Tax Preparation: What Happens If You Don't File a Personal Income Tax Return by October 15?

Members of the military have the option to include their tax exempt combat zone pay when computing their earned income for EITC. The combat pay remains exempt for federal taxes. However, families should be aware that they must include all of the combat pay or none of it. For example, if the inclusion of combat pay would push taxpayer's adjusted gross income above the EITC income limit, taxpayers should leave it out of their EITC calculations. If, however, the inclusion of combat pay would enable a taxpayer to obtain a higher refund, then combat pay should be included.

12. Medical Expenses - make sure you have all your receipts gathered for your medical costs for the year. Prescription drugs, prosthesis, and other approved equipment.

As if that was not convenient enough, when you are finished your tax return will be automatically delivered. You do not have to worry about mailing it on time and or the possibility of the post office losing your information.

When traveling away from home on business, you can deduct the costs of operating and maintaining your car or truck, as well as business-related tolls and parking, by using either the standard mileage rate or actual expenses. For 2012, the standard mileage rate for the cost of operating your vehicle for business miles is 55.5 cents per mile. If you rent a vehicle while away from home on business, you can deduct the business-portion of the rental expenses. You may also be able to deduct the costs of lodging, dry cleaning and laundry, and business calls, faxes and other communications as business expenses.

• Your jointly filed income tax return included an understatement of tax, directly related to your spouse's erroneous items, such as an omission of income,and incorrectly reported deductions, credits, and property taxes.

Before learning about the different benefits and disadvantages of tax software it is important that taxpayers study the different kinds of software programs that are available. There are certainly a number of popular tax software programs including TaxCut, Turbo Tax, TaxAct, and more. All these tax software programs will probably offer multiple tax software versions. Each model of a tax software program may include various characteristics under each tax version; nevertheless, many of the tax software programs function in the same way. Common or essential variations will probably only contain federal tax reunite forms. Deluxe and premium pc software designs will likely contain both federal and state income-tax forms. Premium tax computer software versions will probably include additional aid in discovering deductions and tax credits.

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