Tax Planning: U.S.: Most Popular Articles
These articles are the most popular over the last month.
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.
2012 Tax Rates
Federal income tax rates for the 2012 tax year.
Federal income tax rates for the 2012 tax year.
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.
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.
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.
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.
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.
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.
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.
Head of Household Filing Statu
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.
Form 1040X
You should file an amended tax return if you need to correct your filing status, total income, tax deductions, or tax credits. You should not file an amended return if you are only correcting math errors. Tips for revising and correcting your tax return using Form 1040X.
You should file an amended tax return if you need to correct your filing status, total income, tax deductions, or tax credits. You should not file an amended return if you are only correcting math errors. Tips for revising and correcting your tax return using Form 1040X.
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.
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.
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.
Dependents
These rules enable you claim a person as a dependent on your tax return. A dependent means that the person relies on you for their support. A person can be either independent (supporting themselves) or the dependent of at most one taxpayer. If more than one taxpayer attempts to claim the same person as a dependent, each taxpayer will be audited to determine who is legally entitled to claim the dependent.
These rules enable you claim a person as a dependent on your tax return. A dependent means that the person relies on you for their support. A person can be either independent (supporting themselves) or the dependent of at most one taxpayer. If more than one taxpayer attempts to claim the same person as a dependent, each taxpayer will be audited to determine who is legally entitled to claim the dependent.
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.
Estimated Taxes
Learn how to calculate your estimated tax payments. Estimated payments are due at least every quarter. Tips for calculating the right amount of tax, plus ideas on budgeting for your tax payments.
Learn how to calculate your estimated tax payments. Estimated payments are due at least every quarter. Tips for calculating the right amount of tax, plus ideas on budgeting for your tax payments.
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.
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.
2011 Tax Rates
Federal income tax rates for the 2011 tax year.
Federal income tax rates for the 2011 tax year.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Social Security Withholding
Workers will see less taxes deducted from their paychecks for Social Security. For the years 2011 and 2012, Congress has legislated a temporary payroll tax holiday designed to put more money into the hands of American workers.
Workers will see less taxes deducted from their paychecks for Social Security. For the years 2011 and 2012, Congress has legislated a temporary payroll tax holiday designed to put more money into the hands of American workers.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Foreign Earned Income
Americans working abroad can exclude up to $95,100 per year from their US taxable income. Find out about the foreign earned income exclusion (IRS Form 2555), along with helpful tips for preparing an expatriate tax return.
Americans working abroad can exclude up to $95,100 per year from their US taxable income. Find out about the foreign earned income exclusion (IRS Form 2555), along with helpful tips for preparing an expatriate tax return.
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.
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.
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.
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.
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 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 group health plan.
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.
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.
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.
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.
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.
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.
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.
Higher Education
The federal government provides several tax incentives for people who pursue higher education. Here's an overview of the various tax credits, tax deductions and savings incentives for college and other post-secondary educational expenses.
The federal government provides several tax incentives for people who pursue higher education. Here's an overview of the various tax credits, tax deductions and savings incentives for college and other post-secondary educational expenses.
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.
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.
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 and 2010 only.
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.
Where's My Refund?
You've filed your taxes. And you've waited, and waited. Find out the status of your IRS tax refund, and common reasons why refunds are delayed.
You've filed your taxes. And you've waited, and waited. Find out the status of your IRS tax refund, and common reasons why refunds are delayed.
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.
Mortgage Interest Deduction
Mortgage interest is a tax-deductible expense. Mortgage interest is reported on Form 1040, Schedule A along with other itemized deductions. Taxpayers paying mortgage interest should fill out Schedule A to see if their itemized deductions exceed their standard deduction. If so, taxpayers will save more money on their taxes by itemizing. Taxpayers who itemize their deductions will need to file the Form 1040 long form.
