record-keeping. Although income tax forms and tax preparation software will be available at year-end, you must wait for the official opening of tax season to submit the return. You can check the date by visiting the Internal Revenue Service’s website.

How long do you have before the return is due?

The last date to submit an income tax return varies with the type of income tax that you are reporting. If you are filing an individual income tax return then your filing due date is April each year.

What if you’re not ready by the tax due date?

There are a number of reasons why people wait to file their income tax returns. Some find the process a pain because it involves lots of record-keeping and preparation time for filing. Others delay doing their taxes because they anticipate owing and cannot pay the tax bill. In either case, if you will miss the filing due date and owe taxes consider applying for a filing extension. This provides more time to prepare and make arrangements to pay your balance.

For more useful tax advice sign up for my free financial newsletter and tax due date reminders here.

Before the March 1st RRSP deadline, tax payers are asking themselves important tax related questions; Should I put my money in a Tax Free Savings Account (TFSA) or in my RRSP?, When is the right time to move from a province to province?, Should I file my taxes even though I have not made much money in the 2009 tax year?, Can I get any tax deductions for my medical costs in the 2009 tax year?, Can I claim my elderly parents or grandparents as my dependents and get tax deductions in the 2009 tax year?, Can I use my children’s university tuition credits to reduce my tax obligations?

Should I put my money in a Tax Free Savings Account (TFSA) or in my Registered Retirement Savings Plan (RRSP)?

If you can invest the money you should use both tax vehicles, but if you can afford just one you must consider the effects on your finances and impacts on overall tax claim of each one separately. RRSP is suppose to give you a tax shelter at the time of tax filing in any given tax year, while Tax Free Savings Accounts uses money after taxes, which once deposited in a TFSA, accumulate interest which at the time of withdrawal is tax free. If you find a financial vehicle within the TFSA account that yields you a lot of interest, the money made from those investments are 100% yours at the withdrawal time. So, if you think that you will be in a lower tax bracket at the time of retirement, you should invest more in an RRSP, because you will get a greater tax refund at the time of tax filing. However, remember once the RRSP is withdrawn it will be taxed in the future. If you have low income in the future, you will get a smaller tax burden from the RRSP withdrawal. In the second case scenario, if you think you will be making more money in the future or at the retirement age, TFSA is the better option because as mentioned before TFSA accounts and money accumulated in those accounts are not subject to taxation at the time of withdrawing money.

I am moving to another province from my current province of residence.

When is a good time to move? The simplest answer to this question is that you are subject to the tax rates of the province in which you reside on DECEMBER 31, of any calendar year. You should check provincial tax rates to get an idea which provinces have higher tax rates and which ones have lower. Obviously, if you are moving to a province with higher tax rates it is more beneficial to move in the New Year so that you can still qualify for previous tax year at lower tax rates. If the scenario is reverse, pack your bags and get a permanent address in your new province, quick and before the year is out.

What if I didn’t make too much money in the 2009 tax year?

In this case scenario, it’s recommended to file your taxes even if you had no income or taxes owning. For students, if you are in RAP – Repayment Assistance Program, the government might ask you as prove of income for your Notice of Assessment which is received after you file your taxes. If you haven’t filed your taxes you will have no Notice of Assessment, hence no prove of income and your RAP application might be declined. In addition, filing your taxes will determine if you are eligible for such government programs as the Canada Child Tax Benefit, a GST/HST credit or other wide variety of tax rebates available in the 2009 tax year. As well, filing reports will increase your future RRSP contribution room.

Can I get tax benefit if I spent a lot of money on medical costs?

In order to claim your medical expenses in the 2009 tax year, these medical expenses must exceed 3% of your NET INCOME. You can benefit from tax breaks, more likely, if you claim all medical expenses for you, your spouse or common-law partner and your dependents who are under 18 years of age on a SINGLE TAX RETURN. As well you can claim travel costs, meals and vehicle operating expenses, but only if you have traveled more than 40 km to get to the medical facility for treatment. If you traveled more than 80km to get to the treatment you can file additional expenses for accommodations such as hotel, motel etc…It’s usually better to claim medical expenses on an income tax return of a spouse with lower income in 2009 tax year.

Can my elderly parents be considered my dependents?

Remember, dependents are not only your children under the age of 18; they can be your parents or grandparents too, provided that they are mentally or physically infirm dependents. Therefore, you are taking care of them, they live with you and have a net income of less than $18,081- you are eligible to claim all or part of the CAREGIVER AMOUNT.

Can I claim tuition credits from my children who are enrolled at a college or university?

Yes, often students have little or no income, so that they can reduce their income taxes to zero with just their personal not taxable amount and then either carry forward their tuition credits for future tax years or transfer the credits to parents or grandparents, spouse or common-law partner, or even your spouse’s or common-law partner’s parent or grandparent. The student must file their income tax first and claim the tuition credits and then any amount left over after the students’ tax is reduced to zero can be transferred to you.