What You Should Know About Arizona Retirement Taxes

Posted by Tax Advisor on January 26th, 2015
Last modified: January 26, 2015

Wondering About Arizona Retirement Taxes? RapidTax is here to help.

If you live in or plan on moving to Arizona, you should know that the state has more to offer than just great weather.

Not only is Arizona home to the very famous Grand Canyon, it’s also a tax-friendly state for retirees.

Rather than sorting through Arizona’s Department of Revenue website, you can quickly learn why Arizona has become a popular destination for retirees.

Social Security is Not Taxed

Arizona is a destination to many retirees thanks to the state not taxing Social Security benefits.

That right, Social Security checks aren’t subject to taxation in Arizona. Read the rest of this entry »

Can I Claim the Child Tax Credit 2014?

Posted by Tax Advisor on January 26th, 2015
Last modified: January 28, 2015

If you meet the requirements to claim the Child Tax Credit 2014, expect to see a larger tax refund in 2015

If you have a child, you know first hand that being a parent changes your life.

Along with the new responsibility comes the expenses of having a child, such as food, clothing, classes, pictures, day care and so much more. Luckily, the IRS offers a few tax advantages to help with the never ending costs. One in particular is the Child Tax Credit.

Keep in mind however, just because you have a child, it does not automatically qualify you to claim the Child Tax Credit on your 2014 Taxes.

In order to claim the credit on your 2014 Tax Return, you’ll have to meet the 7 IRS Child Tax Credit requirements

1. Relationship

In order to claim the child tax credit, the child must be one of the following;

  • your child
  • your stepchild
  • a foster child placed with you by a court or authorized agency
  • an adopted child (even if the adoption is not final by the end of the tax year)
  • your brother
  • your sister
  • your stepbrother
  • your stepsister
  • your niece
  • your nephew Read the rest of this entry »

Estimate Your 2013 Taxes With a 2013 Tax Calculator

Posted by Tax Advisor on January 19th, 2015
Last modified: January 19, 2015

Use a 2013 Tax Calculator To Estimate your 2013 Taxes

Do you still need to file your 2013 tax return? If so, you may be curious to know how much your 2013 tax refund or tax due total will be.

Luckily, you can use a  tax calculator 2013 to view your tax situation before filing your late 2013 tax return.

Free Tax Calculator 2013

In order for a tax calculator to estimate your 2013 taxes, you’ll need to enter at the very least your filing status, income, taxes withheld, and any possible deductions.

Rather than wasting time re-entering the same information later on when preparing your tax return, you can do it all at once. Here’s how;

  1. Create a RapidTax Account: When creating an account, be sure to select the 2013 Tax Year (don’t worry, it doesn’t cost anything to create an account)
  2. Enter your tax information: Enter your basic information, income, and deductions or credits your claiming,
  3. View your Tax Refund or Tax Due: Once your tax information is entered, the RapidTax application will instantly calculate your 2013 taxes. In the upper right hand corner, you’ll see your refund or tax due total appear.
  4. File Your 2013 Return or Log Out: If you’re not ready to file your 2013 taxes or just wanted to calculate your taxes, log out of your account. If instead, you want to continue on and file your 2013 tax return, you can continue on with the RapidTax application and submit (and pay) for your tax return. Read the rest of this entry »

Help! I Still Need to File My 2013 Taxes!

Posted by Tax Advisor on January 15th, 2015
Last modified: January 26, 2015

Still need to file 2013 taxes? Luckily, you can file a late 2013 tax return online with RapidTax!

The 2015 Tax Season is here and it’s time to file your 2014 tax return. There’s only one problem- you still haven’t filed your 2013 tax return.

You desperately need to file your 2013 taxes but somehow continue to put it off.

Sound familiar? You’re not alone. Filing taxes, especially late taxes can seem overwhelming, time consuming and draining.

Rather than trying to file your late 2013 tax return yourself , you can pay an accountant outrageous fees to do it for you. Don’t waste your time or money. Instead, file your 2013 taxes online with RapidTax and have it completed within 15 minutes.

Will I Have To Pay Late Fees for Filing My 2013 Taxes Late?