Mortgage interest is a tax-deductible expense. Mortgage interest is reported on Form 1040, Schedule A along with other itemized deductions. Taxpayers paying mortgage interest should fill out Schedule A to see if their itemized deductions exceed their standard deduction. If so, taxpayers will save more money on their taxes by itemizing. Taxpayers who itemize their deductions will need to file the Form 1040 long form.
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.
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.
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.
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.
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.
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.
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.
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.
Property Taxes by County
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.
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.
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.
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.
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.
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.
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.
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.
Canceled Debt
Anytime a lender cancels, or forgives, your debt, that is considered income to the debtor. Canceled debt on a main home may be tax-free, providing welcome tax relief to people who have lost their homes through foreclosure.
Anytime a lender cancels, or forgives, your debt, that is considered income to the debtor. Canceled debt on a main home may be tax-free, providing welcome tax relief to people who have lost their homes through foreclosure.
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.
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.
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.
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.
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.
Partial Pay Installments
Taxpayers can set up a monthly payment plan with the IRS to pay less than the full amount of their tax debts. This is called a partial-payment installment agreement, and can be easier to get IRS approval than an offer in compromise.
Taxpayers can set up a monthly payment plan with the IRS to pay less than the full amount of their tax debts. This is called a partial-payment installment agreement, and can be easier to get IRS approval than an offer in compromise.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Prepare Form 1120S
Tips on how to prepare IRS Form 1120S, U.S. Tax Return for an S Corporation.
Tips on how to prepare IRS Form 1120S, U.S. Tax Return for an S Corporation.
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.
Sales Tax Deduction
Sales tax may be a deductible against your federal income taxes. This is an itemized deduction and is claimed on Schedule A. The sales tax deduction is available only for the years 2005 through 2009. For 2010 and later, the sales tax deduction will go away unless Congress extends this particular tax break.
Sales tax may be a deductible against your federal income taxes. This is an itemized deduction and is claimed on Schedule A. The sales tax deduction is available only for the years 2005 through 2009. For 2010 and later, the sales tax deduction will go away unless Congress extends this particular tax break.
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.
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.
Social Security Tax
An overview of Social Security taxes in America.
An overview of Social Security taxes in America.
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.
File an Extension
Filing an extension is super easy. I tell you how to do it. But first, let's talk about what an extension
Filing an extension is super easy. I tell you how to do it. But first, let's talk about what an extension
401(k) Contribution Limits
For the year 2012, people can contribute up to $17,000 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 2012, people can contribute up to $17,000 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.
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
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.
Massachusetts Income Tax
A comprehensive guide to Massachusetts income taxes including tax rates, exemptions, deductions, and credits.
A comprehensive guide to Massachusetts income taxes including tax rates, exemptions, deductions, and credits.
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.
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.
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.
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.
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.
Reporting Capital Gains
Starting in 2011, American taxpayers will use new Form 8949 along with Schedule D to report income from the sale of stock, bonds, mutual funds and other investments. Form 8949 will detail various transactions, with summary totals transferred to Schedule D.
Starting in 2011, American taxpayers will use new Form 8949 along with Schedule D to report income from the sale of stock, bonds, mutual funds and other investments. Form 8949 will detail various transactions, with summary totals transferred to Schedule D.
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.
IRS Form 433A
Preparing accurate and thorough IRS Form 433-A is a necessary and crucial step in submitting a successful Offer in Compromise application. Helpful tips provided for each section of Form 433A.
Preparing accurate and thorough IRS Form 433-A is a necessary and crucial step in submitting a successful Offer in Compromise application. Helpful tips provided for each section of Form 433A.
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.
Collection Potential
Through an Offer in Compromise, taxpayers agree to pay the IRS only the reasonable collection potential instead of the full amount of taxes owed. Calculating the Reasonable Collection Potential is the most important element in determining the success of your Offer in Compromise. Helpful tips for completing IRS Form 433A Worksheet.
