How To Report Side Job Earnings on a Tax Return

Posted by Tax Advisor on October 23rd, 2014
Last modified: October 23, 2014

Even if you didn’t receive a 1099-MISC or W-2, you still need to report side job earnings on a tax return…

If you earned money from a side job and didn’t receive a form 1099-MISC or W-2 form, then you may think you’re off the hook from reporting it on your tax return. Think again.

The IRS requires taxpayers to report all income from any source. Even if it’s from a side job.

In fact, you’ll need to report it as self-employment income on a business tax return (Sch. C).

Reporting Money Earned From Side Jobs

You might be confused and asking “I don’t have a business-Why would I file a business tax return?” According to the IRS, “All income earned through the taxpayer’s business, as an independent contractor or from informal side jobs is self-employment income, which is fully taxable and must be reported on Form 1040.” 

In other words, even if you don’t consider yourself a business owner or self-employed, if you’re 18 years or older, you’ll still need to report income earned from side work as self employment income on a Business Tax Return (even if it’s less than $600).

This includes fees received from;

  • caretaking
  • babysitting
  • tutoring
  • housekeeping
  • dog walking
  • lawn cutting
  • repairing computers
  • working as an independent contractor Read the rest of this entry »

Can I File My 2011 Taxes in 2015?

Posted by Tax Advisor on October 15th, 2014
Last modified: October 15, 2014

File your 2011 taxes by April 15, 2015 to get your refund!

Yes, you can still file your 2011 tax return. Even though you’re filing late (2011 tax returns were originally due on April 15, 2012), you’ll still be able to collect your 2011 tax refund! However, this will change after April 15, 2015.

Thanks to the IRS statute of limitation, you only have three years from the original tax return due date to get your refund. Once the three years passes by, don’t expect to see a penny of your refund money.

This means that the very last day you can file your 2011 taxes and receive your 2011 refund is April 15, 2015. 

If You Still Need To File Your 2011 Taxes & Owe Tax…

If you still need to file your 2011 taxes, you should do so as soon as possible. If you aren’t expecting a 2011 tax refund and instead have tax due, you should keep in mind that failure-to-file fees, failure-to-pay fees and interest increase by the day. The longer you wait, the more you’ll end up paying. Read the rest of this entry »

When Does E-File Begin for 2015?

Posted by Tax Advisor on October 13th, 2014
Last modified: October 13, 2014

You may be wondering how early you can file 2014 taxes…

Last year, tax season started later than usual. Tax filers weren’t able to file a tax return until January 31, 2014.  Cross your fingers that the 2015 tax season won’t follow suit.

The IRS has yet to release the official start of the 2015 tax season for filers to e-file a 2014 tax return, but you can take an educated guess that it will most likely be sometime between the middle and end of January.

You can expect to get started on your 2014 taxes a few weeks before the official start of the 2015 tax season with RapidTax.

It’s also good to keep in mind that regardless of when the 2015 tax season begins, you can plan on the tax deadline to remain at the usual tax day, April 15th. Read the rest of this entry »

Capital Gains Tax 2014

Posted by Tax Advisor on October 10th, 2014
Last modified: October 10, 2014

What You Should Know about 2014 Capital Gain Tax Rates

Did you sell certain assets such as stocks or bonds during the tax year? If so, you’ll need to report it on your tax return as a capital gains.  The tax you pay on it will be dependent on the type of capital gain it is and your income tax bracket.

As of 2013, the capital gains tax rate has become significantly more complicated. Fortunately, RapidTax is here to help clarify how much you’ll need to pay in capital gain tax. We’re also here to help you report your capital gains; both short term and long term.

Difference Between Long Term & Short Term Capital Gains

You may incur capital gains if you sell a certain asset such as;

  • stocks
  • bonds
  • property owned & used for personal purposes
  • property owned & used for investment purposes

Do note however; not all capital gains are the same. The IRS divides capital gains into two categories; short-term and long-term. Short-term and long-term capital gains are taxed differently. Before learning the capital gains rates, you’ll first need to know the difference between the two;

  • Short-term capital gains: assets held for one year or less and sold
  • Long-term capital gains: assets held for longer than one year and sold Read the rest of this entry »

Do Unemployed File Taxes?

Posted by Tax Advisor on September 30th, 2014
Last modified: September 30, 2014

If you’re unemployed, plan to file a 2014 tax return. Unemployment benefits are taxable.

“Do I pay taxes on unemployment benefits?”, “Do I file taxes if I’m unemployed”. If you’re unemployed, these questions may sound familiar.

The answer to both is yes.

The bottom line is this; you’ll need to file a  tax return and report all income received, including any unemployment benefits received.

Being unemployed in 2014 doesn’t mean your free from filing a tax return. You’ll need to report your unemployment compensation sooner or later. It will be to your advantage to get it out of the way on time, during the 2015 tax season.

