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You can file your income tax returns online using our easy to use tax software.
When filing income tax returns online, you will have access to our tax professionals every step of the way. Our software will handle your online federal income tax filing as well as your state online income tax filing.
Here are a few tips before you get started with filing your income tax returns online.
As of June 23rd, 2008, the IRS has increased the optional standard mileage reimbursement rate by 8 cents which is in effect for the last 6 months of tax year 2008 (July 1 - December 31). For any business miles driven from January 1st through June 30th, the rate stands as 50.5 cents per mile, 19 cents per mile driven for medical or moving purposes and 14 cents per mile driven in service of charitable organizations. The new tax deduction rate applies to qualifying miles driven on or after July 1st. As of July 1, 2008, through Dec. 31, 2008 the rate was increased to 58.5 cents a mile. It is important that the qualifying miles driven between January 1, 2008 and June 30, 2008 are recorded separately from the miles accumulated on and after July 1. When you filing income tax returns online at RapidTax.com, we'll automatically apply the appropriate calculation on the work related business miles driven.
According to IRS Commissioner Doug Shulman, "Rising gas prices are having a major impact on individual Americans. Given the increase in prices, the IRS is adjusting the standard mileage tax decution rates to better reflect the real cost of operating an automobile."
Generally, the IRS adjusts the standard mileage rates annually based on a yearly study of the fixed and deductible costs of operating an automobile for business, charitable, medical or moving purposes. However, due to the increase on gas prices, the rate has been updated to accommodate the rising cost. Since this increase also applies to medical and moving miles, they have also been changed from 19 cents per mile to 27 cents per mile.
The IRS has already acknowledged the recent drop in gas prices towards the end of 2008. As a result, the optional standard mileage rate for 2009 has decreased to 55 cents per mile, a slight adjustment from the 58.5 cents per mile mentioned above. Miles for medical or moving purposes will be calculated at a new rate of 24 cents per mile and for service of charitable organizations, 14 cents per mile. These new rates will not affect the upcoming tax year, but rather your 2009 taxes to be completed in 2010.