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CNN Saturday Morning News
Tax Tips
Aired January 31, 2004 - 09:51 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JEFF FLOCK, CNN ANCHOR: Well, if you think tax time means a few minutes till midnight on April 15, we have some tips this morning that may ease your stress and help your wallet.
Ali Velshi, one of our favorites, of CNN Financial News joins us from New York to talk tax stuff.
Ali, I still can't get that picture, Ali. None of our viewers saw it, I'm sure, but you falling down on live television with feet up in the air.
ALI VELSHI, CNN FINANCIAL NEWS: The last time you and I were together in Chicago. I'm on solid ground here, both in terms of where I'm sitting and in terms of content on this one.
I can't believe you told the viewers to sharpen the number two pencil. I don't think people today know what a number two pencil is. There's a rover on Mars, and it's almost 20 years, Jeff, since you've been able to file your taxes electronically, believe it or not.
Now, in the mid, in the mid (UNINTELLIGIBLE)...
FLOCK: But how many people are actually doing this online (UNINTELLIGIBLE)...
VELSHI: This is going to surprise you.
FLOCK: ... (UNINTELLIGIBLE) big deal?
VELSHI: This is going to surprise you. In the mid '80s...
FLOCK: (UNINTELLIGIBLE).
VELSHI: ... when they first started this, the first year, 25,000 people used it. Last year, 53 million people filed electronically. Now, I got to tell you, in full disclosure, I can't balance a checkbook. I've certainly never, ever filed my taxes online.
But I'm just going through the morning papers today, and in all your circulars, I got this one from Staples, and it shows you all the discounts you can get on the various tax software. Circuit City, right on the front cover, it's got these ones.
Now, let me tell you a little about this software and who should use it. First of all, if you have complicated tax returns, stay away from it. If you've got major deductions, if you're self-employed, if you've got things that really require some thinking and work, don't.
But if your tax returns are relatively simple, you can use this tax software. Now it is -- it's available for around -- you know, there is these rebates, so, you know, TurboTax is $40, you get a $10 rebate on it, comes out to $30. Remember, though, that you have to buy a state and a federal package. Usually they come in the deluxe version. So that's not going to be a problem.
Now, if you qualify, because you're a veteran or you earn under $35,000 a year, you can use what's called E-File. You just go to the IRS Web site, irs.gov, and it will lead you through it. It's basically the same software that you can buy at Staples or Best Buy or Circuit City or online. It's just sort of no bells and whistles on that software.
(UNINTELLIGIBLE)...
FLOCK: OK, but here, now, here, let me just, let me just ask you this. Whether you're filing online or whether you do it the old- fashioned way, whatever it is, I mean, everybody's gripe is, they think, we all think somebody else is getting a better deal than we are, that they're writing things off that we are not.
VELSHI: Right.
FLOCK: But we're all concerned we're going to get audited if we push the envelope too far.
VELSHI: You're absolutely right.
FLOCK: How do you steer clear of that?
VELSHI: Well, this is the other thing. If you're going to do it yourself, you got to be very careful not to add things to your tax return that otherwise, you know, would cause the IRS to audit you. The IRS is actually very good at sort of pinpointing unusual things.
So first of all, have all of your forms on, you know, have all of the information from your W2, your 1099, your 1098. Avoid excessive deductions. For most people who own a home, the mortgage interest is their only deduction and their tax that they pay on their property. There aren't a lot of deductions, even though there seem to be.
Be sure of what your deductions are. That information is readily available on Web searches, and small businesses, even if you run them from your home or you're a consultant, they're not to be used as excessive tax shelters. If you know what actually is legitimate, you can put it on there. If not, pay a little extra and go to a tax preparer.
I just want to tell you what the major options are for your taxes. Intuit, which makes Quicken, offers TurboTax, that's one of the biggest sellers out there. H&r Block offers TaxCut. That's another major tax package. These are all readily available, and you can...
FLOCK: That's from the Bush administration.
VELSHI: That's -- exactly.
FLOCK: Exactly.
VELSHI: You can work your way through these things, and, you know, I -- sometimes it's useful to try it, Jeff, without actually filing it, just to see if you got it right.
FLOCK: Right, for one year, exactly.
VELSHI: Yes.
FLOCK: Good advice. A lot of good advice there. Ali, thanks. And good to see your face and not your feet on live television. Appreciate the time.
VELSHI: (UNINTELLIGIBLE).
