Tax Planning: U.S.: Most Popular Articles
These articles are the most popular over the last month.
2009 Tax Rates
Marginal income tax rates for the 2009 tax year.
Marginal income tax rates for the 2009 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.
Form W9
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.
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.
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.
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.
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.
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.
2008 Tax Rates
Marginal income tax rates for the 2008 tax year.
Marginal income tax rates for the 2008 tax year.
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.
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.
Quick Tax Facts 2009
Overview of key tax figures for 2009. Updated amounts for the standard deduction, filing requirements, personal exemption, phaseout ranges for itemized deductions, and retirement plan contribution limits.
Overview of key tax figures for 2009. Updated amounts for the standard deduction, filing requirements, personal exemption, phaseout ranges for itemized deductions, and retirement plan contribution limits.
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 preparing an amendment.
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 preparing an amendment.
First-time Homebuyer Credit
There's a new, refundable tax credit of up to $7,500 for the purchasing a primary residence. The credit is available to first-time homebuyers who purchase a primary residence after April 9, 2008, and before May 1, 2010.
There's a new, refundable tax credit of up to $7,500 for the purchasing a primary residence. The credit is available to first-time homebuyers who purchase a primary residence after April 9, 2008, and before May 1, 2010.
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.
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.
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.
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.
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.
Energy Tax Credits
Summary of federal tax credits available for homeowners who purchase energy-efficient equipment. More information about the Residential Energy Credits.
Summary of federal tax credits available for homeowners who purchase energy-efficient equipment. More information about the Residential Energy Credits.
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.
Education Credits
You can reduce your taxes by claiming a tax credit for education expenses. Learn about the Hope Credit, the Lifetime Learning Credit, and other information for Form 8863.
You can reduce your taxes by claiming a tax credit for education expenses. Learn about the Hope Credit, the Lifetime Learning Credit, and other information for Form 8863.
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.
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.
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.
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.
EIC
The earned income credit is a refundable tax credit, which means the EIC lowers your taxes and gives you a bigger refund. The refund is available to low income taxpayers who have wages. The qualifications depend on the level of "earned income" and how many dependents you support.
The earned income credit is a refundable tax credit, which means the EIC lowers your taxes and gives you a bigger refund. The refund is available to low income taxpayers who have wages. The qualifications depend on the level of "earned income" and how many dependents you support.
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.
Dividends
Definition of Dividends: Dividends are a share of a company's profits that is divided among shareholders. Discusses how ordinary dividends and qualified dividends are taxed.
Definition of Dividends: Dividends are a share of a company's profits that is divided among shareholders. Discusses how ordinary dividends and qualified dividends are taxed.
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.
Making Work Pay
The Making Work Pay tax credit is a new, temporary tax credit worth up to $400 for the years 2009 and 2010 only.
The Making Work Pay tax credit is a new, temporary tax credit worth up to $400 for the years 2009 and 2010 only.
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.
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.
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.
Form 1040-EZ Resources
Prepare your 2008 tax returns on Form 1040EZ using easy-to-follow steps. Plus tips for preparing your tax return accurately and completely, from your About.com Guide to Tax Planning.
Prepare your 2008 tax returns on Form 1040EZ using easy-to-follow steps. Plus tips for preparing your tax return accurately and completely, from your About.com Guide to Tax Planning.
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.
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.
Child Tax Credit
If you have children, you qualify for the Child Tax Credit. Find out how to fill out the child tax credit worksheet and if you need to file IRS Form 8901.
If you have children, you qualify for the Child Tax Credit. Find out how to fill out the child tax credit worksheet and if you need to file IRS Form 8901.
Form W-2
You will need to report all wages you earned from your job or jobs during the year. Your employers are required to provide you with Form W-2, Wage and Tax Statement. Form W-2 must be mailed out or hand-delivered to you no later than January 31st.
You will need to report all wages you earned from your job or jobs during the year. Your employers are required to provide you with Form W-2, Wage and Tax Statement. Form W-2 must be mailed out or hand-delivered to you no later than January 31st.
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 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.
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.
Vehicle Sales Tax Deduction
A one-year-only deduction for 2009, individuals who purchase a new vehicle (including motor homes) can deduct sales tax or excise taxes, even if they don't itemize. The deduction is limited to the sales or excise tax applicable to the first $49,500 in the vehicles purchase price, and the deduction phases out at an adjusted gross income of $125,000 (or $250,000 for joint filers).
