Tax Planning: U.S.: Most Popular Articles
These articles are the most popular over the last month.
2013 Tax Rates
Federal income tax rates for the 2013 tax year.
Federal income tax rates for the 2013 tax year.
Where's My State Refund?
A list of links to state tax authority websites where you can check the status of your state income tax refund.
A list of links to state tax authority websites where you can check the status of your state income tax refund.
Capital Gains Tax
Capital gains tax rates are determined by the type of investment asset and the holding period. Provides tax rates for short-term capital gains, long-term capital gains, collectibles, and other capital assets. Long-term capital gains tax rate of 5% and 15%. Plus a new zero percent capital gain tax rate begins in 2008.
Capital gains tax rates are determined by the type of investment asset and the holding period. Provides tax rates for short-term capital gains, long-term capital gains, collectibles, and other capital assets. Long-term capital gains tax rate of 5% and 15%. Plus a new zero percent capital gain tax rate begins in 2008.
Form W-4
Filling out a W-4 is one of the first things you do when you start a new job. You may want to fill out a new W-4 if your financial situation has changed. Use Form W4 to increase or to decrease your income tax withholding.
Filling out a W-4 is one of the first things you do when you start a new job. You may want to fill out a new W-4 if your financial situation has changed. Use Form W4 to increase or to decrease your income tax withholding.
Tax Free States
Seven states have no income tax and two states tax only certain investment income. See this list of states without an income tax and find out where you'll get to keep more of your paycheck.
Seven states have no income tax and two states tax only certain investment income. See this list of states without an income tax and find out where you'll get to keep more of your paycheck.
State Income Tax Rates
Wondering how your state's income tax rates compare to other states? Here you will find each state's highest income tax rate and when the top rates kick in.
Wondering how your state's income tax rates compare to other states? Here you will find each state's highest income tax rate and when the top rates kick in.
Selling Your Main Home
How to calculate capital gains taxes on the sale of a main home. Plus tips for lowering your capital gains using the Section 121 capital gains exclusion when selling your principal residence.
How to calculate capital gains taxes on the sale of a main home. Plus tips for lowering your capital gains using the Section 121 capital gains exclusion when selling your principal residence.
Payroll Taxes
Payroll taxes are the responsiblity of every employer. Find essential information on how to report payroll taxes.
Payroll taxes are the responsiblity of every employer. Find essential information on how to report payroll taxes.
401(k) Contribution Limits
For the year 2013, people can contribute up to $17,500 as an elective deferral to their employer's 401(k) plan. Additionally, if you are age 50 or older, you can contribute an additional catch-up contribution of $5,500.
For the year 2013, people can contribute up to $17,500 as an elective deferral to their employer's 401(k) plan. Additionally, if you are age 50 or older, you can contribute an additional catch-up contribution of $5,500.
Head of Household Filing Status
You are unmarried, can claim a dependent, and have cared for a dependent for over half the year. Taxpayers claiming the Head of Household filing status benefit from a higher standard deduction and lower tax rates than single taxpayers. The definition of head of household is quite specific, so read over the criteria carefully.
You are unmarried, can claim a dependent, and have cared for a dependent for over half the year. Taxpayers claiming the Head of Household filing status benefit from a higher standard deduction and lower tax rates than single taxpayers. The definition of head of household is quite specific, so read over the criteria carefully.
Early Distribution Penalty
If you withdraw money from a traditional individual retirement account (IRA), 401(k), 403(b), or other qualified retirement plan before you turn age 59 1/2, you may be subject to an early distribution penalty of 10%. There are exceptions. Here's what you need to know about the 10% early distribution penalty.
If you withdraw money from a traditional individual retirement account (IRA), 401(k), 403(b), or other qualified retirement plan before you turn age 59 1/2, you may be subject to an early distribution penalty of 10%. There are exceptions. Here's what you need to know about the 10% early distribution penalty.
Adjusting Your Withholding
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.
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.
2012 Tax Rates
Federal income tax rates for the 2012 tax year.
Federal income tax rates for the 2012 tax year.
Tax Deadlines
The annual tax filing deadline is normally April 15. Find a list of deadlines relating to federal income taxes for individuals and businesses.
The annual tax filing deadline is normally April 15. Find a list of deadlines relating to federal income taxes for individuals and businesses.
Best and Worst States for Prop
The 10 best and the 10 worst states for property taxes. Find out which states have the highest property taxes and which states have the lowest property taxes.
The 10 best and the 10 worst states for property taxes. Find out which states have the highest property taxes and which states have the lowest property taxes.
IRS Tax Penalties
If you owe taxes, the IRS will calculate penalties and interest on the amount owed. If you have a refund, the IRS may pay you interest on the delayed refund.
If you owe taxes, the IRS will calculate penalties and interest on the amount owed. If you have a refund, the IRS may pay you interest on the delayed refund.
Charity Donations
Donations of cash and property to qualified non-profits are tax deductible. To be deductible, taxpayers must keep records of their contributions, especially of any gifts over $250. For non-cash contributions, taxpayers must keep records indicating the value and condition of the property given to charity.
Donations of cash and property to qualified non-profits are tax deductible. To be deductible, taxpayers must keep records of their contributions, especially of any gifts over $250. For non-cash contributions, taxpayers must keep records indicating the value and condition of the property given to charity.
Form 1040X
An amended tax return is used to make corrections to a previously filed tax return. Taxpayers can correct filing status, income, tax deductions, or tax credits. Tips for revising and correcting federal tax returns using Form 1040X.
An amended tax return is used to make corrections to a previously filed tax return. Taxpayers can correct filing status, income, tax deductions, or tax credits. Tips for revising and correcting federal tax returns using Form 1040X.
Form W-9
Form W9 is a request for your taxpayer identification number. Information about what the form means and how to fill it out.
Form W9 is a request for your taxpayer identification number. Information about what the form means and how to fill it out.
Social Security
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.
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.
Incorporating
The various forms of organization are established by state law. There are a wide variety of business organizations recognized by the states. While there are a variety of designations at the state level, for federal tax purposes there are only 6 forms of business organizations. Discusses sole proprietors, corporations, partnerships, S-corporations, trusts, and non-profit organizations.
