Raising a child can cost a lot of money, so parents will want to take advantage of every tax break they can get. Fortunately, the IRS allows parents to claim several tax breaks based on their child care expenses. The key is learning which deductions you are eligible to claim. Here are four tax tips for parents who want to reduce their tax liability!
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f you have a credit card, you may be eligible for a rewards program. Credit card companies often offer rewards programs in an attempt to draw new customers. If you are a member of a rewards program, you may be subject to federal income taxes on certain types of rewards. Here is a review of which credit card rewards are taxable and which are nontaxable.
Finding an affordable nanny or baby sitter can be a real struggle for working parents. If you're fortunate enough to find a good nanny, you're likely to use his or her services on a regular basis. However, if you pay a baby sitter or a nanny often, you may actually be subject to a household employee tax or the "nanny tax".
When you make a late tax payment to the IRS, you might not think that doing so could damage your credit. In some cases, though, remitting a tax payment after the deadline could endanger your credit score. This could be a particular issue if you are subject to an income tax lien or if you have to use a high-interest credit card to pay your balance. Here's a look at how paying your taxes late could affect your credit score.
As the name implies, a health savings account (HSA) is a bank account where individuals can save money toward current and future health care expenses. In a way, an HSA serves as a 401(k) fund for health care costs, because it allows individuals to save money for a specific purpose while earning interest on the funds. While anyone can have an HSA, there are requirements for those who want to use their expenses to gain income tax benefits. Here are a few of the tax benefits of a health savings account.
The IRS has the federal authority to impose a tax levy to collect outstanding tax balances. In these situations, taxpayers' and business owners' property may be up for grabs and sold at auctions to cover the back tax debt. However, the IRS does not have the authority to take everything a person owns. Here's a look at which accounts are subject to an IRS levy.
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re you a business owner who owes back taxes to the IRS? If so, your accounts receivable may be fair game if the IRS decides to impose a tax levy. If you want to protect your receivables and make sure they are paid to your business, you'll have to familiarize yourself with the IRS regulations that govern tax levies on accounts receivable.
If you're facing the prospect of an IRS audit, you may be tempted to go through the process alone. However, enlisting professional audit representation is an excellent way to reduce the stress of an audit and avoid unnecessary taxes. Here are five reasons to have audit representation.
Despite having millions in the bank, celebrities are just like everyday taxpayers and sometimes experience their fair share of tax woes. These 10 celebrities are well-known for their work on the big screen or in concert as well as the fact that they were charged with tax evasion.
ered several forms of income tax assistance to taxpayers over the years. These aids are designed to help individuals understand, prepare, and pay their taxes. Here are 10 cool tools available from the IRS this tax year.
