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Gambling winnings are fully taxable and must be reported on your tax return. Here are the top seven facts the Internal Revenue Service wants you to know about gambling winnings.
The Alternative Minimum Tax attempts to ensure that anyone who benefits from certain tax advantages pays at least a minimum amount of tax. Here are seven facts the Internal Revenue Service wants you to know about the AMT and changes to this special tax for 2009
Some taxpayers may have needed to take an early distribution from their retirement plan last year. The IRS wants individuals who took an early distribution to know that there can be a tax impact to tapping your retirement fund. Here are ten facts about early distributions.
If you received Social Security benefits in 2009, you need to know whether or not these benefits are taxable. Here are seven facts the Internal Revenue Service wants you to know about Social Security benefits so you can determine whether or not they are taxable to you.
College can be very expensive. To help students and their parents, the IRS offers the following five ways to offset education costs.
Taxpayers who received unemployment benefits in 2009 are entitled to a special tax break when they file their 2009 federal tax returns. This tax break is part of the American Recovery and Reinvestment Act of 2009.
Getting ready to file your tax return? Make sure you have all your documents before you start. You should receive a Form W-2, Wage and Tax Statement from each of your employers. Employers have until February 1, 2010 to send you a 2009 Form W-2 earnings statement.
If you purchased a home in 2009 or early 2010, you may be eligible to claim the First-Time Homebuyer Credit, whether you are a first-time homebuyer or a long-time resident purchasing a new home.
If you bought a new vehicle in 2009, you may be entitled to a special tax deduction for the sales and excise taxes on your purchase.
While most income you receive is generally considered taxable, there are some situations when certain types of income are partially taxed or not taxed at all.
As you get ready to prepare your 2009 tax return, the Internal Revenue Service wants to make sure you have all the details about tax law changes that may impact your tax return.
The Earned Income Tax Credit, commonly referred to as EITC, can be a financial boost for working people adversely impacted by hard economic times. However, one in four eligible taxpayers could miss out on the credit because they don’t check it out. Here are the top 10 things the Internal Revenue Service wants you to know about this valuable credit, which has been making the lives of working people a little easier for 35 years.
The $250 Economic Recovery Payments that were issued in 2009 by the Social Security Administration, Department of Veterans Affairs and Railroad Retirement Board must be included when claiming the Making Work Pay Tax Credit on 2009 tax returns. Many people who worked during 2009 and also received a $250 Economic Recovery Payment in 2009 are slowing down their tax refunds by not properly including the payments when claiming the Making Work Pay Tax Credit.
Certain government retirees who receive a government pension or annuity payment in 2009 may be eligible for the Government Retiree Credit. The American Recovery and Reinvestment Act of 2009 provides this one-time credit of $250 for certain federal and state pensioners.
If you want to get your refund as quickly as possible, just tell the IRS to deposit your refund directly into your bank account. By choosing Direct Deposit, you can get your refund much sooner than if you chose to have a paper check mailed to you.
While the Internal Revenue Service provides publications about a wide range of topics, there is one publication every taxpayer should have with them when they are preparing their federal tax return. Publication 17, Your Federal Income Tax is available at IRS.gov and contains a wealth of information for individual taxpayers.
You must file a tax return if your income is above a certain level. The amount varies depending on filing status, age and the type of income you receive.
The IRS Free File service provides free federal income tax return preparation and electronic filing for all taxpayers. All you need is access to a computer and the Internet and you can prepare and e-file your federal tax return for free.
If you are donating to charities providing earthquake relief in Haiti, you may be able to claim those donations on your 2009 tax return. Here are 10 important facts the Internal Revenue Service wants you to know about this special provision.
Many working taxpayers are eligible for the Making Work Pay Tax Credit, a provision created by the American Recovery and Reinvestment Act in early 2009.
The Internal Revenue Service has free tax forms and publications on a wide variety of topics. If you need IRS forms, here are five easy methods for getting the information you need.
Taxpayers who need their past tax return information can obtain it from the IRS. Here are nine things to know if you need copies of your federal tax return information.
The American Recovery and Reinvestment Act was passed in early 2009 and created the American Opportunity Credit. This educational tax credit – which expanded the existing Hope credit – helps parents and students pay for college and college-related expenses.
