Here’s a nifty graphic from Turbo Tax that shows where your taxes go.The chart singles out 11 categories that benefit from taxes, including national defense, international affairs, and health care. Using data from Salary.com, the chart shows for 10 different jobs the average salary, the average tax bill as a percentage of income, and the average tax bill as paid in dollars.
At the top of the heap you have the CEO, who makes $643,846 and pays 34 percent of his income (some $215, 734) in taxes. At the bottom is the janitor, who makes $28,245 and pays 16 percent of his income (some $4,585) in taxes . Strangely, all the workers depicted are men, unless those are burly cross dressing women.
A pie chart next to each job description shows how many dollars go towards each of the recipient categories. The dollars figures are different for each job but the percentages that goes to each category is the same. Note that military spending is by far the biggest recipient of our tax dollars, followed distantly by health and a nondescript category labeled “other.”
I highly recommend checking out this chart that shows where you tax dollars go.
Some 60 percent of Americans hire others to do their taxes for them, which means a lot of us are looking for a tax pro to hire right now. The March issue of ShopSmart, a magazine put out by Consumer Reports, shares five questions you should ask anyone you’re considering hiring.
1. What kinds of clients do you usually work with? Look for a preparer with clients similar to you.
2. What are your credentials? Look for a preparer who has passed recent state or federal tests and 7 to 10 years experience.
3. Will you file my returns electronically? Filing electronically ensures fewer mistakes and helps speed your refund.
4. Can you give me a price quote? Try to get a price quote by presenting last year’s forms. Ask for all fees and avoid preparers who base their fee on a percentage of your refund.
5. Do you provide audit help? CPAs and enrolled agents can usually represent you before the IRS, but you might have to pay extra.
In case you missed these resources to file taxes for free:
If you make less than $49,000 you can get free tax preparation and e-filing through the IRS’ VITA program.
File your taxes for FREE through AARP, even if you’re not a senior.
No matter what your income, file your taxes for free online through the IRS’ Free File Fillable Forms.
And there are lots of coupon codes for tax software, like this tax software coupon for 25% off at H&R Block At Home.
There are plenty of ways to do your taxes yourself and not pay a dime, especially if you make less than $49,000 (see three ways to do this below). But if you are going to hire someone, here are nine tips from author and CPA Stacy Johnson to help you choose a tax pro.
For the last four of Stacy’s tips for choosing a tax pro, visit his site, MoneyTalksNews, and scroll down to below the video.
Resources to file taxes for free
If you make less than $49,000 you can get free tax preparation and e-filing through the IRS’ VITA program.
File your taxes for FREE through AARP, even if you’re not a senior.
No matter what your income, file your taxes for free online through the IRS’ Free File Fillable Forms.
And there are lots of coupon codes for tax software, like this tax software coupon for 25% off at H&R Block At Home.
Get 15 percent off H&R Block At Home tax software plus a 12 percent cash rebate when you purchase the software through eBates.com. The deal includes their deluxe and premium software. With the two discounts here’s how the pricing breaks down:
Premium tax software sells for $49.95
Minus instant 15 percent = $42.45
Minus cash rebate of 12 percent = $37.36
That adds up to 25 percent off the starting price!
Deluxe tax software sells for $29.95
Minus instant 15 percent = $25.45
Minus cash rebate of 12 percent = $22.40
That adds up to 25 percent off the starting price!
Basic tax software is free!
If you don’t use these H&R Block coupons, you can file your taxes for free. There are also a lot of coupons for state and federal tax filing. And if you are 50-plus, you can get free tax preparation and filing through AARP.
If you are new to eBates, see No. 3 on my earlier post about online shopping coupons and discounts.
One way to reduce the cost of paying and filing taxes is to use a coupon code for your state and federal returns. Here are a handful from CouponCabin.com.
At Jackson Hewitt get 25 percent off with this printable coupon. Expires April 30, 2010.
Exclusive! Get 50 percent off entire online order at One Price Taxes. No expiration date.
Get 10 percent off your online order at Turbo Tax. Expires Dec. 31, 2010.
