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Can I use form 1040EZ to file taxes?

20 Jan

If you use software to e-file it will select the right form for you. Filing electronically is the easiest way to file a complete and accurate return. The software asks questions that guide you, minimizes errors and helps you get the tax credits and deductions that you are entitled to claim. If you do file a paper return, here are some tips to help you use the right forms.

You can generally use the 1040EZ if:

  • Your taxable income is below $100,000;
  • Your filing status is single or married filing jointly;
  • You don’t claim dependents; and
  • Your interest income is $1,500 or less.

Note: You can’t use Form 1040EZ to claim the new Premium Tax Credit. You also can’t use this form if you received advance payments of this credit in 2014.

The 1040A may be best for you if:

  • Your taxable income is below $100,000;
  • You have capital gain distributions;
  • You claim certain tax credits; and
  • You claim adjustments to income for IRA contributions and student loan interest.

You must use the 1040 if:

  • Your taxable income is $100,000 or more;
  • You claim itemized deductions;
  • You report self-employment income; or
  • You report income from sale of a property.

This also means that if you take the mileage deduction you can’t use 1040EZ. We recommend however that you use our mileage log calculator and tax filing software to e-file because the time and money savings are worth it.

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Mileage Rate for 2014 is $0.56

12 Jan

The Internal Revenue Service today issued the 2014 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

IRS announced that beginning on Jan. 1, 2014, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 56 cents per mile for business miles driven
  • 23.5 cents per mile driven for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

The business, medical, and moving expense rates decrease one-half cent from the 2013 rates. Of course, taxpayers have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

MileLogr makes it amazingly simple to get mileage logs that let you take advantage of this tax deduction. It connects to your online calendar and uses your appointment information to generate the mileage logs.

You can try MileLogr for free now at www.milelogr.com.

Tax Filing Season Starts Jan. 20. Are you ready?

9 Jan

IRS has a variety of online tools to assist you this filing season. Visit Basic Tools for Tax Professionals for information you need to file returns for your clients and e-Services for Tax Pros a suite of web-based tools that allow you to complete certain transactions online. ACA is a hot topic this year, so bookmark the ACA Information Center for Tax Professionals page. And if you have questions about FATCA, take a look at the Foreign Account Tax Compliance Act page.

And of course, calculate your mileage log using MileLogr to maximize your driving deduction.