Posts Tagged ‘tax season’

Reporting All Income

May 9, 2012

As a follow-up to my post on keeping tax records, I came across this article on 1099s and reporting income (acknowledgment to the Roth & Company Tax Update Blog for pointing out the article in their May 8th Tax Roundup).  My prior post focused on keeping records after you file a tax return. This article reminds us of the records to keep throughout the tax year. Specifically, it discusses the misconception that if you don’t receive a Form 1099 for income, you do not have to report the income. Wrong. All income must be reported, whether or not you received a 1099, W-2, etc. For example, most banks will not issue a Form 1099-INT if the interest on the account is less than $10, but that interest is still income and needs to be reported on your tax return.

Moral of the story:  Save records like bank account statements throughout the year so you know how much income to report, even if you don’t get a 1099. For more information, read the full article here.

It’s that time, Tax Season 2012

January 12, 2012

It’s officially tax season.  Well, almost.  The IRS has announced it will start accepting e-File and Free File returns on Jan. 17, 2012. But for now, you should start compiling all your tax documents so you are ready to file.

The filing deadline this year will be April 17, 2012.  Why the extra two days?  April 15, the typical deadline, falls on a Sunday, and April 16 is Emancipation Day in the District of Columbia, which is treated as a federal holiday. As a result, 2011 returns are due April 17, 2012.  But why wait? Get working on your return today.

If you are unsure if you have to file a return this year, the IRS offers an Interactive Tax Assistant that will help you decide what you should do. The new resource takes users through a series of short question and answers related to tax law.

Even if you don’t have to file this year, you should. I know, you’re probably asking why someone would file a return if they don’t have to. Well, certain credits are refundable, meaning you can receive the credit even if you did not pay income tax. For example, students in their first four years of college are eligible for the American Opportunity Credit, $1000 of which is refundable.  For more information, see this IRS Tax Tip.

About me:
My name is Jana M. Luttenegger and I am an associate in the Business Division at the Davis Brown Law Firm. I have a B.B. in Economics from Western Illinois University, and a J.D. from the University of Iowa.  While at the University of Iowa, I prepared tax returns with the Volunteer Income Tax Assistance (VITA) Program.


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