Every year, multiple tax laws and changes are made due to demand, need, or the combination of the two.  Below is a quick summary of a few tax laws that many people can take advantage of for 2009.  For more details, click on the link at the bottom of the post and go to page 6.

Making Work Pay Credit: If you were fortunate enough to have worked and earned income in 2009, then you may be eligible to receive a tax credit of 6.2%, up to $400.

Unemployment Compensation: You do not have to pay taxes on unemployment compensation that you had made in 2009 up to $2,400.

Auto Purchase Deduction: If you had purchased a car after February 16 2009, you can deduct the local and state sales tax.  If you didn’t have to pay taxes then you could be able to deduct other kinds of taxes or fees.

Credits that have increased

There are more auto, divorce, and mortgage tax changes for 2009 that you can read about here (Go to page 6 on the link.)

If you’ve ever wondered whether it’s best to file your own taxes or hire a professional then you’re not alone. Taxes used to be complicated with more users requiring expert help in the past, however, with new tax filing software available making tax filing easier, roughly 40% of people are doing their own taxes. That being said, because tax laws are getting much more complicated and the IRS have been increasingly auditing the middle class with little or no assets, there are a few situations where the help of a tax expert may help dramatically:

• Those who are self employed
• Those who invest whether through securities, stocks, mutual funds, etc.
• Those who own a trust fund
• Those who are going through significant changes that can affect you financially such as divorce or employment status change
• Those who do business in multiple states and therefore need to file in multiple states or cities.

If you have an easy return, there are some great tax filing software that can literally guide you step by step through the process in under an hour, however, if you find yourself bewildered or unsure throughout the steps, consider consulting a tax professional.

Free Tax Filing Software Companies

With just a couple of months left to file your taxes on time, what are some fast, convenient, and free options to file for taxes?

If your household makes less than $57K, which is the majority of the nation’s taxpayers, you can use the Free File program from one of the 20 participating tax companies that have partnered with the IRS listed below. After filing for your taxes, you can file your return electronically and get a refund in as fast as 10 days  if you are eligible. On the other hand, if you owe, you have  until April 15 to send in the payment, otherwise late penalties and interest may apply.  If you’re still waiting on a few things and need to file late, file for a tax extension with form 4868

The free file tax locater offered by the IRS is very simple and easy to use. It helps you find a free tax file software based on a short questionnaire that you fill out to help determine which free file tax software you should use.

Below is the list of the 20 free file tax software companies including their free file income cap, their servicing states, and indication of whether they allow for free extension.

List of Free Tax Filing Software Companies

eSmart Tax by LibertyTax Service: Free online tax return preparation and e-file if your adjusted gross income (AGI) is $57,000 or less, and you are 50 years old or younger. This federal offer is valid in all states. Free extension. En Español.

CitizenTaxFree: Free tax filing preparation and e-file if your AGI is $57,000 or less, you are age 70 or younger and you live in the following states: AL, AR, AZ, CA, CO, CT, FL, GA, IA, ID, IL, IN, MA, MD, MI, MO, NC, ND, NJ, NY, OH, OK, PA, TX, VA and WI. Free extension.

Free1040TaxReturn.com: Free filing tax return preparation and free e-file if your AGI is $57,000 or less and you are age 71 or younger and live in AK, AL, AR, AZ, CA, CO, CT, DE, HI, GA, IA, ID, IL, IN, KS, KY, LA, MA, ME, MD, MI, MN, MO, MS, NC, NE, NJ, NM, NY, OH, OK, OR, PA, RI, SC, UT, VA, WI, WV. Free extension.

ICANEFILE: Free e-file tax return preparation and e-file if your (AGI) is $32,000 or less or if you qualify for the Earned Income Tax Credit. This federal offer is valid in all states. Free extension.

1040NOW.NET: Free tax filing company return preparation and e-file if your AGI is $57,000 or less, your age is 67 years or younger and you live in AL, AR, AZ, CA, CO, CT, DC, DE, HI, GA, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NJ, NM, NY, OH, OK, OR, PA, RI, SC, SD, TN, UT, VA, VT, WI, or WV.

OnLine Taxes at OLT.com: Online Tax Filing preparation and e-file if your AGI is $57,000 or less and age 51 or younger. This federal offer is valid in all states. Free extension.

Free TaxACT: Free federal filing tax return preparation and e-file if your AGI is $57,000 or less and you are age 19 through 55 years old. This federal offer is valid in all states. Extensions e-filed for free. Free extension.

Free Tax Return: Free federal e-file tax return preparation and e-file if your AGI is $57,000 or less and you live in the following states: AL, AZ, CA, CO, GA, IA, ID, IL, IN, KS, KY, LA, MA, MD, MI, MN, MO, NC, NJ, NY, OH, OK, OR, PA, SC, VA, WI, or WV. Free extension.

FileYourTaxes.com: Free e-file software if your AGI is $57,000 or less and you are age 15 through 52 years old. This federal offer is valid in all states. Free extension.

