Finding an affordable nanny or baby sitter can be a real struggle for working parents. If you're fortunate enough to find a good nanny, you're likely to use his or her services on a regular basis. However, if you pay a baby sitter or a nanny often, you may actually be subject to a household employee tax or the "nanny tax".
ered several forms of income tax assistance to taxpayers over the years. These aids are designed to help individuals understand, prepare, and pay their taxes. Here are 10 cool tools available from the IRS this tax year.
The Affordable Care Act (ACA), which is commonly referred to as "Obamacare", allows U.S. citizens to purchase health insurance at a reduced rate. Those who do not buy health insurance by the deadline are subject to a tax penalty. For those who cannot afford the insurance, though, there is an Affordable Care Act hardship exemption that allows them to escape liability for the tax penalty.
As the filing deadline draws closer, many taxpayers realize that they won't be able to submit their returns on time. These individuals often turn to filing a tax extension to have more time to prepare their forms. Is this a wise thing to do? Does filing a tax extension make it more likely that the IRS will audit you?
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.
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.
