H&R Block At Home Review

Year after year, I had filed my tax returns online with TurboTax and never thought anything of it. My tax situation was pretty simple to understand. I had one job on the books and had enough federal income tax taken out of my weekly checks to receive a nice hefty refund. After about 10 minutes of running through the software, I e-filed and patiently awaited for my refund to be deposited directly into my checking account.

This year, however, I became self-employed, which means my tax classification became a lot more complicated. When you add in the fact that my previous employer wasn't kind enough to send my W-2 on time and that I now pay a boatload of student loan interest every year, the free edition of Turbo Tax wasn't cutting it. For the first time in my life, I decided to file my taxes online with H&R Block at home, and I couldn't be happier.

I decided to sign up for the deluxe edition of H&R Block at home because that was the best one for my needs. In choosing H&R Block, I have the option to either file my taxes online or download their tax software for an online or paper file. The prices for the download are slightly higher, but all H&R Block packages are reasonably priced as follows: (State returns are additional on all plans)

* Free Edition ($0.00 / online only) - Similar to what other free tax filers provide, H&R Block will take you through your return step-by-step and allow you to e-file your return. This edition is best suited for individuals who have one "on the books" job without a lot of investments or real estate to worry about.
* Basic Edition ($14.95 online / $19.95 download) - Nothing special to report here--simply the free version in down-loadable form.
* Deluxe Edition ($29.95 online / $44.95 download) - This was the edition that suited my needs best because I was self-employed, and it provides audit support in case I really messed up somewhere. This edition is also perfect if you are a heavy investor and need to declare your profits and dividends.
* Premium Edition ($49.95 online / $59.95 download) - The premium edition has everything the deluxe edition has plus a few additional features. Two of those features are a live session with an H&R Block tax expert and an extra section for real estate ventures.
* Business Edition ($79.95 / download only) - If you need help with a corporation, LLC, estates, non-profit organizations or other types of businesses, this is the edition for you. H&R Block will also give you business tax advice for future returns.
* Best of Both Edition ($99.95 / online only) - If you are nervous about filing your own taxes, you don't have to be because an H&R Block professional will review the return you put together, make sure it is 100% accurate based on your documents and give you the H&R Block guarantee, which means that if you are penalized by the IRS as a result of the tax professional's mistake, H&R Block will absorb 100% of the costs. Those that are unsure about their taxes can utilize this edition, which should help in preparing your taxes in the future.

When filing with Turbo Tax in previous years, the entire process took me around 30 minutes from start to finish. A lot of that had to do with the simplicity of my filing status. Only reporting once source of revenue, a few deductions and a credit or two rapped things up pretty quickly. When filing for the first time with H&R Block, I expected the process to be much longer, and it was. Almost two hours long.

Even though it took a good amount of my time to complete, there was not a single instance of confusion or perplexity because every minor detail had an FAQ section and recommendations were made to questions I had not been asked on previous returns. The process was very straightforward and was split into four sections.

1. Personal Information - You can't do anything these days without the basics and entering your general personal information is a cinch. Nothing out of the ordinary and in 5 minutes it's time to get to the meat and potatoes.
2. Income- I had two forms of income this year, one coming from a 9-5 job and the other coming from my contracting work after leaving the office for good. Entering my W-2 was painless and entering my 1099 was also easy. With each new document that I entered, my refund meter continued to change positively and negatively. I was terrified to see at one point in the process, I owed the government money!
3. Deductions - Never being one to deduct much, this year wasn't any different, and I once again claimed a standard deduction. Now being self-employed, almost assuredly for the entire year, I will need to think about claiming some home office deductions and such, but I still don't think it will be enough to get over the "hump".
4. Credits- Finally, the most exciting of all tax return sections is the credits section because it changes every year. H&R Block took me through pages and pages worth of available credits, some of which I had no idea existed and even though I didn't qualify for any of them, I'm already thinking of ways that I can next year!

