Monthly Archives: October 2012

Storage

If you are looking for Bellingham storage solution then please look at http://bellingham-selfstorage.com/

Short Term Alcohol

Learn the shocking short term effect alcohol can have on your body at http://alcoholking.com/effects-of-alcohol/short-term/

Long Term Alcohol

Learn how long term alcohol consumption can greatly effect you at http://alcoholking.com/effects-of-alcohol/long-term/

Spyware

Find out what the best spyware programs are right now at http://askedminor.com/

Weight Loss

Get helpful weight loss tips and articles only at http://www.weightlossfitnessonline.com – lose weight fast and in a healthy way.

What is the 2012 IRS Rate for Mileage?

  • 55.5 cents for every business mile
  • 23 cents for every medical or moving mile
  • 14 cents for every charitable service mile

 

Above are the 2012 IRS mileage rates for the three categories of miles driven. Depending on what type of trip your IRS mileage varies.

 

So it’s vital that when you log your mileage you specify the type of driving in order to be as accurate as possible during the filing process.

In terms of accessing moving mileage, most online software will ask for the zip codes for each location (from A to B) and then calculate the mileage for you.

TurboTax Online or C/D Download can help you prepare your return and make sure you note your mileage in the proper places. When considering this, you have the option of taking the actual cost of your vehicle or the IRS standard mileage rate:

The IRS Standard Mileages Rates for 2012;

January 1st to June 30th

 

  • 51 cents for every business mile
  • 19 cents for every medical or moving mile
  • 14 cents for every charitable service mile

 

July 1st to December 31st

 

  • 5.5 cents for every business mile
  • 23.5 cents for every medical or moving mile
  • 14 cents for every charitable service mile

In some cases you can also deduct the cost of parking and tolls while using the vehicle for any of the standard deduction purposes. So if you acquired tolls or parking fees while on business, medical, moving, or charity related trips then you can deduct those fees.

 

Rules & Exceptions:

 

  • Standard rate cannot be used for more than four vehicles at the same time or for hired vehicles.
  • The standard rate must be reduced by depreciation which s 22 cents per mile for 2011.

 

Remember, it’s always best to consult with a tax preparer or utilize online resources such as http://turbochargemytaxrefund.com/ Some credits and deductions only last a few years while others stay around a decade or more while seeing year-to-year tweaks in their rules.

Valuable 2012, 2013 Tax Credits You May be Able to Claim

Have you been donating items throughout the year? Did you adopt a child recently? Are you caring for a child or a disabled citizen? Did you remodel your home so it’s green friendly?

If you answered YES to either of the questions above, then it’s important you learn more about Tax Credits.

Tax credits are deducted from the total amount of money the taxpayer owes after the return is calculated. In some cases, if your credit exceeds your amount owed then you will receive an additional refund amount.  

The online free tax return calculator can help you determine what your amount of tax credits is, and how it will effect your return.

How to determine if your credit is refundable or non-refundable:

§    If your refundable credit exceeds your withholding you will get more money back from the IRS than what you have paid in.

§    Non-refundable credits may reduce your tax owed to zero, but cannot provide a tax refund with the exceeded amount.

Credit or Income Tax Deduction

Tax credits reduce your tax liability while tax deductions reduce your taxable income.

Some tax deductions can only be utilized or claimed if you ITEMIZE your deductions instead of taking the standard deduction. While, tax credits reduce the amount of money that you owe to the IRS and their value doesn’t change based on the marginal tax rate.

Note, that some credits can be carried over to a different tax year. Any excess credits not thrown away can be carried to a later year.
Frequently Claimed Credits:

Adoption Tax Credit
American Opportunity Tax Credit
Child Care & Dependent Care Tax Credit
Child Tax Credit
Elderly or Disabled Tax Credit
Earned Income Tax Credit
Energy Tax Credit
Foreign Tax Credit
Lifetime Learning Tax Credit

Please visit http://turbochargemytaxrefund.com/ to learn more about these valuable tax credits.