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Tax News
Pre-1974 Capital Gain Portion Of DistributionIf you were born before January 2, 1936, and a portion of your lump-sum distribution is attributable to plan participation before 1974, you may treat it as ordinary income eligible for averaging, or you may elect to treat it as capital gain taxable at a flat 20% rate; choose the method on Form 4972 that gives the lower overall tax.
Prior Rollover Bars AveragingYou may not claim averaging for a lump-sum distribution if you previously received a distribution from the same plan that was rolled over tax free to an IRA or to another qualified employer plan.
It's FAFSA Time2nd Story Software, Inc., developers of what critics and users alike denote as being America's #1 value-priced tax preparation software, announces TaxACT 2006 Deluxe makes preparing the Free Application for Federal Student Aid (FAFSA) easier for the 2007-2008 school year with its new College Student Financial Aid Worksheet. The FAFSA (The Free Application for Federal Student Aid) is an extremely critical financial aid form which all students requesting federal financial aid must file. Much like filling out a bank loan application, the FAFSA qualifies how much federal aid a student is eligible to receive (in the form of grants or loans) based on U.S. Department of Education guidelines - including information such as your family's assets and previous year income.
Penalty Exception For Substantially Equal PaymentsThe substantially equal payments exception to the 10% early distribution penalty is generally revoked if qualifying payments are not received for at least five years. For example, you separate from service when you are age 57 and you begin to receive a series of qualifying substantially equal payments. When you are age 61, you stop the payments or modify the payment schedule so that it no longer qualifies. Unless the IRS permits an exception, the 10% penalty applies to the payments received before age 59 1/2 because the five-year test was not met.
TaxACT 2006 Tax Season Wrap Up : TaxACT Continues To Grow Nearly Twice The Rate Of The Market2nd Story Software®, Inc., developers of TaxACT® software, recognized by critics and users alike as being America's #1 value-priced tax preparation software, reports continued growth at a rate faster than the growth of the general consumer tax preparation software industry. As a trusted and secure source for tax preparation and electronic filing services for millions of taxpayers, TaxACT continues to demonstrate that its unique and unprecedented completely free tax software offer is gaining acceptance by an increasing number of users who opt to e-file their federal income tax return. As of April 19, 2007, year-to-date 2,923,533 taxpayers have completed e-filing their own federal tax return using TaxACT. This is up from 2,450,849 e-filed returns for the same period the year before, and this represents a 19.29% growth year-over-year. At the same time, IRS data indicates that a total of 21,834,967 taxpayers have completed e-filing their own federal returns, up 10.62% over the prior year. This market share growth is a continuation of the tremendous growth TaxACT experienced in 2006, when the number of consumer-prepared federal tax returns e-filed using TaxACT grew to 2,520,742 returns, an increase of 62.7% over the previous year, as compared to total market growth of 18.9%.
Tax Articles
What Records Should I Keep?
You must keep records so that you can prepare a complete and accurate income tax return. The law does not require any special form of records. However, you should keep all receipts, canceled checks or...
Federal Taxes on Your Lottery Winnings
Many lottery winners are astonished when they find out that lottery winnings are paid out over yearly installments of 20 or 25 years. They are even more astounded when they realize that the Internal...
Exemptions and Your Tax Return
In general, you can deduct $3,200 for each exemption you claim in 2005. You may be able to take an additional exemption amount if you provided housing to a person displaced by Hurricane Katrina. For...
What If I Made a Mistake on My Return?
Errors may delay your refund, cause you to pay additional interest or penalties, or result in notices being sent to you. If you discover an error, you can file an amended return or claim for refund. ...
Claiming Educational Expenses on Your Return
Generally, employees must complete Form 2106, Employee Business Expenses or Form 2106-EZ, Unreimbursed Employee Business Expenses, when job-related educational expenses are involved. Educational expenses...
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