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Nov
17

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Where to Find IRS Form 1040 and Instructions

Category: Filing Taxes Tags: , , , , , ,

Are you aware that there are a few different kinds of IRS form 1040 and instructions? It’s best to know which income tax form suits with your specific circumstance and lets you declare the earnings, deductions, credits, etc. that relate to you.

The Most Common 1040 Forms and Instructions:

  • IRS Tax Form 1040 (Individual Income Tax Return in the U.S.)
  • The Long Form or Form 1040 (Individual Income Tax Return in the U.S.)
  • The Short Form or Form 1040A (Individual Income Tax Return in the U.S.)
  • Form 1040EZ (Income Tax Return for Unmarried and Combined Filers Who Have No Dependents)
  • Form 1040NR (U.S. Nonresident Alien Income Tax Return)
  • Form 1040NR-EZ (U.S. Income Tax Return for Certain Non-resident Aliens Who Have No Dependents)

There are various methods to get tax form 1040 & instructions. The quickest and most effective choice is to download the tax form to your computer or to use online tax software such as TurboTax online.

In addition, almost all post offices and neighborhood libraries have tax forms and instructions available throughout tax season, and forms are also available from a tax center or an IRS office.

Additionally, you could ask for a tax form to be delivered to you from the IRS by U.S. Mail.

IRS 2017 Form 1040 is Known as the Long FormIRS form 1040 and instructions

Form 1040 is the usual federal income tax form widely used to record an individual’s gross earnings (e.g., income, products, real estate, and services). It is usually referred to as “the long form” since it is more in depth compared to the shorter 1040A and 1040EZ income tax forms.

Also in contrast to the various other tax forms, IRS form 1040 permits taxpayers to claim several expenditures and tax incentives, list deductions, and modify income. Although the 1040 usually takes more time to fill out, it rewards taxpayers by offering them extra possibilities to reduce their income tax bills.

The 2017 – 1040 Form is usually due by April 15th 2018, except if you request an automatic tax extension. Should you not submit by this date, you are usually subject to fines and/or overdue charges. It is possible to ask for a tax extension by sending in IRS Tax Form 4868 by the initial submitting due date (April 15).

When Getting Ready to Fill out Your Tax Forms

Even before you start doing your 1040 tax forms, you need to have the following material ready:

  • Valid identification
  • Submitting status and Residency status
  • Social Security Numbers for yourself (and also your partner and any dependents)
  • Birth dates for yourself (along with your partner, plus any dependents)
  • A duplicate of your previous income tax return
  • Documents of salary received (e.g., W-2, W-2G, 1099-R, etc.)
  • Statements of interest/dividends from finance institutions, brokerages, etc.
  • Evidence of any tax credits, tax deductions, or tax exemption
  • Your checking account number and routing number (for Direct Deposit)

Keep in mind that IRS Tax Form 1040, with payment amount, is owed by April 15th. A 6-month tax continuance may be allowed (with IRS Tax Form 4868) for overdue submitting, however payments still have to be made by April 15th. You can file Form 1040 by paper mail, via IRS e-file, or by way of a certified tax preparer.

1040 Tax Form Video by TurboTax

Get Your Refund Faster by Filing Online

Filing income taxes online is usually safer, quicker, and simpler ― and you can get your tax refund a lot faster should you opt for the Direct Deposit method. While there are a few income tax forms to pick from when preparing your federal income taxes, a reliable option is to use IRS Form 1040 when you are not sure if you will be eligible for the 1040A or 1040EZ.

  • The standard guideline is: If uncertain, submit Tax Form 1040.
  • You have to submit Form 1040 once any of the following apply:
  • You have taxable earnings of $100,000 or higher
  • You have self-employment earnings of $400 and up
  • You had income tax being taken from paychecks
  • You made anticipated income tax payments, or have overpayment that is applicable to the current tax year
  • You have listed deductions (e.g., mortgage, interest fees, or charitable donation)
  • You generate revenue from a company, S-corporation, partnership, trust, rental, or farm
  • You have sold real estate, stocks, bonds, or mutual funds
  • You are claiming revenue alterations (for tuition, educator fees, relocating costs, or health savings accounts)
  • You got an advance payment for Earned Income Tax Credit (EITC) from a company
  • You have a W-2 that indicates uncollected tax (from tips or group term life insurance coverage), or a W-2 that demonstrates a code Z (earnings from a 409A non-qualified deferred payment program)
  • You owe excise tax on insider stock payment (from an expatriated enterprise)
  • You are a person in debt in a Chapter 11 personal bankruptcy case (submitted after October 16, 2005)
  • You make foreign income, paid foreign income taxes, or are claiming tax treaty benefits
  • You are obligated to repay any further special taxes (e.g., recapture taxes, household employment tax, alternative minimum tax, etc.)

