2010 state sales tax holidays are here! If you’re lucky, your state will encourage you to shop on specific days this summer and fall to avoid paying sales tax. Sales tax holidays vary by state, but most are having the 2010 tax free weekend the first weekend in August.
Many of the states are limiting sales tax savings to $100 per item. Be sure to check with your specific state to find out the exact limitations.
Here is an overview of the dates and savings for each state:
Alabama
- Date: August 6-8
- Savings: 4%
Connecticut
- Date: August 15-21
- Savings: 6%
Iowa
- Date: August 6-7
- Savings: 6%
Louisiana
- Date: August 6-7
- Savings: 4%
Mississippi
- Date: July 30-31
- Savings: 7%
Missouri
- Date: August 6-8
- Savings: 4.225%
New Mexico
- Date: August 6-8
- Savings: 5% to 8.5625%
North Carolina
- Date: August 6-8
- Savings: 7%
Oklahoma
- Date: August 6-8
- Savings: 4.5%
South Carolina
- Date: August 6-8
- Savings: 6%
Tennessee
- Date: August 6-8
- Savings: 8.5% to 9.75%
Texas
- Date: August 20-22
- Savings: 6.25% to 8.25%
Virginia
- Date: August 6-8
- Savings: 5%
Posted August 2, 2010 in Tax News | Comments?
How long to keep tax returns? That was a popular question right after the tax deadline recently passed. However, the answer isn’t as straight forward as everyone would like it to be.
According to the IRS, here are the guidelines on how long to keep tax records:
Keep Tax Returns Forever
- If you filed a fraudulent return, keep your tax returns forever.
- If you did not file a return, keep your tax records forever.
Keep Tax Returns for 7 Years
- If you claimed a worthless security loss or deducted a bad debt, keep your tax records for 7 years.
Keep Tax Returns for 6 Years
- If you grossly underreported your taxable income (more than 25% of the gross income on your return), keep your tax return for 6 years.
Keep Tax Returns for 3 Years
- If the above don’t apply, keep your tax returns for 3 years.
- If you filed an amended tax return, keep your tax return for 3 years or 2 years from when you paid the tax if it’s later.
Other Tax Records to Keep
In addition to keeping your tax return, you’ll also need to keep information that supports those tax returns including:
- Canceled Checks
- Credit Card Statements
- Old Bank Statements
- Retirement Plan Contributions
You can also see how long to keep records for the retention length of other papers and records.
How Long Should I Keep Old Tax Returns?
What’s the bottom line? If the IRS can audit you indefinitely for not filing a return, you’re going to have to prove that you did. In addition, it would be hard to prove you didn’t file a fraudulent return if you didn’t keep the supporting tax documents.
Therefore, we keep all of our tax returns and tax records forever. If you really want to throw them out, be sure you keep your tax returns for 7 years.
Posted May 17, 2010 in Taxes | Comments?
The income tax deadline for your federal tax return is approaching. Your 2009 tax return and any outstanding tax is due April 15, 2010.
To be considered filed on time, your tax return must be postmarked by the tax deadline.
If you don’t get your taxes filed by the income tax deadline, you can file an extension, which will automatically give you an extra six months to file.
You will not, however, get an extension to pay your taxes. To avoid any penalties, you’ll still need to pay your taxes due by April 15.
The income tax deadline for tax returns with an extension is October 15, 2010.
Posted February 12, 2010 in Tax Filing | Comments?
Third quarter estimated tax payments are due on September 15.
- How to Make Payments. To make your payment, you can use the paper Form 1040-ES or you can use the IRS EFTPS electronic payment system.
- Who Needs to Make Payments. For guidelines on who needs to pay estimated tax payments, see the estimated tax payment details.
- Payment Due Dates. All of the quarterly estimated tax payment due dates can be found in the 2009 Tax Calendar.
Posted September 14, 2009 in Taxes | Comments?
Energy efficiency tax credits are for homeowners to improve their house with energy efficient appliances, windows, and other energy saving upgrades.
Most of the improvements must be placed in service January 1, 2009 through December 31, 2010. Here is a summary of the energy efficient upgrades and the tax credit available. For specifications of each, see the Federal Tax Credits for Energy Efficiency.
Federal Energy Efficiency Tax Credits
- Insulation. Tax Credit: 30% of cost, up to $1,500.
- Windows and Doors. Including exterior windows and skylights, storm windows, exterior doors, and storm doors. Tax Credit: 30% of cost, up to $1,500.
- Roofing. Including metal and asphalt roofs. Tax Credit: 30% of cost, up to $1,500.
- HVAC. Including central a/c, air source heat pumps, natural gas or propane furnaces, oil furnaces, hot water boilers, and air circulating fans. Tax Credit: 30% of cost, up to $1,500.
- Water Heaters. Tax Credit: 30% of cost, up to $1,500.
- Biomass Stove. Tax Credit: 30% of cost, up to $1,500.
- Geo-Thermal Heat Pump. Tax Credit: 30% of cost.
- Solar Energy Systems. Including solar water heaters and photovoltaic systems. Tax Credit: 30% of cost.
- Residential Small Wind Turbines. Tax Credit: 30% of cost.
- Residential Fuel Cells. Tax Credit: 30% of the cost, up to $500 per .5 kW of power capacity.
Source: Federal Tax Credits for Energy Efficiency
Posted September 8, 2009 in Tax Deductions & Credits | Comments?