If you are receiving a federal tax refund from the Internal Revenue Service, you can choose to use that money to purchase U.S. savings bonds.
Tax information can be tough to understand in any language, but it can be even more difficult if it is not in your first language. To assist Spanish speaking taxpayers, the IRS provides a wide range of free products and services.
If you have a tax question or need a tax form – there’s no need to leave the comfort of your home. All you need is a computer and Internet access because IRS.gov has a wealth of information.
Got Kids? They may have an impact on your tax situation. Listed below are the top 10 things the IRS wants you to consider if you have children.
Last year, 2 out of 3 tax returns were filed electronically. Was yours? If not, here are three important reasons to e-file your return.
The IRS urges people to use care and caution when choosing a tax preparer. Remember, you are legally responsible for what’s on your tax return even if it was prepared by an another individual or firm.
To file your 2009 individual tax return, you’ll have to decide which form to use…unless you e-file. If you file electronically, the software automatically selects the simplest and best form for you. Whether you use e-file or prepare on paper, using the simplest form will help avoid costly errors or processing delays. And remember, if you file electronically, it speeds up the processing of your tax return and the delivery of your refund.
When you prepare to file your tax return, there are two things that will factor into your tax situation: dependents and exemptions. Here are five important facts the IRS wants you to know about dependents and exemptions before you file your 2009 tax return.
Everyone who files a federal tax return must determine which filing status applies to them. It’s important you choose your correct filing status as it determines your standard deduction, the amount of tax you owe and ultimately, any refund owed to you.
If you were married or divorced recently, there are a couple of things you’ll want to do to ensure the name on your tax return matches the name registered with the Social Security Administration.
While the tax filing deadline is more than three months away, it always seems to be here before you know it. Here are the Internal Revenue Service’s top 10 tips that will help your tax filing process run smoother than ever this year.
Be sure to take advantage of these money-saving ideas before time runs out.
The American Recovery and Reinvestment Act (ARRA) provides tax incentives for first-time homebuyers, people purchasing new cars, those interested in making their homes more energy efficient, and parents and students paying for college.
The vast majority of Americans get a tax refund from the IRS each spring, but what do you do if you are one of those who received a tax bill? Here are eight tips for taxpayers who owe money to the IRS.
People who sell their home may be able to exclude the gain from their income. Here are seven things every homeowner should know if they sold, or plan to sell their house.
Taxpayers who use a portion of their home for business purposes may be able to take a home office deduction if they meet certain requirements.
The Tuition and Fees deduction of up to $4,000 is available to help parents and students pay for post-secondary education. Below are ten important facts about this deduction every student and parent should know.
Taxpayers who do not file their return and pay their tax by the due date may have to pay a penalty. Here are seven things you should know about failure-to-file and failure-to-pay penalties.
Are you looking for ways to avoid the last-minute rush for doing your taxes? Here are some stress-relieving tips to help you.
If you make eligible contributions to an employer-sponsored retirement plan or to an individual retirement arrangement, you may be able to take a tax credit.
Whether to itemize deductions on your tax return depends on how much you spent on certain expenses last year. Money paid for medical care, mortgage interest, taxes, charitable contributions, casualty losses and miscellaneous deductions can reduce your taxes. If the total amount spent on those categories is more than the standard deduction, you can usually benefit by itemizing.
There is an additional standard deduction for those who don’t qualify to itemize their tax deductions, but who do pay state or local real estate taxes. This deduction is available for the 2008 and 2009 tax years.
If you paid someone to care for a child, spouse, or dependent, you may be able to reduce your tax by claiming the Child and Dependent Care Credit on your federal income tax return. Below are the top ten things you need to know about claiming a credit for child and dependent care expenses.
With the Child Tax Credit, you may be able to reduce the federal income tax you owe by up to $1,000 for each qualifying child under the age of 17.
If your mortgage debt is partly or entirely forgiven during tax years 2007 – 2012, you may be able to claim special tax relief and exclude the debt forgiveness income.
