Do you owe taxes with your tax return this year? Here are some useful tips you should know before you file:
- Never send cash.
- If you e-file, you can file and pay in a single step with an electronic funds withdrawal. Ask your preparer to make your tax payment electronically.
- You can pay taxes electronically 24/7 on IRS.gov. Just click on the ‘Payments’ tab near the top left of the home page for details.
- You can also pay by check or money order. Make your check or money order payable to the “United States Treasury.”
- Whether you e-file your tax return or file on paper, you can also pay with a credit or debit card. The company that processes your payment will charge a processing fee.
- You may be able to deduct the credit or debit card processing fee on next year’s return. It’s claimed on Schedule A, Itemized Deductions. The fee is a miscellaneous itemized deduction subject to the 2 percent limit.
- Be sure to write your name, address and daytime phone number on the front of your payment. Also, write the tax year, form number you are filing and your Social Security number.
- Complete Form 1040-V, Payment Voucher, and mail it with your tax return and payment to the IRS.
- Remember to enclose your payment with your tax return but do not staple it to any tax form.
For more information please contact Westmusa.
Here are eight things you should know about deducting your gifts to charity:
- If you want to deduct your gift, you need to donate to a qualified charity. You can’t deduct gift’s to individuals, political organizations or candidates.
- In order for you to deduct your contributions, you must file Form 1040 and Schedule A itemized deductions with your federal tax return.
- If you get a benefit in return for your contribution, your deduction is limited. You can only deduct the amount of your gift that’s more than the value of what you got in return.
- If you give property instead of cash, the deduction is usually that item’s fair market value. Fair market value is generally the price you would get if you sold the property on the open market.
- Used clothing and household items must generally be in good condition to be deductible. Special rules apply to vehicle donations.
- You must file a form 8283 for noncash charitable contribution for all noncash gifts are more than $5000 for the year.
- You must keep records to prove the amount of the contributions you make during the year. The kind of records depends on the amount and type of your donations. For cash is needed to have a written record with name of the charity, the date and the amount donated. A cell phone bill meets this requirement for text donations if it shows this same information.
- To claim a deduction for donated cash or property of $250 or more, you must have a written statement from the organization. It must show the amount of the donation and a description of any property given. It must also say whether the organization provided any goods or services in exchange for the gift.