CEDAR RAPIDS, IA–(Marketwire - January 24, 2008) - 2nd Story Software®, Inc., developers of TaxACT® and pioneers of totally free federal tax preparation software, announces the launch of its online store on Amazon.com for the 2007 tax season.

With the number of tax preparation software options available, consumers can become overwhelmed when trying to decide which option is going to best meet their needs. Amazon customers shopping TaxACT’s Amazon Store will benefit from having a single online destination to research their options prior to purchasing tax software. By TaxACT becoming an Amazon merchant, more consumers can become familiar with the value and added ease TaxACT provides — including a completely free tax software option TaxACT Standard.

Canada, like the US, has two tax systems - one for employees, and another one – for business owners. This is not what the CRA will tell you but the fact remains - employees are very limited in what they can write-off while businesses are entitled to a wide variety of legally deductible business expenses. (Next logical step would be to stop levying taxes on successful entrepreneurs as I cannot think of one government service worth paying for - which could not be better provided by the private sector…but hey, we are not building the moral case against taxation here…)

So it might seem pretty simple and straightforward: one should open a small business and join the ranks of 2.6 million Canadian entrepreneurs who enjoy the favorable tax treatment of their income streams. You don’t need to be a big guy - if you operate a legitimate home-based business with the intent to produce a profit, you can qualify for most of the same deductions as an “office-based” business.

Read more…

Tax season is here. It’s time to dig out all your receipts, paperwork, documentation and cuddle up with your calculator.

It can be a real pain to figure out what you should, could, or can’t deduct. But, finding all your deductions can really add up to a big refund.

Experts have said many taxpayers forget to deduct their charitable donations like electronics, clothes, and money. Now, the IRS requires documentation in detail for these donations, along the lines of a cleared check or receipt.

Energy efficiency improvements on your home can also jump right in on the tax deduction wagon. Upgrades to your doors, windows, and insulation are deductible, if they improve the energy efficiency of your home.

Two other deductions frequently overlooked are the Earned Income Credit for working families with low incomes and the Child Tax Credit if you have kids under 17. If you do your own taxes, both of these can be a pain to calculate, but well worth the effort.

Here are a few more tax deductions which are frequently overlooked:

The tax formula is fairly straightforward: your small business must pay taxes on what’s left of your revenues after you have deducted all your expenses. With that said, it would seem to make sense to claim the maximum allowable number and amount of deductions in order to reduce your tax liability. Luckily, the IRS gives you lots of choices as to tax deductions that you can legally claim.

Here are some deductions that you don’t want to miss out on when doing your business tax planning. Read more…