Help at Tax Time

form 1040 onlineWhen you file your taxes online it will be like an interview. They will ask easy to answer questions while filling in the correct tax forms for you behind the scenes.

The answers you provide will enable them to see which deductions and credits you qualify for. In the event that you are unsure how to answer a question there are tax experts readily available to help you.

Online tax filing insures that you get the largest refund possible. There’s even a free tax refund calculator available that allows you to know the amount of money that you will be getting back.

 

Nov
16

By

Earned Income Credit Table Amounts and Qualification

Category: Filing Taxes Tags: , , , , , ,

The Earned Income Tax Credit (EITC) is a credit that is for low to moderate-income taxpayers to get ahead and have more money in their pockets. It can boost refunds significantly if you are able to meet the criteria’s required to claim it.

See the earned income credit table amount

For example, if you are employed, but your income is considered “low” by the IRS you may be able to take advantage of this credit, which currently has a maximum credit amount of $6,242.

To determine your credit amount all you have to do is enter your information into the tax software and it will automatically calculate the amount you will receive.

Below you will find some of the most common questions that taxpayers have about the Earned Income Credit.

Do I qualify even if I did not have tax withheld from my pay and I am not required to file taxes?

Yes, you can qualify for the EITC and get a refund. This is a refundable credit, however, in order to receive it you have to file even if you are not required to file.

Does my income have to be very low to qualify?

If you do not have qualifying children, you must have a low income to be able to claim this tax credit. For 2015, you have to have earned less than $14,820 to qualify ($20,330 for couples) if you have no children. However, if you only have one qualifying child the income limit is $39,131.

How much are the credit table amounts?

Dependents       Maximum Credit          Adjusted Gross Income

0

               $487.00          $14,340.00
(Jointly $19,680.00)

1

$3,250.00

          $37,870.00
(Jointly $43,210.00)

2

$5,372.00

          $43,038.00
(Jointly $48,378.00)

  3+

$6,044.00

          $46,227.00
(Jointly $51,567.00)

Who qualifies for the EITC?

In order to qualify for the EITC you have to meet the income criteria’s for the current year. However, you, your spouse, and children can qualify as long as you all have social security numbers and you should be working for yourself or as an employee. You aren’t able to claim this credit if you use the status “married filing jointly” and you must be a U.S. citizen or married to one.

If you can be claimed by another person as a qualifying child or are not between the ages of 25 and 65 you will not be able to claim. You also cannot have to file Form 2555 or any variation and you are not allowed to have more than $3,400 in interest, dividends, or other investment income.

Video – Who qualifies for the earned income tax credit?

Will military combat pay affect my credit?

If you have received military combat pay, you do not have to disclose this information. Usually, this income does not affect your taxable income. However, it depends on your total earned income and family size whether or not you will receive this credit and the amount. Sometimes it could be beneficial to include combat pay as taxable income so you could receive the EITC. Lastly, if you decide to include your combat pay, remember that it is “all or nothing”.

Can the credit be added to my paycheck during the year?

The IRS used to allow the Advance Earned Income Credit throughout the year. However, this ended in 2010.

Can I claim this credit if my child’s other parent claims him as a dependent?

Usually, if your child lived with you for majority of the year, you would be able to claim this credit without having to claim the dependency exemption.

It is important to remember that the number of children that are claimed, as dependents are not always the same number that qualify you for this valuable credit. In the event that the time evens out amongst parents, the parent with the highest AGI takes the credit. Only one person can claim the child and noncustodial parents are not allowed to claim children for the EITC.

