Tax Time - Are you ready?

Well, Tax Day is upon us - and The Debt Assassin will take a moment to discuss those things taxing. I'll also share with you how to file for free.

First off, if you haven't filed yet - get on it. Whatever you do, file by today. Even if you're receiving a refund, or you can't pay the tax bill....No matter what - file file FILE!

See here's the deal with the IRS....they're going to take the money you owe them, but they're not going to hand out refunds unless you tell them. That includes the Tax Rebate - you MUST file a 2007 tax return to receive a tax rebate. The check dates were released, and here's a link to the Payment Schedule on the IRS website. It will tell you when you will receive yours. Those who elected direct deposit will receive their rebates quicker. But I'm getting ahead here - back to April 15th.....

"I need more time!"
There is help for you. If you need more time, you may file an extension. Keep in mind that the extension grants you additional time (up to 6 months) but you will owe interest and late charges on your taxes due. You'll want to pay as soon as you can to minimize and additional costs that you will incur. I would also suggest sending something in to the IRS - even if it's not the entire amount. You would only owe penalties on the amount you underpaid. See Form 4868 for further information. You will need a pdf viewer to read the file.

"What if I can't pay?"
Good news - the IRS has a payment plan. Form 9465 has all the details, but I strongly advise you to find alternative. Though you may pay your taxes in installments, you still incur interest and fees on taxes overdue.

I'm not condoning you do either of these methods. I'd rather see you pay with a credit card than owe the IRS - and you know how I hate credit card companies. You can hang up on the credit card companies when you can't pay them, but Uncle Sam will come knocking.
I'm notifying you of these options as a last resort, and I hope not one of my readers has to use them.

"Enough Already. Where can I file for free?"
Ok - earlier I mentioned filing your tax return for free. Check out this link to the IRS website for their FreeFile program. In order to use the program, your income must not exceed $54,000 for 2007. There is a separate program for filing a return for the sole purpose of receiving the stimulus payment. It is only for those who would otherwise not file a return.

If you are a State Farm customer - you can get a free TurboTax online membership.
If you haven't already, sign up on the State Farm website. You may have to register your current policy with the on-line account you created. When you view the My Accounts page, you should see an ad for free tax filing on the left. It will take you to the TurboTax website where you can file everything - including e-filing - for free.

I'll keep my fingers crossed that you'll get a refund - but only if you use it to pay down debt!