Pronto Business

Schedule C Tax Deductions B Is for Bad Debts, Bank Charges & Books

Are you wondering whether you are deducting all the expenses the law allows for your sole proprietorship? Here are three commonly overlooked deductions that begin with the letter “B”.1. Bad Debts. If you use the Accrual Method of bookkeeping, you record income from a sale when you invoice the customer, regardless of when or even whether they pay you. So what happens if they don’t pay you? Let’s say that several months have passed and you keep sending them statements that continue to be ignored. By the end of the year, if you’ve done all you can do to collect the payment without success, you can take a deduction for the uncollectible amount. This is known as a “bad debt” and you should write it off.

What happens if you deduct the bad debt on your 2008 return and the customer surprises you by making payment in 2009? You simply record the payment as income on your 2009 return.If you use the Cash Method of bookkeeping, you record the income only when the customer pays you, so there really is no bad debt to deduct.2. Bank Charges. All those annoying nickel and dime bank fees that appear on your monthly bank statement are deductible business expenses. The key here is to take the time to carefully examine every monthly bank statement and then record those bank charges in your bookkeeping software program or manual record keeping system. It’s easy to overlook these charges because you didn’t write a check or use your credit card to incur them.The same thing applies to merchant credit card fees. If you accept credit card payments from customers, fees are probably assessed to your bank account every month and these fees are automatically deducted from your bank balance. Be sure to record those charges, too, or you’ll miss out on bona fide tax deduction.3. Books, Magazines, Trade Journals. Any book you purchase for business use is a legitimate tax deduction. Be careful here not to limit this deduction to only those books that deal with your particular industry, product or service. Self-help books contain much advice that is applicable to your life as a business owner, as well as books on topics such as time management, people skills, salesmanship and marketing.And while we’re on the topic of reading material, you probably subscribe to newspapers, magazines and trade journals that you read primarily for business purposes, so these are deductible as well.Since none of these three expenses have a specific Schedule C line in Part II, the best place to put them is in Part V, Other Expenses. The total of all these Other Expenses (line 48) is then transferred to Schedule C, Line 27.——–Looking for more small business tax tips? For a free copy of the 25-page Special Report “How To Instantly Double Your Deductions”, visit http://www.yousaveontaxes.com . Wayne M. Davies is author of 3 ebooks on tax reduction strategies for small business owners and the self-employed.

Sales Tax Free Weekend In Texas Offers More This Year

Sales Tax Free weekend in Texas starts Aug. 21 and runs to Aug. 23.

For the first time, Texas sales tax free weekend will include school supplies under $100. As a mom, I always hated that I needed to buy over $100 before I would be eligible for not paying sales tax.

It seemed backwards to me. The point of having the sales tax weekend in August was to help out with back to school costs. School supplies is one of those major expenses. This year the legislature took action and it is now included on the list.

That means binders, book bags, calculators, blackboard chalk, compasses, composition books, crayons, erasers, folders, glue, highlighters, index cards, legal pads, lunch boxes, markers notebooks, paper, pencil boxes, pencils and sharpeners, pens, protractors, rulers, scissors and writing tablets are all on the list as long as they are under $100.

I am thankful for this weekend every year. Not only are we now able to buy supplies, we also get big discounts on clothes, footwear and other back-to-school essentials.

On average, customers save $8 on every $100 spent. I know that doesn’t seem like a lot, but when you have multiple kids, that savings can really rack up.

Also included on the list are work clothes, baby clothes, coats, etc. so it is the best time to buy for the season. That is, of course, you can beat the crowds. My suggestion is to do the early, early morning sales at the stores. Many stores are open early and staying open late during this weekend. Take advantage of it.

Also, Fridays seem to be more crowded since it is the first day of the weekend. Saturday during the day can be deadly. I learned that the hard way.

I know some will say that $8 is not worth the crowds. In this economy, I think it could be an answer to prayer. Do get out the elbow pads and pack a survival kit of high protein snacks and hit the store with a smile! You will be sure and irritate the other shoppers.