The various forms of organization are established by state law. There are a wide variety of business organizations recognized by the states. While there are a variety of designations at the state level, for federal tax purposes there are only 6 forms of business organizations. Discusses sole proprietors, corporations, partnerships, S-corporations, trusts, and non-profit organizations.
Checking Status of Federal Tax Refund
After filing a federal tax return, it's possible to check on the status of when the IRS will issue a tax refund. Describes different ways the status of a refund can be checked, and common reasons why refunds can experience delays.
After filing a federal tax return, it's possible to check on the status of when the IRS will issue a tax refund. Describes different ways the status of a refund can be checked, and common reasons why refunds can experience delays.
Highest State Tax Rates
A list of the five states with the highest overall taxes and the five states with the lowest overall taxes. See which state's residents pay the most in all state taxes including income tax, property tax, sales tax, and other state and local taxes.
A list of the five states with the highest overall taxes and the five states with the lowest overall taxes. See which state's residents pay the most in all state taxes including income tax, property tax, sales tax, and other state and local taxes.
Form W-2
Form W-2 Box 12: Deferred Compensation and Other Compensation. There are several types of compensation and benefits that can be reported in Box 12. Box 12 will report a single letter or double letter code followed by a dollar amount. Here are the codes for Box 12.
Form W-2 Box 12: Deferred Compensation and Other Compensation. There are several types of compensation and benefits that can be reported in Box 12. Box 12 will report a single letter or double letter code followed by a dollar amount. Here are the codes for Box 12.
Medicare Tax
The United States federal government imposes a Medicare tax of 2.9% on wages received by an employee and on business or farming income earned by self-employed individuals. Starting in the year 2013, Medicare taxes will be increased to 3.8% and expanded to cover both wage income and investment income for higher-income individuals.
The United States federal government imposes a Medicare tax of 2.9% on wages received by an employee and on business or farming income earned by self-employed individuals. Starting in the year 2013, Medicare taxes will be increased to 3.8% and expanded to cover both wage income and investment income for higher-income individuals.
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.
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.
Personal Exemptions
Taxpayers are entitled to claim one personal exemption for themselves and each dependent.
Taxpayers are entitled to claim one personal exemption for themselves and each dependent.
Tax Statute of Limitations
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.
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.
Dependents
A qualifying child must meet four criteria in order to be claimed as a dependent. Learn more about the relationship, age, residency, and support tests, and the tie-breaker rules for when two taxpayers attempt to claim the same dependent.
A qualifying child must meet four criteria in order to be claimed as a dependent. Learn more about the relationship, age, residency, and support tests, and the tie-breaker rules for when two taxpayers attempt to claim the same dependent.
Best States for Retirees
Find out which states retirees will pay the least income tax, sales tax, and property tax and which states win out overall as the best states to retire in.
Find out which states retirees will pay the least income tax, sales tax, and property tax and which states win out overall as the best states to retire in.
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.
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.
New York City Taxes
A guide to taxes individuals pay in New York City including New York City income tax, New York City property tax, New York city sales tax rates, and other taxes.
A guide to taxes individuals pay in New York City including New York City income tax, New York City property tax, New York city sales tax rates, and other taxes.
Highest and Lowest Sales Tax Rates
The Tax Foundation has ranked the states with the highest and lowest combined state and local sales taxes as well as major U.S. cities with the highest sales taxes. See how your state compares.
The Tax Foundation has ranked the states with the highest and lowest combined state and local sales taxes as well as major U.S. cities with the highest sales taxes. See how your state compares.
Alternative Minimum Tax
The alternative minimum tax, or AMT, is a second tax system parallel to the regular income tax. The alternative minimum tax adjusts or eliminates certain tax deductions or credits. Your tax may be higher under the alternative minimum tax rules if your income is over the AMT exemption amount.
The alternative minimum tax, or AMT, is a second tax system parallel to the regular income tax. The alternative minimum tax adjusts or eliminates certain tax deductions or credits. Your tax may be higher under the alternative minimum tax rules if your income is over the AMT exemption amount.
Married Filing Separately
Married taxpayers can choose between filing a joint tax return or a separate tax return. The Married Filing Separately filing status provides fewer tax benefits than filing joint returns, but taxpayers will need to weigh the pros and cons and decide for themselves which is the best filing status.
Married taxpayers can choose between filing a joint tax return or a separate tax return. The Married Filing Separately filing status provides fewer tax benefits than filing joint returns, but taxpayers will need to weigh the pros and cons and decide for themselves which is the best filing status.
California State Tax Profile
Find out how much you'll pay in California state taxes; from California income tax, to California property taxes and sales taxes.
Find out how much you'll pay in California state taxes; from California income tax, to California property taxes and sales taxes.
1099
Form 1099 is used to report a wide variety of taxable income, such as interest, dividends, stock sales, and self-employment income. Income data on Form 1099 is reported in different places on your tax return.
Form 1099 is used to report a wide variety of taxable income, such as interest, dividends, stock sales, and self-employment income. Income data on Form 1099 is reported in different places on your tax return.
Married Filing Jointly
Married taxpayers can choose between filing a joint tax return or a separate tax return. The Married Filing Jointly filing status provides more tax benefits than filing separate returns, but taxpayers will need to weigh the pros and cons and decide for themselves which is the best filing status.
Married taxpayers can choose between filing a joint tax return or a separate tax return. The Married Filing Jointly filing status provides more tax benefits than filing separate returns, but taxpayers will need to weigh the pros and cons and decide for themselves which is the best filing status.
Tax Planning
The goal of tax planning is to arrange your financial affairs so as to minimize your taxes. There are three basic ways to reduce your taxes. You can reduce your income, increase your deductions, and take advantage of tax credits.
The goal of tax planning is to arrange your financial affairs so as to minimize your taxes. There are three basic ways to reduce your taxes. You can reduce your income, increase your deductions, and take advantage of tax credits.
Rental Income & Expenses
Mastering the IRS Form 1040 Schedule E is easy once you organize your income and expenses. Benefit from the generous tax rules regarding rental income with handy tax tips from the About.com Guide to Tax Planning.
