Tag Archives: tax return

Why it’s important for taxpayers to know their filing status

When a taxpayer files their tax return, they need to know their filing status. What folks should remember is that a taxpayer’s status could change during the year. So, any time is a good a time for a taxpayer to learn about the different filing statuses and which one is best for them.

Knowing the correct filing status can help taxpayers determine several things about filing their tax return:

Is the taxpayer required to file a federal tax return or should they file to receive a refund?
What is their standard deduction amount?
Is the taxpayer eligibility for certain credits?
How much tax they should pay?

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Good tax planning includes good Record Keeping

Tax planning should happen all year long, not just when someone is filing their tax return. An important part of tax planning is record keeping. Well-organized records make it easier for a taxpayer to prepare their tax return. It can also help provide answers if a taxpayer’s return is selected for examination or if the taxpayer receives an IRS notice.

This tip is one in a series about tax planning. These tips focus on steps taxpayers can take now to help them down the road.

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Common Errors to Avoid when Filing a Tax Return

IRS in the recent Tax Tip issue (Issue Number: Tax Tip Number 2018-55) covered the common errors to avoid when filing a tax return. Electronic filing can very well eliminate the common errors and will collect all required data to be filled in a tax return. However here is the tax tip from IRS….

To ensure they meet their tax obligations, taxpayers should file accurate tax returns. If a taxpayer makes an error on their tax return, it will likely take longer to process and could delay a refund. Taxpayers can avoid many common errors by filing electronically, the most accurate way to file a tax return. All taxpayers can use IRS Free File.

Here are common errors to avoid when preparing a tax return: Continue reading →

Employee Identification Number- The Requirement

While you are filing form 2290 ThinkTrade product Tax2290.com, there are few documents you need to keep handy, as they are mandatory while you file tax online. EIN is the most important number required and should be kept safely, for recognition.

The combination of EIN and the name of the taxpayer is blended together for a unique identity. It is important to provide the right Employee Identification Number whenever you are filing form 2290 online. If at all the EIN does not match the IRS records, your return would be rejected. Continue reading →