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Tax Form 1040A (EZ) Now Better for Homeowners

Santa Rosa, CA December 15, 2008 -- Taxhead.com's tax software for 1040A and 1040EZ filers takes advantage of new tax laws allowing homeowners to deduct property taxes and mortgage interest.

Homeowners: property taxes and mortgage interest.

Homeowners who don't have enough itemized deductions to exceed their "standard deduction" are better off using their standard deduction as that will result in the lowest federal income tax. Tax form 1040A, as supported by Taxhead.com offers this option.

The Housing Assistance Tax Act of 2008 allows homeowners to claim an additional standard deduction for property tax if the taxpayer does not itemize. The additional amount is limited to $500 or $1,000 for joint filers.

Amount of the Additional Standard Deduction for Property Taxes: The amount is claimed as an additional amount on top of their standard deduction. The additional amount that can be claimed is the lower of the following two figures:

Taxhead.com free tax software offers this option.

When to Claim the Additional Standard Deduction for Property Taxes

This additional standard deduction applies to tax year 2008 only. This deduction is not available for any other tax year.

Standard Deduction Amounts for 2008 (taxes filed in 2009)

For 2008, here are the standard deduction amounts:

Single: $5,450
Head of Household: $8,000
Married Filing Joint: $10,900
Married Filing Separately: $5,450
Qualifying Widow/Widower: $10,900
Dependent: $900-$5,450*
Additional Amount if Blind: $1,050
Additional Amount if age 65 or older: $1,050

Additional Amount for property taxes: $500 or $1,000 for married filing jointly
* Dependents must calculate their standard deduction using an IRS Worksheet.

Planning Tips for the Additional Standard Deduction for Property Taxes

This additional standard deduction will likely work more efficiently for taxpayers who have no mortgage interest to deduct, or whose total itemized deductions do not exceed their standard deduction.

For example, married homeowners who are both over age 65 and who file a joint return would have a standard deduction amount of $14,000, which breaks down as follows:

Let's assume further they paid $10,000 in property taxes, and have no other itemized deductions, such as for mortgage interest or charity. In this case, their standard deduction is higher than their itemized deductions. Taking the standard deduction in this case would result in a lower overall tax than if they itemized.

Taxhead.com's Free Tax Software Approved by IRS; Prepare and eFile your 2008 Income Tax Return Starting in January 2009

Santa Rosa, CA December 5, 2008 -- Taxhead.com has completed tax software acceptance testing with the IRS. "PATS," which stands for the "Participants Acceptance Testing System," is a testing requirement for tax software developers, tax reporting agents and IRS e-file transmitters planning to transmit individual electronic returns to the IRS. The purpose of PATS is to ensure that tax software transmits tax return data in the correct format and meets the IRS electronic filing (efile) specifications, that tax returns have few validation or math errors, that required tax return fields will post to the IRS Master File and that tax eFile providers understand the mechanics of IRS eFile system.

Taxhead.com is recognized by consumers and industry analysis to be the fast, easy online tax software program for 1040A and 1040EZ tax form filers. Their tax software is designed to cover most personal income taxes situations. Taxhead.com specializes in persons who use the tax form 1040A or 1040EZ.

An executive from Taxhead.com said, "We don't ask a lot of tax questions that do not apply to most people. Other tax software takes people through pages and pages of questions that have nothing to do with that person's tax situation. Our approach is more user-friendly. We cover the most common, most popular tax forms and situations, and cater to those persons and their taxes. The result is fast, easy tax preparation experience. And, our tax software is completely free to use. We only charge if a person wants to eFile their tax return, rather than print and mail a tax return to the IRS. And, we offer free eFile for any person who qualifies for the Earned Income Credit (EIC) *. Many people choose eFile for the same reason they choose Taxhead.com tax software -- fast, easy, secure and paperless. And Taxhead.com offers a 100% eFile success guarantee."

Last year more people than ever used Taxhead.com to prepare their tax return online free of charge. And record numbers of people used Taxhead.com's IRS eFile service to electronically file tax returns with the IRS. In preparation for the new tax season, Taxhead.com tax software has been made even easier to use. And the new tax laws, tables and tax codes have been added to cover changes made by the IRS for 2008 individual income tax returns.

Last year most people (86 percent) using Taxhead.com completed their tax return in under 30 minutes. About 43 percent completed their tax return in under 20 minutes.

* - Taxhead tax software helps determine if a person qualifies for the Earned Income Tax Credit. The Earned Income Tax Credit (EITC) sometimes called the Earned Income Credit (EIC), is a refundable federal income tax credit for low-income working individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.

Links: IRS eFile Partner information at www.IRS.gov

Taxhead.com Tax Service is 100% Solar Powered and a Socially-Responsible Company

November 26, 2008 -- Taxhead.com believes paperless tax filing (e-file) is a product which helps make our world more sustainable: By using e-File you are helping to save resources now and for future generations - less paper, less time, less energy; it's a more efficient, friendly way to prepare and file your tax return.

Taxhead offices and web servers are run on grid-connected renewable energy through a solar-electric (PV) system installed at their offices. The solar energy system supplies enough energy to power 100% of the Company's tax offices and services. The company also develops and administer innovative Internet tools to help consumers adopt renewable energy. See www.Solar-Estimate.org.

The company online tax services cater to tax form 1040A and 1040EZ tax filers. This covers about 70% of all individual IRS income tax returns.

Taxhead.com offers Free eFile for Earned Income Credit (EIC) Tax Filers

November 25, 2008 -- Taxhead.com offers free IRS e-file for Earned Income Credit (EIC) tax filers for 2008 - 2009 income taxes. This is a special offer for low-income tax filers. Taxhead tax software is easy to use and helps persons determine if they qualify for the Earned Income Tax Credit. The Earned Income Tax Credit (EITC) sometimes called the Earned Income Credit (EIC), is a refundable federal income tax credit for low-income working individuals and families. If the EIT credit exceeds the amount of taxes owed, the tax filer receives a tax refund. To help low-income people prepare their taxes, Taxhead tax software is free to prepare tax returns, and now the eFile service is also free. E-File offers additional benefits including reduced tax errors, peace of mind, improved security, and an express tax refund.

To qualify for the EIC, a tax payer must meet certain requirements and file a tax return, even if they did not earn enough money to be obligated to file a tax return. To learn more about the EITC, there is a nice overview at www.irs-eitc.info. Other resources are at the main IRS website: IRS.gov

Taxhead.com is an IRS E-File Partner and tax software developer. 100% American owned and operated, they are a socially-responsible company with years of experience and thousands of satisfied customers.

Links to popular Tax and E-File Sites