Mastering the IRS Form 1040 Schedule E is easy once you organize your income and expenses. Benefit from the generous tax rules regarding rental income with handy tax tips from the About.com Guide to Tax Planning.
Prices for Tax Preparation
The price for tax preparation services is based largely on how complex your tax return is. Find out how different companies price their services and average prices charged by various tax professionals.
The price for tax preparation services is based largely on how complex your tax return is. Find out how different companies price their services and average prices charged by various tax professionals.
Estimated Taxes
Taxpayers can prepay their federal taxes by remitting estimated tax payments throughout the year. Estimated tax payments are due four times a year. Estimated tax payments are sent in using Form 1040-ES.
Taxpayers can prepay their federal taxes by remitting estimated tax payments throughout the year. Estimated tax payments are due four times a year. Estimated tax payments are sent in using Form 1040-ES.
Backup Withholding
Backup withholding is a type of withholding for federal income taxes on certain types of income. Backup withholding may be mandatory in certain circumstances. Most taxpayers, however, are exempt from backup withholding.
Backup withholding is a type of withholding for federal income taxes on certain types of income. Backup withholding may be mandatory in certain circumstances. Most taxpayers, however, are exempt from backup withholding.
Tax Rates
Overview of federal tax brackets and marginal tax rates for 2010 and previous years, along with projections for 2011.
Overview of federal tax brackets and marginal tax rates for 2010 and previous years, along with projections for 2011.
New York City Income Tax
New York City is one of the few cities in the U.S. that have a separate personal income tax. Find out New York City income tax rates, tax credits you can use to reduce your New York City income taxes, and how to file and pay your New York City income taxes.
New York City is one of the few cities in the U.S. that have a separate personal income tax. Find out New York City income tax rates, tax credits you can use to reduce your New York City income taxes, and how to file and pay your New York City income taxes.
Child Care Tax Credit
The Child & Dependent Care Tax Credit reduces your taxes by providing a tax credit for money you spend on day care and child care services. Find out how to qualify for the Child and Dependent Care Tax Credit.
The Child & Dependent Care Tax Credit reduces your taxes by providing a tax credit for money you spend on day care and child care services. Find out how to qualify for the Child and Dependent Care Tax Credit.
Bankruptcy and Taxes
Income tax debts may be eligible for discharge under Chapter 7 or Chapter 13 of the Bankruptcy Code. Not all tax debts are capable of being discharged in bankruptcy. The bankruptcy petitioner must have tax debts that meet five criteria for discharge.
Income tax debts may be eligible for discharge under Chapter 7 or Chapter 13 of the Bankruptcy Code. Not all tax debts are capable of being discharged in bankruptcy. The bankruptcy petitioner must have tax debts that meet five criteria for discharge.
What is Form 5498
Banks and other financial institutions send out Form 5498 to report information about individual retirement accounts, health savings accounts and other types of tax-preferred savings accounts. This tax form is for information reporting purposes only, and most of the information on Form 5498 is probably already reported on your tax return. Tips for reading the Form 5498 and cross-checking it with your tax return.
Banks and other financial institutions send out Form 5498 to report information about individual retirement accounts, health savings accounts and other types of tax-preferred savings accounts. This tax form is for information reporting purposes only, and most of the information on Form 5498 is probably already reported on your tax return. Tips for reading the Form 5498 and cross-checking it with your tax return.
EIC
The earned income credit is a refundable tax credit designed for lower income working families and individuals.
The earned income credit is a refundable tax credit designed for lower income working families and individuals.
Reciprocal Agreements
A list of states that have reciprocal agreements. These states allow residents of certain other states to work tax-free. The states on this list have specific exemptions for out of state workers from certain states.
A list of states that have reciprocal agreements. These states allow residents of certain other states to work tax-free. The states on this list have specific exemptions for out of state workers from certain states.
States Without a Sales Tax
Every state in the nation has a sales tax, with the exception of only five states that do not have a sales tax. See where you can shop sales tax free in these states without a sales tax.
Every state in the nation has a sales tax, with the exception of only five states that do not have a sales tax. See where you can shop sales tax free in these states without a sales tax.
Dividends
Dividends from stocks and mutual funds are reported on your tax return. Find out when you need to fill out Schedule B, and what amounts go on Form 1040 Line 9a and 9b.
Dividends from stocks and mutual funds are reported on your tax return. Find out when you need to fill out Schedule B, and what amounts go on Form 1040 Line 9a and 9b.
IRA Deduction
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. Be aware there are limitations in how much can be taken as a deduction. Up to $5,500 can be contributed to an IRA for 2013.
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. Be aware there are limitations in how much can be taken as a deduction. Up to $5,500 can be contributed to an IRA for 2013.
Filing Status
Choose only one filing status, depending on your situation. Generally, your filing status depends on your marital status as of the last day of the year.
Choose only one filing status, depending on your situation. Generally, your filing status depends on your marital status as of the last day of the year.
Social Security Tax
An overview of Social Security taxes in America.
An overview of Social Security taxes in America.
Student Loan Interest
You can claim up to $2,500 of student loan interest you paid as an above-the-line tax deduction on Form 1040.
You can claim up to $2,500 of student loan interest you paid as an above-the-line tax deduction on Form 1040.
Tuition Deduction
If you took college classes, you can take a federal tax deduction for the cost of tuition and school fees.
If you took college classes, you can take a federal tax deduction for the cost of tuition and school fees.
State Income Taxes in Retirement
Details on state income tax breaks for retirees, including states that exempt social security income, government pension income, and private pension income. Get the details on states that allow retirees to exclude some of their income from state income taxes.
Details on state income tax breaks for retirees, including states that exempt social security income, government pension income, and private pension income. Get the details on states that allow retirees to exclude some of their income from state income taxes.
Depreciation Recapture
When taxpayers sell an asset that has been depreciated for tax purposes, that sale may trigger a type of capital gain called depreciation recapture. The depreciation recapture tax mostly impacts landlords who are selling rental property. Learn more about the depreciation recapture tax.
When taxpayers sell an asset that has been depreciated for tax purposes, that sale may trigger a type of capital gain called depreciation recapture. The depreciation recapture tax mostly impacts landlords who are selling rental property. Learn more about the depreciation recapture tax.
