Free Federal Tax - Free Federal Tax Return Online

The Federal Tax Return Season has started. This year, the government has come up with some measures to help people for smooth filing of tax 1040ez returns for 2010 income. The IRS commissioner recently said that he wants people to take advantage of all the available tax credits offered by the government.

Understanding these tax credits or deductions allowed by the federal government can help you increase the refund amount significantly.

Here are few tips that will help you prepare the 2010 incometax return better -

1. Federal Government last year announced a stimulus package. People who couldn't take advantage of that last year can still do so by filing a one-time recovery rebate credit. You can do that on form 1040, 1040A or 1040EZ.

2. Tax rebates for Mortgage workouts - For most of the homeowners, these mortgage workouts are tax free. So that is another deduction that can be claimed in 2008 federal tax returns.

3. Electronic Filing of returns - IRS is encouraging people to use electronic means to file tax returns. This is beneficial to people as well as to IRS. And that is because this way the manual workload of IRS will reduce since the efiling tax softwares do all the validation, so less chances of human error and since the data is already entered in the system, data entry time is reduced and this way IRS is able to quickly send refunds.

That is the reason that most people who file federal income tax return electronically, they get refunds much quickly than people who file through paper forms.

Labels: Federal Tax Returns

Tax deductions are granted to an individual or a business entity to encourage positive initiatives such as charity and donations, investments, education, and environmental protection. The United States is known for its large number of federal tax deductions.

Federal tax deductions have been implemented to benefit the common man. However, there are instances in which these deductions are manipulated to evade taxes. You already know that claiming more Federal tax deductions is the best way to lower your tax bill. Federal tax deduction maximizer will find and determine which tax deductions are best for your situation.

Here are just 5 Federal tax deductions the deduction maximizer can help you take full advantage:

1. If you own a home Instead of taking the standard deduction, let the deduction maximizer check to see if you could save money by itemizing. If the interest you paid on your mortgage is more than the standard deduction, you would be better off itemizing.


2. State and local taxes Whether you own a home or not, itemizing can still save you lots of money. If you paid State or local taxes, the amount you paid is tax deductible.


3. Charitable donations Money you donated to places such as churches, Red Cross, and other nonprofit organizations qualify as Federal tax deductions.
4. Medical expenses Being able to deduct your medical expenses can be tricky. Let the tax software figure out whether you can use medical expenses as a tax deduction based on your adjusted gross income (AGI).


5. Miscellaneous tax deductions Once you've entered your information as prompted, the deduction maximizer will alert you to any of the over 300 other miscellaneous tax deductions you may qualify for.

Using tax software to find and claim the most Federal tax deductions is easy. Just enter your information when asked, and the tax software will figure out what deductions will save you the most money.

Labels: Federal Tax Deduction