FILING TAXES

Some taxpayers without bank accounts may have a way to receive tax refunds electronically in the coming weeks, according to the U.S. Treasury Department. It announced on Thursday that it plans to provide tax refunds to people without bank accounts by issuing them as credits to their debit cards.

Debit Cards Easier and Cheaper for “Unbanked”

Taxpayers who tend to prolong filing until the very last minute on April 15 can breathe a sigh of relief this year because all Americans have been granted three extra days to file. The Internal Revenue Service announced on Tuesday that it plans to move the tax filing deadline to April 18 this year to celebrate a holiday in the District of Columbia.

D.C. Holiday Spares Procrastinating Taxpayers

Taxpayers who were looking forward to the H&R Block refund-anticipation loan (RAL) shortly after the new year may be disappointed to learn the company will no longer be able to provide it. According to an announcement from the U.S. tax preparer, HSBC Holdings Plc will no longer provide funding for the loans after U.S. regulators ordered the lender to terminate its contract with H&R Block.

Lawsuit Ends in Terminated Contract

It’s already the end of the year (where did the time go, right?), which means it’s also time to put together some year-end tax strategies that will help place you in a good financial position for when it’s time to file for the 2010 tax year. There are so many considerations, including how your taxes will be affected if Bush tax cuts expire on Dec. 31, 2010. That’s why it’s good to do your tax planning now.

To help you get started, we will first look at some general year-end tax strategies that would apply according to current tax standards. Then we can zero in on how your taxes might be affected (and what strategies you could consider) if the Bush cuts actually do expire.

If you’ve ever made a profit on an investment, chances are you’ve paid a capital gains tax. Simply put, a capital gain is the profit an investor makes from their investment and a capital gains tax is the tax on that profit. Depending on your income tax bracket and the length of period that you held that investment, the capital gains tax on the money you made could very quickly curb your excitement over a significant return.

In fact, the capital gains tax rates are expected to increase after 2010, due in large part to the pending expiration of the Bush tax cuts from 2003. The rate applies to any investment–most commonly stocks, bonds, commodities and property–where the purchaser bought the asset at a lower price than what it is sold it for. Dividends are also eligible to be taxed as well, although at a different rate.

It’s no doubt the United States, despite its own quirky complications, can sometimes appear pretty normal in comparison to the things that go on in other countries. Take taxes–even when it comes to the most mundane of topics, our neighbors overseas can come up with hilariously bizarre charges and fines (like Sweden’s Stripper Tax).

But what about here at home? It’s not just the crazy foreigners that are coming up with the strangest taxes. We Americans seem to be just as “creative.” From sales and use to tax deductions, the following is a list of the weirdest, wackiest and downright head-scratching tax laws by state.

What is a financial professional? The term loosely covers anyone that works in an industry dealing with, well, finance. This could be someone as prominent as a stock broker on Wall Street or someone as common as your local insurance agent or tax accountant. Knowing the area of expertise each one deals with will help you pinpoint the right hire to help you meet your financial goals. After all, you wouldn’t have your insurance representative do your taxes or your CPA accountant picking your stocks.

The following is a simple break down of five of the most common industry professionals working in finance. While some responsibilities do blend together and some professionals do double dip in expertise, this guide should help clarify where each professional fits in the world of finance.

Filing taxes next year will be a little bit more work for those doing it the old-fashioned way. The IRS has decided to no longer send paper forms to taxpayer mailboxes. According to the government agency, because filing electronic forms has become so popular, it will no longer automatically mail a traditional form to your home.

More People Choosing to E-File

Nothing strikes more fear in the hearts of hardworking taxpayers than the thought of a tax audit. It’s essentially like going to the dentist, but instead of your mouth, it’s your entire financial existence that’s vulnerable. There’s no hiding from the tax man, and like the dentist, any cavities that they find in your record books is sure to cost you.

So what’s the good news? Well, chances are the Internal Revenue Service won’t be calling on you anytime soon. In 2009, less than one percent of those that made under $200,000 received a tax audit. Those that made more were audited at a rate nearly three-times that. If you made over $1 million, you might as well have walked around with a target on your back because over 6 percent of you were audited.

This guest post is from Ron Haynes, the owner and editor of The Wisdom Journal where he writes about making wise choices, improving your finances and living a better life. You can follow him on Twitter at wisdomjournal.

You DO know what a W-4 is, don’t you? Most people know about their W-2 since that’s what they see each year in January or when they file their tax return, but you may only see a W-4 when you start a new job. Your W-4 is the form you fill out to declare how much tax should be withheld from your paycheck.