Foreign Earned Income Exclusio
Americans working abroad can exclude up to $97,600 per year from their US taxable income. Find out about the foreign earned income exclusion (Form 2555), along with helpful tips for preparing an expatriate tax return.
Americans working abroad can exclude up to $97,600 per year from their US taxable income. Find out about the foreign earned income exclusion (Form 2555), along with helpful tips for preparing an expatriate tax return.
Health Insurance Deduction
You can deduct the full cost of health insurance you purchase for yourself, your spouse, and/or your dependents. You must be self-employed, and you must not be eligible to participate in a subsidized group health plan.
You can deduct the full cost of health insurance you purchase for yourself, your spouse, and/or your dependents. You must be self-employed, and you must not be eligible to participate in a subsidized group health plan.
Interest Income
bank interest, money market funds, and tax-exempt bonds are reported on your tax return. Find out how to report your interest income on Form 1040.
bank interest, money market funds, and tax-exempt bonds are reported on your tax return. Find out how to report your interest income on Form 1040.
IRS Payment Plan
Setting up an IRS payment plan is an easy way to pay taxes. Find out how to request an IRS installment agreement quickly and easily.
Setting up an IRS payment plan is an easy way to pay taxes. Find out how to request an IRS installment agreement quickly and easily.
File an Extension
An extension is a way to ask the Internal Revenue Service for more time to file a federal tax return. The IRS will automatically grant extra time to file a tax return. This grace period is given only upon request. To do that file Form 4868 for personal tax returns.
An extension is a way to ask the Internal Revenue Service for more time to file a federal tax return. The IRS will automatically grant extra time to file a tax return. This grace period is given only upon request. To do that file Form 4868 for personal tax returns.
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.
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.
Health Savings Accounts
Contributions to a health savings account (HSA) are tax deductible. Tax deductions are limited to $2,900 for individual insurance coverage and $5,800 for family insurance coverage for tax year 2008. To be tax-deductible, HSA contributions must meet certain criteria.
Contributions to a health savings account (HSA) are tax deductible. Tax deductions are limited to $2,900 for individual insurance coverage and $5,800 for family insurance coverage for tax year 2008. To be tax-deductible, HSA contributions must meet certain criteria.
1099-MISC Reporting
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.
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.
California Personal Income Ta
A guide to California income tax including tax deductions, tax credits, California tax rates, and income exclusions.
A guide to California income tax including tax deductions, tax credits, California tax rates, and income exclusions.
Mortgage Interest Deduction
The amount of the home mortgage interest tax deduction may be limited. Learn about the limits for home acquisition debt and home equity debt. Plus, special AMT adjustments for home equity loans, and how to handle construction costs, points, and interest paid as a co-borrower.
The amount of the home mortgage interest tax deduction may be limited. Learn about the limits for home acquisition debt and home equity debt. Plus, special AMT adjustments for home equity loans, and how to handle construction costs, points, and interest paid as a co-borrower.
403(b) Contribution Limits
For the year 2013, people can contribute up to $17,500 as an elective deferral to their employer's 403(b) retirement savings plan. Additionally, if you are age 50 or older, you can contribute an additional catch-up contribution of $5,500.
For the year 2013, people can contribute up to $17,500 as an elective deferral to their employer's 403(b) retirement savings plan. Additionally, if you are age 50 or older, you can contribute an additional catch-up contribution of $5,500.
Back Taxes
If you haven't filed your taxes in a few years, you may be wondering what options you have. You may be surprised to learn that filing your tax returns can be the quickest way out of tax trouble. But you need to protect yourself. Here's how.
If you haven't filed your taxes in a few years, you may be wondering what options you have. You may be surprised to learn that filing your tax returns can be the quickest way out of tax trouble. But you need to protect yourself. Here's how.
Do I Charge Sales Tax or Not?
Figuring out which sales tax rate to charge your customers, especially out-of-state customers, can be a challenge. Some states base their rates on the origin of the sale, while other states base their rates on the destination of the product. Knowing whether your state is a destination state or an origin state makes a big difference in how you charge sales tax to your customers. Find out whether your state is an origin state or destination state here and what it means for your business.
Figuring out which sales tax rate to charge your customers, especially out-of-state customers, can be a challenge. Some states base their rates on the origin of the sale, while other states base their rates on the destination of the product. Knowing whether your state is a destination state or an origin state makes a big difference in how you charge sales tax to your customers. Find out whether your state is an origin state or destination state here and what it means for your business.
Single Filing Status
Your filing status is single if you are unmarried, or considered unmarried, on the last day of the year.
Your filing status is single if you are unmarried, or considered unmarried, on the last day of the year.
Self-Employment Tax
The self-employment tax is an extra tax that self-employed business owners, independent contractors and other freelancer professionals pay in addition to the income tax. The self-employment tax covers the Social Security and Medicare taxes and is similar to the FICA tax paid by employees. Tips to help you plan and calculate your self-employment tax on Schedule SE.
The self-employment tax is an extra tax that self-employed business owners, independent contractors and other freelancer professionals pay in addition to the income tax. The self-employment tax covers the Social Security and Medicare taxes and is similar to the FICA tax paid by employees. Tips to help you plan and calculate your self-employment tax on Schedule SE.
Tax Debt
There are five ways to get out of tax debt. Learn what your options are for reducing and paying off your tax debts, and how to protect yourself when hiring a tax professional.
There are five ways to get out of tax debt. Learn what your options are for reducing and paying off your tax debts, and how to protect yourself when hiring a tax professional.
Tax Deductions
Maximize your itemized deductions with a handy list of tax deductions, along with information and advice on handling limitations to deductions.
Maximize your itemized deductions with a handy list of tax deductions, along with information and advice on handling limitations to deductions.
Community Property States
Definition of Community Property States: Married persons are considered to own their property, assets, and income jointly.
Definition of Community Property States: Married persons are considered to own their property, assets, and income jointly.
Roth IRA Conversions
Tips for calculating the tax impact of converting to a Roth IRA.
Tips for calculating the tax impact of converting to a Roth IRA.
Florida State Tax Profile
Get the scoop on Florida state taxes including details on Florida property taxes, Florida sales tax rates, and other state taxes in Florida.