If the IRS owes you a refund from your 2013 tax return, you won’t have to pay any late fees.

However, you will be penalized if you have tax due. There’s two IRS late fees you could end up facing;

  • Late-Filing Penalty: For every month your tax return has gone un-filed, there’s a penalty of 5% of your tax bill amount, up to a maximum of 25% (the minimum penalty is $135).

  • Late-Payment Penalty: For every month your tax bill goes unpaid, there’s a fee totalling .5% (½ of 1%) of your tax bill.

That’s a lot of extra money you’re giving away to the IRS. Read the rest of this entry »

Do I Need To File a 2014 Tax Return?

Posted by Tax Advisor on January 5th, 2015
Last modified: January 22, 2015

Learn if you’re required to file a 2014 Tax Return…

Tax Season 2015 is here. As of January 20, 2015  you can e-file your 2014 Tax Return on RapidTax!

However, you may be unsure whether or not you need to go to the effort of filing a 2014 Tax Return. You should first know that the requirement to file a federal tax return depends on your;

  • filing status
  • age
  • income
  • dependency status
  • other unique circumstances

2014 Tax Return Coupon

 

Does Your Income Require Your To File a 2014 Tax Return?

If you’re under 65 and you earned the following income (or more), you’re required to file a 2014 Tax Return;

  • Single: $10,150
  • Head of Household: $13,050
  • Married Filing Jointly: $20,300
  • Married Filing Separately: $3,950
  • Qualifying Widow(er): $16,350

If you are 65 or older and you earned the following income (or more), you’re required to file a 2014 Tax Return:

  • Single: $11,700
  • Head of Household: $14,600
  • Married Filing Jointly: $21,500
  • Married Filing Separately: $3,950
  • Qualifying Widow(er): $17,550

If you are being claimed as a dependent and you earned more than $6,100 in 2014, then you’ll need to file a tax return. Read the rest of this entry »

When Is My Tax Return Free on RapidTax?

Posted by Tax Advisor on December 19th, 2014
Last modified: January 22, 2015

Wondering how to file your tax return free this year? Look no further. You might be eligible to file taxes online free with RapidTax!

If you’re like the majority of us, you most likely dread filing taxes. Even if you’re filing online, there’s something obnoxiously annoying about the annual IRS filing requirement.

Even worse than being forced to file your taxes is being forced to overpay to file your 2014 taxes.

Luckily, RapidTax offers online tax filing free for some filers. Depending on your filing status and what information your reporting will determine whether or not you’ll face a small (we promise) fee.

Who Qualifies for Free Tax Filing on RapidTax?

You may be able to file your taxes online free with RapidTax! You’ll be able to file free if:

  • your filing status is single or married filing separately
  • you have no dependents to report
  • you’re taking the standard deduction
  • you aren’t reporting any above-the-line deductions
  • the only credit you’re claiming is the Earned Income Credit (without a qualifying child) or you’re not claiming any credits at all Read the rest of this entry »

Exemptions From the Obamacare Fee

Posted by Tax Advisor on December 11th, 2014
Last modified: January 9, 2015

Don’t have Health Insurance? You may fall within the Exemptions from the Obamacare Fee…

Although 8 million more Americans are now insured thanks to the Affordable Care Act (ACA), there’s still many who remain uninsured. These uninsured Americans fall into one of two categories;

  1. those who will face penalties or
  2. those who qualify for an exemption.

That means, if you don’t plan on paying the uninsured fee when filing your 2014 taxes, you’ll need proof that you fall on the list of health insurance mandate exemptions.

Exemptions from the Fee for Not Having Health Insurance

If you fall within any of the following categories for 2014, you most likely qualify as an exemption;

  • you were uninsured for less than 3 months of the year
  • you have an approved religious objection to health care coverage
  • your yearly income is below the threshold to file a tax return
  • you went without coverage for less than 3 consecutive months during the year
  • coverage was unaffordable and you have premiums totaling more than 8% of your annual household income
  • you’re a member of a recognized health care sharing ministry
  • you’re a member of a federally recognized tribe (or eligible for services through an Indian Health Service provider)
  • you’re not lawfully present in the US
  • you’re incarcerated (detained or jailed) and not being held pending disposition of charges
  • you qualify for a hardship exemption Read the rest of this entry »

I Don’t Have Health Insurance- What Happens When I File Taxes?