Check it out! You might be eligible for a tax credit. A tax credit is a dollar-for-dollar reduction of taxes owed. Some credits are even refundable. That means you might receive a refund rather than owe any taxes.
Need help filing your tax return? If so, then you should look into the free, IRS-sponsored, volunteer tax return preparation programs.
The IRS provides free publications, forms and other tax material and information to help taxpayers meet their tax obligations. Free help is available on the IRS Web site, by phone, at local IRS offices and at many community locations.
If you or your spouse are a member of the military, you may be eligible to receive free tax return preparation assistance. The U.S. Armed Forces participates in the Volunteer Income Tax Assistance program and provides free tax advice, tax preparation, return filing and other tax assistance to military members and their families.
If you already filed your federal tax return and are due a refund, you can check the status of your refund online, in English or Spanish.
Children with investment income may have part or all of this income taxed at their parent’s tax rate rather than at the child’s rate. Investment income includes interest, dividends, capital gains and other unearned income
If you are living and working abroad you may be entitled to the Foreign Earned Income Exclusion. Here are some important facts about the exclusion:
If you took an early distribution from your retirement plan, here are some things you need to know:
Do you have questions about reporting gains and losses on your tax return? Here are some facts from the IRS.
Gambling winnings are fully taxable and must be reported on your tax return. Gambling income includes, but is not limited to, winnings from lotteries, raffles, horse and dog races and casinos, as well as the fair market value of prizes such as cars, houses, trips or other noncash prizes.
Seven facts to help you understand the Alternative Minimum Tax (better known as AMT).
If you are looking for a new job or a career change, consider the IRS. No matter what your professional specialty, the IRS offers a variety of full-time careers or seasonal job opportunities in many U.S. cities.
How much, if any, of your social security benefits are taxable depends on your total income and marital status. Generally, if social security benefits were your only income for 2008, your benefits are not taxable and you probably do not need to file a federal income tax return.
Education tax credits can help offset the costs of higher education for yourself or a dependent. The Hope Credit and the Lifetime Learning Credit are two education credits available which may benefit you. Because they are credits rather than deductions, you may be able to subtract them in full, dollar for dollar, from your federal income tax.
The IRS sent taxpayers nearly 119 million economic stimulus payments last year. When filing a 2008 federal tax return, taxpayers will need to know the amount of their stimulus payment to properly determine if they are eligible for a recovery rebate credit.
Did you get your W-2? These documents are essential to filling out most individual tax returns. You should receive a Form W-2, Wage and Tax Statement, from each of your employers each year. Employers have until February 2, 2009 to provide or send you a 2008 W-2 earnings statement either electronically or in paper form. If you haven’t received your W-2, follow these steps:
You must file a tax return if your income is above a certain level. The amount varies depending on filing status, age and the type of income you receive.
There are several tax credits and benefits available to qualifying taxpayers with disabilities as well as to the parents of disabled children. Listed below are several tax credits and other benefits available if you or someone else listed on your federal tax return is disabled.
While most income you receive is generally considered taxable, there are some situations when certain types of income are partially taxed or not taxed at all. Some common examples of items that are not included in your income are:
Here are a few tax law changes you may want to note before filing your 2008 federal tax return:
As an alternative method for donating to a charity, certain taxpayers may transfer funds from their IRA to an eligible charitable organization. Here are ten things taxpayers who are thinking about making such a donation will need to know.
Taxpayers with disabilities may qualify for a number of IRS tax credits and benefits. Parents of children with disabilities may also qualify. Listed below are seven tax credits and other benefits that are available if you or someone else listed on your federal tax return is disabled.
What if I lose my job? Is my unemployment check taxable? Can I afford to take money out of my retirement account? These are just a few of the "What If" questions people are dealing with these days.
If you’ve never filed your tax return electronically, you should definitely consider trying it in 2009. Join the millions of taxpayers who are saving time and money to file their tax returns without the many headaches often associated with filing a paper return.
The Earned Income Tax Credit is for people who work, but have lower incomes. Here are some things you may not know about the EITC.
