How To Pay Taxes Due After The Tax Deadline

Posted by Emma Lawrence on April 17th, 2014

The IRS Failure-to-Pay Penalty is 1/2 of 1% of your taxes due for each month or part of a month after the April 15th due date.

Did you file your taxes by the tax deadline and while doing so were caught off guard by the tax due amount? Maybe you were expecting a tax refund, but instead realized you actually owe the IRS. If you have other bills to pay, this might put you into a sticky situation.

The tax due amount you owe will increase as time passes. If you can’t pay the tax due, the IRS will most likely work with you. Regardless of your tax due amount, be sure that you have filed your taxes. If not, you will face failure-to-file penalties on top of your failure-to-pay penalties.

How much is the penalty for not paying tax due on time?

The IRS failure-to-pay penalty is ½ of 1% of your unpaid taxes for each month or part of a month after the due date. With each month, the penalty adds up and can grow up to 25% of your unpaid taxes. To avoid these extra fees, it’s best to pay your late tax-due amount as soon as possible.

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How to File a Tax Extension on Your Mobile Phone or Tablet

Posted by Tax Advisor on April 14th, 2014

File a tax extension before midnight on April 15th and you’ll have until October 15th to file your 2013 tax return!

Are you nervous because the tax filing deadline is here and you are not prepared to file your taxes? Take a deep breath…. it will be okay. Why? Well, you can file a tax extension on RapidTax. Not only that, but you can file a tax extension directly from your phone or tablet.

Can I File a Tax Extension From My Phone on RapidTax.com?

You can in fact file a tax extension on your phone or tablet from RapidTax.com and your tax deadline will be moved from April 15 to October 15.

Wondering how? Simply go to the Create an Account page and clicking “File An IRS Extension” in the “Choose Your Tax Year” drop down menu. If you already created an account, simply pick “File an IRS Extension” from the “Tax Year” drop down menu.

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Tax Filing Tips Every Parent Should Know

Posted by Tax Advisor on April 11th, 2014

If parenthood could be summed up in one word, that word would be responsibility. Being a parent means not only are you responsible for yourself, but also another human being.

With new responsibilities comes new pressures. However, RapidTax wants to help take that pressure off your shoulders, at least when it comes to the responsibility of filing your taxes.  That’s why we have created this list of top tax tips for parents filing taxes. These tips will not only save you money, but also save you time when filing your taxes.

How to Increase your Tax Refund when Claiming Your Child:

The credits below apply to you if you are claiming a child on your taxes. Be sure to read through the entire list or you might mix some extra tax dollars!

1. Each child is a dependent exemption: When filing, each child you claim is counted as a tax exemption of $3900.

2. Claim the Child Tax Credit: For each child you claim (under the age of 17), there is a non-refundable tax credit of $1000. This credit is phased out if your modified adjusted gross income is over $75,000 if your single or over $110,000 if married filing jointly.

3. Child Care is a Tax Credit:  The Child and Dependent Care Credit allows filers to claim up to $1,050 of child care related expenses paid for one qualifying dependent, as long as the child is under 13 years old. Did you spend money on child care expenses for two or more children? You can claim up to $2,100 for two or more dependents with this credit. Read the rest of this entry »

How Can I Find My E-File PIN From Last Year?

Posted by Emma Lawrence on March 28th, 2014

With so many things to remember, you might not remember your E-File Personal Identification Number (PIN).

Remember when you had to memorize phone numbers? Thanks to cell phones, you no longer need to remember a list of phone numbers. Instead,  you now have (so) many account log-ins and passwords to remember- e-mails, twitter, Instagram, online banking accounts, the list goes on and on.

Eventually, you’ll get around to compiling a list of each important electronic account. That point is- with so many electronic usernames to remember- when it’s time to file taxes, most of us can’t seem to remember our e-file personal identification number (PIN). This leaves us all screaming “Help-How can I Find my E-File Pin?”.

RapidTax is here to help you find that darn e-file PIN. That way, filing your 2013 taxes on RapidTax can be a completely smooth, painless task!

You Filed Your 2012 Taxes & Forgot Your PIN:

How To File Taxes for the First Time

Posted by Emma Lawrence on March 18th, 2014

If you’re filing your taxes for the first time, you’re most likely in your twenties, maybe born between 1985-1995 and probably not overly excited about it.

In fact, your parents might have been nagging you since January to file by April 15th. But let’s be honest, you don’t exactly know where to start.

No worries, RapidTax understands and we’re here to help you through the process. If you need to file taxes for the first time, here’s what to do;

Before Filing:

  • Get Organized: Gather your W-2s, 1099s, 1098-E (this shows the interest you paid on student loans), etc.
  • Know Your Filing Status: Your file status will be one of the following; Single, Head of Household, Married Filing Jointly, or Married Filing Separately.
  • Decide if you’re taking the Standard Deduction or Itemizing: Everyone who files has the option to take one of two tax deductions; itemized deductions or the standard deduction. Itemizing deductions means you will list all your eligible deductions, and the combined total is deducted from your taxable income. Most take the standard deduction. This amount depends on your filing status. Read the rest of this entry »

How To File 2010 Taxes in 2014

Posted by Emma Lawrence on March 17th, 2014

It’s 2014- Three years ago today thousands of 2010 tax returns were being filed.

