State Tax

Minnesota taxpayers will get more federal tax deductions because of new measure

There’s good financial news for Minnesota taxpayers, concerning their federal tax. The Legislature sent Governor Mark Dayton a bill that’s going to allow about 250,000 Minnesota taxpayers to claim brand new federal tax deductions. These tax deductions will be coming out of their state releases

These federal tax deductions were finalized on Monday when the House of Representatives gave the legislation its final approval. The process was a little difficult and the approval of the new measure sat in the House for a little while. This was due to some Republicans that objected to several of the changes that were made by the Senate from an earlier version of the House bill.

There will be plenty of people that will be eligible to benefits from the new bill that has been passed. Some of those that are eligible for the deductions are teachers who will be able to claim education expenses, homeowners that can take itemized deductions for their mortgage insurance premiums, and also college students that use higher education tuition deductions. Parents can also use the higher education tuition deductions.

Governor Mark Dayton had mentioned that he would gladly sign the bill. Minnesota taxpayers will be happy to know about these federal tax deductions, and should look to see if they are eligible to take advantage of them. Be sure to check if you’re one of the 250,000 or so Minnesota taxpayers that are eligible.

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Posted by Taxmaster - May 5, 2013 at 7:54 pm

Categories: Federal Tax, Income Tax, State Tax   Tags: , , , , , ,

Oregon’s budget increased because of federal tax hike on wealthy

Oregon lawmakers delivered some great financial news this past Friday, allowing some room to breathe with the budget.

The state’s economists have said that the state revenues are supposed to come in at $162 million higher in the latest biennium because of the tax increases on the wealthy that was implemented by Congress. The tax increases will have an effect on filers in 2013, which influenced a sell-off of assets at the end of 2012. This gave a sudden increase to state tax receipts.

The sell-off will eventually lead to a reduction of $75 million in the revenue outlook for the next two years. Adding it up, the lawmakers will have about $88 million more to use for Oregon as they start to develop a budget for the 2013-2015 biennium. This is not a bailout, but rather a difficult choice that had to be made. Oregon has experienced some bad news in its finances in the past four years, and it’s nice to have this good financial news drop on them.

Senate President Peter Courtney mentioned that this forecast is a positive net gain because every single penny will help Oregon, parting the clouds a little to help the sun shine enter.

Overall, Oregon’s state general fund is supposed to hit around $16.6 billion for 2013 through 2015. That’s about a 9% increase from the current budget of $15.2 billion. There’s expected to be larger tax collections in the new few months because of higher earners pushing more of their income into 2012.

 

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Posted by Taxmaster - April 30, 2013 at 7:52 pm

Categories: Federal Tax, Income Tax, State Tax, Tax Law   Tags: , , , , ,

How To Get Best Tax Relief Specialist In USA

Understanding the complicated and highly personalized nature of past due taxes and payments can be overwhelming or intimidating to those who are not familiar with the particularities of the IRS. The IRS is vigilant in their collection policy which makes the entire process even more intimidating. Whereas credit card companies, and other lenders in the same category, will typically absorb at least a portion of the losses when customers don’t pay, the IRS has no such leniency.

In simple tax situations the tax payer can likely handle arranging and understanding the tax laws and payment process. However, the majority of tax situations are endlessly complicated and partnering with a tax relief company is, without a doubt, the best way to ensure your personal situation is accurately, efficiently and professionally handled by people who care about you as well as the resolution of your tax bill. All tax relief companies are not created equal. Before you entrust your finances and IRS communications to a tax relief organization, do your research! Understanding what a tax relief company does, will make it significantly easier to spot ones that should be avoided. Preparing ahead of time will assist you in determining how to get the best tax relief specialists in the USA.

What can a Tax Relief Company do?

First things first, what is a tax relief company? The tax industry is segmented into a variety of professional specialties. Choosing the best company or person to assist you is dependent on the unique circumstances of your tax situation. Accountants and other well-trained individuals can assist you in preparing your taxes for submission and saving you the maximum amount of money. However, if you are already at the point where you owe the IRS than it’s time to consult with a tax relief company.

In most cases, individuals wait until they have received a delinquent tax bill before they turn to a tax relief company (though, if you suspect such a bill is coming save some stress and time by consulting a tax relief specialist early!). Reputable companies will offer a free consultation to discuss your tax dilemmas and personal finances before they take your case. This way, if they cannot be of assistance to you, no time or finances are wasted by consulting them.

Once your case is accepted by a tax relief company they will develop a thorough plan to assist you with the delinquent tax issues and your communication with the IRS. The company of your choosing will be your personal representative when communicating with the IRS which makes it imperative that you disclose all applicable financial details so you receive accurate representation. Having a trained company on your side to act as the IRS Power of Attorney is an immense benefit when you’re trying to understand the complications of tax bills – it’s also why you need to carefully consider which representation you choose.

What Red Flags are there when choosing a Tax Relief Company?

To save yourself all the tax headaches you’re already trying to avoid – do your homework. Unfortunately, the tax industry does have some companies and individuals who are merely trying to make money off a desperate individual a time-sensitive situation. Obviously, such companies do not have your best interests are heart.

When choosing a company it’s crucial to be aware of the following red flags; they indicate everything from poorly managed business to fraudulent companies that you are better off avoiding.

1) Poor Reviews: Always, always, always research the tax relief company you’re interested in online before even arranging a consultation. Consult the Better Business Bureau’s website to see customer feedback. While online reviews can be subjective, multiple bad reports about a company indicate that it’s an organization that would be better to avoid. When you’re working to correct a tax debt you want to choose the best option that is available to you.

2) Premature Guarantees: Make sure the company differentiates between a guarantee of their service or availability and a guarantee about your IRS case results before they see your paperwork. Early guarantees are a marketing ploy to gain customers but are not a valid promise the company can or should make to a potential client.

3) Initial Fees: Do not select a company that charges a large upfront fee. Their goal is to make money before contracting because they will be either unable or unwilling to assist with your case. Some companies may charge a small retainer fee (after the initial consultation), that’s acceptable but always ask to see a complete list of charges per service before contacting with a company. It’s important to understand all the costs associated with hiring a tax relief agency – if they’re exorbitant it may be wiser to deal with the IRS yourself (or, to price shop between companies).

Obviously, working with a tax relief company can be an enormous relief for a client who wants to comply with IRS standards and payment resolution. Once you’ve done your research and selected a reputable company to act on your behalf; you will be guaranteed a dedicated tax relief specialist who will honestly represent you and work to resolve your tax debt with the IRS as rapidly and carefully as possible.

Author Bio: I am Tim from Optima Tax Relief team. You can contact me for more tax relief tips even can arrange a consultation with us. We are here to assist you!

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Posted by Taxmaster - April 30, 2013 at 7:35 pm

Categories: Federal Tax, Income Tax, State Tax   Tags: , ,

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