For a complete list of items that are tax-free, visit online at http://www.window.state.tx.us/taxinfo/taxpubs/tx98_490/tx98_490.html

Recent IRS statistics say that S corporations represent the most popular form of small business corporation. That’s understandable. S corporations provide some powerful tax savings benefits for small business owners and investors.Unfortunately, the S corporation’s extra accounting complexity sometimes means that small business owners don’t get all the savings they’re legally entitled to. To guarantee that you don’t lose any tax savings, follow these tips:
Tip #1: Set a Reasonable But Low SalaryS corporation profits get paid out to the business owners either in the form of salary or profits. In other words, an S corp owner typically receives two types of checks from the business: payroll checks representing wages and dividend checks representing a share of the business profits.The most important thing an S corporation can do to minimize the tax burden shouldered by the owners is pay shareholder-employees a low though reasonable salary. Here’s why: Paying out profit as wages subjects that money to Social Security taxes and Medicare taxes. In comparison, paying out profits as dividends doesn’t subject the money to Social Security and Medicare taxes.Example: An S corporation that makes, say, $100,000 in profit before paying the shareholder-employee a reasonable wage would pay roughly $15,000 in Social Security and Medicare taxes if the entire $100,000 is paid as shareholder wages. If only $50,000 is paid as wages, however, the corporation reduces the Social Security and Medicare tax bill from $15,000 to $7,500.Tip #2: Minimize DistributionsWhen a small business makes the election to have a corporation or limited liability company treated as an S corporation–both corporations and LLCs can be treated as S corps–the IRS warns about setting shareholder-employee wages too law. That warning also alerts the business about what happens when the salary does happen to be set too low: The IRS can re-categorize distributions made to shareholders (what people commonly refer to as dividends) as wages.Note: Business owners commonly call the distributions of profit paid out to S corporation shareholders “dividends.” However, just to be technical, in the parlance of corporate tax law, dividends typically get paid by regular C corporations–not by S corporations. S corporations (and partnerships, too) make “distributions” of the profit. But back to the tip of minimizing distributions…The IRS authority to re-classify distributions as employee compensation means that, to the extent practical, you should minimize distributions to shareholders. In other words, don’t distribute money to shareholders simply because you can. For example, if shareholders will save the money (say for working capital purposes or for a new business investment), just save the money inside the S corporation–not outside the corporation.Example: If a corporation makes a $100,000 profit and pays out half of this money, or $50,000 as wages and the other half or $50,000 as distribution, the IRS may be able to re-categorize some or all of the $50,000 distribution as wages. If the corporation pays only a $30,000 distribution, in the worst-case scenario the IRS can probably only reclassify the $30,000 as wages.In the end, by minimizing distributions, the S corporation minimizes the money that can theoretically be reclassified as shareholder-employee wages.Tip #3: Move Deductions to the S Corporation Tax ReturnA final easy tip can often be employed by the small business corporation using the Subchapter S rules. You can sometimes move personal tax deductions from the shareholder’s personal tax return to the corporate tax return.Moving deductions from an individual tax return to the corporation tax return may not save the shareholder-employee and S corporation owner income taxes. Afterall, the deduction represents a deduction on both tax returns. But the benefit of moving a tax deduction to the corporation return is that deduction then naturally reduces the distributions made to shareholders.Example: Suppose an S corporation makes $100,000 in profits before paying the shareholder-employee wages. Further suppose that the shareholder-employee annually purchases $10,000 of health insurance for his family, saves $5,000 for retirement and contributes $5,000 to a charity. If these deductions are paid by the corporation rather than by the individual, the shareholder finds himself in the same economic position. But now the S corporation is paying out $80,000 in wages and distributions to the shareholder-employee rather than $100,000.——–Author, accountant and former tax professor Stephen L. Nelson specializes in provding tax planning and preparation services to S corporations. Nelson is also the author of do-it-yourself guides for Setting up California S corporations and for Setting up Texas S corporations.

