Articles Index
Adjusting Tax Withholding from Your Paycheck
Revising your paycheck withholding involves several steps. In this article I walk you through all the steps I take whenever a client ask me to review their current level of withholding. The key is using available calculators available on the Web to make sure that you have just enough tax deducted from your pay.
Statute of Limitations for Tax Refunds, IRS Audits, and Collections
The tax code imposes time limits on various actions that taxpayers and the IRS can take. There are time limits for getting a tax refund, for the IRS auditing your tax return, and for the IRS collecting your tax.
Social Security Benefits
Social Security benefits are taxed depending on your total income from all sources. Here's how to calculate how much of your Social Security benefits is taxable.
Should You File an Extension?
An extension is your way of asking the Internal Revenue Service for additional time to file your tax return. The IRS will automatically grant you an additional six months to file your return. An extension basically extends the filing deadline for personal tax returns from April 15th to October 15th. Learn more about what filing an extension can and cannot do for you.
Installment Agreements
A monthly payment plan is generally the easiest way to set up an arrangement to pay off any taxes owed to the Internal Revenue Service. There's four different types of installment agreements offered by the IRS. The important thing is knowing which installment agreement you qualify for.
Reporting Income Payments Using Form 1099-MISC
Businesses are required to report payments made for goods and services related to a trade or business. Reporting is required if a business pays $600 or more to an individual or another business that provided goods or services. Such payments are reported both to the vendor and to the Internal Revenue Service using Form 1099-MISC.
Payroll Taxes
Payroll taxes are the responsiblity of every employer. Find essential information on how to report payroll taxes.
Income Tax Deadlines
The annual tax filing deadline is normally April 15. In 2012, however, the deadline will be April 17th. Here's a list of important tax deadlines occurring in the year 2012.
Year-End Tax Planning Tips for Freelancers and Self-Employed Persons
Freelancers and other self-employed entrepreneurs have several tax planning strategies available to them before the year is over.
Year-End Tax Planning Tips for Investors
Investors have a number of tax planning tactics available to them throughout the year. At any point in time, investors can decide to sell off an investment, or to make a new investment, or some combination of the two. These decisions are particularly relevant near the end of the year as investors start to determine their overall investment gains and losses for the year and make any final investment decisions that will have an impact on their tax return.
American Opportunity Tax Credit
The American Opportunity Tax Credit provides up to $2,500 for people pursuing undergraduate education. Replacing and expanding on former the Hope credit, the American Opportunity credit is scheduled to be effective for the years 2009 and 2010 only.
Year End Tax Tips
Here's a list of simple tax moves you can do before the end of the year to keep your income taxes as low as possible.
Mortgage Insurance Premium Tax Deduction
Mortgage insurance premiums may be tax deductible. To qualify, the insurance policy must be for home acquisition debt on a first or second home. This itemized tax deduction is valid for the years 2007 through 2011.
Tax Rates for the 2011 Tax Year
Federal income tax rates for the 2011 tax year.
Payroll Tax Exemption for New Hires
Employers who hire previously unemployed workers may be exempt from paying the employer's share of Social Security taxes for 2010 under the HIRE Act.
Standard Deduction
Taxpayers can opt to take a standard deduction (a flat dollar amount that reduces taxable income) or itemize their deductions instead. The standard deduction amount varies by a person's filing status, age, and whether they are blind.
Earned Income Tax Credit
The earned income credit is a refundable tax credit, which means the EIC lowers your taxes and gives you a bigger refund. The refund is available to lower income taxpayers who have wages. The qualifications depend on the level of "earned income" and how many dependents you support.
Lifetime Learning Tax Credit
The Lifetime Learning Credit is a tax credit for any person who takes college classes. It provides a tax credit of 20% of tuition expenses, with a maximum of $2,000 in tax credits on the first $10,000 of tuition.
Child Tax Credit
If you have children, you may qualify for a Child Tax Credit on your federal income tax return. For 2010, the maximum child tax credit is $1,000. For 2011, the child tax credit is scheduled to revert back to $500 maximum per child.
Adoption Tax Credit
The federal tax credit for adopting children has been significantly enhanced for the years 2010 and 2011. The adoption credit is a refundable credit for 2010 and 2011 and has a maximum credit amount of $13,360.
Tax Rates for the 2012 Tax Year
Federal income tax rates for the 2012 tax year.
Tax Deduction for Traditional Individual Retirement Accounts
If you contributed to a traditional individual retirement account (IRA), you can take an above-the-line tax deduction for your contribution on Form 1040. Your deduction reduces your taxable income dollar-for-dollar.
Car and Truck Expenses
Car and truck expenses can be tax-deductible if you drive your car for business, medical, moving, or charitable purposes. Learn more about what expenses are deductible, and what records to keep, and how to report this on your tax return.
US Withholding for Canadian Independent Contractors
Canadian citizens who have income from US sources should fill out Form W-8BEN to claim a reduce amount of income tax withholding. Find out how to qualify for benefits under the US-Canada Tax Treaty and how to fill out Form W-8BEN.
Credit Card Payments to be Reported to the IRS Beginning 2011
Income received through credit and debit card transactions will be reported to the Internal Revenue Service starting in the year 2011. Part of the Housing Assistance Tax Act of 2008.