Get the scoop on Florida state taxes including details on Florida property taxes, Florida sales tax rates, and other state taxes in Florida.
Business Expenses
Generally speaking, a business expense has a legitimate business purpose. That's good news, because most business expenses will be fully tax-deductible, and will lower your taxes. Some expenses, however, are only partially deductible, and some expenses are never deductible.
Generally speaking, a business expense has a legitimate business purpose. That's good news, because most business expenses will be fully tax-deductible, and will lower your taxes. Some expenses, however, are only partially deductible, and some expenses are never deductible.
States Delay Refund Checks
Due to budget shortfalls, some states have delayed sending out tax refund checks. Find out if your state is one of these and when they will have to pay you interest on your late refund.
Due to budget shortfalls, some states have delayed sending out tax refund checks. Find out if your state is one of these and when they will have to pay you interest on your late refund.
Foreign Bank Account Report (FBAR)
You may need to fill out Treasury Department Form 90-22.1 every year if you own, or have an interest in, any foreign bank accounts or other types of financial accounts based outside the United States.
You may need to fill out Treasury Department Form 90-22.1 every year if you own, or have an interest in, any foreign bank accounts or other types of financial accounts based outside the United States.
Freelance Tax Tips
Tax tips and strategies for freelancers, independent contractors, and self-employed people. There are special circumstances that apply to freelance writers and other independent professions, so I will highlight what you need to know to prepare your taxes and to avoid IRS investigations.
Tax tips and strategies for freelancers, independent contractors, and self-employed people. There are special circumstances that apply to freelance writers and other independent professions, so I will highlight what you need to know to prepare your taxes and to avoid IRS investigations.
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.
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.
Alimony
Report the full amount of alimony or separate maintenance you received. Do not report any amounts received for child support. Your ex-spouse must report alimony paid along with your Social Security Number to the IRS.
Report the full amount of alimony or separate maintenance you received. Do not report any amounts received for child support. Your ex-spouse must report alimony paid along with your Social Security Number to the IRS.
Tax Documents You Need
Find out what documents to take with you when meeting with your tax professional. And find out what you can do if you are missing some documents.
Find out what documents to take with you when meeting with your tax professional. And find out what you can do if you are missing some documents.
Medical Expenses
Medical expenses represents a category of expenses for which an individual may be eligible to receive various tax breaks. Medical expenses that meet certain qualifications may be eligible for an itemized deduction for medical expenses, or tax-free reimbursement from a flexible spending account, health reimbursement account, or health savings account.
Medical expenses represents a category of expenses for which an individual may be eligible to receive various tax breaks. Medical expenses that meet certain qualifications may be eligible for an itemized deduction for medical expenses, or tax-free reimbursement from a flexible spending account, health reimbursement account, or health savings account.
2011 Tax Rates
Federal income tax rates for the 2011 tax year.
Federal income tax rates for the 2011 tax year.
City Income Taxes - U.S. Cities That Levy Income Taxes
A listing of cities and localities in the U.S. that have an income tax, including details on city income tax rates and other municipal income tax rates.
A listing of cities and localities in the U.S. that have an income tax, including details on city income tax rates and other municipal income tax rates.
Federal Tax Liens
The IRS often files tax liens when an outstanding federal tax has not yet been paid in full. Taxpayers who owe the IRS can protect themselves and their credit by taking steps to prevent a federal tax lien from being filed. After a tax lien has been filed, it may be possible to get the lien withdrawn or released.
The IRS often files tax liens when an outstanding federal tax has not yet been paid in full. Taxpayers who owe the IRS can protect themselves and their credit by taking steps to prevent a federal tax lien from being filed. After a tax lien has been filed, it may be possible to get the lien withdrawn or released.
Highest and Lowest Property Ta
Where will you pay the most property taxes? Find out which counties have the highest property taxes and which counties have the lowest property taxes in the nation.
Where will you pay the most property taxes? Find out which counties have the highest property taxes and which counties have the lowest property taxes in the nation.
Which Tax Form to File?
You should use the simplest tax form for your needs. This will save you time in preparing your return, and the IRS will be able to process your tax return more quickly. Find out if you need to file Form 1040, or if you qualify to use the shorter Form 1040EZ or Form 1040A.
You should use the simplest tax form for your needs. This will save you time in preparing your return, and the IRS will be able to process your tax return more quickly. Find out if you need to file Form 1040, or if you qualify to use the shorter Form 1040EZ or Form 1040A.
Domestic Production Activities
Starting with tax year 2005, certain companies can take a 3% deduction for US-based business activities.
Starting with tax year 2005, certain companies can take a 3% deduction for US-based business activities.
States That Exempt Social Security - States That Do Not Tax Social Security
A listing of states that fully exempt Social Security benefits from income taxes. Find out which states do not tax Social Security.
A listing of states that fully exempt Social Security benefits from income taxes. Find out which states do not tax Social Security.
Back Taxes Q&A
How many years back can you file your income tax return when the government owes you? Generally, you have 3 years to file a tax return and claim a refund.
How many years back can you file your income tax return when the government owes you? Generally, you have 3 years to file a tax return and claim a refund.
Individual Retirement Accounts
An individual retirement account is a savings plan offering tax benefits. Some types of IRAs provide a tax deduction, reducing your current income. Other IRAs provide no deduction, but offer tax-free distributions. Learn about the different types of IRAs available.
An individual retirement account is a savings plan offering tax benefits. Some types of IRAs provide a tax deduction, reducing your current income. Other IRAs provide no deduction, but offer tax-free distributions. Learn about the different types of IRAs available.
S Corp Eligibility Criteria
Definition of an S Corporation: a corporation that has between 1 and 100 shareholders and that passes-through net income or losses to shareholders. Covers eligibility criteria for electing S Corp status.
Definition of an S Corporation: a corporation that has between 1 and 100 shareholders and that passes-through net income or losses to shareholders. Covers eligibility criteria for electing S Corp status.
7 State Income Tax Myths
State income taxes are complicated and there are many myths and misconceptions out there. Don't fall for these seven myths about state income taxes.
State income taxes are complicated and there are many myths and misconceptions out there. Don't fall for these seven myths about state income taxes.
