It's tax time! If you've been dealing with high tax bills for the last few years, you may be wondering how you can possibly reduce your tax liability this time around. Have you thought about changing which deduction you're claiming this year? The IRS gives taxpayers the option to decide whether to claim the standard deduction or to take itemized deductions. So, should you take the standard deduction or itemize? The answer as to which you should claim depends on your tax filing status and your adjusted gross income for that year.
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.
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.
As you approach retirement age you may be thinking about how you can best prepare for this next stage of your life. One area you may not be concerned about, though, is how your changing life may affect your
income tax liability. People over 50 may be able to claim some unique tax deductions, particularly for medical costs, insurance and retirement distributions. Here are a few tax tips if you’re over 50:
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Did you know that the IRS has the authority to seize your assets if you owe back taxes? The Internal Revenue Service is one of the most powerful government agencies when it comes to seizing control of individual assets so it's wise for any taxpayer to understand the agency's authority and how it exercises asset seizure in cases of income tax debt.
If you owe back taxes to the IRS you may be wondering what your possible settlement options are. This may be particularly true if you're barely making enough money to cover your necessary living expenses. The IRS does have a status called "Currently Not Collectible" that is reserved for taxpayers who owe tax debt but are financially unable to repay the debt for a time. Qualifying for this designation is a bit complex but may provide some short-term tax relief for those who are struggling to make ends meet.
Empty nesters that have recently sent their children to college may be searching for ways to save on their income tax bills. For these taxpayers, the loss of dependent children may also mean the loss of significant tax deductions which can cause their tax bill to rise considerably. Taking advantage of tax savings for empty nesters can help these individuals keep more of their money at tax time.
If you're out of work or if you're just looking for new employment, did you know that you can write off some of your expenses on your tax return? The IRS allows you to deduct some of these relevant costs as a deduction on Schedule A. The key to claiming these expenses is finding out which job search costs you can claim and how to report them on your return. Here are a few job search tax deduction tips you can use to file your upcoming tax form.