Determining if your child qualifies for the EITC

  • Age or disability – The child has to be under 19 or younger than 24 if they are a full time student for at least 5 months. The child must be younger than you. If they are permanently and totally disabled, they can be any age.
  • Relationship – The child has to be your son, daughter, stepchild, sibling, stepsibling, foster or adopted child, or a descendent of any of these.
  • The child must have resided with you in the US for more than six months.
  • Your child cannot be required to file a joint return.

Can I go back and claim the EITC if I qualified but didn’t do it in past years?

You can file an amended return to receive the EITC for past years that you qualified but didn’t claim.

If you did not get the credit because you didn’t file or you were not sure if you could claim a child that lived with you, you have to file a separate return for all of the years you qualified. However, you cannot go back indefinitely. Usually, you are only able to file amended returns for three years back.

Claim your credit the easy way by filing online

Keep in mind, if you file online with H&R Block or TurboTax they will ask you the correct questions to let you know which deductions you qualify for and guarantee you will receive the largest refund ever.

Their online filing services have the ability to import your W2 information into your tax return so you can avoid worrying about your forms being delivered via snail mail. You can also use their free tax refund estimator to see how much of a refund you can expect.

 

Nov
16

By

H & R Block Online Tax Filing Review

Category: Filing Taxes Tags: , , , , , , ,

H & R Block is one of the names that many Americans know. They have their distinctive green square everywhere when tax season comes near. They are so well known nationally that even small towns have stand-alone shops set up.H & R Block 2016 online

In addition to being an in person tax agency, H & R Block 2017, 2018 also has very popular online tax filing programs and free tax calculators.

They have created software’s that are suitable for tax situations of all sizes. These software’s can be ideal for those who don’t want to waste time waiting in an office or want to avoid having to pay an arm and a leg for the “in person” experience.

H &R Block’s discount pricing is considered one of the most affordable. They always recommend their online services for those who are on a budget and have basic tax knowledge.

Plans, Pricing, and Features

H & R Block uses an interview style when it comes to helping home filers prepare their federal and state returns. The process is thorough too, so you can rest assured that you are completing everything correctly and claiming all of the deductions and credits that you are eligible for.

When you are first starting out, you have four pricing plans to choose from. You can start with the free plan, but if you need to do something that the plan does not cover, you will promptly be directed to upgrade in order for you to continue your return.

Below are the four plans that H & R Block has available.

Free Plan: This version is very basic and is suggested for those who have simple tax returns. You can itemize deductions and report your ordinary dividend or interest income. However, you cannot import prior years and you are unable to calculate or claim the EIC, (Earned Income Credit).

Lastly, while it is free to file your federal return, you have to pay $9.99 to do your state return. See the Free Plan features below:

  • Itemized Deductions: You can file Schedule 1040A and if you are unsure if you need to itemize or not the interview questions can help you decide.
  • Schedule B Support: If you have more than $1500 in ordinary dividend or interest income, you will probably have to file a Schedule B. This version provides support including checking for relevant credits and deductions.
  • W-2 Importing: You can import unlimited W-2’s and record all of your W-2 income.
  • Affordable Care Act Requirements Support: You will be asked a series of questions about your health insurance coverage for the tax year. All H & R Block at Home support forms and documentation required to prove that you had coverage for the year, or to handle penalties if not.
  • 5% Refund Bonus: If your refund is more than $100, H & R Block offers a 5% bonus when you accept part or all of it as a gift card from several dozen retailers, such as Best Buy and Target (you can select multiple retailers).

Basic Plan: This plan has a ton of similarities to the Free Plan.  The major differences are it has better importing capabilities and you can access prior year’s returns. Its free for both federal and state filing with this plan, however, you will have to pay $36.99 per state if you file from your mobile device. It includes all of the free plan features and some additional features too:

  • Schedule EIC Support: Those who qualify for the EIC need this version of the software to claim it.
  • Access to Past Tax Returns: Access past prepared and filed tax returns with H & R Block for the past six years.
  • Past Year Return Importing: Import all of the information from your past years returns from Turbo Tax and TaxACT in PDF form.
  • Support for EITC Filers: This version will provide you with everything that you need in order to claim the EITC.
  • Mobile Apps: You can use the mobile app to file your tax return.