Statute of Limitations by State
An explanation of state statutes of limitations for tax purposes. Find out how long you should keep your state tax records and how long the state has to audit your tax return.
An explanation of state statutes of limitations for tax purposes. Find out how long you should keep your state tax records and how long the state has to audit your tax return.
New York Personal Income Tax
Details on New York State personal income tax including New York income tax deductions and New York tax credits.
Details on New York State personal income tax including New York income tax deductions and New York tax credits.
Free Tax Calculators
Find the best tax calculators and tax tools to help you prepare your tax return, understand your paycheck, or plan for next year. Top picks for free online tax calculators, tools, and worksheets.
Find the best tax calculators and tax tools to help you prepare your tax return, understand your paycheck, or plan for next year. Top picks for free online tax calculators, tools, and worksheets.
Deductible Business Expenses
Self-employed entrepreneurs incur many common business expenses that are fully deductible against their business income. Find out which business expenses are deductible, and which are partly deductible, for federal tax purposes.
Self-employed entrepreneurs incur many common business expenses that are fully deductible against their business income. Find out which business expenses are deductible, and which are partly deductible, for federal tax purposes.
Tax Attorney
Tax attorneys are lawyers who specialize in the complex and technical field of tax law. Tax attorneys are best for handling complex, technical, and legal issues.
Tax attorneys are lawyers who specialize in the complex and technical field of tax law. Tax attorneys are best for handling complex, technical, and legal issues.
Forming an S Corp
How to form a subchapter S corporation when the corporation has missed the deadline for filing IRS Form 2553. Discusses making a retroactive S Corp election using a late filed Form 2553.
How to form a subchapter S corporation when the corporation has missed the deadline for filing IRS Form 2553. Discusses making a retroactive S Corp election using a late filed Form 2553.
Wages and Salaries
Persons working as employees receive compensation in the form of wages, salary, and/or tips. Compensation for an employee's labor is taxed partly to the employee and partly to the employer. There are at least four federal taxes imposed on wage and salary income, plus any state and local taxes.
Persons working as employees receive compensation in the form of wages, salary, and/or tips. Compensation for an employee's labor is taxed partly to the employee and partly to the employer. There are at least four federal taxes imposed on wage and salary income, plus any state and local taxes.
Tax Accountant
Taxpayers of all types can benefit from hiring a tax accountant. But before you spend your hard-earned cash, here's some simple steps you can take to protect yourself, to find the right professional for your situation, and some questions to ask.
Taxpayers of all types can benefit from hiring a tax accountant. But before you spend your hard-earned cash, here's some simple steps you can take to protect yourself, to find the right professional for your situation, and some questions to ask.
Moving Expenses
If you moved to start a new job, or to seek work in a new city, you may be able to deduct the cost of your moving expenses from your income. Moving expenses are subject to a time and distance test. Find out if you qualify to deduct your moving expenses.
If you moved to start a new job, or to seek work in a new city, you may be able to deduct the cost of your moving expenses from your income. Moving expenses are subject to a time and distance test. Find out if you qualify to deduct your moving expenses.
Adoption Tax Credit
Individuals who adopt a child may be eligible for a federal tax credit.
Individuals who adopt a child may be eligible for a federal tax credit.
Tangible Personal Property
Definition and examples of tangible personal property as it relates to state personal property taxes.
Definition and examples of tangible personal property as it relates to state personal property taxes.
Adjustments to Income
Americans can take avail themselves of various deductions directly on their tax return. These don't need
Americans can take avail themselves of various deductions directly on their tax return. These don't need
Foreign Financial Assets
American taxpayers may need to report any investments and financial assets held outside the United States to the Internal Revenue Service using Form 8938, Statement of Specified Foreign Financial Assets. This reporting requirement is part of the larger Foreign Account Tax Compliance Act (FATCA). Taxpayers with more than $50,000 of foreign assets may need to disclose their holdings to the IRS.
American taxpayers may need to report any investments and financial assets held outside the United States to the Internal Revenue Service using Form 8938, Statement of Specified Foreign Financial Assets. This reporting requirement is part of the larger Foreign Account Tax Compliance Act (FATCA). Taxpayers with more than $50,000 of foreign assets may need to disclose their holdings to the IRS.
S Corporation Payroll
Shareholders of S-Corporations do not pay Self-Employment Tax if they are actively engaged as a shareholder-employee of the S-Corporation. Instead, shareholder-employees are paid a salary, with their wages reported on a W-2 and with Social Security and Medicare taxes already withheld.
Shareholders of S-Corporations do not pay Self-Employment Tax if they are actively engaged as a shareholder-employee of the S-Corporation. Instead, shareholder-employees are paid a salary, with their wages reported on a W-2 and with Social Security and Medicare taxes already withheld.
Taxes 101
Tax forms can be pretty scary. And sometimes your favorite tax software doesn't make things easier. Fortunately, there's some very basic ideas which can help you understand what taxes are all about.
Tax forms can be pretty scary. And sometimes your favorite tax software doesn't make things easier. Fortunately, there's some very basic ideas which can help you understand what taxes are all about.
EA Exam Preparation
The Internal Revenue Service offers the Special Enrollment Examination to people who want to became an enrolled agent. Learn about the Enrolled Agent program, how to sign up for the test, how to study for the test, and find top-notch IRS and tax resources.
The Internal Revenue Service offers the Special Enrollment Examination to people who want to became an enrolled agent. Learn about the Enrolled Agent program, how to sign up for the test, how to study for the test, and find top-notch IRS and tax resources.
Foreign Tax Credit
Americans working abroad may claim a foreign tax credit on their US federal income tax return. Investors in foreign securities and international mutual funds can also claim a foreign tax credit for taxes withheld from their foreign investments. Find out how to claim the foreign tax credit on IRS Tax Form 1116.
Americans working abroad may claim a foreign tax credit on their US federal income tax return. Investors in foreign securities and international mutual funds can also claim a foreign tax credit for taxes withheld from their foreign investments. Find out how to claim the foreign tax credit on IRS Tax Form 1116.