Risks of Tax Deed Sales and How to Get a Good Deal

Tax deed sales auctions are a great way to get your foot into the tight real estate market. Even with lower housing prices, many people still are finding it difficult if not impossible to secure financial backing for a mortgage or saving up for the increasingly high down payments. With a keen eye, knowledge, and luck, you can walk out of a property auction with your dream home for just the price of the due taxes. Before you start bidding, remember that although a great investment opportunity, there are still many risks involved. However, a bit of common sense can help you secure that once-in-a-lifetime deal.

Be wary of bidders at tax deed sales auctions who claim to be “experts.” While you can garner some valuable information, they may also be a bit full of themselves, speaking from luck-based experiences, or trying to lead you astray in order to deter you from buying property that they want for themselves. Auctions can get ugly. It isn’t that uncommon for people to throw logic and planning out the window due to high-running emotions and adrenaline that come with the competition. If possible, find an experienced mentor to help you with your first purchase. Other bidders will not have your best intentions in mind.
Any regular bidder at auction will tell you that it is important to have a budget and stick to it. There will be much temptation, especially if a heated bidding war begins, but you won’t be getting much of a bargain at tax deed sales if you can’t afford to pay the cost. Remember that if your first, second, or even third choice slips past you at your first auction, there will be other opportunities. Sometimes you just end up with a particularly hardnosed group of bidders or some that love to splash around the cash. Take these instances in stride.
One of the biggest risks any new bidder takes at a tax deed sales auction is getting stuck with property that is effectively worthless. Many auctions include sale of not only real estate but land as well. These can be vacant lots in bad areas with little development opportunities. Getting saddled with one of these can be a big financial burden as well as a disappointment. This is why a bit of research and caution during auctions can be helpful. Listen carefully to the auctioneer and read all of the information you receive before bidding. Take note of which lot numbers you are most interested in. Some people can make quite hasty decisions or lose track of the auctioneer, accidentally placing a bid on the wrong property.

Tax deed sales can offer a great opportunity for investment to the savvy buyer. Learn more here: http://www.civicsource.com/.

Reshaping the Tax Code, I’m Not Sure Americans Can Afford Any More Help

My response to the Presidents announcement that he is considering reshaping the tax code to simplify the system and close loopholes, as reported by Jackie Calmes of the New York Times, is tepid at best and absolute horror at worst. As with health care reform and the new tax deal with Congressional Republicans, I'm not sure Americans can afford any more help.

Although our tax code is the most complicated mass of mess that humankind has designed, specifically manipulated for social engineering, and to extract as much money as is possible from lobbyists to build their campaign kingdoms, the original intent of these reforms although may be worthy of consideration, has tended to leave the common folk with one less hamburger to put on the bar-b-que pit.
The simple fact of the matter is that whatever comes of the deliberations, the final product will be anything but simple. There are just too many fortunes to be earned, and too many bridges to be burned, to consider damaging the integrity of this maniacal masturbation. For us to go to bed at night not having to be concerned with which pocket Uncle Sam is going to pop out of in the morning is simply not an option.
Options, get it? Like "public options," you've heard of that before right? Like the kind that would have allowed Americans to pay one sum for their health care, without the complexity of whether the hospital or doctor accepted you, how much your deductible, co-pay, co-insurance, or whether your procedure was covered or not, option. These terms are banned from the public discourse, simply not American.
No, if there is an extra buck to be made at you're expense, we are going to by God find a way to get it, that adds to our profits. "Profit," now there is a totally acceptable term, especially if it is accompanied by the terms "more than thought humanly possible." Ahh, makes my heart flutter with anticipation, but I have to be careful, there is no public option.
A value added tax (VAT), one that would totally eliminate taxes on income by either individuals or corporations, and put the burden on what we extract from our society, get rid of tax forms, take the option of social engineering out of the politicians hands, I guess sometimes "option" is ok:-), and eliminate the need for lobbyists bribes to gain favor. Shhh, it isn't being discussed, too simple.
To pay taxes only on what you choose to consume, instead of how much you make, is the only fair way to tax your citizens. You buy a bicycle you pay a little. You buy a yacht to ride that bicycle on, you pay a lot. Then the only thing that has to be decided is what won't be taxed, like food, I think we could all agree on that right? See how simple. Best of all, the IRS is out of your life FOREVER.
So this probably will never be discussed because of all the benefits our representatives glean in the aforementioned discussion. Although I'm sure their intentions are pure, because they always have our best interests at heart, I'm a little concerned about hearing our government is talking about reshaping the tax code, because I'm not sure Americans can afford any more help.
If you'd like to read more about how this discussion evolved please visit my article entitled "In Usual Bipartisan Fashion They Settled Somewhere In the Middle" at my blog at socialinjustices.net.