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired January 31, 2004 - 09:51 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JEFF FLOCK, CNN ANCHOR: Well, if you think tax time means a few minutes till midnight on April 15, we have some tips this morning that may ease your stress and help your wallet.
Ali Velshi, one of our favorites, of CNN Financial News joins us from New York to talk tax stuff.
Ali, I still can't get that picture, Ali. None of our viewers saw it, I'm sure, but you falling down on live television with feet up in the air.
ALI VELSHI, CNN FINANCIAL NEWS: The last time you and I were together in Chicago. I'm on solid ground here, both in terms of where I'm sitting and in terms of content on this one.
I can't believe you told the viewers to sharpen the number two pencil. I don't think people today know what a number two pencil is. There's a rover on Mars, and it's almost 20 years, Jeff, since you've been able to file your taxes electronically, believe it or not.
Now, in the mid, in the mid (UNINTELLIGIBLE)...
FLOCK: But how many people are actually doing this online (UNINTELLIGIBLE)...
VELSHI: This is going to surprise you.
FLOCK: ... (UNINTELLIGIBLE) big deal?
VELSHI: This is going to surprise you. In the mid '80s...
FLOCK: (UNINTELLIGIBLE).
VELSHI: ... when they first started this, the first year, 25,000 people used it. Last year, 53 million people filed electronically. Now, I got to tell you, in full disclosure, I can't balance a checkbook. I've certainly never, ever filed my taxes online.
But I'm just going through the morning papers today, and in all your circulars, I got this one from Staples, and it shows you all the discounts you can get on the various tax software. Circuit City, right on the front cover, it's got these ones.
Now, let me tell you a little about this software and who should use it. First of all, if you have complicated tax returns, stay away from it. If you've got major deductions, if you're self-employed, if you've got things that really require some thinking and work, don't.
But if your tax returns are relatively simple, you can use this tax software. Now it is -- it's available for around -- you know, there is these rebates, so, you know, TurboTax is $40, you get a $10 rebate on it, comes out to $30. Remember, though, that you have to buy a state and a federal package. Usually they come in the deluxe version. So that's not going to be a problem.
Now, if you qualify, because you're a veteran or you earn under $35,000 a year, you can use what's called E-File. You just go to the IRS Web site, irs.gov, and it will lead you through it. It's basically the same software that you can buy at Staples or Best Buy or Circuit City or online. It's just sort of no bells and whistles on that software.
(UNINTELLIGIBLE)...
FLOCK: OK, but here, now, here, let me just, let me just ask you this. Whether you're filing online or whether you do it the old- fashioned way, whatever it is, I mean, everybody's gripe is, they think, we all think somebody else is getting a better deal than we are, that they're writing things off that we are not.
VELSHI: Right.
FLOCK: But we're all concerned we're going to get audited if we push the envelope too far.
VELSHI: You're absolutely right.
FLOCK: How do you steer clear of that?
VELSHI: Well, this is the other thing. If you're going to do it yourself, you got to be very careful not to add things to your tax return that otherwise, you know, would cause the IRS to audit you. The IRS is actually very good at sort of pinpointing unusual things.
So first of all, have all of your forms on, you know, have all of the information from your W2, your 1099, your 1098. Avoid excessive deductions. For most people who own a home, the mortgage interest is their only deduction and their tax that they pay on their property. There aren't a lot of deductions, even though there seem to be.
Be sure of what your deductions are. That information is readily available on Web searches, and small businesses, even if you run them from your home or you're a consultant, they're not to be used as excessive tax shelters. If you know what actually is legitimate, you can put it on there. If not, pay a little extra and go to a tax preparer.
I just want to tell you what the major options are for your taxes. Intuit, which makes Quicken, offers TurboTax, that's one of the biggest sellers out there. H&r Block offers TaxCut. That's another major tax package. These are all readily available, and you can...
FLOCK: That's from the Bush administration.
VELSHI: That's -- exactly.
FLOCK: Exactly.
VELSHI: You can work your way through these things, and, you know, I -- sometimes it's useful to try it, Jeff, without actually filing it, just to see if you got it right.
FLOCK: Right, for one year, exactly.
VELSHI: Yes.
FLOCK: Good advice. A lot of good advice there. Ali, thanks. And good to see your face and not your feet on live television. Appreciate the time.
VELSHI: (UNINTELLIGIBLE).
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