Pensions & Annuities
Reporting the taxable portion of pension and annuity income can get a little tricky. Covers when to use the Simplied Method, and when you must use the General Rule. Links to essential tax information on pension and annuity income from the IRS.
Reporting the taxable portion of pension and annuity income can get a little tricky. Covers when to use the Simplied Method, and when you must use the General Rule. Links to essential tax information on pension and annuity income from the IRS.
Incentive stock options
Incentive stock options enjoy favorable tax treatment compared to other forms of employee compensation. Income from incentive stock options is taxable for federal income tax (including the alternative minimum tax), but are not taxable for Social Security and Medicare taxes. Upon meeting all the criteria for a qualifying sale, income from incentive stock options qualify for the preferred long-term capital gains tax rate.
Incentive stock options enjoy favorable tax treatment compared to other forms of employee compensation. Income from incentive stock options is taxable for federal income tax (including the alternative minimum tax), but are not taxable for Social Security and Medicare taxes. Upon meeting all the criteria for a qualifying sale, income from incentive stock options qualify for the preferred long-term capital gains tax rate.
I.R.S.
The Internal Revenue Service (I.R.S.) is the agency that collects tax revenue for the United States federal government. Here's an overview of how the agency functions and resources you may need to deal with the I.R.S.
The Internal Revenue Service (I.R.S.) is the agency that collects tax revenue for the United States federal government. Here's an overview of how the agency functions and resources you may need to deal with the I.R.S.
Lifetime Learning 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.
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.
IRS.gov
IRS.gov is the official Web site of the Internal Revenue Service.
IRS.gov is the official Web site of the Internal Revenue Service.
Illinois Tax Profile
Details on all Illinois state taxes and Illinois tax rates including information on property taxes, income taxes, and sales taxes.
Details on all Illinois state taxes and Illinois tax rates including information on property taxes, income taxes, and sales taxes.
S Corp Audit Tips
The number one audit risk for S-Corporations is salary and wages paid to officers of the corporation. S-Corporations are also subject to hobby-loss rules. Together these are the two most significant audit risks facing S-Corporations right now.
The number one audit risk for S-Corporations is salary and wages paid to officers of the corporation. S-Corporations are also subject to hobby-loss rules. Together these are the two most significant audit risks facing S-Corporations right now.
Foreclosures
Foreclosures are treated as the sale of property for tax purposes. Homeowners going through a foreclosure will need to calculate their gain or loss for tax purposes, as well as consider any tax that might be due on the forgiveness or cancellation of debt.
Foreclosures are treated as the sale of property for tax purposes. Homeowners going through a foreclosure will need to calculate their gain or loss for tax purposes, as well as consider any tax that might be due on the forgiveness or cancellation of debt.
Form 990
Non-profit organizations are required to file Form 990 with the IRS to report donations, expenses, and income earned from for-profit business enterprises. Here's a collection of resources to help prepare Form 990, Return of Organization Exempt From Income Tax.
Non-profit organizations are required to file Form 990 with the IRS to report donations, expenses, and income earned from for-profit business enterprises. Here's a collection of resources to help prepare Form 990, Return of Organization Exempt From Income Tax.
Gift Property
People often end up owning real estate and other property when the original owner has given that property to them. Transfers of property given before the original owner dies is called a gift. Recipients of gift property have different tax consequences than recipients of inherited property.
People often end up owning real estate and other property when the original owner has given that property to them. Transfers of property given before the original owner dies is called a gift. Recipients of gift property have different tax consequences than recipients of inherited property.
Seven Myths About Sales Taxes
Don't buy in to these six common myths and misconceptions about sales taxes.
Don't buy in to these six common myths and misconceptions about sales taxes.
American Opportunity Tax Credi
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 through 2017.
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 through 2017.
What is Reciprocity for State Income Tax?
The definition of reciprocity or reciprocal agreements as they relate to state income taxes. Reciprocal agreements allow taxpayers to work in one state and live in another while only paying taxes to one state, but they don't cover everything. Find out what else you need to think about.
The definition of reciprocity or reciprocal agreements as they relate to state income taxes. Reciprocal agreements allow taxpayers to work in one state and live in another while only paying taxes to one state, but they don't cover everything. Find out what else you need to think about.
Energy Tax Credits
Summary of federal tax credits available for homeowners who purchase energy-efficient equipment, appliances and improvements for their homes.
Summary of federal tax credits available for homeowners who purchase energy-efficient equipment, appliances and improvements for their homes.
S Corp Accounting
How to account for shareholder equity, capital, and loans in an S corporation. Discusses how to account for income and expenses, measuring shareholder equity and the value of converted property, and calculating adjusted stock basis.
How to account for shareholder equity, capital, and loans in an S corporation. Discusses how to account for income and expenses, measuring shareholder equity and the value of converted property, and calculating adjusted stock basis.
Offer in Compromise Essentials
By filing an Offer in Compromise, you are offering to pay less than the full amount of your tax debts to the Internal Revenue Service. The IRS, at its discretion, may accept less than full payment of your tax debts if there is doubt as to whether the IRS could ever collect the full amount of tax debt or if there is doubt as to whether you are actually liable for the tax debt.
By filing an Offer in Compromise, you are offering to pay less than the full amount of your tax debts to the Internal Revenue Service. The IRS, at its discretion, may accept less than full payment of your tax debts if there is doubt as to whether the IRS could ever collect the full amount of tax debt or if there is doubt as to whether you are actually liable for the tax debt.
Filing Multiple State Tax Retu
Sometimes, people need to file more than one state tax return. Find out if you may need to file multiple state returns based on commonly-encountered scenarios.
Sometimes, people need to file more than one state tax return. Find out if you may need to file multiple state returns based on commonly-encountered scenarios.
S Corp Taxation
S Corporations are generally exempt from federal income taxes. Discusses the difference between S Corp and C Corp taxation.
S Corporations are generally exempt from federal income taxes. Discusses the difference between S Corp and C Corp taxation.
Sharing Dependents
The way the tax laws are written, only one person can claim a dependent on their tax return. Two parents may be able to both claim tax breaks associated with a child, provided the custodial parent agrees. The non-custodial could claim the dependent's personal exemption and the child tax credit. The custodial parent could claim the rest of the child-related tax breaks.
