Simply Junior

TurboTax’s Tax Return Calculator for 2010, 2011

If you want to have a preview of your 2010 and 2011 income taxes, you should try using these calculators for your tax from TurboTax.

TurboTax helps you get an estimate and calculations of your tax refund. You can also use it to know the amount you need to pay for your taxes. At the same time, it also allows you to calculate your deductions which you can avail.It also gives you information about the savings you can get from your home mortgage.

Tax Refund Estimator – Knowing the amount of refund you can get this year.

There are many life changes which will have a direct impact on your refund such as career shifts, salary adjustments, a new apartment, a new vehicle, or even a new member to a family. The Tax refund Estimator helps you calculate the amount you are expected to pay in 2009. To add more accuracy, they also included more changes in Alternative Minimum Tax (AMT).

Calculator for Tax Rebate – Can you get the Internal Revenue Service stimulus tax rebate cheque this spring?

It is helpful to know at this point that even though you are qualified, the government is not going to send a stimulus tax to you. You need to get it from your tax return in 2009. This is going to be a big help since many taxpayers who are hoping to avail of loans or credits can benefit from this.

Calculator for Average Tax Rate – How to determine the exact tax rate?

If you need to know the average rate from your income, you just have to enter the exact figures. Then, this calculator will instantly provide you with the exact percentage you will paying for your taxes.

Home Loan Tax Saver – How much can you save in your mortgage tax?

Deductions can be made from income taxes when interests for a home loan is already paid. You can also calculate the amount you can save from your taxes by using this calculator.

Payroll Withholding Tax for Employers Calculator

Paychecks of your employees can be instantly made using this calculator. Along with this, you can also get instant calculations of your federal and state taxes. Then, you can pay your workers with a free direct,deposit. In addition, you can use your printer to get hard copies of checks and stubs using the Quickbooks system. The calculator for Quickbooks Online Payroll is free to try.

Calculator for Tax Withholding (Paycheck) – How much can you get from your withholding tax?

If you feel that you are in need of help in calculating your withholding tax, then you should try this item. It can easily get an overview of your tax issues and pinpoint others matters such as expenses and your income. It can also give you an assessment on what amount you need to prepare for your tax. Then, this calculator can give you an estimated amount that you should withhold.

Deduction Finder – Do you get all the deductions I truly deserve?

Do you think you are not getting all the deductions you should claim? You should use this tax credits calculator because it can help you find the available tax credits and all the deductions which will be suitable for you.

When the Health Insurance and Accountability Act (HIPAA) was signed into a law, it has created improvements on health insurance, and the most significant adjustment made was the tax deduction for long-term care insurance policies. The HIPAA added the Internal Revenue Code (IRC) Section 7702B that mandates all long term care insurance contracts to be treated as tax deduction under certain rules and limits.

Recently, the Internal Revenue Service (IRS) announced the increased LTC insurance tax deduction for 2011. Jesse Slome, executive director of the American Association for Long Term Care Insurance (AATCI), announced the increase that will benefit more small business owners.

The deductions for qualified LTC premiums for the year 2011 under Section 213(d)(10) are the following:

40 or less – $340 More than 40 but not more than 50 – $640 More than 50 but not more than 60 – $1,270 More than 60 but not more than 70 – $3,390 More than 70 – $4,240

Source: IRS Revenue Procedure 2010-40

What Is a Tax-Qualified LTC Policy?

LTCi policies are considered tax-qualified if they meet certain provisions as prescribed by law. There are few requirements that will tell if your policy is tax-qualified or not:
- The policy should be guaranteed renewable
- The disability should drag long for the benefits to be paid
- A licensed health care practitioner should state if the individual is “chronically ill.” This should be done within 12 months
- There must be either or both of the two events that exist before a certification is given. First is the inability to perform Activities of Daily Living (ADLs) for at least 90 days. The policy must have at least five ADLs. Second is the need for supervision due to severe cognitive impairment
- Non-forfeiture and inflation protection must be offered by the insurer, but are not required in the policy
- Benefits under qualified long term care policies cannot copy benefits from Medicare

Individuals

Premiums for qualified long term care insurance (the definition is discussed below) are treated as tax deductible if they exceed the 7.5 percent of the insured’s adjusted gross income (AGI). These premiums are not only deductible for the insured; the deduction applies to his or her spouse and other dependents. Meanwhile, the tax deductions for the self-employed and business owners are treated differently.

Self-Employed, partnership, LLCs, S Corporation

Self-employed individuals may deduct a percentage on their premiums as business expense. The percentage follows the age-based limits used in individuals. However, the limit on Adjusted Gross Income does not apply and you can deduct 100 percent of the eligible amount.

C Corporations

C-corporations can deduct 100 percent of all tax-qualified LTC insurance premiums as business expense for all employees, their spouses and dependents. The employer’s contributions for the premiums are not included in the employee’s contribution.

The Internal Revenue Service (IRS) today announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2011. In general, these limits will either remain unchanged, or the inflation adjustments for 2011 will be small.

