When a wealthy celebrity dies, news reports might mention the estate tax that is levied against the assets afterward. The estate tax is often nicknamed the "death tax" because it only comes into force following a death, but it's not actually a tax on death. What is the estate tax? Who is required to pay it? Does the IRS offer any estate tax deductions?
Are you expecting a large tax refund this year? Congratulations, you'll be receiving tax-free money that you can use however you like! If you want to be smart with your taxes and finances, though, you'll need to learn how to invest your tax refund. While using the funds for a luxury item such as a television or a new wardrobe might be tempting, using your tax refund as an investment will pay off in the long run.
The capital gains tax is an income tax levied on profits from sales of capital assets. However, if you're subject to the capital gains tax, your effective tax rate can be as low as zero or as high as 20 percent. What is the capital gains tax? Which assets are subject to the tax? How is the tax rate calculated? Here's a primer on what the capital gains tax involves.
Most taxpayers, who have to contact the Internal Revenue Service, speak with IRS revenue agents. However, if you're facing a delinquent income tax bill, you may have to talk with an IRS revenue officer. These professionals have more authority than revenue agents, but there are limits on what they can do. Here's a look at what IRS revenue officers are and what collections tactics they can legally do.
Wage garnishment is used to collect seriously delinquent obligations by deducting a percentage of earnings directly from an employee's paycheck. If you're facing a wage garnishment, it's important that you find out exactly what your rights are, so that you can protect yourself and prepare for any life changes that may occur if you are fired for wage garnishment.
Taxpayers with IRS installment agreements have the opportunity to clear their accounts with the agency over time. However, some taxpayers end up defaulting on their agreements by missing payments or sending them in late. What are the consequences of defaulting on an IRS installment agreement?
All of the taxes citizens pay can be grouped into two categories: direct taxes and indirect taxes. Which taxes are direct taxes? Which are indirect taxes? What is the difference between a direct tax and an indirect tax? Here is an overview of direct taxes versus indirect taxes and which fees fall into each category.
On some tax forms, you may notice the term "excise tax." What is an excise tax? Who has to pay an excise tax? Where does an excise tax come from? Does it have any effect on your income tax return? Here is a quick primer on what excise taxes are and how they work.
Are you unprepared for this tax season? If the filing deadline approaches and you haven't begun your forms yet, you may be considering filing a tax extension. While requesting an income tax extension can offer a few advantages, it may also carry a few drawbacks. Here are a few things to know before filing a tax extension.
As the tax filing deadline approaches, it's natural to wonder if you've missed any important aspects of preparing your income tax return. Even if you're close to April 15, there are still a few last-minute things to do before filing your taxes. You might be in a hurry to get your refund, but it's always better to make sure that you've dotted all your i's and crossed all of your t's before you send your taxes to the IRS.
