Live Debt Free

Pay off debt. Save. Give. Live your mission.

  • Blog
  • Contact Us
  • Credit Scores
  • Spending
  • Investing
  • Earn Money

File A Tax Extension – Tax Year 2011

04.18.2012 by Matt Jabs //

Are you running behind on filing your taxes and afraid you will not be able to make the dead line?  Don’t worry… I have two pieces of good news for you.

Tax extension info for tax year 2011

The first bit of good news is that the tax deadline for 2011 returns has been moved from the traditional date of April 16th to an extended deadline of April 17th – giving you an extra day to get your taxes done.  If you haven’t filed yet, I recommend using TurboTax Online – I’ve been using it for years and love it.  Read my TurboTax Review and don’t forget to check out the 10 most commonly missed tax deductions.

The second bit of good news is that you can easily file tax extensions for free and push your filing deadline back from April 17th, 2012 to October 15th, 2012 giving you an extra 6 months to file!

How to file a tax extension

I recommend one of several ways to file your tax extension.

  1. If you use TurboTax, you can file your tax extension using their online software.
  2. Download IRS form 4868 and mail it in
  3. E-file form 4868 using one of the IRS FreeFile companies.
  4. E-file form 4868 yourself using FreeFile Fillable Forms.

Don’t forget that you still have to pay at least 90% of your actual tax liability by April 17th, 2012 to avoid a late payment penalty. If you don’t know how much you owe then you can estimate, but if you estimate low you may be hit with the penalty, so I strongly advise taking the time to get solid estimate and send it in with your form 4868.

Lastly, be sure to file your request for an automatic extension by the April 17th, 2012 deadline to be eligible – and pay any total tax due by October 15, 2012 to avoid late payment penalties.

I may file an extension this year

Normally I file my tax return in the beginning of February, but for whatever reason have put it off until the last minute this year.  Last night I logged into my TurboTax Online and completed about 80% of my return so I should get it done in time for the April 17th deadline, but if I don’t I’ll simply file an extension and use the extra 6 months.

Are you going to file an extension this year?

*******

Categories // Taxes Tags // extension, irs, Taxes, turbotax

Tax Brackets and Standard Deduction

04.05.2012 by Matt Jabs //

Here we offer the tax brackets and standard deduction information for the tax years 2011 and 2012, along with a few “revolutionary” thoughts on the income tax.

Income tax history and philosophy

Thanks to the 16th Amendment the government can tax income:

“The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.”

The Bureau of Labor Statistics uses the inflation rates of the Consumer Price Index for All Urban Consumers (CPI-U), along with a host of other statistics, to calculate yearly tax brackets.

Income levels in tax brackets raise each year due to inflation, and inflation over the past year averaged 2.43%.

Inflation is a rise in the general level of prices of goods and services in an economy related to an increase in the volume of currency and resulting in the loss of purchasing power. The rate of decrease in the purchasing power of money is approximately equal to the rate of inflation.

Put another way, as inflation rises, purchasing power (a.k.a. wealth) decreases.

“1913 wasn’t a very good year. 1913 gave us the income tax, the 16th amendment and the IRS.” – Texas Congressman Ron Paul

Before revealing the modern income tax brackets, it’s worth noting that the Supreme Court ruled income taxation unconstitutional in 1895 before the Congress enacted it as law in 1913.

Federal Income Tax Brackets for 2012

[table id=7 /]

Federal Income Tax Brackets for 2011

[table id=8 /]

Note: Annual inflation is also used to calculate the standard deduction and personal exemptions.

Standard Deduction and Exemption for 2012

The value of each personal and dependent exemption, available to most taxpayers, is $3,800.

The standard deductions for 2012 are:

  • $5,950 for singles and married individuals filing separately
  • $8,700 for heads of household
  • $11,900 for married couples filing a joint return.

Standard Deduction and Exemption for 2011

The value of each personal and dependent exemption, available to most taxpayers, is $3,700.

The standard deductions for 2011 are:

  • $5,800 for singles and married individuals filing separately
  • $8,500 for heads of household
  • $11,600 for married couples filing a joint return.

Note: These numbers are projected and subject to new tax legislation therefore they could change so be sure to check www.IRS.gov for the latest information before filing taxes.

