Lifehacker Tax Guide 2018
You have a little over a month to file your tax return, unless of course you file an extension, which means it’s time to pick up your W-2 and 1099 homeless people , grab a cup of coffee, and get to work (or head to the tax inspector’s office . office).
Whether you are looking for the best free software or need to know what to do if you haven’t worked in years, we have everything you need.
Answers to your most frequently asked Google tax questions
Taxes are due on April 17th this year and you will most likely receive your tax return within 21 days of filing if you do so electronically. Use the IRS2Go IRS app or its online returns tool to find out where your return is. To see your tax category for 2017, see these tables from the tax fund . And remember: the new tax categories, standard deduction, and most other changes from the GOP tax law will take effect in the next tax season, 2018. Most of the old rules still apply this year as you file your 2017 tax return. …
Where to file state and federal taxes for free
There are several ways to file your tax return: you can print forms (usually a 1040 form) and send them to the IRS , which will make you more vulnerable to fraudsters as they take longer to process. use tax reporting software ; or contact your tax inspector. Here’s the information you’ll need for each. If you make less than $ 66,000 a year, you have access to free tax filing software.
Beware of Tax Fraud
There are tons of scammers out there, and tax season is when some go to the highest tier. Watch out for suspicious calls, emails, and even social media posts. If you receive a phone call threatening to send you to jail, it is a scam. Elderly people and people for whom English is not native are especially vulnerable.
Another scam to watch out for is making a profit, especially in the post-Equifax world. One of the many ways to steal your money is through scammers using your Social Security number to file on your behalf. Experts have advised people to file their tax returns earlier this year to reduce the likelihood of fraud, so if you haven’t already, don’t wait until the last minute.
How much are you actually saving by writing off your taxes?
You will need to find out the difference between tax deductions and tax credits, as well as your top tax category, and then do some calculations: “Multiply the actual deduction amount (subject to the percentage cap) by your top tax category.” For example, if your top tax bracket is 25 percent, you will save 25 cents in federal income tax on every dollar you claim as deductible business expenses. “If you have a $ 100 deduction, you will save $ 25. If you write off a $ 50 business lunch, you will save about $ 6. (US $ 50/2 x 0.25) “.
What you need to know about cryptocurrencies and taxes
If you sold a cryptocurrency (which the IRS treats as property) last year and made a profit, it is subject to capital gains tax. It will count as a short-term benefit if you have held it for one year or less and is taxed like regular income, meaning you will be taxed between 10 and 39.6 percent, depending on your 2017 tax category. If you held it for more than a year before selling it, it will be a long-term benefit, which means that you will be taxed anywhere from zero to 20 percent, depending on your income.
What to do if you haven’t filed your tax return in years
If you receive a refund, there is no tax penalty (keep in mind that you only have three years to claim it). Failure to pay taxes is a misdemeanor, but the IRS is more likely to take the money than send you to jail. However, there is a penalty: you will be charged a fee of five percent per month on your debt, and after five months, a maximum of 25 percent.
How long do you need to keep documents
Congratulations! You have completed your tax collection this year. But you’re not quite done yet – you will need to keep your records for at least seven years in case the IRS audits you. And you must keep your tax returns with proof of what you filed and paid if you are in arrears, as well as any forms you filed contributions to convert the IRA or Roth, indefinitely.
Have a good tax season.