taxes posts

There's less than one month to go before April 15. In your rush to get in your tax returns, beware of phishing, hiding income, and going all crazy on your charitable deductions. If you're relying on a professional, check his credentials, as shady preparers can ring up huge tax bills for you. These are just some of the top 12 mistakes the Internal Revenue Service is warning about in its list of "Dirty Dozen" Tax Scams.

To help, WalletPop experts are on hand to answer your questions, from taxes on annual leave to what to do you if you suspect IRA fraud.

Don't say they didn't warn you. The IRS just issued its annual "Dirty Dozen" Tax Scams report, a list of frequently-used frauds that cheat honest taxpayers out of hundreds or even thousands of dollars each year.

While there may be a long history of tax cheats, there's also a solid record of con artists that prey on those who are trying to do right by Uncle Sam. Among some of this year's chart toppers are hiding offshore accounts and tax preparer fraud.

"Taxpayers should be aware of anyone peddling scams that seem too good to be true," said IRS Commissioner Doug Shulman in the announcement. The agency warned that taxpayers who fall prey to such scams will be on the hook for unpaid taxes, plus interest and fees, and could even face jail time.

So without any further adieu, here's the "Dirty Dozen" tax scams to avoid when filing your taxes this year.

In a world where the only things that are certain are death and taxes, it's good to know that there a plenty of online coupons to help you save with the latter. Regardless of whether you do your own taxes or hire a professional, there are lots and lots of tax time savings that will help you keep more cash in your bank.

CouponShack.com shares several coupons that make doing your own taxes cheaper -- whether you're filing online or purchasing software to prepare taxes on your computer.

Even though you're nearing the home stretch for getting your taxes done, that doesn't mean you should pay a preparer too much.

These fee averages supplied by the National Society of Accountants can serve as a guideline for hiring the person you're going to have to pay once Uncle Sam finishes with you.

If you have plans for that tax refund check, think again. States from Hawaii to North Carolina are delaying refunds to residents because of massive holes in their budgets. And those refunds will likely be processed on a first-come, first-serve basis. Unless you can wait until the fall to get your money back, get that tax return in asap.

Here, WalletPop experts take on questions about 401 (k) withdrawals, payroll taxes and dependent credit.

Question:
The plant I was working in closed in 2008. In November, they sent me my 401(k). They withheld $3,005 for taxes. I also was getting unemployment of $370 a week. I didn't have taxes taken out. So I was on unemployment for a total of six months. I didn't claim the two months in 2008, but I will claim them this year along with the four months of 2009. How do you think I will do on my taxes? I do own a home and have interest to claim. Are there any breaks for being unemployed? I am also single.
-- Bobby Guerrero

To help Americans and businesses struggling during this recession, lawmakers signed off on many tax changes that took effect for the 2009 tax season. One of the biggest was the American Recovery and Reinvestment Act, according to the Journal of Accountancy. Areas to pay attention to include the Making Work Credit Pay, education incentives and home buyer credit.

To help cut down on some of the confusion, WalletPop experts are on hand to answer your questions. This week, they tackle refinancing, filing taxes and capital gains.

The above question describes me. I'm a long-time Upromise user, although at the rate things are going for me, honestly, I'll be lucky if my earnings buy my kids a single textbook when my first daughter hits the college scene in 10 years.

For those who don't know what Upromise is, the company offers shoppers the chance to buy through its Web site or at participating retail partners, like various stores and restaurants -- and then once you a buy, a couple weeks later, a tiny percentage of that money is kick backed into a Upromise account, which you can also link to a 529 college savings account.

There are a few things in life that are clear cut. You like Pepsi or you like Coke, you like Ford or you like Chevy and you file your taxes early or you line up at the post office at 11:58 on April 15th. For most people, choosing when to file your taxes boils down to one thing; will you owe Uncle Sam or will you be paying off the HDTV you bought for the Super Bowl with your refund. The good news is that, statistically, if you do file early you are more likely to receive a refund -- and a generous one at that.

Calculating taxes has become so complicated that it's not surprising many of us turn to professionals for help. According to the IRS' national tax advocate, more than 80% of individual taxpayers pay others to prepare their taxes. But that still means we have to get our paperwork together.

With W-2s and 1099s on hand or in the mail, there's no excuse to procrastinate. To help you, WalletPop experts have answered some of your urgent questions about health insurance, dependent credits and IRA conversions.

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Great news for anyone who makes under $58,000. You'll be able to file your taxes for free, including free tax prep, thanks to a $4 million grant from the Walmart Foundation to United Way Worldwide, One Economy and the National Disability Institute. This is the second year for the free tax prep program, which allows Americans who meet the criteria to get free assistance at community locations and online at Myfreetaxes.com.

According to the Walmart Foundation, last year's program provided more than 650,000 people with tax prep, and helped them save over $950 Million in tax preparation fees, refunds and tax credits.

Get out the barbells. It's time to do more lifting to prepare for heftier carry-on bags. That's because airline passengers may be hit with even more expensive baggage fees following a little-noticed recent development.

In a victory for cash-strapped airlines still struggling with lagging demand and high oil prices, the Internal Revenue Service ruled last week that the federal government cannot tax bag fees.

Speaking on behalf of the industry -- which is worried Congress will tax a bevy of additional fees that have angered already beleaguered travelers -- an unidentified carrier asked the IRS to rule on the matter.

No use complaining. It's coming, whether we like it or not: April 15th is on the way.

But on the plus side, if you're thinking about your taxes already and not trying to make sense of everything on April 14, then you have some time to ponder what gifts Uncle Sam has come up with to make paying your fair share feel a little more fair. As in -- tax credits.

I didn't need any time for deliberation when I received my ballot for this month's special state vote in Oregon: I filled in the bubbles for "yes," as did a majority of voters, next to Measures 66 and 67 and took it with all speediness to the nearest library drop-off. Measure 66 raises taxes on individuals making more than $125,000 (and couples making more than $250,000)

About 10 million Americans file their taxes late, incurring penalties, not to mention a whole lot of stress. Don't be one of them this year. Take this month to get started. Our experts are on hand to help. Here's what they had to say about your questions, from cashing in on a 401(k) too early to not filing tax returns for three years.

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