If your 2010 tax return wasn’t one of the returns being filed in 2011, it’s not too late to still claim your 2010 tax refund. However, after April 15, 2014 it will be too late. With that said, you shouldn’t wait any longer to file your 2010 taxes in 2014.

There’s a Three Year Statute of Limitations for Tax Refunds

Thanks to the three year statute of limitations, April 15, 2014 is the last day you can get a 2010 tax refund. After the deadline the IRS will not be issuing 2010 refunds.

Nervous about filing late 2010 tax return? If you’re expecting a 2010 tax refund, you won’t have to face any late penalties or interest. However, if you don’t have a refund coming for you 2010 taxes, you should expect to pay penalties and interest. Not to mention, you should file your 2010 as soon as possible, considering the penalties will continue to increase.

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How To Choose Between Itemizing Deductions or Standard Deduction

Posted by Emma Lawrence on March 10th, 2014

To take the standard deduction or to itemize deductions- that is the question.

If you usually take the standard tax deduction and debating on itemizing your deductions this year, then you might find yourself unsure on what deduction amount to take when filing your taxes. The answer; whatever results in a higher deduction amount.

Before creating an account to file your 2013 taxes, you can first read our guide to help decide if itemizing your deductions or taking the standard deduction is right for you;

1st: Understand if you can take the standard deduction.

Those who don’t qualify for the standard deduction include married couples file separately with one spouse itemizing deductions. In other words, if you are married filing separately and your spouse is itemizing, then you must itemize your deductions.

2nd: Learn your standard deduction amount based on your filing status.

The IRS standard deduction amounts are as follows for those under the age of 65;

  • Single: $6,100
  • Married Filing Jointly: $12,200
  • Head of Household: $8,950
  • Married Filing Separately: $6,100
  • Qualifying Widow(er): $12,200.

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10 Facts To Know Before Taking the Medical Expenses Deduction in 2014

Posted by Emma Lawrence on February 27th, 2014

Medical expenses fall among the list of IRS deductions. Before filing 2013 taxes, first learn if you qualify.

If you are generally healthy then you probably won’t be able to take a medical tax deduction. However, if you racked up countless medical and dental bills over the tax year, you might qualify for the medical expenses deduction.

Whether your deducting medical expenses or not, you can file your taxes on RapidTax. To help your filing process of claiming medical expenses on your 2013 tax return, here’s ten important facts;

1. You must Itemize: Don’t plan on deducting medical expenses if you’re taking the standard deduction. You can only claim a deduction for medical expenses if itemizing your deductions.
2. The AGI threshold has increased to 10%: In the past, if your list of medical expenses totaled a number exceeding 7.5% of your adjusted gross income (AGI), then you could deduct them. Starting on 2013 tax returns, that percentage has increased by 2.5%. Meaning, your total medical expenses must equal at least 10% of your AGI.
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What’s the Difference Between E-Filing and Paper Filing?

Posted by Emma Lawrence on February 26th, 2014

Last year, roughly 113 million people e-filed their federal returns during the tax season. By the end of this year’s tax season, that number will be even larger.

Although e-filing is the most popular way to file, some still wish to paper file their returns. Others, don’t have a choice and are required to paper file. Whether you want or need to paper file, you’ll first have to prepare your tax return(s). With RapidTax, you can prepare your return anytime.

E-Filing in 2014

Want to receive your refund as soon as possible? E-filing is the way to go, and much faster than paper filing. Electronically submitting your tax return is faster than paper filing. The IRS has stated “9 out of 10 e-file tax refunds would be processed within 21 days or less.”

Paper Filing in 2014

Although the majority of filers elect to e-file their tax return, there are the outliers. Some simply prefer taking the responsibility of mailing their tax return over filing online. Others, are required to paper file. The latter group not eligible to e-file include those without income to report (no AGI), those filing prior year tax returns, etc.

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How To Check New York State Refund Status

Posted by Emma Lawrence on February 24th, 2014

New York winters can be tough, checking the status of your NY tax refund shouldn’t be!

If you are a resident of New York State, you might be looking for your NY state tax refund to use towards a trip somewhere warm. After all, it’s been a rough winter in New York– the white-out snowstorms, feet upon feet of snow, freezing temperatures, etc.

If you are in fact eager to know the status of your New York State tax return and when you’ll be receiving that NY refund, you’ll be happy to hear you can check your refund status online. In fact, after you’ve filed with RapidTax, obtaining your refund status is pretty easy!

How Can I Check my New York State Refund Status?

If you filed your NYS tax return, you have the option to check the status of the return online. You’ll first have to wait about a week after filing your return online (if you mailed your return, you’ll have to wait a month). Once the one week (or one month) is up, visit the New York State Department of Taxation and Finance website. After entering your social security number and refund amount, you’ll be able to view the status of your NY tax return. 

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