Around tax time, many citizens start wondering about their applicable tax bracket. While it may seem that the IRS randomly assigns tax brackets to certain individuals, the agency actually uses a straightforward method to calculate the appropriate tax rate for each citizen. It's important for individuals to understand the tax bracket to which they belong. This knowledge will help taxpayers prepare to pay their incoming tax bill. Learning to figure your tax bracket may also help you to find ways to reduce your tax rate for next year.
Are you getting close to retirement? If so, you're probably excited about leaving the workforce behind and starting the next chapter of your life. Planning for your retirement can help you make sure that this new era is exactly what you're hoping it will be. Good retirement planning includes considering tax issues and deciding when to begin receiving your pension. Here's a quick review of what you need to know about planning your taxes for retirement.
Many workers love the idea of being self-employed, but working as an independent contractor can carry its own concerns. While independent contractors are entitled deduct taxes for their businesses, they must also keep up with their own Social Security and Medicare tax payments. By the end of the year, this tax liability can cause them to incur an estimated tax penalty. Avoiding these and other important tax mistakes can help independent contractors save at tax time. Here are the top five mistakes that independent contractors make.
During periods of high sales activity, business owners may need to hire seasonal employees. For example, businesses that operate only during the summer, such as amusement parks, may rely on seasonal workers to handle day-to-day operations. On the other hand, year-round companies such as department stores or malls may only need seasonal workers during the holiday shopping season when revenue is at an all-time high. In either case, company owners who consider hiring seasonal employees should take care to comply with payroll tax procedures to make sure that they are following the law. Here are a few payroll pointers for seasonal business owners.
A college graduate has a lot to be excited about, including finishing school, finding a new job, or even moving out of his or her parents’ house. However, the excitement of jumping in to a new career can quickly diminish once a graduate has to pay his or her first tax bill. Instead of waiting until tax time to find out how much you'll owe, it's wise to learn about potential tax issues in advance so that you can prepare to pay your taxes in the future.
Estate taxes carry some of the highest tax rates in the
IRS tax code. In fact, it’s not uncommon for wealthy individuals who have died to have their estates decimated by income taxes due to poor planning. In these cases, heirs may end up with very little property or assets, even though the estate was worth a large amount of money. To distribute an estate in the best possible way for heirs, individuals should look into methods that reduce the
taxable amount of their estates. If they do, they'll be able to lessen the impact of tax rates on their heirs.
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Identity theft has become a worldwide problem, affecting many consumers and damaging their credit scores, their bank accounts, and even their employment. But did you know that identify theft can also cause trouble for you at tax time? Unfortunately, falling victim to identity thieves can make tax filing a real hassle, especially if you're expecting a sizable refund. Here's a primer on what you can do if identity theft interferes with your tax filing.
Many taxpayers use their home purchases as a way to
save money on their tax liability for the year. However, the IRS also allows taxpayers to buy properties for investment real estate and use the eligible deductions to reduce their tax bills. Several of the same home deductions that apply to residences also apply to investment real estate properties.
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Gambling winnings are completely taxable by the Internal Revenue Service. While this can be disappointing to taxpayers who win prizes or cash as a result of gambling, they may be relieved to hear that their gambling losses may be completely deductible as well. Those who win any prize of value from gambling activities should learn how to properly report them so that they can comply with the IRS standard for gambling winnings.
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If you're facing tax trouble such as a review or an audit, you may be wondering where you can turn for assistance. Many taxpayers are familiar with tax professionals such as certified public accountants (CPA) and tax attorneys, but another valuable resource for tax assistance is an IRS enrolled agent (EA). Enrolled agents are highly trained and qualified to provide tax advice and help for just about any possible situation.