Before proceeding further, let me make it clear that I have not discussed what was proposed in the original draft of the DTC. The information given hereunder in respect of taxation of capital gains is as per the Revised DTC. Moreover, the information given below pertains only to listed stocks and units of equity-oriented mutual funds and it does not cover the scheme of taxation of gains from other investment assets such as house property and gold.Moreover, the certainty and administrative convenience offered by these Rules would be an additional incentive. These rules will also help is reducing the compliance cost of the tax payer with transfer pricing regulation. It is expected that the rules shall be framed keeping in mind the internationally accepted accounting principles and transfer pricing regulations.

So, did this amendment authorize everyone to be taxed, or did it just close the loophole? If you notice, it doesn’t say that congress has the power to lay and collect direct taxes. So in order for this amendment to be compliant with Article 1, section 9 of the constitution, it would seem that it could only mean the same indirect tax that it had always meant. What did the Supreme Court have to say about it?”That “income”, “wages”, “self-employment income”, “employee”, “employer” and “trade or business”-as these and certain other terms are used within, and in regard to, the tax law-have narrow legal meanings exclusively involving, and applying to, certain privileged activities, such as holding or administering a government office, or working in one.”

According to the Supreme Court, when you fill out your W-4, you are voluntarily entering into an agreement with the federal government, and claiming that the money you receive is taxable “income”. And since you sign this under penalty of perjury, you are also voluntarily waving your 5th amendment right! You just don’t realize it.All the business has its own image and entity and the tax identification number is used to identify this entity. Simply to be said that it is used to identify employer’s tax accounts. It is also known as Employer Identification Number (EIN) or Taxpayer Identification Number (TIN). The Federal Tax Identification Number or Employer Tax Identification Number or EIN is a nine digit number and it is used to fulfill most of your business needs. It is to be mentioned that, Internal Revenue Service (IRS) assigns the federal tax ID number to identify the business.In the late 1800′s and early 1900′s, there were a number of corporate tax cases which ruled what was and what was not “income.” In general the government can only tax via two methods – either directly or indirectly. Article 1, Section 9, of the Constitution says a direct tax is a tax that is levied directly upon a person or property, and therefore, it must be apportioned among the states based on the states population. (A primary reason we have a national census.) An indirect tax is levied upon a privilege or an action, such as a corporation, or a sales tax on certain products or business.Dave Champion is a paralegal and the creator of original intent, a web site dedicated to teaching all Americans the truth about America’s tax scheme. Mr. Champion has spent years studying the tax code, Supreme Court case history, and the Constitution; and has determined that most of us should not be taxpayers subject to the tax code. He also assists people to live within the law as nontaxpayers.All government programs must be authorized by the enumerated powers within the Constitution. Any program/organization that is not authorized by the Constitution must be immediately phased out of existence. Obviously this could have devastating effects on wide sectors of society, especially for programs such as Social Security. Entitlement programs such as this will need to have a cut-off date for which entitlements will no longer be available and those persons will have to take responsibility for their own support.Congress passed the Income Tax Act of 1894 which imposed a direct tax upon the income of U.S. Citizens. More specifically it applied that tax to Citizens living outside of federal jurisdiction. In Pollack V. Farmers Loan and Trust the Supreme Court stated that this act was unconstitutional, as it was a direct tax that was not apportioned among the many states.

