JC Taxprep Inc. : Newsletter

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Monthly Client Newsletter | March 2010

S pring is just around the corner, but unfortunately so are the tax deadlines. Especially helpful in this month's newsletter are articles outlining your tax payment options and how to check on the status of your federal refund. Please take a few minutes to review this month's newsletter.

Where Is My Tax Refund?
IRS Tragedy Will Not Impact Return Processing
I Know I Need to Pay My Taxes, but How?
2010 Contribution Limits
It All Adds Up!

Where Is My Tax Refund?

Donations

Wondering where your federal tax refund is or how long it will take to arrive?

Generally, you can check your refund status within 72 hours after the IRS has acknowledged receipt of an electronically filed tax return and within 3-4 weeks after you mail a paper return.
To check the status of your refund online:

Go to www.IRS.gov

Click the blue "Where's My Refund?" icon on the right-hand side of the page

Provide the IRS the following:

Your Social Security Number OR Tax Identification Number
Your filing status
The exact whole dollar amount of your refund

If your refund has been lost, stolen, or destroyed, you can file an online claim for a replacement check if it has been more than 28 days since the IRS mailed the original refund.

IRS Tragedy Will Not Impact Return Processing

Disgruntled Taxpayer Crashes Plane into Austin, Texas IRS Building

On February 18th a small plane crashed into an IRS building in Texas. Thirteen individuals were injured in the crash, two (including the pilot) died. As a follow-up to this devastating event, the IRS has issued the following statement:

IRS Statement: Austin Incident Does Not Affect Tax Return Processing

In light of the recent Austin tragedy, the IRS wants to reassure Americans that this incident will not affect filing season activities, including tax return processing.

The IRS does not process tax returns or issue refunds at the Echelon 1 Building at 9430 Research Blvd.in Austin, Texas.

During this time, our dedicated workforce continues the work of the IRS, which includes helping taxpayers, processing tax returns and issuing refunds as quickly as possible.

I Know I Need to Pay My Taxes, but How?

Owing money to the IRS is never fun, but figuring out how to make tax payments shouldn't be painful. There are now several ways to pay your federal income tax obligation:
Donations Check or Money Order: Checks and money orders should be made out to the "United States Treasury" and must include your name, address, phone number, and social security number. Also make sure you note the tax year and tax form (i.e. 2009 Form 1040) on your check.

Debit or Credit Cards: Taxes can be paid over the phone or via the internet using debit or credit cards through e-pay providers. Since the IRS will not pay bank processing fees like other retailers, the financial service provider will charge you a fee for this service.

Debit Cards: The service provider will typically charge you a one-time fee of $3.89 to $3.95.
Credit Cards: You will need to pay the bank's interchange expense, typically a percent of the amount charged on your credit card. The fee ranges from 1.98% to 2.35% of the amount of tax owed. The e-pay company will bill your credit card for the transaction fee.

Electronic Funds Withdrawal: You may also be given the option to electronically transfer the funds from your checking or savings account. This online payment service requires you to submit your financial routing and account numbers. While there are no service charges by the IRS associated with this form of payment, often financial institutions charge their own fees.

Note: Taxpayers who cannot pay the full amount of what they owe within 120 days can enter into an Online Payment Agreement with the IRS to have monthly payments automatically deducted from their checking or savings account. If the IRS agrees to enter into an installment agreement with you, you will be charged additional fees and interest.

2010 Contribution Limits

Annual Retirement Plan Contribution Limits
IRAs: Traditional and Roth	$5,000
	Add $1,000 if over age 50
401(k), 403(b) and 457 Plans	$16,500
	Add $5,500 if over age 50
Simple Plans	$11,500
	Add $2,500 if over age 50
Defined Contribution Plan	$49,000
Note: Income limits apply to most of these plans. Make sure you review your situation before you change your contributions.

Health Savings Accounts Contributions Limits*
Maximum Contribution
Self	$3,050
Family	$6,150
Add	$1,000 if 55 or over
* Requires participation in a qualified high deductible health insurance plan with coverage with specific deductible and out-of-pocket coverage requirements.

It All Adds Up!

Small Changes Can Lead to Large Savings

In this economy, most of us feel we should be saving more and spending less. But sometimes it's difficult to see how much we're really spending--particularly on smaller purchases or small bills that occur throughout the year. Below is a chart with tips on small reductions in spending that could really add up to big savings!

Tip		Estimated Annual Savings
	Brew and bring your own coffee daily rather than purchasing it	$500 or more
	Cancel Netflix and rent movies from your local library	$100-$200
	Quit smoking a pack/day	$1,800 or more
	Become a regular coupon user. Get help from sites like couponmom.com or coupons.com	Up to $2,000 or more for a family of 4
	Unplug (don't just turn off!) various home appliances like computers, TVs, and cell phone chargers.	$250 or more
	Cut your daily shower from 15 min. to 10 min.	$200
	Bring your lunch rather than buying out	$1,500 or more
	Drink tap water instead of bottled water	$300 or more
	Dine out less--take a family of 4 out to eat once a week instead of three times a week	$1,500 or more
	Skip your monthly manicure and do your own nails at home	$200 or more

JC Taxprep Inc.

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Monthly Client Newsletter | March 2010

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