File your federal returns for free through Tax Act. No expiration date.
Related:
Free tax preparation and filing through AARP
File your federal taxes for free, thanks to the IRS and the Free File Alliance.
Reader Louise left a comment with a tax tip that I just had to look into. On my post yesterday about H&R’s tax prep software sale (federal tax software and filing is $14 through Sunday) Louise said:
AARP will do your taxes for FREE as long as it is not a complicated return. I have been doing this for several years now. Just go on their web site to find a location near you. and you do not have to belong to aarp to take advantage of this.
Was Louise telling the truth?
She was! The AARP site says “AARP Tax-Aide is the nation’s largest free, volunteer-run tax assistance and preparation service. It is available to taxpayers with low- and moderate-incomes and gives special attention to people age 60 and older.”
To get the free help go into one of the 6,500 centers around the country. Many are located in senior centers, libraries, and community centers. The service is for people who have simple 1040, 1040A, and 1040EZ returns, including if you use Schedule A and B. If it’s more complicated than that, they can’t help. You can file your taxes electronically at most sites for free.
The sites open in Jan/Feb and stay open until April 15. Find an AARP Tax-Aide site near you. I plugged in my zip code and found 21 centers within 13 miles of me. If you’re not sure if you qualify because of your income, call a center near you. You can also ask a question about your federal returns and get an answer for free.
Thanks, Louise!
- GenBug/Flickr
Taxes have absolutely nothing to do with Valentine’s Day but H&R Block is doing their best to associate the two events. Starting tomorrow through Sunday you can get discounted tax software and filing help through H&R Block online.
All their online tax prep products for federal taxes are $14 (orig. $15-$50). That’s 6-72 percent off depending on whether you use the basic, deluxe or premium versions. Filing state returns is an extra $30.
The deal runs Friday, Feb. 12 through Sunday, Feb. 14, 2010. One cool thing about this deal is that if you register during the offer period you lock in the price, even if you do your taxes in April.
The H&R Block At Home basic, deluxe and premium programs offer audit support from a live tax professional, the ability to import data from your employer and financial provider, and a tax calculator. You can also import last year’s tax data from TurboTax or TaxCut.
Free tax advice today! If you can’t make a call today, the free hotline is also operating Tuesday, Jan. 26, 2010. The freebie is courtesy of Kiplingers magazine and the National Association of Personal Financial Advisors.
Get a 50 percent off coupon for Joanns and use it by Saturday, Jan. 23.
Gift certificates at Restaurant.com are 70 percent off through Jan. 26, 2010.
Looking for baby or children’s clothes? Sears and Kmart are having a huge clearance sale with items starting at $1.19.
Whole Foods has coupons, surprisingly enough. Just six when I last checked, but it’s better than nothing.
See all the deals on my WalletPop blog.
alancleaver 2000/Flickr
Until the end of January you can get one tax question answered free courtesy of Turbo Tax. A real live person will get back to your within two days. You only get to ask one question, so make sure it is a good one! The question can be about federal or state taxes for individuals or businesses. The more detailed your question, the better. Submit your question here.
Be prepared to share your name, email, and answer two quick questions about your taxes. Then pick a two-hour window during which a Turbo Tax specialist can get back to you, between 7 am and 7 pm PST. They will reach out to you twice, then close the request.
I have not used this service, but I would expect a pitch to purchase Turbo Tax software from the tax expert who calls you back. Just a hunch. Let me know if you use this service!
Caveats: one question per person.
iowa spirit walker/Flickr
Here’s a quick recap to let you know that the website where you can file your federal taxes for free is now accepting 2009 returns.Here’s a quick recap to let you know that the website where you can file your federal taxes for free is now accepting 2009 returns.
The freebie file exists thanks to a partnership between the IRS and the Free File Alliance LLC, a group of private sector tax software companies. Here’s how it worked for 2008 taxes filed last April. I expect the free filing options to be very similar for 2009 taxes.
Option No. 1. You can file your federal returns for free using the traditional Free File, which offers step-by-step help, if your adjusted gross income is $56,000 or less (this number could vary slightly for 2009). The software puts your answers directly into the forms and does the math for you. You can get a refund as quick as 10 days if you opt for direct deposit. This service is available in Spanish.