As mentioned above, the term rental property tax deductions, connotes two different of deductions, the deduction for landlords and the deduction for tenements. The deduction for rental property for a landlord is possible on some certain grounds, however the total amount is restricted. In case of tenement, this becomes possible only when the rental property is used for residence as well as business purposes. In case of several complex inclusions in your income tax return, to determine the exact value of the deductible amount, you will require a rental property tax deduction calculator, or a form plus guidelines by the Internal Revenue Service (IRS).

Rental Property Tax Deductions: 2010

Here are some guidelines for landlords, regarding the deductions that they can avail in the 2010 year’s income tax return.

Note: From the administrative prospect, the IRS distinguishes between a passive investor and a real estate professional. In case of real estate professional, who (IRS defined) spends half or more than half of his or her time in the real estate business. A person not qualifying this condition is a passive investor. Full time investors have the freedom of deducting almost all losses, whereas, in passive income cases, $25,000 is the limit. Please check your Modified Adjusted Gross Income (MAGI), if your income is between $100,000 and $150,000, the deduction phases out.

Income and Deductions for Landlord
The following is a list of deductions that you can avail, while filling out your returns:
Among all rental property tax deductions, depreciation of rental property is the most important one and also the most common one. The depreciation deduction is applicable as per prescribed rates for your locality, and is deducted from the total cost of the asset.
The second substantial deduction includes, fees and interest on the property. Mortgage loan payments, installments on the real estate loans, have a certain interest charged on them. This may also include, APR and some overhead fees. Such interests are totally deductible. Payable interest, or one that has been reduced or dropped is however not deductible. In fact, any kind of debt forgiveness is treated as an income.
The cost or repair and replacement also is fully deductible, though home improvement cost is not, and it is added to the original cost of real estate.
Theft, casualty and any substantial damage is deductible to a certain extent and, in accordance with that, the damage inflicted should be reasonable.
Travel cost for purpose of the rental property is also deductible, on the basis of certain proofs. For this deduction, it is wise to use the mileage rule where the deductions based upon miles of the car is provided.
Part of property or home itself when used as an office becomes deductible. The only principle rule that is applicable is that the part of the property should be primarily used for a business, where economic interest is engaged and the tax deduction should be ascertained as per the surface area.
The last deduction that can be used is that of insurance premium that is paid for the property, the insurance can be of any kind ranging from theft, property, title and disaster insurance. In case of remittance or compensation against certain claim affects other deductions.
Aspects such as security deposits, accrued income, have different treatments yet in cases where the income is received from the the tenet against any loss, is treated with the loss, such as repairs. There are some property deductions such as vacation rental property tax deductions that are totally deducted, till a certain extent. Also note that property rented to family has implications on deductions.

Income and Deductions for Landlord
From the tenant’s perspective, deductions are less, and the treatment of tax is different. The only deduction that is available is the one of business use of the property, partial use for business in cases where the property is a residential property. The rental property tax deductions income limit becomes applicable in certain cases, and employers financial aid and certain aid from the government also comes into the picture, the tax implications differ in case of such aids, and the rent becomes deductible. A prominent example is that of grant provided to single parents, especially single moms.

For more inputs regarding tax implication of renting out property, you may also refer to:
How to Buy a Rental Property
Tips on Investing in Rental Property
Rental Property Management Fees
Please note that terms and conditions, laws and IRS guidelines do change from time to time hence, in case of doubt, please confirm with your Form 1040 guidelines and IRS website. The definitions and rules for the rental property tax deductions, example of each rule and exceptions are found on the IRS website. The reporting of income and deductions is done in the Schedule E of the Form and the related services, incomes and transactions are provided in the Schedule C. I hope that the elaboration on rental property tax deductions is resourceful. Good luck.

Rental Property Tax Deductions that will Slash Your Landlord Tax

If you are a landlord or property manager, knowing your rental property tax deductions is vital for cutting your taxes to the minimum. Find out how to enjoy lower landlord taxes and boost your profit margins right now.

Rental property tax deductions are basically rental expenses that you are allowed to deduct when calculating your rental property taxes. They are crucial because they will reduce your total amount of property income that is taxable.

