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Nearly One-in-Ten U.S. Adults Aren’t Aware That Deductions Can be Made on Their Tax Returns, Finds New CouponCabin.com Survey

It’s that time of year again. Nope, not spring, but the time when W2s, 1099s and 1040s flood mailboxes and to-do lists. With tax season in full swing, a new CouponCabin.com survey reveals that some Americans may miss money-saving opportunities when filing their taxes. Nearly one-in-ten (8 percent) U.S. adults said they aren’t aware that deductions can be made on their tax returns. In addition, of those eligible for deductions, almost two in five (37 percent) report they will not or are not sure if they will claim multiple deductions on their income tax return this year. This survey was conducted online within the United States by Harris Interactive on behalf of CouponCabin from February 15th-17th, 2012 among 2,550 U.S. adults ages 18 and older.

Missing deduction opportunities could be a result of the large number of U.S. adults who plan to prepare their income taxes without the help of a certified professional. Nearly half (45 percent) (1) said they will prepare their taxes this year by themselves, using online resources, computer software or good old-fashioned pen and paper. More than one-third (38 percent) said they plan to use an accountant or tax professional to file their taxes.

While some aren’t aware of deduction options on their tax returns, others aren’t paying close attention to the calendar. One-in-ten (10 percent) of those who have ever filed income taxes said they have missed the deadline to file income taxes in the past, a mistake that can result in penalties from the IRS.

“Tax season can be a stressful time of year, but it’s important to focus on having your return completed correctly and in a timely manner,” said Jackie Warrick, President and Chief Savings Officer at CouponCabin.com. “Regardless of your plans for filing your return this year, make sure to do the legwork to learn what you may be owed, how you can maximize your refund and to figure out if you can save on the preparation itself.”

Paying attention to tax parameters is essential for an accurate and timely refund, but there are other ways to ensure you’re saving as much money as possible. Warrick offers the following tips for saving a little green before April 17:

• All in the family: Fourteen percent of U.S. adults(1) said they plan to ask a friend or family member to help prepare their taxes this year. Consider asking those who are close to you if they can lend a helping hand. It may make the process easier and can help you save extra dough.

• Use a coupon: Many professional and online tax preparation services offer coupons to help filers save money. Head online to check out the tax preparation offers from services like H&R Block and Turbo Tax on CouponCabin.com.
  

• Seek out free resources: Organizations like VITA (Volunteer Income Tax Assistance) and AARP, among many others, offer complimentary volunteer resources depending on various criteria. Before you file your return, check to see if you qualify for free assistance. http://www.couponcabin.com/blog/post/survey-1-in-10-arent-aware-of-tax-deduction-options
  

Survey Methodology:

This survey was conducted online within the United States by Harris Interactive on behalf of CouponCabin from February 15th-17th, 2012 among 2,550 U.S. adults ages 18 and older. This online survey is not based on a probability sample and therefore, no estimate of theoretical sampling error can be calculated.

About CouponCabin.com

CouponCabin.com is a leading online destination for coupons including online coupon codes, printables, grocery coupons and more. Shoppers have saved nearly $250 million since 2003 and with the largest selection of coupons guaranteed to work, CouponCabin is the best place to start searching for savings. The average user saves $19 in just 80 seconds on the site. With customized email newsletters, browser savings alerts, new coupon alerts and more, shoppers will never miss out on a great deal with CouponCabin. For more information, please visit http://www.CouponCabin.com.

SOURCE CouponCabin.com

At DUNIA, we recommend the use of a certified tax professional who will look out for your interests and ensure your taxes are filed correctly and on time! Happy tax season.

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The Child Tax Credit is available to eligible taxpayers with qualifying children under age 17. The IRS would like you to know these eleven facts about the child tax credit:

1. Amount. With the Child Tax Credit, you may be able to reduce your federal income tax by up to $1,000 for each qualifying child under age 17.

2. Qualification. A qualifying child for this credit is someone who meets the qualifying criteria of seven tests: age, relationship, support, dependent, joint return, citizenship and residence.

3. Age test. To qualify, a child must have been under age 17 – age 16 or younger – at the end of 2011.

4. Relationship test. To claim a child for purposes of the Child Tax Credit, the child must be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister or a descendant of any of these individuals, which includes your grandchild, niece or nephew. An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption.

5. Support test. In order to claim a child for this credit, the child must not have provided more than half of his/her own support.

6. Dependent test. You must claim the child as a dependent on your federal tax return.

7. Joint return test. The qualifying child can not file a joint return for the year (or files it only as a claim for refund).

8. Citizenship test. To meet the citizenship test, the child must be a U.S. citizen, U.S. national or U.S. resident alien.

9. Residence test. The child must have lived with you for more than half of 2011. There are some exceptions to the residence test, found on ir.gov in IRS Publication 972, Child Tax Credit.

10. Limitations. The credit is limited if your modified adjusted gross income is above a certain amount. The amount at which this phase-out begins varies by filing status. For married taxpayers filing a joint return, the phase-out begins at $110,000. For married taxpayers filing a separate return, it begins at $55,000. For all other taxpayers, the phase-out begins at $75,000. In addition, the Child Tax Credit is generally limited by the amount of the income tax and any alternative minimum tax you owe.

11. Additional Child Tax Credit. If the amount of your Child Tax Credit is greater than the amount of income tax you owe, you may be able to claim the Additional Child Tax Credit [according to Investopedia: A refundable credit that can be claimed by taxpayers who are ineligible to claim the full non-refundable child tax credit, because it exceeds their total tax liability. The additional child tax credit was created to reimburse taxpayers for the non-refundable portion of their child tax credit. The additional child tax credit is available to families with three or more qualified children].