Through an Offer in Compromise, taxpayers agree to pay the IRS only the reasonable collection potential instead of the full amount of taxes owed. Calculating the Reasonable Collection Potential is the most important element in determining the success of your Offer in Compromise. Helpful tips for completing IRS Form 433A Worksheet.
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.
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.
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.
S Corporations
An overview of S corporations, their tax treatment, business structure, how to form an S corp, and audit tips.
An overview of S corporations, their tax treatment, business structure, how to form an S corp, and audit tips.
Filing Multiple State Tax Returns
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.
Modified Home Sale Exclusion
When homeowners sell their main home, they can exclude up to $500,000 in capital gains from income tax. The Housing Assistance Tax Act of 2008 changes the rules. The amount of profits from the sale of a house that can be excluded is now based on the percentage of time when the house was used as a primary residence.
When homeowners sell their main home, they can exclude up to $500,000 in capital gains from income tax. The Housing Assistance Tax Act of 2008 changes the rules. The amount of profits from the sale of a house that can be excluded is now based on the percentage of time when the house was used as a primary residence.
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.
IRS Free File
Free File won't be available until January 16th. The following reviews are from last year's version of
Free File won't be available until January 16th. The following reviews are from last year's version of
TaxACT
Review of the TaxACT tax preparation software program, including the free standard edition and the federal deluxe edition and the ultimate bundle. TaxACT Standard is especially recommended for its relative ease of use, and its attractive price point makes TaxACT a contender for best value. However, TaxACT lacks in-depth hand-holding for trickier situations such as foreclosures.
Review of the TaxACT tax preparation software program, including the free standard edition and the federal deluxe edition and the ultimate bundle. TaxACT Standard is especially recommended for its relative ease of use, and its attractive price point makes TaxACT a contender for best value. However, TaxACT lacks in-depth hand-holding for trickier situations such as foreclosures.
Capital Gains
: A capital gain is the difference between what you paid for an investment and what received when you
: A capital gain is the difference between what you paid for an investment and what received when you
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 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.
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.
Form W-8BEN
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.
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.
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.
Illinois Income Tax Agreement
If you are working in one state and living in another, it can be confusing when it comes time to file your state income tax return. Illinois and their neighbors; Iowa, Kentucky, Michigan, and Wisconsin have decided to make it easier. If you live in one of these states, but work in Illinois (or vice versa) you only have to pay income tax to one state.
If you are working in one state and living in another, it can be confusing when it comes time to file your state income tax return. Illinois and their neighbors; Iowa, Kentucky, Michigan, and Wisconsin have decided to make it easier. If you live in one of these states, but work in Illinois (or vice versa) you only have to pay income tax to one state.
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.
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.
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.
Dependent Audits
The IRS automatically audits tax returns where different people have attempted to claim the same dependent. Here's what to do to protect your tax return when the IRS questions whether you are entitled to a dependent.
The IRS automatically audits tax returns where different people have attempted to claim the same dependent. Here's what to do to protect your tax return when the IRS questions whether you are entitled to a dependent.
Death of a Taxpayer
When a person dies, his surviving spouse or personal representative should file a tax return on behalf of the deceased.
When a person dies, his surviving spouse or personal representative should file a tax return on behalf of the deceased.
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.
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.
2009 Tax Rates
Marginal income tax rates for the 2009 tax year.
Marginal income tax rates for the 2009 tax year.
Health Care Tax Credit
As part of the health care reform effort, the federal government is providing an incentive for small businesses to provide health insurance coverage for their employees. The Small Business Health Care Tax Credit provides a federal tax credit of up to 35% of employer-paid health insurance premiums. As with all tax credits, there are rules and limitations.
As part of the health care reform effort, the federal government is providing an incentive for small businesses to provide health insurance coverage for their employees. The Small Business Health Care Tax Credit provides a federal tax credit of up to 35% of employer-paid health insurance premiums. As with all tax credits, there are rules and limitations.