A one-year-only deduction for 2009, individuals who purchase a new vehicle (including motor homes) can deduct sales tax or excise taxes, even if they don't itemize. The deduction is limited to the sales or excise tax applicable to the first $49,500 in the vehicles purchase price, and the deduction phases out at an adjusted gross income of $125,000 (or $250,000 for joint filers).
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.
Tax Rates
Charts of the tax brackets and marginal tax rates for 2010 and previous years.
Charts of the tax brackets and marginal tax rates for 2010 and previous years.
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.
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.
Foreign Earned Income
Americans working abroad can exclude up to $91,500 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 $91,500 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.
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 creative 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 creative professions, so I will highlight what you need to know to prepare your taxes and to avoid IRS investigations.
Tax Free States
The states of Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming does not impose an income tax on individuals, while New Hampshire and Tennessee tax only investment income. Find a list of all tax-free states and links to state tax government web sites.
The states of Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming does not impose an income tax on individuals, while New Hampshire and Tennessee tax only investment income. Find a list of all tax-free states and links to state tax government web sites.
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.
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.
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.
Adoption Tax Credit
You qualify for the adoption tax credit if you adopted a child and paid out-of-pocket expenses relating to the adoption.
You qualify for the adoption tax credit if you adopted a child and paid out-of-pocket expenses relating to the adoption.
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.
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.
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.
Domestic Production Activities
Businesses with "qualified production activities" can take a tax deduction of 3% from net income. This is a tax break pure and simple. The more complicated the business, the more complicated the math for calculating the Domestic Production Activities Deduction. In a nutshell, businesses engaged in manufacturing and other qualified production activities will need to implement cost accounting mechanisms to make sure their tax deduction is accurately calculated.
Businesses with "qualified production activities" can take a tax deduction of 3% from net income. This is a tax break pure and simple. The more complicated the business, the more complicated the math for calculating the Domestic Production Activities Deduction. In a nutshell, businesses engaged in manufacturing and other qualified production activities will need to implement cost accounting mechanisms to make sure their tax deduction is accurately calculated.
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.
Tax Calendar
Calendar of important tax deadlines relating to 2008 tax returns that are due in 2009.
Calendar of important tax deadlines relating to 2008 tax returns that are due in 2009.
Adjustments to Income
How to calculate and claim various tax deductions known as "above-the-line" deductions or adjustments to income. These deductions directly reduce your income, and you don't need to itemize. Line-by-line instructions for Form 1040 lines 23 to 37.
How to calculate and claim various tax deductions known as "above-the-line" deductions or adjustments to income. These deductions directly reduce your income, and you don't need to itemize. Line-by-line instructions for Form 1040 lines 23 to 37.
Form 1040 Essentials
Tips and resources for preparing the Form 1040 tax return.
Tips and resources for preparing the Form 1040 tax return.
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 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.
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.
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. Starting with tax year 2009, people may need to use Schedule L to list various additions to their 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. Starting with tax year 2009, people may need to use Schedule L to list various additions to their standard deduction.
Property Tax Deduction
The Housing Assistance Tax Act allows homeowners to claim an additional standard deduction for property tax if the taxpayer does not itemize. The additional amount is limited to $500 or $1,000 for joint filers.
The Housing Assistance Tax Act allows homeowners to claim an additional standard deduction for property tax if the taxpayer does not itemize. The additional amount is limited to $500 or $1,000 for joint filers.
Tax Planning: U.S. - QuickTips
An index of QuickTips for the Tax Planning: U.S. guide site.
An index of QuickTips for the Tax Planning: U.S. guide site.
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.
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.
Unemployment Benefits
Unemployment benefits are taxable income, but a new law for 2009 makes the first $2,400 of unemployment benefits tax-free.
Unemployment benefits are taxable income, but a new law for 2009 makes the first $2,400 of unemployment benefits tax-free.
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.
Schedule E
The key to mastering the Schedule E is to organize your income and expenses using a spreadsheet or personal finance software program. In my experience, clients who keep detailed summaries of their rental property expenses are the ones who benefit most at tax time from the generous tax rules regarding rental income.