TaxSlayer: Tax filing free return preparation and e-file if your AGI is less than $57,000 and you are age 25 or younger, age 65 or older or active military. Also, if you qualify for the Earned Income Tax Credit or if your AGI is less than $10,000. This federal offer is valid in all states. Free extension.

FreeTaxUSA.com: Free e-filing software tax return preparation if your AGIis $57,000 or less and you live in one of the following states: AL, AZ, CA, CO, CT, GA, IA, ID, IL, IN, KS, KY, LA, MD, MI, MO, MS, NC, NE, NJ, NM, NY, OH, OK, OR, PA, SC, UT, VA, WI, or WV. Free extension.

TaxSimple Ultimate Version: Free filing software return preparation and e-file if your AGI is $57,000 or less and you are age 66 or less and you live in the following states: AL, AR, AZ, CA, CO, CT, DC, DE, HI, GA, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NY, OH, OK, OR, PA, RI, SC, SD, TN, UT, VA, VT, WI, WV, or WY.

123Easytaxfiling: Free tax software return preparation and e-file if you are 70 years old or younger, your AGI is $57,000 or less and you live in one of the following states: AL, AR, AZ, CA, CO, CT, DC, DE, HI, GA, ID, IL, IN, KS, KY, LA, MA, MD, MI, MN, MO, MS, MT, NC, ND, NE, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, UT, VA, VT, WI and, WV. Free extension.

CompleteTax: Free filing tax return preparation and e-file if your AGI is $32,000 or less. This federal offer is valid in all states. Free extension.

Online Tax Pros: Free federal online tax preparation and e-file if your AGI is between $3,500 and $57,000 and you live in the following states: AL, AR, AZ, CA, CO, CT, DE, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NJ, NM, NY, OH, OK, OR, PA, RI, SC, UT, VA, VT, WI, WV. Free extension. En Español.

TurboTax® Freedom Edition: Free tax preparation software if your AGI is $31,000 or less or if you are active military with an AGI of $57,000 or less or you qualify for Earned Income Tax Credit. This federal offer is valid in all states. Free extension.

EfileTaxReturns.net: Free tax preparation software if your AGI is between $5,000 and $57,000, and you live in the following states: AL, AR, AZ, CA, CO, CT, DC, DE, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NY, OH, OK, OR, PA, RI, SC, SD, UT, VA, VT, WI or WV.

ezTaxReturn.com: Free online filing if your AGI is $57,000 or less and you live in the following states: AL, AR, AZ, CA, GA, IL, LA, MA, MI, MS, NC, NJ, NY, OH, PA, VA, and WI.

H&R Block’s Free File: Free federal filing online tax return preparation and free e-file if your AGI is $57,000 or less and you are age 51 or younger. This federal offer is valid in all states.

ISECURETAX, INC.: Free tax software preparation and e-file if your AGI is $57,000 or less and you live in AR, AZ, CA, CO, DE, ID, KS, MD, MI, MS, NC, NE, NY, OH or VA.

This tax advice article was brought to you by the leading direct online payday lender, Pay1Day.com

If you are having trouble paying your taxes by the deadline date of April 15, 2010, then you’re not alone.

File your taxes even if you can’t pay them

The reason is because the penalty for not filing your taxes is greater than not paying them. Funny but true: there is a possibility of imprisonment for not filing but not for being unable to pay your taxes on time – however, there may be some penalties if the IRS can prove that you intentionally did not pay your taxes.

If you file your taxes and don’t pay what you owe in full, then the IRS will send you a letter asking for what’s due including the included interest in about 45 days, helping you buy some time to come up with the money to pay for your taxes.

File for a tax extension

You can delay your tax filing deadline by six months, until October 15 by using Form 4868 electronically or by mail. This will allow you to file your taxes late but will not delay your deadline for paying your taxes – so if you are still late on your tax payments then you must still consider the interest and late penalties due. The good thing is that if you file for a tax extension then you will be charged 0.5% late fees a month, up to 25% of the balance, plus interest, instead of 5% late fees a month if you did not file for a tax extension.

Paying Some of your Taxes is Better Than Nothing

If you are unable to pay your taxes in full when you file your return, pay whatever you can to decrease late fees and interest.

Communication is important: If you are struggling and need help, call the IRS at 800-829-1040 to discuss payment options and work out a plan. In some cases, you may be able to work out a way to settle for less of the tax amount that you owe if you can prove that it will be nearly impossible to repay now or in the future.

Here’s an interesting article that can help you get back more from tax laws – take advantage of the incentive and rebate programs while they’re still here!

If you e-filed your taxes, you may get information 72 hours after your tax return efile is acknowledged and accepted by the IRS. You can check here to find out about the dates on when to get your direct deposit or mail in check by the IRS.

If you haven’t received your tax return check by the dates specified, you visit where’s my refund page. You can also call the IRS by calling either 800.829.1954 or 800.829.4477.

Please be advised that the dates IRS are not guaranteed so don’t depend on IRS if you need cash fast. You can always take a payday loan from us and since we are a direct payday lender, we can deposit your loan in your account within one business day.