After finishing up everything above, I was given a page which summarized my tax return. The summary showed me the amount of federal taxes I already paid for the year, what I still owed, the amount of self-employment tax (I hate that tax!) that I needed to pay, the amount of my deductions and credits, then finally the number that mattered, my refund. Extremely satisfied with what I saw, I e-filed the return and 12 hours later, they were accepted by the IRS. According to the refund schedule, I am due to receive my direct deposit refund on Friday the 12th. Wooo-Hooo!



Having used H&R Block, I have the freedom to log in and out of my account (landing page above) and review my returns. Printing them was a snap and even though the process took longer than I anticipated, it was so easy that I didn't mind at all. Using another tax software may have been just as easy but for me, the price was right and the service was fantastic. H&R Block will definitely be getting by business in 2010 and beyond.

Best Online Checking Account Rates – Extra Cash Return from your IRS Tax Filing

If you are getting an extra cash return from your IRS tax filing then you will want to put this money somewhere that is gaining interest. They will be watched do research on the best online checking account rates. At the present time there are many local community banks that are offering rates as high as 5.25%.


Most people do not realize that there are banks that are offering interest rates this high on checking accounts but they do exist. It will be wise to do your research before deciding which bank to choose as some of these bank accounts are only available to local residents.

Unfortunately, if you do not live in a specific area in the country you will not have access to these high interest rates. Please understand that there is nothing you can do about this but research the community banks in your area that are offering high interest rates. Getting a high yield on the checking account is something that could be very beneficial in the future.

By compounding interest on the money that you have earned you could see your wealth grow very quickly. Having an interest rate as high as 5% will allow this money to grow much quicker than if you had a lower interest rate from a national bank. Make sure to do your research today is there are opportunities out there.

Taking on the IRS when you're in the right

“You’ve been audited.”

A scary phrase, for sure.

Marti Caito was certainly spooked when the IRS told her she didn’t qualify for the First Time Homebuyer Tax Credit.

‘‘I thought I did all my homework, and I did," Caito said.

Caito and her tax preparer were convinced she qualified for the credit, worth $7,500, and they put up their dukes for a fight.


BUYING A HOME

Marti Caito was a renter.

When the 59-year-old Somerset County massage therapist heard about the first-time homebuyer tax credit, she decided to take the plunge and buy a home.

For months, she looked. She looked at condos. She looked at townhouses. None was quite right. Then someone told her about a nearby mobile home park, and Caito did a drive-by.

‘‘I thought, ‘Wow, some of these are really nice,’"she said.

Her research began. She found a single-and-a-half mobile home, equipped with central heat and air, two bedrooms and two baths. She learned about leasing the land, and that payments would cover snow removal, trash pickup and other amenities.

But would a mobile home qualify for the tax credit?

‘‘I looked up the law," Caito said. "Mobile homes were on the list for the tax credit or else I probably wouldn’t have made that move.’’

She paid $75,000 cash on Aug. 1, 2009, expecting to receive back 10 percent of the purchase price, or $7,500, when she filed her tax return.

Taxpayers are permitted to take the credit for homes purchased in 2009 on their 2008 tax returns, so Caito had previously filed for an extension on 2008. On Aug. 18, 2009, she filed that return.

Then in October, Caito received notice the IRS was questioning the credit.


THE NOTICES

Caito brought to her tax preparer the IRS paperwork, which requested, among other things, a HUD statement.

But there was no HUD statement. Instead, mobile homebuyers have to file a title change with the Motor Vehicle Commission.

This is something the IRS examiner seems to have missed.

‘‘I knew when they wanted a copy of the HUD that it might be a problem, even though the law specifically allows for the transfer of a motor home and addresses the issue,’’ said Gail Rosen, the Martinsville-based certified public accountant who filed Caito’s return.

On its website, the IRS even lists what’s necessary:

‘‘For purchasers of mobile homes who are unable to get a (HUD) settlement statement, a copy of the executed retail sales contract showing all parties’ names and signatures, property address, purchase price and date of purchase.’’

No problem. Rosen sent back to the IRS everything it required.

For the next several months, Rosen contacted the IRS on Caito’s behalf. Her account was strangely in flux. At times, the credit showed on her account, yet Caito continued receiving notices saying otherwise.

It seemed the IRS couldn’t make up its mind.