Posted by Tax Advisor on December 11th, 2014
Last modified: January 9, 2015

If you don’t have insurance you’ll face penalties under ACA when filing your 2014 Taxes.

Obamacare aka The Affordable Care Act requires you and each member of your family to have basic health coverage. This insurance coverage can be through any of the following;

  1. employer-sponsored plan
  2. private health insurance company
  3. government program (ie. Medicare or Medicaid)
  4. federal or state marketplace (health insurance exchange)

If you don’t have health insurance under one of the four sources mentioned above, you’ll be forced to pay a fee when filing your taxes in 2015. The only way to get around this fee is if you qualify as an exemption.

2014 Tax Return Coupon

You’ll be Forced to Pay a Penalty

If you’re not exempt from buying health insurance, you’ll be forced to pay a penalty when you file your 2014 Tax Return. This payment is called the Individual Shared Responsibility and will total the greater of;

  • $95/ per adult + $47.50 per child (up to $285 per family)

OR

How do I Report Health Insurance Through My Employer on My Taxes?

Posted by Tax Advisor on December 10th, 2014
Last modified: January 9, 2015

If you received insurance coverage through your employer in 2014, it will be reported in Box 12 of your W-2 Form.

Obamacare – also known as the Affordable Care Act, or the ACA – is a law enacted to ensure that all Americans can afford health insurance. It also requires Americans to have qualified health insurance as of January 1, 2014 through one of the following forms of coverage;

  • employer-sponsored plan
  • private health insurance company
  • government program (ie. Medicare or Medicaid)
  • federal or state marketplace (health insurance exchange)

If you received health coverage through your employer, the insurance information that you’ll need to report on your 2014 taxes will be found on your W-2 Form.

If you didn’t receive insurance through your employer and instead were enrolled in the Marketplace during 2014, visit the RapidTax Blog post “ I’m Enrolled in Obamacare Marketplace- How Do I Report it On My Taxes?”.

2014 Tax Return Coupon

Reporting Employer-Sponsored Health Coverage on 2014 Taxes

If you received insurance coverage through your employer in 2014, follow these steps;

1. By the end of January 2015, you’ll receive a Form W-2. You may also receive a 1095-C. Hold onto each of these.

2. Your employer is not required to send you Form 1095-C. If they do, you’ll notice your health insurance information listed. You may want to review this form. Next year, you’ll definitely receive one. Read the rest of this entry »

I’m Enrolled in Obamacare Marketplace- How Do I Report it On My Taxes?

Posted by Tax Advisor on December 9th, 2014
Last modified: January 9, 2015

Enrolled in the Health Insurance Marketplace? Here’s how you’ll report your coverage on your 2014 Taxes

Obamacare – also known as the Affordable Care Act, or the ACA – is a law enacted to ensure that all Americans can afford health insurance.

If you enrolled in the Obamacare Marketplace, you’ll need to report it on your 2014 Tax Return. The information you report will directly impact your tax refund.

Below, you’ll find out how to report your health care insurance that you purchased through the marketplace on your 2014 taxes.

2014 Tax Return Coupon

Reporting Obamacare on 2014 Tax Return

If you purchased your health care insurance through the marketplace for 2014, refer to the following steps;

  1. By the end of January 2015, you’ll receive a Form 1095-A in the mail. Don’t throw this form away! You’ll need it in order to complete your 2014 tax return.

  2. Look over the Form 1095-A. The following information will be reported;

  • effective date
  • the total amount of your premium through the Health Insurance Marketplace
  • the total premium assistance you received (aka the advanced payments of the premium tax credit paid directly to your insurance company to lower your out-of-pocket monthly premiums)
  1. Once you’re ready to prepare your 2014 taxes, have your Form 1095-A (and any other tax documents) on hand. Read the rest of this entry »