To cut down your landlord taxes, you can simply include every possible tax deductions that you are allowed to use. The following are the common and important deductions that a rental property owner can enjoy:

The Depreciation Value of Your Rental Property

When you buy a new rental property, you cannot claim the full amount that you paid for it as expenses right away. Instead your property is slowly depreciated over a long period of time.

Depending on the country that you live in, most depreciation periods for residential property range from 20 to 30 years. Home owners are usually not allowed to claim depreciation as tax deductions so you will not be able to apply this deduction to your own home.

Insurance Premiums Related to Your Rental Property

Being a landlord means that you will usually have to buy a series of insurance polices such as building insurance, home contents insurance and landlord liability insurance.

You will be able to treat the premiums that you fork out for all your landlord insurance policies as tax deductions. If you employ people to manage your rental property, you will be able to claim the premium for their worker insurance as a rental property tax deduction as well.

Repair Bills for Fixing and Maintaining Your Rental Property

The money that you fork out to maintain your rental property in habitable condition is also tax deductible. This refers to any repairs or maintenance that are conducted to make sure that your rental property meets your local health and safety housing standards.

However you must know that any home improvements that you carry out for the purpose of boosting the values of your rental property cannot be considered as rental property tax deductions.

If you hire a contractor or repairman for repairs, make sure you ask them to give you a receipt with the property costs and type of repair work stated on it.

Traveling Costs for Managing Your Rental Property

Any traveling expenses that you rake up for rental activities such as rent collection and property repairs are also tax deductible. You are usually allowed to deduct both your gasoline costs and vehicle’s maintenance bills.

If you own rental properties abroad and you travel overseas for real estate activities, you may even to claim your airplane tickets, hotel stays and traveling fares as rental property tax deductions.

The tax agencies in most countries will monitor your tax claims for overseas travel quite closely so be sure not to abuse the system and keep proper written records of your spending such as receipts and bills.

Interest on the Mortgage Payments for Your Rental Property

Unless you are awfully rich, you would have taken a loan like every other landlord to pay for your rental property. Fortunately the interest charged by your bank or lender is counted as rental property tax deductions as well.

Teo Zhenjie has been showing landlords how to manage their tenants and rental properties effectively on Propertydo Landlord Guides. Visit his website for step-by-step real estate guides, free resources and forms.

Remembering Christina Romer – Tax Increases and Their Economic Impact

In June of this year, a little known organization called the American Economic Review published a 39 page research article, titled “The Macroeconomic Effects of Tax Changes: Estimates Based on a New Measure of Fiscal Shocks.” I have quoted from the publication here:”This paper investigates the causes and consequences of changes in the level of taxation in the postwar United States. Our results indicate that tax changes have very large effects on output. Our baseline specification implies that an exogenous tax increase of one percent of GDP lowers real GDP by almost three percent… and that [capital] investment falls sharply in response to exogenous tax increases.”In other words, for every dollar of additional taxes that the government collects, there is approximately $3 of lost economic output for the U.S. economy. Now, this paper and its conclusions might be relatively unconvincing to many if it had been written by a conservative think tank, or by a biased researcher promoting the pro-Republican agenda of lower taxes. However, nothing could be farther from the truth. In fact, this paper was written by Christina Romer and her husband David Romer. In case the name doesn’t ring a bell, please allow me to remind you that Christina Romer is President Obama’s hand-picked Chair of the Council of Economic Advisors (“CEA”). The CEA’s core function is to provide the President with objective analysis and advice on a broad range of economic matters. The CEA is perhaps the most influential economic team in the country because it directs the economic policy of the White House and the President. Christina Romer herself has said that she speaks with the President almost every day.Sadly, on Friday, August 6th, Christina Romer announced that she would resign from her position as the Chair of President Obama’s Council of Economic Advisors. Romer’s resignation received far less media coverage than that of HP’s Mark Hurd later that same day, but the former is much more relevant to most investors in the long run. Less than one month from now on September 3rd, Christina Romer will leave her White House position and the CEA to return to private life as an economics professor.So, let’s review: 2010 is a pivotal election year with the nation also facing a year-end deadline to overhaul its tax code, or else significantly higher tax rates will be in place going forward. The President of the United States has clearly stated his position on the matter and favors a variety of tax increases, particularly on those rich folk who make more than $200,000 per year. Two months ago, Christina Romer, Chair of the President’s Council of Economic Advisors, published a paper that convincingly demonstrates the damaging economic consequences of tax rate increases. Subsequently, Romer has decided to return to private life and will no longer be an economic advisor to the President. Got that?The Romer development is rather disheartening to those that may have hoped for less aggressive or more thoughtful action with respect to future tax rates. For investors and traders there are two specific consequences that stem from a higher tax rate structure. First, there will be a fair amount of year-end volatilty and selling pressure as investors take long-term capital gains at the 15% rate currently in effect for 2010. Longer-term, as Christina Romer’s research suggests, the effects of those tax increases will be very damaging to economic growth, dimming the outlook for equity valuations and the stock market in general. As the research suggests, for every dollar of additional taxes that the government collects, there is approximately $3 of lost economic output for the U.S. economy. Investors and traders should prepare accordingly.Those of us hoping for an extension of the previous tax cuts may have just lost our best ally. Certainly there are others who will continue the fight, but none have the ear of the President everyday, nor the influence that Christina Romer has had for the past two years.More of Christina Romer’s research, including the research cited in here, can be found on her academic website: http://elsa.berkeley.edu/~cromer/index.shtml