The key to mastering the Schedule E is to organize your income and expenses using a spreadsheet or personal finance software program. In my experience, clients who keep detailed summaries of their rental property expenses are the ones who benefit most at tax time from the generous tax rules regarding rental income.
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.
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.
Quick Tax Facts
Overview of key tax figures for 2008. Includes standard deduction, personal exemption, phaseout ranges for itemized deductions, and retirement plan contribution limits.
Overview of key tax figures for 2008. Includes standard deduction, personal exemption, phaseout ranges for itemized deductions, and retirement plan contribution limits.
Alternative Vehicle Tax Credit
Qualifying vehicles purchased on or after January 1, 2006, will be eligible for a tax credit ranging from $400 to $4,000 based on fuel economy. The hybrid car tax credit is actually a combination of two separate tax credits. The math is complicated, and fortunately you won't have to calculate it. The car manufacturers and the IRS will certify the tax credit amount of qualifying vehicles.
Qualifying vehicles purchased on or after January 1, 2006, will be eligible for a tax credit ranging from $400 to $4,000 based on fuel economy. The hybrid car tax credit is actually a combination of two separate tax credits. The math is complicated, and fortunately you won't have to calculate it. The car manufacturers and the IRS will certify the tax credit amount of qualifying vehicles.
TD F 90-22.1
You must fill out Treasury Department Form 90-22.1 every year if you own, or have an interest in, any foreign bank accounts. I'll tell you what you need to know in order to fill out TD F 90-22.1 accurately and confidently.
You must fill out Treasury Department Form 90-22.1 every year if you own, or have an interest in, any foreign bank accounts. I'll tell you what you need to know in order to fill out TD F 90-22.1 accurately and confidently.
Marriage & Taxes
Dear Tax Guide, I’ve often noticed that the married amounts for various deductions are quite often substantially less than double the single amount. Can you explain why? Tax reforms and the "marriage penalty," plus tips for reducing your taxes.
Dear Tax Guide, I’ve often noticed that the married amounts for various deductions are quite often substantially less than double the single amount. Can you explain why? Tax reforms and the "marriage penalty," plus tips for reducing your taxes.
Forming an S Corp
How to form a subchapter S corporation using IRS Form 2553. Discusses deadlines for filing Form 2553 on time, with plenty of examples. Provides critical information on how to file Form 2553 late.
How to form a subchapter S corporation using IRS Form 2553. Discusses deadlines for filing Form 2553 on time, with plenty of examples. Provides critical information on how to file Form 2553 late.
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.
Obama Tax Proposals
President Obama has put forward several tax proposals in his 2010 budget for Congress to consider. These proposals are explained in the Greenbook released by the Treasury Department's Office of Tax Policy on May 11, 2009. These proposals have not yet made it into law. If all of the Administration's proposals are enacted, they would generate an additional $61.7 billion in tax revenue for the federal government.
President Obama has put forward several tax proposals in his 2010 budget for Congress to consider. These proposals are explained in the Greenbook released by the Treasury Department's Office of Tax Policy on May 11, 2009. These proposals have not yet made it into law. If all of the Administration's proposals are enacted, they would generate an additional $61.7 billion in tax revenue for the federal government.
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.
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.
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.
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.
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.
Form 1040A
Tips for preparing your 1040A short form tax return accurately and completely from the About.com Guide to Tax Planning.
Tips for preparing your 1040A short form tax return accurately and completely from the About.com Guide to Tax Planning.
2008 Tax Rebate Plan
The first piece of tax legislation in 2008, the Economic Stimulus Act provides that the taxpayers will receive a one-time rebate in mid-2008. The rebates, or "stimulus payments" as they are being called by the IRS, will be mailed or sent via direct deposit to individuals who file a 2007 tax return and meet certain eligibility requirements.
The first piece of tax legislation in 2008, the Economic Stimulus Act provides that the taxpayers will receive a one-time rebate in mid-2008. The rebates, or "stimulus payments" as they are being called by the IRS, will be mailed or sent via direct deposit to individuals who file a 2007 tax return and meet certain eligibility requirements.
IRS Free File
The IRS "Free File" offers free tax preparation software to prepare and e-file your 1040. Find the best free-file service for you with reviews and links to the IRS Free File program.
The IRS "Free File" offers free tax preparation software to prepare and e-file your 1040. Find the best free-file service for you with reviews and links to the IRS Free File program.