Rosen’s office contacted the Taxpayer Advocate Service, an independent organization within the IRS charged with helping taxpayers ‘‘who are experiencing economic harm, who are seeking help in resolving problems with the IRS, or who believe that an IRS system or procedure is not working as it should,’’ as described on the IRS website. Before the service will kick in, a taxpayer has to first try to resolve tax problems "through normal IRS channels."

It told Rosen the credit was on Caito’s account, though the credit was on hold. Because no final decision had been made on Caito’s account, it was too soon for the advocate to step in, and Rosen had to continue to work "through normal IRS channels."

That final decision came in late December, when Caito received a notice of deficiency stating she was not entitled to the credit and owed $7,500 in taxes.

On Jan. 12, Rosen filed an appeal in tax court, and they contacted Bamboozled.


THE LAW IS CLEAR

IRS rules are quite clear. Caito’s request for the credit should have been a slam dunk.

We did some asking around.

The Motor Vehicle Commission hadn’t heard a story like Caito’s before, and it couldn’t help because it issues titles on mobile home sales but has nothing to do with settlement statements,

The Department of Transportation told us to check with the Department of Housing and Urban Development. HUD repeated to us the same IRS rules.

So Bamboozled called the IRS to see if something could be done to help Caito, who, from what we could tell, absolutely qualifies for the credit. The IRS, which won’t discuss the particulars of any taxpayer for privacy reasons, suggested Caito to contact the Taxpayer Advocate for further review.

So Rosen called again, and this time, Caito’s case was officially opened, and in seven to 10 days she should hear something from the advocate’s office.

Caito is hopeful, but she’s still worried.

‘‘I had all my bases covered and I didn’t think it was going to be an issue,’’ said Caito, who planned to put the $7,500 into her retirement nest egg. ‘‘It’s just very disheartening. I don’t know what else I could have done.’’


FIGHTING THE IRS

Caito couldn’t have done anything else. She and her tax preparer believe Caito qualifies, so they’re not giving up the fight.

That’s the right thing to do.

If you feel you’re due a credit, fight for it. Don’t avoid the credit or roll over because you’re worried the IRS may ask questions. Like it or not, that’s the IRS’ job. (Many fraudsters have tried to take advantage of this tax credit, so the IRS is on high alert.)

Yes, the fight may cost you some money. Caito is paying Rosen for her time and efforts, and if her case goes to tax court, it will cost more.

Kudos to Caito for taking a stand. We’ll let you what happens.


Have you been Bamboozled? Contact Karin Price Mueller at bamboozled@starledger.com.

Fast Cash Payday Loans – Need Extra Money to Pay Government IRS Taxes?

Do you need extra money to help pay government by IRS taxes? If the answer is yes to this question than you may want to seek some loan types to help you with money. One loan type that will help you with cash very quickly is that fast cash payday loan. It is important to understand that you must need money now to pay government IRS taxes if you are looking to get a payday loan.


The reason that you must need the money now to make these government tax payments is because a bad credit payday loan requires that you pay this loan back with your next paycheck. In more words or less, you are going to have this money with your next paycheck so there is no reason to take a loan out now unless you absolutely have to pay the IRS immediately.

With most taxes being due by the middle of April it is often the case that you can wait to pay. If this is the case you may want to consider other loan types including bad credit unsecured personal loans. These loans will allow you to borrow a significant amount more money and you can pay it back in monthly installments rather than with your next paycheck.

If you have done your government IRS taxes and you have found that you owe the federal government money then you want to do what it takes to make sure this is paid. Having a bad relationship with the IRS is never a good thing and you want to make sure to avoid this by paying your taxes in full.

Money Market Savings Account Yields – Extra Government IRS Tax Return Cash

If you are getting extra government IRS tax return cash in the next few months then you may want to think about doing research on money market savings account yields. At the present time there are many money market accounts that are willing to give you a yield above 1.25%.


While money market accounts are not the highest yield you will receive they are one of the safest investments. While the stock market fluctuates up and down you will know exactly what return you are going to get on the money market savings account. If you are risk-averse investor this might be where you want to sink your government IRS tax return.