The way the tax laws are written, only one person can claim a dependent on their tax return. Two parents may be able to both claim tax breaks associated with a child, provided the custodial parent agrees. The non-custodial could claim the dependent's personal exemption and the child tax credit. The custodial parent could claim the rest of the child-related tax breaks.
SEP/SIMPLE Deduction
If you have self-employment income, then you can take a tax deduction for contributions you make to a SEP, SIMPLE, or a solo 401(k) retirement plan. Your maximum contribution to a SEP-IRA is 20% of your self-employment income or $46,000, whichever is less.
If you have self-employment income, then you can take a tax deduction for contributions you make to a SEP, SIMPLE, or a solo 401(k) retirement plan. Your maximum contribution to a SEP-IRA is 20% of your self-employment income or $46,000, whichever is less.
Self-Employment Income
Self-employed persons incur three federal taxes on their earnings: federal income tax, Social Security tax, and Medicare tax. These taxes are imposed on net self-employed income, after various work-related expenses have been subtracted. State and city taxes, and various local business taxes may also apply.
Self-employed persons incur three federal taxes on their earnings: federal income tax, Social Security tax, and Medicare tax. These taxes are imposed on net self-employed income, after various work-related expenses have been subtracted. State and city taxes, and various local business taxes may also apply.
What Is a Flat Tax System?
A flat tax is one income tax rate that everyone pays regardless of their income level. Flat tax systems are becoming increasingly popular around the world and in state government. But, converting to a flat tax affects more than just the income tax rate.
A flat tax is one income tax rate that everyone pays regardless of their income level. Flat tax systems are becoming increasingly popular around the world and in state government. But, converting to a flat tax affects more than just the income tax rate.
Best Tax Software
Find objective reviews of income tax software based on thorough testing. Plus top picks and links to the best free tax software for preparing your taxes.
Find objective reviews of income tax software based on thorough testing. Plus top picks and links to the best free tax software for preparing your taxes.
Filing an Extension: Pros & Cons
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.
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.
Child Support
Child support is not a tax-deductible expense, and is not considered taxable income for the recipient.
Child support is not a tax-deductible expense, and is not considered taxable income for the recipient.
First-time Homebuyer Credit
If you previously claimed the homebuyer credit on your 2008 federal income taxes, you will need to begin repaying the credit beginning with your 2010 tax return.
If you previously claimed the homebuyer credit on your 2008 federal income taxes, you will need to begin repaying the credit beginning with your 2010 tax return.
New York Property Taxes
An overview of property taxes in New York state. Get the scoop on New York property taxes including assessments, exemptions, and property tax rates in New York.
An overview of property taxes in New York state. Get the scoop on New York property taxes including assessments, exemptions, and property tax rates in New York.
What is Use Tax?
The definition of use tax, including details on what kind of transactions trigger a use tax liability. Find out when you owe use tax and how to pay use tax.
The definition of use tax, including details on what kind of transactions trigger a use tax liability. Find out when you owe use tax and how to pay use tax.
K-1 for Form 1120S
Schedule K-1 of Form 1120S is used to report each shareholder's pro-rated share of net income or loss from an S-Corporation, along with various separately stated income and deduction items. Schedule K-1 can also be used to summarize a shareholder's beginning and ending stock basis for the year.
Schedule K-1 of Form 1120S is used to report each shareholder's pro-rated share of net income or loss from an S-Corporation, along with various separately stated income and deduction items. Schedule K-1 can also be used to summarize a shareholder's beginning and ending stock basis for the year.
457 Contribution Limits
Employees who have access to a 457 plan through their employer can contribute up to $17,500 as an elective salary deferral for the year 2013. Additionally, people age 50 or older can contribute an additional $5,500 as a catch-up contribution.
Employees who have access to a 457 plan through their employer can contribute up to $17,500 as an elective salary deferral for the year 2013. Additionally, people age 50 or older can contribute an additional $5,500 as a catch-up contribution.
Taxes on Canceled Mortgages
Mortgage debt canceled by a lender might be excluded from tax under the Mortgage Forgiveness Debt Relief Act. Find out what type of mortgage debt qualifies for this exclusion.
Mortgage debt canceled by a lender might be excluded from tax under the Mortgage Forgiveness Debt Relief Act. Find out what type of mortgage debt qualifies for this exclusion.
Roth IRA
Roth individual retirement accounts provide potentially tax-free savings and distributions. Unlike a traditional IRA, you don't get a deduction for your contributions. Instead, savings grow inside of the Roth IRA without needing to pay any taxes on the earnings and growth. Distributions from a Roth IRA are completely tax-free, as long as you meet certain conditions. You can contribute to a Roth IRA even if you are covered by a retirement plan at work. Be aware that there are income limits for being eligible to contribute to a Roth IRA.
Roth individual retirement accounts provide potentially tax-free savings and distributions. Unlike a traditional IRA, you don't get a deduction for your contributions. Instead, savings grow inside of the Roth IRA without needing to pay any taxes on the earnings and growth. Distributions from a Roth IRA are completely tax-free, as long as you meet certain conditions. You can contribute to a Roth IRA even if you are covered by a retirement plan at work. Be aware that there are income limits for being eligible to contribute to a Roth IRA.
Retirement Tax Planning
Retirees and those planning to retire in the near future will want to plan ahead to keep their taxes as low as possible. Here are some basic information for understanding how retirement income is taxed and strategies for keeping your taxes at a minimum.
Retirees and those planning to retire in the near future will want to plan ahead to keep their taxes as low as possible. Here are some basic information for understanding how retirement income is taxed and strategies for keeping your taxes at a minimum.
Head of Household Same Address
Can two people, who both live at the same address, each qualify for the head of household filing status when they prepare their tax returns? The answer is not clear-cut. The IRS looks at a variety of factors in determining the answer.
Can two people, who both live at the same address, each qualify for the head of household filing status when they prepare their tax returns? The answer is not clear-cut. The IRS looks at a variety of factors in determining the answer.
Taxable Refunds
Learn how to report last year's state tax refund on this year's tax return. Instructions for Form 1040 Line 10.
Learn how to report last year's state tax refund on this year's tax return. Instructions for Form 1040 Line 10.