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.
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.
Tax Credits
Claiming tax credits is an important step in reducing your taxes. Find out about the tax credits you may qualify for.
Claiming tax credits is an important step in reducing your taxes. Find out about the tax credits you may qualify for.
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.
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.
Amnesty
Find out what tax amnesty is all about, especially the difference between limited-time-only amnesty programs and on-going voluntary disclosure initiatives. Tax relief for your tax returns you haven't filed, or back taxes you are trying to pay off.
Find out what tax amnesty is all about, especially the difference between limited-time-only amnesty programs and on-going voluntary disclosure initiatives. Tax relief for your tax returns you haven't filed, or back taxes you are trying to pay off.
Capital Gains
Definition of "Capital Gains": A capital gain is the difference between what you paid for an investment and what you received when you sold that investment. If you sold the investment for more than what you paid, then you have a capital gain.
Definition of "Capital Gains": A capital gain is the difference between what you paid for an investment and what you received when you sold that investment. If you sold the investment for more than what you paid, then you have a capital gain.
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.
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.
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.
Capital Gains Worksheet
Use financial software or spreadsheets to track all your investment information in one place. This will save you time and frustration at tax time. Here's some tips for keeping on top of your capital gains information.
Use financial software or spreadsheets to track all your investment information in one place. This will save you time and frustration at tax time. Here's some tips for keeping on top of your capital gains information.
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.
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.
Year End Tax Tips
Here's a list of simple tax moves you can do before the end of the year to keep your income taxes as low as possible.
Here's a list of simple tax moves you can do before the end of the year to keep your income taxes as low as possible.
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.
Retirement Savings Credit
If you contribute to a retirement plan, you may qualify for the Retirement Savings Tax Credit. How to fill out IRS Form 8880.
If you contribute to a retirement plan, you may qualify for the Retirement Savings Tax Credit. How to fill out IRS Form 8880.
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.
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.
Casualty/Theft Losses
Losses incurred because of a casualty, disaster, or theft may be tax-deductible. Casualty and theft losses are reported on Form 4684 and Form 1040 Schedule A.
Losses incurred because of a casualty, disaster, or theft may be tax-deductible. Casualty and theft losses are reported on Form 4684 and Form 1040 Schedule A.
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.
Offer in Compromise
You might be eligible to settle your tax debt for less than what you owe through the Offer-in-Compromise (OIC) program from the IRS. The IRS revised their instructions and forms for the offer program in October 2004. Find out what's new.
You might be eligible to settle your tax debt for less than what you owe through the Offer-in-Compromise (OIC) program from the IRS. The IRS revised their instructions and forms for the offer program in October 2004. Find out what's new.
Business Income
Definition of Business Income & Expenses: An individual person, conducting business as an independent contractor or as a sole proprietor, reports the income and expenses of the business activity on a Schedule C.
Definition of Business Income & Expenses: An individual person, conducting business as an independent contractor or as a sole proprietor, reports the income and expenses of the business activity on a Schedule C.
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.
Self Employment Tax
How to calculate your self-employment tax on Schedule SE using the short method or long method.
How to calculate your self-employment tax on Schedule SE using the short method or long method.
S Corp Example
Forming a Subchapter S-Corporation and accounting for each shareholder's income and expenses is worth doing accurately. A step-by-step example of reporting income and expenses for a sample S Corporation with three shareholders.
Forming a Subchapter S-Corporation and accounting for each shareholder's income and expenses is worth doing accurately. A step-by-step example of reporting income and expenses for a sample S Corporation with three shareholders.
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.
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.
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.
Tax Forms
Find tax forms to prepare your personal income taxes. The most common tax forms are arranged in an easy-to-find format. From your About.com Guide to Tax Planning.
Find tax forms to prepare your personal income taxes. The most common tax forms are arranged in an easy-to-find format. From your About.com Guide to Tax Planning.
2007 Tax Rates
Marginal income tax rates for the 2007 tax year.
Marginal income tax rates for the 2007 tax year.
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.
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.
J K Lasser Your Income Tax
Review of the book "J.K. Lasser's Your Income Tax 2009." Comprehensive, easy-to-read, and well organized. I recommend the book to anyone preparing their own taxes, either by hand or by computer. Next best thing to having a CPA sitting next to you.