The elective deferral contribution limit for employees who participate in section 401(k), 403(b), or 457(b) plans, and the federal government’s Thrift Savings Plan remains unchanged at $16,500. The catch-up contribution limit under those plans for those aged 50 and over remains unchanged at $5,500.

The deduction for taxpayers making contributions to a traditional IRA is phased out for singles and heads of household who are active participants in an employer-sponsored retirement plan and have modified adjusted gross incomes (AGI) between $56,000 and $66,000. This amount is unchanged from 2010.

For married couples filing jointly, in which the spouse who makes the IRA contribution is an active participant in an employer-sponsored retirement plan, the income phase-out range is $90,000 to $110,000, up from $89,000 to $109,000. For an IRA contributor who is not an active participant in an employer-sponsored retirement plan and is married to someone who is an active participant, the deduction is phased out if the couple’s income is between $169,000 and $179,000, up from $167,000 and $177,000.

The AGI phase-out range for taxpayers making contributions to a Roth IRA is $169,000 to 179,000 for married couples filing jointly, up from $167,000 to $177,000 in 2010. For singles and heads of household, the income phase-out range is $107,000 to $122,000, up from $105,000 to $120,000. For a married individual filing a separate return who is an active participant in an employer-sponsored retirement plan, the phase-out range remains $0 to $10,000.

The AGI limit for the saver’s credit (also known as the retirement savings contributions credit) for low-and moderate-income workers is $56,500 for married couples filing jointly, up from $55,500 in 2010; $42,375 for heads of household, up from $41,625; and $28,250 for married individuals filing separately and for singles, up from $27,750.

For the eight million Americans who own long-term care insurance, eligible long-term care insurance premiums included in the term ‘medical care’ range from $340 to $4,240 per-individual. The applicable limit is based on attained age before the close of the tax year, according to the Accountant’s Guide to Long-Term Care Insurance, published by the American Association for Long-Term Care Insurance, the national trade group.

The limits are as follows: For age 40 or less, $340; for more than 40 but not more than 50, $640. For more than 50 but not more than 60, $1,270. For more than 60 but not more than 70, $3,390 and for more than age 70, $4,240.

Most taxpayers in the United States prefer online income tax filing option. They file their taxes for free using the IRS Free File program which is easier and faster than the traditional way of that is paper filing. Learn how you can benefit from filing free taxes online using software available.

You have a file opportunity to electronically file your taxes for free with a program offered by the federal government called “Free File”. You need to know what this software offers and whether you are eligible for using it or not. Free tax preparation is possible only if you are eligible for the IRS File program which has set a limit of earning (AGI) not exceeding $57,000.

According to the IRS, the option of Free File program is available for those people who qualify for using it so that they can benefit from free income tax filing online. This program is a result of a partnership between the Internal Revenue Service (IRS) and some 20 private software firms. You should visit the IRS website to learn more about free filing option.

As long as the IRS Free File program is concerned, there are two types of formats available; Traditional Free File Fillable Forms. The first option is quite simple to follow which has certain strict qualification criteria. This option provides you with certain step-by-step question process and you have to provide proper answers on the proper forms. The second option is available for almost all people because there is no income limit but the slight drawback of this option is that you will have less guidance from the software.

According to the IRS, the Free EFile program opened for public use on 15th January 2010, and will be available until 15th April 2010. This software program is accessible 24 hours a day. And for those who are supposed to file an extension, this program will be available until 15th October 2010.

If you do not qualify for this free file program, then you can search for the online e-filing services. Some companies offer preparing return file and e-filing option for free whereas some companies may charge you something. However, it is far more affordable than hiring a professional to do taxes for you.

Retirement plans are an excellent way to plan for your future. It is a way to guarantee a stream of income when you retire or stop working due to any other reason. An Individual Retirement Account is commonly known as an IRA. It is a retirement plan that offers many tax advantages for retirement savings.

There are different types of retirement plans. IRAs can be obtained through work or provided by you, as a self-employed individual. Many different types of IRA plans exist in the USA, with the most common being the traditional IRA. Traditional IRAs are held at banks and brokerage firms, called a custodian. These institutions may place the contributions in certificates of deposit, mutual funds and stocks. Contributions to the IRA are tax deductible. This type of IRA takes into consideration some requirements such as income, filing status, and other accessible retirement plans, according to the guidelines of the Internal Revenue Service (IRS) of the United States.

Another type of IRA is the Roth IRA. These retirement plans invest in securities, common stocks, or mutual funds. Because the contributions are made from the individual’s income after it has been taxed, they are not tax deductible. Withdrawals from this type of IRA will be Federal Tax free for the total amount of contributions as well as the total amount of earnings. The drawback is that this IRA, as mentioned, is not tax deductible and a Traditional IRA is. As with the traditional IRA, there are penalties for early withdrawals of earnings that may not qualify under the plan’s withdrawal guidelines. Penalties take the form of Federal income tax and an additional 10% penalty of the amount for early withdrawal.

Simply put, a basic IRA retirement plan in the United States is provided by the employer. It comes in many forms and the most known is a 401k plan. There are also profit sharing plans and 403b plans. This is a simple plan in the sense that it reduces the cost of administration procedures.