Deluxe Plan: The Deluxe Plan charges you $24.99 to file your federal return and $36.99 per state return. It is recommended for those with capital gains or losses and those who made charitable donations over $500 in the tax year. It even includes a nice refund bonus. You receive all of the benefits from the Basic plan as well as:

  • Support for Charitable Donations: Receive detailed guidance and support for cash and non-cash charitable donations that totaled more than $500.
  • Support for Schedule D: Receive support and a walk thru of all of the relevant credits and deductions if you had capital gains or losses from the sale of securities, real property, and other assets.
  • 10% Refund Bonus: If you go with the gift card refund, you will receive a 10% increase.

Premium Plan: This plan is recommended for business owners, property owners, self-employed individuals, and anyone else who has a complex tax situation. It costs $44.99 to file your federal return and $36.99 for each state return. It includes the same features as the Deluxe plan and:

  • Schedule C Support: If you have to pay self-employment tax, you will have to file a Schedule C or Schedule C-EZ. With this plan, you will get all of the support you need to make sure you are getting all of the credits and deductions that you are eligible for.
  • Schedule E Support: If you own and earn income from a rental real estate, you have to file Schedule E. Premium will provide you with support including all of the supplementary forms you need to file and double check for credits and deductions that you are eligible for.

Additional Features

In addition to the standard plans that they have available for customers, H & R Block has introduced some additional features that are beneficial to their customers.

  • Free, Live Phone and Chat Support: You can have access to tax professionals and customer support members via phone and live chat. Normally, this is available Monday-Friday from 10am to 10pm and Saturday and Sunday from 9am to 5pm, but during tax season, 24/7 support is available.
  • Real Time Refund Updates: As you are preparing your return you will see that your refund amount will go up and down (left sidebar) as new information is added in. In addition to tracking changes in real time, you will also be alerted as to why the changes are made. You can also use their online tax refund calculator to see your refund in advance.
  • Create Your Account Later – H & R Block allows you to start your tax return without creating an account. You have to have an account to file and pay, save, return, and exit, but you can test the waters without creating an account.
  • In-Person Audit Support – H & R Block offers free in person audit support to all of their customers. They will help you at your local office to understand the notices, gather documents to respond to the audit, review the findings of the audit, and offer guidance for responding. If you are not an H & R Block customer, you can pay a fee for their assistance.
  • Pay with Refund – H & R Block allows you to use your refund to pay for their services, so you do not have to pay upfront. However, they do charge a $34.99 processing fee for federal returns and a $13 fee for state returns. In addition, you have to pay the filing fee with the return that it originated from.

Advantages

  1. Affordable compared to some alternatives – Thanks to their selection of plans, H & R Block is able to be more affordable than some of their competitors. Discounts can also be found online.
  2. In-Person audit shows they are confident – If you are audited after using their online or in person services, they provide you with free audit assistance. This shows that they are confident that their services are providing you with accurate returns.
  3. Refund bonus is unbeatable – With their refund bonus, you can boost your federal refund by up to 10%. In addition to getting your refund in the form of a gift card, you have a wide selection of retailers to choose from too.
  4. Upfront, detailed information about the Affordable Care Act issues – After you put your personal information in or import your return, you are immediately directed to a series of questions about your health insurance to get the Affordable Care Act out of the way immediately.
  5. Account creation is not required from the start – While you cannot complete a return without an account, they are allowing you to “try before you buy”.
  6. You can pay with federal and state refunds – You can avoid paying your fees upfront by paying the appropriate fee with the corresponding refund amount.
  7. Physical Branches are available – Not only are you able to do live chat and phone support, but if you need in person relations to get your taxes finished, you can easily stop by your local H & R Block branch.

Closing Thoughts

Choosing an online tax preparation program is something that takes careful thinking. You want to make sure that you are doing business with a business that has real people available who have your back throughout the entire filing process and after. Lower your risk of auditing and find filing taxes easier with H & R Block.

 

Nov
12

By

How TurboTax 2018 Helps Find More Tax Deductions & Credits

Category: Filing Taxes Tags: , , , , ,

An increasing number of people are turning to TurboTax to get their income tax prepared and filed every year. They take all the hard work and stress out of tax form preparation and will always get you the largest refund.

As you go through the process of importing income and expense information into
the TurboTax 2018 Online Software, you will see possible deductions appear on your screen. This will let you know what you may qualify for and how much money you can save on your tax bill.

