Tax Tips:
Prepare your Taxes now and Get rapid online tax refund

How to Choose Tax Software

  1. Check reviews in computer magazines and on the Internet to narrow your choices.
  2. Compare features and prices of programs.
  3. Compare charges for online filing.
  4. Find out if the program generates state tax returns or if you have to pay extra for state income tax software.
  5. Buy a deluxe version of a program if you want tax advice, IRS publications, and other information along with accurate form preparation.
  6. See if the program will integrate with your personal financial management software (such as Quicken or Microsoft Money), if that will help you.

Tips:

You might be able to deduct the cost of your tax preparation software from your federal income taxes.

Some services allow you to prepare and file your return from their Web site for a fee.

If your taxes are basic, you won’t save that much time by doing them electronically.

Tax Tips before Filling E-Return

What is E-sign and how it is benefited?

Digital signature to file your return is known as e-sign. The major benefits of e-file with an Electronic Signature: It’s simple! Create your own PIN using any 5 digits. No registration required. No calls to the IRS to get a PIN. No paper signature document to mail in. Proof of Acceptance! Use it as your electronic signature. Your tax software will guide you through the process. Your tax professional can tell you about it.

What is 8453 OL :

It is form which you need to submit with your e-file. This forms has :

  • Authenticate the electronic portion of your tax return viz: 1040,1040A or 1040EZ.
  • Do not Send W2,W2G, or 1099R
  • Provide your consent to directly deposit any refund and /or authorize an electronic funds withdrawal for payment of federal taxes owed and/or payment of estimated tax.

Declaration Control Number (DCN) for 8453/8453-OL

Response:

The DCN is assigned to you once the IRS has received and accepted your return. You should receive this by e-mail if you entered your e-mail address during the e-filing process. What is PIN for electronic Filling?

PIN

This year continue to file a totally paperless electronic tax return by using a Personal Identification Number (PIN). A PIN is any five digits you choose (except all zeros) to use as your electronic signature.

Self-Select PIN Method

If you choose the Self-Select PIN method you are required to use a PIN to sign your income tax return. You will need your original Adjusted Gross Income (AGI) from your prior year (Tax Year 2003) tax return and your Date of Birth for verification purposes. If you did not file a return for 2003 you may still be able to use this method.

Practitioner PIN Method

If you choose the Practitioner PIN method you are also required to use a PIN to sign your income tax return. This method is an additional electronic signature option for taxpayers who use an Electronic Return Originator (ERO) to file their tax return. If you use this method you are not required to provide your original Adjusted Gross Income (AGI) from your prior year return or your Date of Birth.

If you choose the Practitioner PIN method you are also required to use a PIN to sign your income tax return. This method is an additional electronic signature option for taxpayers who use an Electronic Return Originator (ERO) to file their tax return. If you use this method you are not required to provide your original Adjusted Gross Income (AGI) from your prior year return or your Date of Birth.

Standard Deduction:-

Standard Deduction Amount

The standard deduction amount depends on your filing status, whether you are 65 or older or blind, and whether an exemption can be claimed for you by another taxpayer. Generally, the standard deduction amounts are adjusted each year for inflation. The standard deduction amounts for most taxpayers for 2004 are shown in Table below.

2004 Standard Deduction Tables 

If Your Filing Status is.. .

Your Standard Deduction is:

Single or Married filing separately

$4,850

Married filing jointly or Qualifying widow(er) with dependent child

9,700

Head of household

7,150

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