How to Report Unemployment Benefits on a Tax Return

Any income you received during the tax year counts as income that needs to be reported on a tax return. The IRS considers unemployment benefits as income that must be reported on a tax return. Read the rest of this entry »

How To File State Taxes If You Have Dual State Residency

Posted by Tax Advisor on September 26th, 2014
Last modified: September 26, 2014

If you live in one state and work in another, you’ll need to file two tax returns

When it comes to filing state taxes, it can get confusing, especially if you spend time in multiple states.

You may be wondering if you can even be a resident of two states or if you’ll need to file taxes to more than one state.

The RapidTax team is available to help you with an tax questions you may have. In fact, you’ll be able to report your income from multiple states with RapidTax!

Although it’s not yet time to file a 2014 tax return, it’s good to know what state tax returns you’ll need to file before the start of the 2015 tax season.

There’s a variety of reasons why you consider yourself a resident of more than one state. For example, you could;

  • have moved during the year
  • work in a different state than you live in
  • work in multiple states
  • spend a large amount of time with family or spouse in a different state
  • have multiple houses in various states
  • spend summer in the north and winter in the south (lucky you) Read the rest of this entry »

What are the 2015 Refund Cycle Dates?

Posted by Tax Advisor on September 26th, 2014
Last modified: September 26, 2014

Bookmark this page to refer back to once your 2014 tax return is filed!

In the past, the IRS released a refund cycle chart. This chart allowed tax filers to know exactly when they would receive their tax refund. Sounds helpful, right?

Unfortunately, the IRS no longer posts the refund cycle chart. Luckily, there are charts out there which give a pretty accurate prediction on when you’ll get your refund.

Although the 2015 tax season isn’t even here yet, you may want to know how long it will take to receive your tax refund once you file your 2014 tax return. 

Keep in mind however, these dates are NOT definite. They are only expected dates, based off of previous year trends. Read the rest of this entry »

Can I Still File My 2013 Taxes?

Posted by Tax Advisor on September 22nd, 2014
Last modified: October 16, 2014

Although the Tax Deadline to file 2013 Tax Return has passed, you can still file your 2013 taxes!

The final deadline to e-file 2013 taxes was October 15, 2014. However, you can still prepare a 2013 tax return with RapidTax!

If you requested an extension on your 2013 tax return, and you still haven’t filed your 2013 taxes, you’re officially late. That means you may have to pay penalties and interests.

Avoid Paying Penalties  & Interest

If you have a tax liability from your 2013 taxes, you’ll want to keep in mind that the longer you wait to file, the more you’ll end up paying the IRS in late penalties and interest. Late fees include the failure-to-file penalty, failure-to-pay penalty and interest.

Each of these fees grows larger with every day that your return goes unfiled or your tax liability unpaid. Read the rest of this entry »

You Can Still File A Late 2013 Tax Return

Posted by Tax Advisor on June 18th, 2014
Last modified: October 16, 2014

The October 15th deadline to e-file a 2013 Taxes has passed but you can still prepare your 2013 tax return online. 

The 2014 deadline to file your 2013 taxes by was April 15, 2014. If you missed the deadline and still need to file, you’ll want to do so as soon as possible.

What’s the big deal? Well, the longer you wait to file a late 2013 tax return, the more you’ll end up paying the IRS. If you owe tax, the number is gradually increasing by the day.

Avoiding filing and paying your taxes is like digging your own grave- and you’re just making the situation worse. RapidTax is here to help you file your late 2013 taxes.

Why It’s Best to File Your Late 2013 Taxes Now…

  1. Penalties Increase as Time Passes: If you have a tax liability, then you’re failure-to-file penalties and failure-to-pay penalties are increasing as time passes.
  2. Claim Your Refund Before It’s Too Late: If you’re expecting a refund, the IRS has a three year statute of limitations for claiming tax refunds. Why not claim it now?
  3. Get It Out of the Way Before Tax Season: Not only will you have peace at mind that your 2013 taxes are done, but you’ll be ready for the 2015 tax season. If you have tax due on your 2013 tax return and expecting a refund in the upcoming tax season, you may not be able to collect your 2014 refund if you’re not caught up on your 2013 taxes.

Read the rest of this entry »

Life Changed but your W-4 Didn’t: Why You Need to Update Your W-4 Withholding

Posted by Tax Advisor on June 13th, 2014
Last modified: June 13, 2014

If you paid a large tax liability bill after filing your taxes, you might want to update your W-4 Form.

Are your friends on a summer vacation (thanks to their tax refund checks) while you’re stuck at home because you were forced to write a check for your tax due?

If you ended up writing a large check to the IRS for the total of your tax liability, it’s good to know that you’re (somewhat) in control of  what that total will be next year. Surprisingly, it isn’t some randomly generated number, nor is it based on luck. In fact, it’s linked to the number of allowances listed on your W-4 form. That means, you’ll want to take a look at the number reported on your W-4 Form.

What a W-4 Form Is & How it Affects your Tax Refund

For those of you unsure of what a W-4 form is- it’s one of the forms you were handed upon your first days of employment at your job. To be more precise, a W-4 form is used by your employer to determine the amount of taxes to be withheld from your pay. The number of exemptions claimed on it directly affects your tax refund or tax due.

Read the rest of this entry »