Free Tax Tips

Posts Tagged ‘1040’

Question: How do I get the cost basis for mutual fund sale?

I closed a mutual fund last year but all the 1099-B reports is the $ amount I received and the number of shares. Turbotax wants to know the cost basis to determine profit/loss. I had the acct over 10 years – how am I supposed to know this?

Answer: Dear Terra: You have some work to do! The basis for mutual funds is calculated one of two ways (1) actual method (2) average basis. The actual method is adding all of your purchases and coming up with a final cost. The average method is calculated one of two ways, single category or double category. See IRS Pub 564 for further details. Also you will need to subtract any “nondividend distributions” received over the time you have owned the fund to calculate your basis.

This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent Master Tax Advisor

Question: IRS 1040 forms & instructions?

This may seem like a dumb question but I don’t know anything about taxes. All of my tax stuff goes to my grandmas house & she brought the IRS 1040 forms & instructions, she always does my taxes for me. Since I got this book does that mean that she got my W2(not sure if that is what she fills out & sends in)?
So I dont need to do anything with the 1040?

Answer: No, it does not mean that.

The book is sent automatically to whatever address was indicated on the forms filed the previous year, even if there is no W-2.

Homebuyer Tax Credit Closing Deadline Extended

Eligible taxpayers who contracted to buy a home, qualifying for the First-Time Homebuyer Credit, before the end of April now have until Sept. 30, 2010 to close the deal, according to the Internal Revenue Service.

Tax Help : Who Must File a Tax Return?

Question: Help! I got a letter about my taxes I don’t understand! Do I owe, or do they owe me?

I got a letter in the mail today from the IRS (form 2210 & 2008 tax form 1040EZ). I’ve never done my taxes.. I’ve always had someone else do them, and nobody in my family (or I) understand what this thing is talking about.. The form instructions talk about “underpayments” and “penalties”, but the other form they sent that shows my & IRS figures says “Amount of Overpayment: $102″ and “Total amount of refund per this notice (interest added, if any): $102″

Does this mean I owe them $102? Or do they owe me? What am I supposed to do?

Answer: Sounds like they’re sending you $102. Show the person who prepared your taxes all the paperwork. Should be receiving a check in the mail or check your bank for DD of $102.

Don’t be so afraid of taxes. You are a reasonably intelligent adult, and you CAN figure out and file your own 1040EZ. Get the forms and instruction booklet from irs. It’s a short, simple form. Read the instructions and follow them line by line. You can do it and you will be assured that your taxes are properly done.

. . .or Call the number on the notices you received with the paper in hand and ask the IRS about the notices.

1040 ez Instructions Online for 2010, 2011

Question: Is the EIN number on my 1040 tax form my EIN number or the preparer’s number?

Answer: Question: have you eFiled before? Perhaps the IRS is still mailing you the instructions with the blank tax forms enclosed that you needed last year. Your social security number will be on the front of the 1040. If the EIN of your preparer (or previous preparer) is on the back, I don’t know how it could have gotten there.

IRS Tax Tip: Ten Last Minute Filing Tips

With the tax filing deadline close at hand, the IRS offers 10 tips for those still working on their tax returns:

Answers with Ray the CPA Episode 6 Understanding IRS Forms 1040EZ, 1040A, and 1040

Question: form 1040 ES vouchers?

I’m trying to fill out the 2008 1040ES form given this info:
2007Federal AGI: 237,000
2007 Federal Income Tax Liability: 41,500
Anticipated 2009 withholding: 30,000

I’m given a list of estimated tax payments for 4/15/08, 9/15/08, and 1/15/09.
How would I fill out the first voucher that is due 4/15/09? How would I figure my amount of estimated tax I’m paying?
Okay, I mean the 2009 ES

Answer: The hard way involves estimating what the 2009 tax liability will be. If you know that amount, multiply by 90%, subtract $30,000 (the anticipated withholding), and divide the amount that is left by 4. If you do not know the 2009 tax liability, then take the 2008 tax liability, subtract $30,000 (the anticipated withholding), and divide the amount that is left by 4.

Tax Q&A On Withholding, And Spouses Who Live Apart

Tax Q&A On Withholding, And Spouses Who Live Apart