This article describes why you should e-file your state taxes online versus doing them by hand.
If you're one of those people who still likes to file federal and or state taxes online, then this article is for you. E-filing your state taxes online can help you evade a lot of the headache you normally might associate with filing your state tax return. There are a lot of advantages in e-filing your state return versus doing your taxes hand.

First, e-filing state taxes is quicker and more dependable. All you have to do is use the online forms that the website will provide you and then you can submit your tax return. The IRS also encourages both tax prepares and individuals to e-file their state and federal taxes.  E-filing lessens the burden on the IRS because they don't have to deal with all the paperwork. Also, if you'd rather have your tax refund in as little as 10 days instead of weeks or months, then e-filing online is for you. This is a big benefit for people who need the extra cash.
Second, e-filing allows you to deal with all your data with the service provide you chose to go with. The tax software you use will allow you to have instant access to your data. The ability to transfer data from previous years can save copious amounts of time when tax season rolls around.
A third advantage is that you can have peace of mind about whether your income tax return made it in on time to your state. Since the state has received a copy of your return, you no longer have to worry about mistakes.  Data errors happen from time to time, but by e-filing you will receive prompt notice that an error has occurred.
Fourth, the amount of errors is lowered with e-filing. The tax program will alert you if there is anything missing on the screens where you are filling out your information. Errors will be promptly pointed out to you so that you can correct them before you e-file your return.  This prevents the IRS from sending you letters about errors that were made on your state return.
Finally, e-filing state taxes is beneficial for the environment. If you care about making a difference, then you should go ahead with the straightforward act of submitting your taxes online. {It's a small step that can make a big impact if more people would go ahead and use this method of filing taxes.It may not seem like all that big of a step, but if you consider the millions of people that have to file a tax return and how many forms are associated with it, then the savings add up quickly.Think about how many tax forms are printed by tax preparers and the IRS.  Now multiply that by the tens of millions of people that have to file a tax return and you can quickly see how this will be a benefit to the environment.
In a nutshell, those are the advantages to e-filing state taxes online. Give the pen and paper a rest this tax season and use an online tax service that enables you to e-file state taxes online. There's a good chance you'll be able to file your state taxes in less than 30 minutes. Give it online filing a try this tax season.
And if you're searching for an economical way to file your state taxes online, then give OnePriceTaxes a try this tax season. OnePriceTaxes will file your state taxes online for only $7.95. You can file a federal and state tax return for just $14.95. Our tax software is IRS approved, has no hidden fees, and accuracy is guaranteed. Try our software for free and pay only when you're all set to file.