Pres. Obama and his staff have worked very hard to make sure that Americans receive as much money back in taxes this year as possible. When you finish your government IRS tax return you could find that you get back more money than you expected. If this is the case you want to do something wise with that money.

Something that would behoove many Americans is to invest it into an account that is receiving some type of yield. Putting your money into a money market account could get you a yield as high as 1.5% and this money will be safe.

Soda tax fizzles as support sours

— The soft drink industry has worked to smother a proposal to tax sugared beverages, a plan advocates said would have reduced obesity and helped finance health care reform.

Only months ago, supporters of the soda tax saw it as an idea whose hour was near. The sheer magnitude of the medical cost of obesity added urgency to the issue: Being overweight is so widespread and so closely tied to diabetes, heart disease and other health problems that this generation of young people may be the first in the U.S. to live shorter lives than their parents.

But opponents questioned any link between sugary drinks and obesity, and expressed concern about a slippery slope of taxes on other products.

Proponents, meanwhile, thought a tax that drove down consumption while raising money for health care seemed like a natural with Democrats controlling Congress.

The White House has dismissed the idea, however, even after President Barack Obama had expressed interest last summer. A key congressional committee, though initially seeming receptive, ended up refusing to consider it. Several minority advocacy groups, including some committed to fighting obesity, lined up against the tax after years of receiving financial support from the industry.

First lady Michelle Obama, who consulted with fast-food and soft drink representatives on her new healthy eating initiative, scheduled for unveiling Tuesday, is expected to steer clear of taxes.

Meanwhile, beverage lobbyists attacked several nutrition scientists, accusing them of bias and distorting available evidence. The beverage industry also financed research that reached conclusions favorable to its position.

No one underestimated the difficulty of getting new taxes approved, but Rep. Linda Sanchez, D-Calif., a member of the tax-writing House Ways and Means Committee, said, "We thought we had a chance to punch through."

Targeting the tax writers

From the beginning, fast-food and beverage company executives were uneasy about Obama. There was widespread concern that the promised Obama health care initiative might include taxes or other incentives to reduce consumption of fast food and high-calorie beverages.

A big push in Washington, coupled with similar initiatives under way in such states as California, raised the specter of a full-scale national debate on sweetened soft drinks and their effect on health.

Another alarm sounded in May, when the Senate Finance Committee heard testimony from public health advocates who proposed using a soda tax to help finance health care legislation.

Analysts at Yale University have calculated that a penny-an-ounce tax would induce a 23 percent drop in consumption, and the Congressional Budget Office has estimated that a smaller tax could raise $50 billion over 10 years.

A few weeks later, soda tax advocates in the Ways and Means Committee reported initially favorable responses from colleagues during closed-door meetings. And in July, Obama told a Men's Health magazine reporter that such a tax was an "idea we should be exploring."

Sanchez was one of the committee members who pushed for consideration of the idea.

She told a closed-door meeting of committee Democrats that it would be a political winner. "We are on the moral high ground here," she said. "We can improve health outcomes and get more revenue."

At the beginning, several other Democrats expressed support, including six-term Rep. Bill Pascrell of New Jersey and freshman Rep. Allyson Schwartz of Pennsylvania, the daughter of a dentist.

Beverage lobbyists immediately went to work, enlisting other industries as well to pressure Ways and Means members.

"The industries in our coalition realized that this is a slippery slope; that once government reaches into the grocery cart, your business could be next," said Kevin Keane, executive vice president of the American Beverage Association.

The coalition, operating under the name Americans Against Food Taxes, included the soft-drink makers, their suppliers and such chains as McDonald's and Dominos Pizza.

To the surprise of public health analysts, it also included a bevy of Latino groups, among them the Hispanic Alliance for Prosperity, the National Hispana Leadership Institute and the League of United Latin American Citizens.

Most surprising on that list was the National Hispanic Medical Association, which represents 36,000 doctors and focuses on health issues such as obesity-related diabetes, which is hitting Latino youth especially hard.

"Why in the world would a Hispanic health advocacy group do this?" asked Kelly Brownell, the director of Yale University's Rudd Center for Food Policy and Obesity.