Review of the book "J.K. Lasser's Your Income Tax 2009." Comprehensive, easy-to-read, and well organized. I recommend the book to anyone preparing their own taxes, either by hand or by computer. Next best thing to having a CPA sitting next to you.
Mortgage Insurance Premiums
Mortgage insurance premiums may be tax deductible. To qualify, the insurance policy must be for home acquisition debt on a first or second home. This itemized tax deduction is valid for the years 2007 through 2010.
Mortgage insurance premiums may be tax deductible. To qualify, the insurance policy must be for home acquisition debt on a first or second home. This itemized tax deduction is valid for the years 2007 through 2010.
Self Employment Deduction
If you have self-employment income, then you can take a deduction for half of your Self-Employment Tax. Self-employment income includes any of the following: net profit from a Schedule C, guaranteed payments from a Partnership, or wages from an S-Corporation. This deduction reduces your regular income tax.
If you have self-employment income, then you can take a deduction for half of your Self-Employment Tax. Self-employment income includes any of the following: net profit from a Schedule C, guaranteed payments from a Partnership, or wages from an S-Corporation. This deduction reduces your regular income tax.
Currently Not Collectible
The Internal Revenue Service can declare a taxpayer "currently not collectible" if the taxpayer has no ability to pay his or her tax debts. The IRS reviews Not Collectible status every few years.
The Internal Revenue Service can declare a taxpayer "currently not collectible" if the taxpayer has no ability to pay his or her tax debts. The IRS reviews Not Collectible status every few years.
Capital Loss Definition
Definition of Capital Loss: A capital loss is the difference between what you paid for an investment and what you received when you sold that investment. If you sold the investment for less than the price you paid, you have a capital loss.
Definition of Capital Loss: A capital loss is the difference between what you paid for an investment and what you received when you sold that investment. If you sold the investment for less than the price you paid, you have a capital loss.
S Corporation Profile
Profile of subchapter S corporations, covering basic tax information, filing deadlines, and eligibility criteria.
Profile of subchapter S corporations, covering basic tax information, filing deadlines, and eligibility criteria.
AMT
The alternative minimum tax (AMT) is a separate method for calculating your income taxes. You are responsible for paying the higher of the AMT or the regular tax. If your AMT tax is higher, you add the difference between the AMT and the regular tax on your 1040 line 44.
The alternative minimum tax (AMT) is a separate method for calculating your income taxes. You are responsible for paying the higher of the AMT or the regular tax. If your AMT tax is higher, you add the difference between the AMT and the regular tax on your 1040 line 44.
Tax Documents You Need
Missing some tax documents? Don't worry. Find out how to get copies of your missing information.
Missing some tax documents? Don't worry. Find out how to get copies of your missing information.
Best Tax Books
Find objective, un-biased reviews of all the top tax preparation books. Find out which tax book is number 1. Plus links to all tax book reviews.
Find objective, un-biased reviews of all the top tax preparation books. Find out which tax book is number 1. Plus links to all tax book reviews.
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.
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.
IRA Distributions
How to report IRA distributions on Form 1040 Line 15. Tips for figuring and reporting non-taxable and taxable Individual Retirement Account distributions, withdrawals, and rollovers.
How to report IRA distributions on Form 1040 Line 15. Tips for figuring and reporting non-taxable and taxable Individual Retirement Account distributions, withdrawals, and rollovers.
Qualifying Widow/Widower
Surviving spouses receive the same standard deduction and tax rates as taxpayers who are married filing jointly. In the year of your spouse's death, you can file a joint return. For the two following years, you can use the Qualifying Widow/Widower filing status if you have a dependent.
Surviving spouses receive the same standard deduction and tax rates as taxpayers who are married filing jointly. In the year of your spouse's death, you can file a joint return. For the two following years, you can use the Qualifying Widow/Widower filing status if you have a dependent.
Interest Income
Interest income from banks, money market funds, and tax-exempt bonds are reported on your tax return. Find out how to report your interest income on Form 1040.
Interest income from banks, money market funds, and tax-exempt bonds are reported on your tax return. Find out how to report your interest income on Form 1040.
Fair Market Value
Fair market value is the price at which you could have sold a piece of property. Includes IRS definition of fair market value, and its relation to charitable contributions.
Fair market value is the price at which you could have sold a piece of property. Includes IRS definition of fair market value, and its relation to charitable contributions.