Source: IRS Newswire

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A Dunia Magazine article

Photo: Robert Cochrane

E-file. Last year, 112 million people, an estimated 78% of all individual taxpayers used IRS e-file to electronically transmit their tax returns to the IRS. According to the Internal Revenue Service (IRS), more than 1 billion individual tax returns have been safely and securely processed since the nationwide debut of electronic filing in 1990. This number has been rising consistently every year because this method (unlike paper returns) ensures accurate returns, it’s easy, safe and secure, refunds are faster and tax payers who owe the government have more payment options. About three of four taxpayers received a refund last year, the average refund was approximately $2,900.

When? The IRS began accepting e-file returns on Jan. 17, 2012. This year, taxpayers have until Tuesday, April 17 to file their 2011 tax returns and pay any taxes due because April 15 falls on a Sunday, and Emancipation Day, a holiday observed in the District of Columbia, falls this year on Monday, April 16.

Know your options. Tax payers can e-file their taxes themselves or through a tax professional. In general, for people concerned about security, e-file is a safe option as software vendors and paid tax return preparers use the latest encryption technology. Within 48 hours of filing a return, an electronic acknowledgement is issued that the return has been received by the IRS and either accepted or rejected.

Guard your identity. Identity thieves get your personal information by many different means, including stealing your wallet or purse, posing as someone who needs information about you through a phone call or e-mail, looking through your trash for personal information, accessing information you provide to an unsecured Internet site. Victims of identity theft may face several difficulties where their situation is concerned such as:

• Identity thieves may then use a taxpayer’s identity to fraudulently file a tax return and claim a refund.
  
• In other cases, the identity thief uses the taxpayer’s personal information in order to get a job.
  
• That person’s employer may report income earned by them to the IRS using your Social Security number, thus making it appear that you did not report all of your income on your tax return.
  
• The legitimate taxpayer may be unaware that anything has happened until they file their return later in the filing season and it is discovered that two returns have been filed using the same Social Security number.
  
• When this occurs, you should contact the IRS to show that the income is not yours. Your record will be updated to reflect only your information. You will also be asked to submit substantiating documentation to authenticate yourself. That information will be used to minimize this occurrence in future years.
  

Don’t wait, start early. Round up any documents you’ll need when filing your taxes such as receipts, canceled checks and other documents that support income or deductions you’re claiming on your return. Put your records together and be on the lookout for W-2s (Employers are supposed to mail out or deliver the Form W-2 by January 31st), 1099s and other important tax documents from mortgage servicers, bank interest, student loan interest, etc.

What’s on the table? This year, you should take advantage of a wide range of tax-saving opportunities, such as the American opportunity credit for parents and college students, and the child tax credit and expanded earned income tax credit for low- and moderate-income workers. Consult with a tax professional to ensure you receive all exemptions, credits and deductions you may qualify for.

Take stock of last year’s situation. In November 2011, the Internal Revenue Service announced that it is looking to return $153.3 million in undelivered tax refund checks. In all, 99,123 taxpayers were due refund checks last year averaging $1,547 that could not be delivered because of mailing address errors. Taxpayers who believe their refund check may have been returned to the IRS as undelivered should use the “Where’s My Refund?” tool on IRS.gov. The tool will provide the status of their refund and, in some cases, instructions on how to resolve delivery problems. Taxpayers checking on a refund over the phone will receive instructions on how to update their addresses. Taxpayers can access a telephone version of “Where’s My Refund?” by calling 1-800-829-1954. While only a small percentage of checks mailed out by the IRS are returned as undelivered, taxpayers can put an end to lost, stolen or undelivered checks by choosing direct deposit when they file either paper or electronic returns. Last year, more than 78.4 million taxpayers chose to receive their refund through direct deposit.

Have a fantastic season!

Information source: Internal Revenue Service

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6 EcoChi® Tips for the New Year

Each new year brings the thought of resolutions, many of which last little more than a few weeks. “Life in the new year will be lived the way it is designed,” says Debra Duneier, certified eco-designer, feng shui master practitioner and author of EcoChi: Designing the Human Experience (www.ecochi.com). “Prepare your home, as well as your mind and body, to attract the things you desire in your life,” Duneier says. Where do you start? Follow these simple steps and enjoy a healthy, happy and prosperous year:

Declutter
Clean, declutter and beautify your home. This changes the energy and prepares the space to celebrate the wonderful things that are about to come into your life.

Stop leaks
Seal any air leaks around doorways, windows and ductwork in your home. This simple step will reduce energy usage by up to 20 percent. “One weekend with a tube of caulk will help keep you and your wallet warm,” says Duneier.

Say “no” to plastics
Avoid plastic bottles, especially for drinking water. Some plastics leech bisphenol A (BPA) when exposed to heat. This compound mimics estrogen and has adverse effects on our hormones.

Rethink food
Instead of focusing on diets, create a healthier relationship with food. Healthy food increases your energy level and encourages better choices throughout the day. Diet obsessions keep your mind on a scale rather than on enjoying life.

Red bird
Your home should be your “red bird” so that it reflects your promising future. Introduce the color red to your home through fresh flowers or decorative pillows. This auspicious color is sure to set the atmosphere for a promising new year.

Invite energy in
If you are home when the new year arrives, open your front door to allow this new energy to enter. Fresh air brings with it fresh beginnings.

By making these changes, you’ve set a stage that welcomes new energy. You’ll find enjoyment in the comfort it brings and set the tone for a healthier and happier you. To learn more about the EcoChi philosophy, visit www.ecochi.com.

About the Author: Debra Duneier is the author of EcoChi: Designing the Human Experience, a feng shui master practitioner, an accredited LEED® Green Associate and certified eco-designer.

SOURCE Debra Duneier

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