Are you going through a divorce or a marital separation? If so, the effect that this life change will have on your income tax status is likely to be one of the last things on your mind. However, it's important to consider how a divorce impacts your income tax filing, especially if you normally receive a tax refund each year. The decisions you make during your divorce proceedings can literally make the difference between receiving a refund and owing a balance due on April 15.
Current and former members of the United States military spend much of their life serving in defense of the country. However, these soldiers are not exempt from the income tax regulations of the Internal Revenue Service (IRS). All members of the military should take the time to find out about the tax code laws to which they are subject. According to the IRS, some kinds of military income are taxable, while some are exempt from taxation. However, most military personnel will still have to file an income tax return each year.
If you were to ask taxpayers about their most common fear, many would say that they worry about being audited by the Internal Revenue Service. While the actual number of tax audits done each year is quite low, those who are affected by them can suffer serious financial trouble, leading to large judgments and years of back tax payments. It's far more important to do what you can to avoid a tax audit in the first place. With the proper information and preparation, your chances of being audited by Uncle Sam can become very small.
If you've been paying the traditional income tax for the past several years, you may not have even heard of the Alternative Minimum Tax. In reality, though, this separate tax system affects many Americans each year, including some who didn't know they were even subject to it. What is the Alternative Minimum Tax? Should you be concerned about having to pay it? Is there anything you can do to find out if it applies to your tax return?
Financial advisers and experts advertise their services every day. How can you tell which professional to hire for your IRS tax needs? Much of it depends on the specific kind of assistance you're looking for. Ideally, you should choose a professional who is best qualified to handle your money matters. Often, that means hiring a Certified Public Accountant (CPA) or an IRS Enrolled Agent (EA). But, how can you tell which one to choose for your financial needs?
Taxpayers who deduct gifts on their tax returns often wind up getting audited, but that doesn't mean that the IRS disallows all deductions for gifts. In some instances, taxpayers can receive gifts without paying taxes or give gifts and claim a deduction. The key, however, is knowing the IRS rules for tax-free gifts.
Taxpayers who get married, get divorced, or adopt kids often deal with name changes. While these individuals may remember to use their new last names in their everyday dealings, they may forget to update the records of their names for tax purposes. Whenever a taxpayer changes a legal name, though, he or she needs to do so in a way that will not interfere with their ability to file a tax return on time.
Are you a freelancer who is dreading the income tax deadline this year? If so, your concern is understandable since freelancers are among the most frequently audited taxpayers. The good news is that you can successfully navigate your way through the income tax code and avoid the traps that catch so many of your colleagues.
There are three basic types of traditional 401(k) plans available that can save you money on your tax return this year. Here's an overview of how your 401(k) plan can benefit your tax return.
The "fiscal cliff" was huge news across the country during the latter part of 2012. In an effort to avoid it, both Democrats and Republicans worked to hammer out a budget deal that would include budget cuts and tax increases. As a result, several income tax rates have increased this year. Some of these tax increases for 2013 will affect taxpayers in 2014 and beyond, but others have already started to have an impact on the financial welfare of American citizens.