2006 Form 1040-EZ
Prepare your 2006 tax returns on Form 1040EZ using easy-to-follow steps. Plus tips for preparing your tax return accurately and completely, from your About.com Guide to Tax Planning.
Prepare your 2006 tax returns on Form 1040EZ using easy-to-follow steps. Plus tips for preparing your tax return accurately and completely, from your About.com Guide to Tax Planning.
Quicken Rental Property
Quicken Rental Property Manager is recommended for rental property owners who need a quick and easy application to keep track of rental income and expenses. In particular, Quicken Rental Property Manager is highly recommended for landlords who are currently tracking rental income and expenses using paper reports or Excel spreadsheets.
Quicken Rental Property Manager is recommended for rental property owners who need a quick and easy application to keep track of rental income and expenses. In particular, Quicken Rental Property Manager is highly recommended for landlords who are currently tracking rental income and expenses using paper reports or Excel spreadsheets.
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.
Cost Basis Definition
Definition of "Cost Basis": the original price of an asset, such as stocks, bonds, mutual funds, property, or equipment. Cost basis includes the purchase price and any associated purchase costs.
Definition of "Cost Basis": the original price of an asset, such as stocks, bonds, mutual funds, property, or equipment. Cost basis includes the purchase price and any associated purchase costs.
File an Extension
Filing an extension is super easy; I'll tell you how to do it. But first, let's talk about what an extension is and what it is not. An "extension" is a way to ask the IRS for more time to file your tax return. The deadline to file your return is April 15th. But the IRS will automatically give you extra time to file your tax return. But this grace period is given only if you ask for it. To do that you need to file Form 4868.
Filing an extension is super easy; I'll tell you how to do it. But first, let's talk about what an extension is and what it is not. An "extension" is a way to ask the IRS for more time to file your tax return. The deadline to file your return is April 15th. But the IRS will automatically give you extra time to file your tax return. But this grace period is given only if you ask for it. To do that you need to file Form 4868.
IRS Form 656
IRS Form 656 is a proposed contract for an offer in compromise. In Form 656, the taxpayer is agreeing to offer the IRS a certain amount of money. In exchange for the money, the IRS agrees to cancel the taxpayer's outstanding tax debts. This proposal may be accepted or rejected by the IRS, or returned to the taxpayer as unprocessable.
IRS Form 656 is a proposed contract for an offer in compromise. In Form 656, the taxpayer is agreeing to offer the IRS a certain amount of money. In exchange for the money, the IRS agrees to cancel the taxpayer's outstanding tax debts. This proposal may be accepted or rejected by the IRS, or returned to the taxpayer as unprocessable.
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.
JK Harris Interview
Taxpayers have several options for resolving their federal tax debts. They can request a monthly payment plan, submit an offer in compromise, or seek bankruptcy protection. I spoke with David A. Bauman, an enrolled agent, who works for JK Harris, about the advantages and disadvantages of filing an IRS Offer in Compromise.
Taxpayers have several options for resolving their federal tax debts. They can request a monthly payment plan, submit an offer in compromise, or seek bankruptcy protection. I spoke with David A. Bauman, an enrolled agent, who works for JK Harris, about the advantages and disadvantages of filing an IRS Offer in Compromise.
Educator Expenses
If you are a teacher and you paid for classroom supplies and other materials out of your own pocket, you can claim those expenses as a tax deduction.
If you are a teacher and you paid for classroom supplies and other materials out of your own pocket, you can claim those expenses as a tax deduction.
Internal Revenue Code Section 199: Domestic Production Activities Deduction
Text of the tax law concerning the Domestic Production Activities Deduction. Internal Revenue Code section 199.
Text of the tax law concerning the Domestic Production Activities Deduction. Internal Revenue Code section 199.
Early Withdrawal Penalty
If you incurred a penalty for early withdrawal of your certificate of deposit at a bank, you can deduct that penalty as a tax deduction on Form 1040.
If you incurred a penalty for early withdrawal of your certificate of deposit at a bank, you can deduct that penalty as a tax deduction on Form 1040.
Adjusted Basis
Definition of "Adjusted Basis": the net cost of an asset after adjusting for various tax-related items.
Definition of "Adjusted Basis": the net cost of an asset after adjusting for various tax-related items.