Nearly all the Hispanic groups, including the medical association, had received beverage industry money in the past or have industry representatives on their governing boards.

The association's director, Dr. Elena Rios, said the financial support, which amounted to no more than $10,000 from a single company, had nothing to do with the decision to oppose the tax. She and the other Latino groups contend the tax would unfairly burden lower-income consumers. She also said the evidence is not clear that the tax would effectively reduce obesity. On Friday, Rios said her organization had decided to withdraw from the industry coalition.

"It's all about payback," Brownell said, referring to industry donations. "Public health advocates ran into the same phenomena when seeking to increase taxes on tobacco."

The coalition launched an intense lobbying effort, including a $10 million television ad campaign in key markets warning against taxing food. The paper industry, a major supplier of fast-food companies, also contacted members of Congress. Some truckers joined the fight.

Outside of Washington, representatives from Coca-Cola and other companies contacted community groups, mostly in Chicago, Obama's hometown, asking them to join the campaign.

By the time the Democratic caucus held its next closed-door meeting in early summer, the atmosphere had changed, Sanchez said. That assessment was shared by Pascrell and some committee staffers.

Rep. John Lewis, the civil rights pioneer who represents Atlanta, the corporate headquarters of Coca-Cola, argued that the soda tax could lead to taxes on other foods, raising prices for hard-pressed consumers during a severe recession.

Rep. Ron Kind, who represents a rural Wisconsin district where dairy farming is widespread, said he became concerned about the fairness of targeting one industry. Kind had heard from local Pepsi and Coke distributors, and he and other members also received letters from the National Milk Producers Association concerned that the proposed tax could apply to chocolate milk.

"We went from having real interest in this idea to it just falling off the table," Sanchez said. "It was my perception that opposition increased as members began hearing from local businesses" that were part of the beverage industry coalition.

Attacking the science

The soft-drink industry was also waging a long-term war over the scientific evidence linking soda consumption to the nationwide epidemic of obesity.

In a two-pronged campaign, the industry attacked the findings of nutrition scientists and underwrote studies by other scientists whose work was more supportive of beverage companies' claims.

"The soda industry is taking their strategies right out of the tobacco playbook," said Harold Goldstein, who heads the California Center for Public Health Advocacy, which focuses on obesity and other public health issues.

Goldstein recently joined with researchers at UCLA in a survey of 43,000 Californians that found adults who drink one or more sodas per day are 27 percent more likely than non-soda drinkers to be overweight or obese.

"Sugared beverages are the single largest source of sugar added to the American diet," said Yale's Brownell.

But Keane of the American Beverage Association said researchers like Brownell and Goldstein are acting as advocates when they equate the soda industry to tobacco.

"Cigarettes kill. Soda doesn't," Keane said. "They pick and choose the facts that support their view, and they attack anyone who disagrees," including those whose work appears in peer-reviewed journals, Keane said. "It's scientific McCarthyism."

The American Beverage Association Web site for the campaign against the soda tax points to three studies in peer-reviewed journals that dispute a link between soda and obesity.

One was conducted by an author working for Decatur-based Archer Daniels Midland, a major producer of high-fructose corn syrup. Two were conducted by a researcher who now works for the Beverage Association; one of those studies was funded by a grant from the association.

"The researchers worked independently, and their findings were published in a peer-reviewed journal. That's the gold standard in the scientific community," Keane said.

Some of the studies Keane refers to argue that sedentary lifestyles and high-fat diets are more significant causes of obesity. And, largely through reviews of previously published studies, they say that the existing science on soft drinks' role is at best unclear.

Keane also says that soda accounts for just over 5 percent of the average American's calorie intake, and that blaming soda for the obesity epidemic "defies common sense."

Some research suggests that the body has not developed a system for processing sugared beverages, which are densely packed with calories and relatively new to the human diet. One study found that kids who drank soft drinks consumed nearly 200 more calories per day than those who didn't drink sodas.

