Are you in the process of selling your home? Did you know that your home sale could have an impact on your income tax liability this year? Depending on the amount of gain you receive on your home sale, you could end up owing Uncle Sam a hefty tax bill. You might also have to pay the IRS if you use a short sale to dump a bad mortgage loan. Here are a few considerations to help you see how selling your home impacts your income taxes.
Most American taxpayers qualify for tax deductions and credits on their income tax returns. However, many of the most common tax deductions tend to disproportionately favor the wealthiest individuals. One of the main reasons for this is that deductions are only valid up to the income tax bracket that applies to the taxpayer. Since the wealthy tend to fall into a higher tax bracket, they often qualify to deduct a higher percentage of their income than those who earn lower income amounts. Here are a few IRS tax deductions that benefit the rich more than the middle class.
One of the main things that retired individuals look forward to is not having to worry about earning an income. However, without the proper planning, some retirees may find themselves in a precarious financial situation. This is because some retirement payments are considered taxable by the IRS, which can lead to unexpected financial troubles. Some of the common tax concerns for retired individuals include questions about the income tax liability of benefits and investment income.
Members of the United States military are often lauded for their courageous service. However, these service members often face specific tax situations that require a bit more knowledge than a traditional tax return. The IRS has made a few considerations for military tax issues and it's in the best interest of these individuals to learn about these considerations so they can avoid excessive taxes. Here are a few tax tips for members of the military.
Small businesses face unique challenges at income tax time. Business owners are more likely to be audited than individual taxpayers and the complex forms and deductions may seem a bit overwhelming. The good news for these entrepreneurs is that the Internal Revenue Service has designed several credits exclusively for small businesses. Since these companies have to foot the bill for many of their own operating costs, taking advantage of these credits can make the difference between an affordable tax bill and a staggeringly high balance due. Here are just a few of the IRS tax credits for small businesses.
prospect of an IRS tax audit? If so, you may understandably be worried about the possibility of paying additional taxes as a result of the audit investigation. No one likes dealing with an IRS audit. However, there are ways you can avoid additional stress during the procedure. Here are few suggestions as to how to reduce problems during an IRS tax audit.
Towards the end of the year, some charitable organizations typically place ads for vehicle donation as a tax deduction. While it's true that the IRS allows taxpayers to take a tax deduction when they donate a vehicle, there are several things that must be kept in mind in order to get the maximum deduction for your contribution. Here are a few tax tips for donating a vehicle to charity.
Many taxpayers who owe large amounts of back taxes to the IRS set up IRS installment plans in an attempt to clear up their accounts. These installment plans can be a convenient way to pay off back taxes without putting an unnecessary strain on an individual's budget. While an IRS payment plan may seem like a good idea in theory, there are a few situations where signing up for this type of plan may not be the best solution. Here are some of the advantages and disadvantages of IRS installment plans.
Business owners have to comply with different IRS income tax laws than individual taxpayers. Depending on the type and size of their business, entrepreneurs may have to pay additional taxes or abide by more complicated laws. To make sure that they are in compliance with the U.S. Tax Code, it is important for company owners to learn all they can about the types of business taxes they may have to pay each year. When they learn the basics of tax law, these individuals will be in a better position to make sure that they are following the law.
Are you facing a tax lien or levy from the IRS? Unresolved tax debt can be a difficult situation to escape, especially if the amount you owe is sizable. Trying to settle these issues can be even more difficult if you believe that the IRS has erred in the amount of taxes it says you owe. In this case, you might want to file an appeal to settle your IRS Tax dispute. The appeals process makes it possible for you to request an additional investigation into your calculated tax bill. In some cases, a successful appeal can lead to a reduced tax bill or even a cleared account.