Tax Deductions & Credits You May Qualify ForTurboTax 2016

Finding more tax deductions and credits is one of the great benefits Intuit TurboTax has to offer. You will get immediate information about deductions being claimed on your taxes already and ones that you are eligible to claim.

Here are a few of the best deductions and credits:

Mortgage Interest Deduction One of the best deductions for those who own homes and itemize their deductions is the mortgage interest deduction. This deduction is claimed on Schedule A and as long as your mortgage is secured by your home, you should be able to claim it.

PMI and FHA Mortgage Insurance Premiums This could be the last year where the PMI deduction can be claimed. However, if Congress renews it for 2017 you will be able to deduct it again (usually they have no problems reauthorizing it). This deduction allows you to deduct the costs of the private mortgage insurance (PMI) as mortgage interest on Schedule A. However, the loan has to have been taken out after 2007.

Earned Income Credit Although it changes yearly, the impact of the earned income tax credit remains the same: It helps fight poverty. To be eligible for this credit, you must file a yearly tax return.

Child Tax Credit Raising children is not cheap. However, the IRS understands this, which is why they have various credits and deductions for taxpayers that have families. One of these valuable tax credits is the Child Tax Credit.

Premium Tax Credit The Premium Tax Credit is one of the refundable credits put in place to allow those who qualify to be able to afford the health insurance that was purchased via the Health Insurance Marketplace. Those with moderate incomes who do not qualify for a government or employer plan usually qualify.

TurboTax is dedicated to making sure you save as much money as you can on your income tax bill each year.  This is the goal of any American and they value the same thing. Using this system to file your taxes is all about getting the maximum number of deductions and reducing your payment obligation.

TurboTax 2018 Does the Work for You

Have you ever been confused by the language or directions for the IRS tax forms? Do you have trouble determining which forms you have to use?

TurboTax’s main goal is to simplify the yearly income tax process for you. They lead you step by step using conversational English to choose the correct forms, whether it is 1040, 1040A or 1040EZ, and fill in the forms correctly so you do not have to worry.

They are also capable of automatically filling in information from your place of work, banks and other financial institution which saves you time and reduces the paper work load. All you have to do is provide some basic information and they put everything in the proper places.

TurboTax online filing service also gives you the ability to import your W2 information into your tax return so you can avoid worrying about your forms being delivered via the mail.

Get a Discount

You can already see how the TurboTax preparation system is easier than anything you have done before. It gets even better if you use this discount coupon code. They will automatically fill in forms based on last year’s information and ask if anything has changed to ensure accuracy. All of your data is secure, perfectly private and saved in their system in case you have to stop the tax preparation process and come back to it later.

Their Smart Check scans for any errors so you can rest assured that the IRS is getting correct information. Their guarantee that is so strong that they will pay any IRS penalties a plus interest if there is any error on your report. Intuit TurboTax has the latest tax laws, updates frequently, uses top of the line security features and guarantees accuracy.

Free Tax Refund Calculator

Are you curious to see how much your refund will be? One of the best ways to have an estimation about the amount you should receive is to use one of the online tax refund calculators. The number is just an estimation, so it’s not 100% accurate, but it does give you a number. The TurboTax refund calculator shows you approximately how much your refund will be.

TurboTax Absolute Zero Now Available at No Cost to 60 Million Americans

People who file IRS tax forms 1040A and 1040EZ can now use TurboTax Absolute Zero for free. Available to an estimated 60 million American taxpayers who file these forms, the service enables use of TurboTax Federal Free Edition at no cost.

To qualify, you have to file a 1040A/1040EZ form. Americans with a taxable income of less than or equal to $100,000 are qualified to use these forms and claim standard deductions. Independent contractors, homeowners, and also Americans with medical expenses qualify to use these forms and use TurboTax Absolute Zero.

TurboTax Help & Support

Help and support is available 24/7 for the entire tax season. You also have access to human tax experts who can answer any questions that you have. Phone assistance does have a price tag, but it is available if you need that one on one help. All tax experts are certified public accountants or enrolled agents.

TurboTax online software also features various help files and explanations that cover numerous tax topics. Most users are able to go through the software without going to the help files, but they are readily available if you need them. They even have video classes and tax guides available in addition to the active user community and social media accounts where tax topics are also discussed.

