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Source: Northeastern University

Released: Thu 01-Apr-2004, 17:20 ET

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Accounting Professor Offers Last-Minute Tax Tips

Libraries Business News		Keywords TAXES, APRIL 15, TAX TIPS, LAST MINUTES TAXES, TAX ADVICE, IRS, 1040, NORTHEASTERN, BUSINESS, RUPURT, RUPERT
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Description If you are like 40 percent of America, you'll file your taxes at the very last minute. As arduous as filing taxes can be, one thing is clear -- all taxpayers look and hope for generous returns. As the April 15th deadline nears, professor Tim Rupert offers some helpful last minute tips.

Newswise — If you are like 40 percent of America, then you will file your taxes at the very last minute. As arduous as filing taxes can be, one thing remains clear -- all taxpayers are looking and hoping for generous returns. As April 15th filing deadline nears, Northeastern University professor of accounting Tim Rupert offers some helpful last minute tips.

Don’t forget to report ALL items you paid. “For example, when calculating their charitable contributions, many taxpayers forget about contributions they made by credit card or automatic withdrawals from their paycheck, so be sure to check these records,” advises Rupert. “Also, don’t forget about contributions of property such as, clothing, toys or canned food donated to a charitable organization.”

Familiarize yourself with new provisions and changes that became effective in 2003. “A few include, lower tax rates on certain capital gains and dividends, more rapid expensing and depreciation of business assets, and increases in several credits, including the child care credit, the lifetime learning credit, and the child tax credit (for the child tax credit, taxpayers also need to know whether they received an advanced refund check during 2003. If the taxpayer isn’t sure, they can check the IRS website or call 1-800-829-1040 to find out, says Rupert.

It’s not too late to take advantage of some provisions. “For example, taxpayers can still make contributions to IRAs or Roth IRAs for 2003,” says Rupert. “However, it is important that you clearly identify the contribution as being for year 2003 with the financial institution. Otherwise it may be treated as being for 2004.”

Electronic filing help. “The IRS has made a deal with many tax software companies to provide free service for up to 60 percent of the population,” says Rupert. “Eligibility varies from company to company, but often depends on your state of residence and income level. More information can be found on the IRS website (at http://www.irs.gov) under “Free File.”

Can’t meet the deadline? Rupert says if you cannot finish your return by the April 15 deadline, you can file for an automatic four-month extension by completing Form 4868. “However, note that this form gives you an extension to file but not an extension to pay your taxes. If you owe money, you still must submit your payment,” he warns.

Rupert is also determined to make tax filing as seamless as possible for Northeastern employees and others by lending a hand to his local community. Thanks to a $30,000 grant from the Annie E. Casey Foundation, Rupert and his colleagues in the college of Business Administration, are assisting low-income Northeastern employees with the ins and outs of changes to the tax structures and rules and lending a hand, especially to those newly eligible for the Earned Income and/or Child Care Tax Credit, as they file their tax returns.

“There are a lot of people who qualify for these tax credits, but don’t fully take advantage of them,” says Rupert. “Last year, nearly 40,000 people in Boston who were eligible for such credits did not file appropriately for them.”

Rupert is also on the Board of Directors for Community Tax Aid of Boston, a non-profit organization that provides free tax preparation services for low-income taxpayers throughout the Boston area. Currently, every Saturday through April 11th from 12:30 p.m. to 2:30 p.m., in Dodge Hall on campus, Rupert and volunteers will answer questions, offer tax tips and help prepare tax returns for more than 200 members of the surrounding Northeastern community.

To qualify for the Earned Income Tax credit, employees must earn $12,230 or less per year with no children. To qualify for the credit, employees must earn $34,692 or less per year if they have two children. If employees have one child and they earn $30,666 or less, they are also eligible for the Earned Income Tax Credit. In all cases to qualify, employees must not have a spouse who boosts the annual household income above these outlined figures.

Northeastern University, located in the heart of Boston, Massachusetts, is a world leader in cooperative education and recognized for its expert faculty and first-rate academic and research facilities. Through co-op, Northeastern undergraduates alternate semesters of full-time study with semesters of paid work in fields relevant to their professional interests and major, giving them nearly two years of professional experience upon graduation. The majority of Northeastern graduates receive a job offer from a co-op employer. Cited for excellence two years running by U.S. News & World Report, Northeastern was named a top college in the northeast by the Princeton Review 2003/04. In addition, Northeastern’s career services was awarded top honors by Kaplan Newsweek's “Unofficial Insiders Guide to the 320 Most Interesting Colleges and Universities,” 2003 edition. For more information, please visit http://www.northeastern.edu.