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Run Quick Form 1040 Illustrations with Excel

Excel 1040Yesterday I responded to a question on the Financial Planning Magazine online discussion boards about running tax illustrations and comparisons using Excel.  

A few years ago I came across Glenn Reeves’ Excel 1040 tool.  This is a handy and fairly comprehensive tool based in Excel that does a good job performing many of the common calculations that populate Form 1040.  Included are worksheets to enter W-2 income, Form 1099 distributions, Social Security, Schedule B Interest and Dividends… the list goes on and on.

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Will AMT Affect More Taxpayers in 2008?

AMTYear after year more taxpayers potentially become subject to the separate tax system otherwise known as the Alternative Minimum Tax, or AMT.

It wasn’t until late in 2007 that Congress passed the Tax Increase Prevention Act of 2007 as a one-year patch to AMT.  This bill caused many headaches in the IRS due to its late approval and effect on many IRS tax forms (blogged about here and here).

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Phishing for Taxpayer Information

SharkAfter several notices this year, I finally received my first phishing attempt by folks masquerading as the IRS.  Here is their note below:

After the last annual calculations of your fiscal activity we have determined that you are eligible to receive a tax refund of $2839,49. Please submit the tax refund request and allow us 3-9 days in order to process it.

A refund can be delayed for a variety of reasons.
For example submitting invalid records or applying after the deadline.

To access your tax refund, please click here <link removed>

Best Regards,
Tax Refund Deparment
Internal Revenue Service
© Copyright 2008, Internal Revenue Service U.S.A. All rights reserved.
TAX REFUND ID: IRS822513

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IRS Economic Stimulus Payment Notice

IRSNotices from the IRS regarding the Economic Stimulus Payments are now being mailed to taxpayers. In case you haven’t received yours, I uploaded a PDF copy of one.

The notice describes how most taxpayers do not have to perform any special tasks or complete forms to receive the payment. It also covers eligibility and runs through a basic chart to calculate how much to expect for a stimulus payment.

Below is a preview of the notice, which you can see in its entirety by clicking here.

Notice

Update: efile Solution for Stimulus Payment Returns

efileA little more than a week ago I wrote about how the IRS was unable to accept electronic files for returns created solely for the purpose of applying for the stimulus payment.  The problem is two-fold: our return software, TaxWise, does not generate an efile for $0 AGI returns, nor does the IRS currently accept efile returns when AGI is $0 (as mentioned here).

In my previous entry I referred to a temporary solution to the efile problem and I’m happy to report that the IRS has officially sanctioned the use of this solution.  I received confirmation of the IRS’ position in a message from Bonnie Speedy, the National Director for AARP Tax-Aide.

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Earth to IRS: 23 Million Paper Returns are Coming

1040Most people out there are well aware of Congress’ recent action to provide economic stimulus payments to most taxpayers. One unique characteristic about this stimulus plan compared to the rebates issued in 2001 as a result of EGTRRA is that the plan includes recipients of Social Security, certain veterans’ benefits, and certain Railroad Retirement benefits who have no other income.

IRS News Release IR-2008-18 explains how most taxpayers do not need to do anything special to have their information entered into the “system” that is used to distribute stimulus payments. However, those taxpayers that receive Social Security, certain veterans’ benefits, and certain Railroad Retirement benefits may need to file a 2007 return, even if they were not required to file under all the other filing requirements.

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