 

Nov
12

By

Two Websites That Can Calculate Your 2018 Tax Refund

Category: Tax Refund, Trending Tags: , , , , , , ,

By now, you’ve probably gotten taxes out of the way for the 2017 tax season. However, if you want to be a financially conscious person you should already be preparing for the 2018 tax filing season.

Tax Refund Calculator 2016If you are expecting a tax refund, you probably want to know just how much of a refund you can expect. However, coming up with an accurate estimation is not always easy. Therefore, this article will discuss two websites that offer a free tax refund calculator for 2018.

TurboTax Tax Refund Calculator

An increasing number of people are turning to TurboTax to get their income tax prepared and filed every year. Their user friendly tools take all the hard work and stress out of tax form preparation and will always get you the largest refund.

One popular tool is the TurboTax tax refund calculator because it is very user friendly and gives you a quick estimate of your tax refund. The graphics and sliders make understanding taxes very easy and it updates your estimate as you add in information.

Estimating your tax refund or balance owed does not have to be complex. In fact, the online calculators make it easy for anyone. All you have to do is answer some basic questions and the calculators provide you with an estimate. Many taxpayers find that using the tax refund calculator only takes them a few moments.

H&R Block Refund Calculator

H & R Block has been helping American’s with their taxes since 1955, when their first office opened. Back then, they were offering high interest loans based on someone’s estimated tax refund.

Now that those programs have been discontinued, they still make it their business to help you see what amount you can expect in your tax refund. Just go here if you would like to use the H & R Block tax refund calculator. You can rest assured it’s up to date by the latest IRS tax figures.

Step 1 – Run Your Numbers in the Tax Refund Calculator

Answer the simple questions the calculator asks. You don’t have to be 100% exact, you just have to give a good estimate. If your tax situation changes you can always come back to the calculator again.

As you answer the questions, you will see that the information that you enter changes. You will even have access to your total income, adjustments, deductions, and other important numbers in the form of a tax summary.

Step 2 – Consider “What If” Scenarios

Did you go through the calculator and find out that your refund is low or your balance due is too high. If so, try playing around with different scenarios so you can reach a number that you are satisfied with. For example, you could increase your charitable contributions or add in some energy saving home improvements.

In the event that you foresee your income changing, you may want to try estimating taxes with a lower or higher income so you can see just how much of a difference it makes when tax time rolls around.

Step 3 – Estimate Again Once Time Has Passed

Anytime something changes with your tax situation you want to come back to the calculator again. This will allow you to ensure that you are always on the right track financially. The more you estimate your taxes, the better prepared you can be when it comes time to file.

Tax laws change throughout the year, but by using a tax calculator, you can make sure that you are prepared. By utilizing a tax refund calculator, you can have a peace of mind knowing that your tax outcome is going to be the best one possible.

Video – How to Use an Online Tax Refund Estimator

When Will You Get Your Refund?

Once you have your return accepted by the IRS your refund is based on the IRS E-file Refund Cycle Dates. It is estimated that if you electronically filed and selected direct deposit as your payment receivable method, you should get your refund in no more than 2 weeks. However, if you are waiting for a paper check it can take an additional week.

get your tax refund faster with efileWhen you eFile, you will be able to check your tax refund in real time using the “Where’s My Refund Tool” by the IRS within 24 hours after it has been received. Paper filing can take up to a month to be able to track your refund status through this tool.

Additionally, in order to use the tool you have to provide your social security number/EIN, filing status, and the exact amount of your projected refund. When you enter this information your estimated refund release date will be added. The date provided is not set in stone, which means you should check the status on a weekly basis.

Closing Thoughts

Estimating your refund does not have to be hard, thanks to the Free TurboTax refund calculator and the Free H&R Block refund calculator. You can plan and make sure that you spend your refund wisely when it arrives. The IRS says that taxpayers should expect to receive their refunds within 21 days after they file their tax returns.

Whether you are looking forward to paying off some debt or taking a vacation, direct deposit will get you your refund the quickest. Additionally, it is the safest way to get your money as paper checks can be lost or even stolen. Keep in mind, the IRS takes at least six weeks to replace a paper check that hasn’t been cashed and if it is cashed it can take even longer.

Lastly, keep in mind the child tax credits, earned income credits, and federal income tax brackets change yearly, therefore, you could be getting an even larger tax refund when the new laws go into place.

 

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