*******

References

  1. 2012 Consumer Price Index Summary by The Bureau of Labor Statistics
  2. Overview of BLS Statistics on Inflation and Prices by The Bureau of Labor Statistics
  3. Tax Foundation Projects 2012 Tax Parameters by The Tax Foundation
  4. 16th Amendment from The U.S. Government Printing Office
  5. Inflation on Wikipedia
  6. How To Calculate Inflation Rate on Inflationdata.com
  7. Pollock v. Farmers’ Loan & Trust Co. – 157 U.S. 429 (1895) on Justia.com U.S. Supreme Court Center
  8. Publication 501 Exemptions, Standard Deduction, and Filing Information on IRS.gov

Categories // Taxes Tags // economics, inflation, irs

Don’t Forget To Do Your Taxes

03.30.2012 by Matt Jabs //

As a final reminder, the deadline to file personal federal tax returns is Tuesday, April 17th.  This is also the deadline for state returns and tax extensions.

Ways to file?

File manually – Download the forms from the IRS website, fill them out, and mail them in.  This is the slowest way to file. File online – Finish faster and make it a whole lot easier on yourself by using an online tax program and efiling your return.  Another advantage to using these products is that they include audit reviews to help you avoid an IRS audit.

  • TurboTax – I have used TurboTax Online to file for years and find it the fastest and best way to file my own taxes.  Read my review of TurboTax for more details.
  • H & R Block – This reputable tax company also offers their online H & R Block tax software that many DIY tax filers use every year.

IRS Free File – If your 2011 AGI was $57,000 or less you qualify for the IRS Free File program where you can choose from several different companies to file your federal return (some also support state retuns.) Individual company offers are limited so be sure to review the criteria before choosing. If you go this route I recommend using the IRS “Help Me Find a Company” tool to find a program that works best for you.

TurboTax - Choose Easy RECOMMENDED Save 25% on H&R Block At Home Online Premium

I have my taxes about 90% done and will be finishing them up this weekend.  Thank goodness.

*******

Resources

  • IRS Tax Calendar at 1040.com
  • IRS 1040 Form at IRS.gov
  • 1040 Central at IRS.gov
  • Free File: Help Me Find A Free File Company at IRS.gov

Categories // Taxes Tags // H&R Block, irs, Taxes, turbotax

  • 1
  • 2
  • Next Page »

Popular Posts

  • Understanding & Improving your Cash Flow
  • Credit Card Debt Reduction Handbook
  • Our Monthly Debt Reduction and Savings Statements
  • Pay off Credit Cards VS Build Emergency Fund Savings - Me VS Suze Orman
  • Credit Cards - Close 'em Shred 'em & Forget 'em!
  • More Reasons to Pay Off Credit Card Debt
  • Wise Use of Paid off Credit Cards? You Decide.
  • The Whole Armor of Personal Finance
  • One World Currency - New World Order
  • Debt Testimonials - Encouraging Success Stories!

Disclaimer

Content on Debt Free Adventure is for entertainment purposes only. Rates & offers from advertisers shown on this website may change without notice: please visit referenced sites for current information. Per FTC guidelines, this website may be compensated by companies mentioned through advertising, affiliate programs or otherwise. We respect your privacy. Privacy policy.

Popular Posts

  • Lending Club - My Review of Social Lending
  • Understanding & Improving your Cash Flow
  • Credit Card Debt Reduction Handbook
  • Our Monthly Debt Reduction and Savings Statements
  • Pay off Credit Cards VS Build Emergency Fund Savings - Me VS Suze Orman
  • Credit Cards - Close 'em Shred 'em & Forget 'em!
  • More Reasons to Pay Off Credit Card Debt
  • Wise Use of Paid off Credit Cards? You Decide.
  • The Whole Armor of Personal Finance
  • One World Currency - New World Order
  • Debt Testimonials - Encouraging Success Stories!

Disclaimer

Content on Debt Free Adventure is for entertainment purposes only. Rates & offers from advertisers shown on this website may change without notice: please visit referenced sites for current information. Per FTC guidelines, this website may be compensated by companies mentioned through advertising, affiliate programs or otherwise. We respect your privacy. Privacy policy.

Copyright © 2023 · Modern Studio Pro on Genesis Framework · WordPress · Log in