The beverage industry rejects the argument that liquid calories lead to greater weight gain, pointing to a study conducted by Frank Sacks, a professor in the nutrition department at Harvard School of Public Health. The study sought to determine whether certain diets are more effective than others at achieving weight loss. Sacks concluded that diets that reduce calorie intake result in weight loss, regardless of which calories are cut.

Keane argues that the study proves his point, that "a calorie is a calorie," regardless of whether it's consumed in solid or liquid form.

But Sacks disagrees. "I don't know how they possibly could come up with that kind of interpretation," he said. "There was no testing of sugar-containing beverages, and, in fact, the participants were taught to avoid them."

How to Prevent or Avoid IRS Penalties this Tax Season

With a lackluster economy, unemployment rising, and tax revenues plunging, Uncle Sam would love for you to generate more revenue for him. In fact, the IRS with increased funding has more personnel and capital than ever before, and will issue a penalty whenever you fail to file, fail to pay, or forget to file certain tax forms. Penalties are typically assessed by computers, but IRS personnel can add them to your tax bill as well. During these tough times, there are many things you can do to prevent unnecessary penalties. Below, you find the most common penalties imposed by the IRS and ways you can avoid them.

* Prevent an Unfiled Tax Return – If you cannot pay your total tax bill, still file a tax return. If you fail to file the return, you will be charged five percent per month (up to 25% percent total) on the unpaid tax balance which will only lead to larger tax liabilities. If there are any penalties to avoid, the failure to file penalty is at the top of the list. Even if you do not owe any taxes, there are still many drawbacks to not filing.
* Request An Extension If Needed – If you cannot file by April 15th, you can request an extension by filling out IRS form 4868. This automatic extension will give you until October 15th, 2010 to get your tax return filed. The benefit here again is to avoid the “failure to file” penalty. However, the caveat is that this is an extension to file, but not pay.
* Pay As Much As You Can – If you cannot pay your total tax bill, pay as much as you can to reduce the failure to pay penalty when filing your return. If you are filing a tax extension, it is important to make sure that the IRS has at least ninety percent of your total tax bill. If the IRS does not have at least ninety percent of your actual tax liability, a failure to pay penalty will become applicable on the remaining balance. This penalty starts at a rate of 0.5% per month and can increase to 1% per month if you don’t pay and 10 days have passed after the IRS issues a notice of intent to levy (notice to seize your wages, bank, or property). In addition to the failure to pay penalty, there is an interest rate compounded monthly you must pay on the unpaid balance which for individuals currently stands at four percent (this interest rate can change every quarter as it is influenced by the federal short term interest rate). If you know you will not be able to pay all of your taxes, apply for an IRS Installment Agreement (apply here with the Online Payment Agreement), which will give you the ability to pay off your taxes over a series of monthly payments. The benefit is that the failure to pay penalty could be reduced by 50%.
* Be Accurate and Cognizant – If you are negligent or you substantially understate your tax bill, and you are audited, the IRS can impose a 20% accuracy-related tax penalty on the total underpayment amount. This penalty can not be more than twenty percent but as you can see it is a bit excessive in comparison to other penalties. The moral of the story here, whether you are working with a tax professional or using a software program, is to make sure the information you provide is accurate and not exaggerated.
* Do Not Be Malicious – Yes, no one likes to pay taxes, but fraudulently under-reporting income will lead you into deep water with the IRS. How deep? How does a 75% percent penalty on the tax underpayment amount sound? In fact, this is the harshest of all penalties the IRS will impose, so don’t understate your income!

Overall, the IRS imposes penalties to make sure taxpayers pay, file, be accurate, and honest. Now that you have an understanding of how these penalties work and what you can do to avoid or mitigate them, you can prevent Uncle Sam from getting more than his fair share. Of course, these penalties are to prevent people from intentionally gaming the system, and you can abate these penalties or get them removed or reduced if you have reasonable cause under certain situation. Basically, the IRS will work with you if you are honest, so don’t worry too much.

This is a guest post from Manny Davis, tax accountant and writer for Back Taxes Help, which is a tax settlement firm that specializes in helping taxpayers with major state and Federal tax problems including back tax returns, tax liens, tax levies, irs tax penalties, tax audits and more.