Option No. 2. You can fill in your own tax forms without the help of software using the Free Fillable Forms. This hands-off approach lets you prepare and e-file your 1040, 1040 A and 1040EZ federal returns. There are no income limits, as with Option No. 1. State forms are not included.
Both of these options make it possible to file your federal tax forms for free. State forms are not included, however. Does anybody know a way to file state taxes for free?
Thanks, Tina!
brianjmatis/Flickr
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Get ready for tax season! Preparing will be a little easier knowing you can file for free thanks to a partnership between the IRS and the Free File Alliance LLC, a group of private sector tax software companies. The site does not go live for 2010 until Jan. 15, so this is really just a heads up.
Here’s how it worked for 2008 taxes filed last April. I expect the free filing options to be very similar for 2009 taxes.
Option No. 1. You can file your federal returns for free using the traditional Free File, which offers step-by-step help, if your adjusted gross income is $56,000 or less (this number could vary slightly for 2009). The software puts your answers directly into the forms and does the math for you. You can get a refund as quick as 10 days if you opt for direct deposit. This service is available in Spanish.
Option No. 2. You can fill in your own tax forms without the help of software using the Free Fillable Forms. This hands-off approach lets you prepare and e-file your 1040, 1040 A and 1040EZ federal returns. There are no income limits, as with Option No. 1. State forms are not included.
Both of these options make it possible to file your federal tax forms for free. State forms are not included, however. Does anybody know a way to file state taxes for free?
Thanks, Tina!
Hope everyone is enjoying the long weekend. I’m working a half day then heading to the beach so there won’t be any more blog posts today. See you Monday!
If you live in LA and are looking for deals, some exciting stuff is being added to BargainBabeLA.com, including a kids clothing sale in Burbank and a massive 50% off dress sale in Tarzana.
Miss my announcement post about my new site? Read all about BargainBabeLA.com here.
Hubby and I wrote two fat checks today and are consoling ourselves by taking advantage of some of the many tax day freebies. Yahoo found 18 deals, including ones for free ice cream, free cinnamon rolls, free tacos, free gift cards, and more.
Wine.com offers $10.40 off on any order over $99 with promo code TAXSAVINGS. Expires April 15, 2009.
Walgreens.com is offering 15% off online orders with coupon code TAXED, which is good for up to 5 uses per account through April 20, 2009. Caveats: does not apply to pharmacy or photo orders, gift card purchases, taxes or shipping charges. Online only.
PF Chang’s is offering 15% off to diners today.
Participating Dunkin Donuts are offering a free doughnut when you buy a cup of coffee today only.
A site called Bargain Shopper Lady found three more tax day deals, including a free Redbox rental.
More freebies here, courtesy of a link my Dad shared.
What did I miss? Please share tax day deals by leaving a comment. Thanks!
Stiiiiiiiiiilll filing your taxes? Productivity 501 has a long list of sites where you can e-file for free. Note, some of the sites this blog suggests have income limits or are available only to residents of certain states.
No matter where you live, you can file free online by using the IRS’ Free File if you make less than $56,000. If you make more than that and are using forms 1040, 1040A or 1040EZ, use Free File Fillable Forms, which requires you do the math on your own.
Hubby and I are rolling out our tax paperwork this weekend and crossing our fingers we won’t have to write a check. If you doing your taxes this weekend too here are some last minute tax tips:
Charles Schwab suggests 8 tips to lower your dues to Uncle Sam, including verifying eligibility for the Alternative Minimum Tax.
SmartMoney has put together a 36-page PDF brochure that covers everything from how the stimulus bill will affect your taxes to tips for small business owners and tax traps.
Fox Business lays out just how expensive it is to NOT pay your taxes by April 15. Also, did you know you can pay your taxes with a credit card? I’m scandalized!
Still confused? The Washington Post’s money guru Michelle Singletary is hosting a live chat to answer your tax questions on April 9 at 9 a.m. PST.