Don’t wait around for a paper check. Have your federal tax refund deposited directly into your bank account. Choosing Direct Deposit is a secure and convenient way to get your money in your pocket faster. Here are the main reasons 66 million taxpayers chose Direct Deposit in 2008:
Are you facing a lot of different tax questions this year? IRS experts have pulled together an overview of common tax issues in one convenient place — Publication 17, Your Federal Income Tax. This publication, available on the IRS.gov, contains helpful information for individual taxpayers.
If you were married or divorced recently, there are a couple of things you’ll want to do to ensure the name on your tax return matches the name registered with the Social Security Administration.
If you have access to a computer and the Internet you may be eligible to prepare and file your 2008 federal tax return electronically — for free. Free File is an easy way to file your taxes and get your refund in half the time. Filing electronically is fast, accurate and secure.
If you changed your home or business address, you’ll want to remember these six tips to ensure you receive any refunds or correspondence from the IRS.
Most taxpayers who received the economic stimulus payment last year will not be able to claim the Recovery Rebate Credit on their 2008 federal income tax returns. A small number of taxpayers who did not receive the full economic stimulus payment last year may be eligible to claim the Recovery Rebate Credit on their 2008 federal income tax return. Figuring the Recovery Rebate Credit incorrectly or entering inaccurate information will delay the processing of your tax return and any refund due.
The IRS has free tax forms and publications on a wide variety of topics. If you need IRS forms or information, try one of these easy options:
There are two easy and convenient options for obtaining free copies of your federal tax return information — tax return transcripts and tax account transcripts — by phone or by mail.
If you need federal tax information, the IRS provides free Spanish language products and services. Pages on the Internal Revenue Service’s Web site, pre-recorded tax topics, refund information, tax publications and toll-free telephone assistance are all available in the Spanish language.
The IRS wants you to know about identity theft and ten ways to prevent it.
Don’t delay; file your prior year return now! The failure to file a federal tax return can be costly — whether you end up owing more or missing out on a refund.
See the top ten reasons to visit www.IRS.gov
You probably already keep records in your daily routine. This includes keeping receipts for purchases and recording information in your checkbook. Keeping these and other records will help you avoid headaches at tax time. Good recordkeeping will help you remember the various transactions you made during the year, which in turn may make filing your return a less taxing experience.
If you will be paying someone to do your tax return, choose a tax preparer wisely. You are legally responsible for what’s on your tax returns even if they are prepared by someone else. So, it’s important to find a qualified tax professional.
Be aware of e-mail scams that fraudulently use the IRS name or Logo as a lure. The goal of the scam is to trick people into revealing personal and financial information, such as Social Security, bank account or credit card numbers, which the scammers can use to commit identity theft and steal your money.
When you file your 2008 individual tax return, you will use one of three IRS tax forms. Be sure to use the simplest form you can, which will help you avoid costly errors or processing delays so you won’t have to wait to receive your refund. Each of these forms can be filed electronically, which speeds up the processing of your return.
If you are facing financial difficulties and struggling to meet your tax obligations the IRS can help. As the 2009 tax filing season begins, in addition to new credits, deductions and exclusions, the IRS is taking steps to help people who owe back taxes. Here are some areas where IRS can help:
The IRS has released it's top five facts about Dependents and Exemptions
Everyone who files a federal tax return must determine which filing status applies to them. It’s important you choose your correct filing status as it determines your standard deduction, the amount of tax you owe and ultimately, any refund owed to you.
First-time homebuyers should begin planning now to take advantage of a new tax credit.
The IRS has released it's 2008 Top Ten Tax Time Tips
The Internal Revenue Service has moved the extended due date for partnership, estate and trust tax returns from Oct. 15 to Sept. 15 to avoid overlapping with the extended deadline for individual taxes.
The IRS has announced an increase in the optional standard mileage rates for the final six months of 2008. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
If you bought a hybrid vehicle in 2007, you may be entitled to a tax credit on your 2007 return. The credit is worth as much as $3,000 for the most fuel-efficient models. The precise amount depends on the make and model of the vehicle and when the vehicle was purchased.
IRS has unveiled its latest list of notorious tax scams, which it calls the “Dirty Dozen,” highlighted by Internet phishing scams and several frivolous tax arguments. New to the “Dirty Dozen” this year is a scheme, which IRS auditors discovered, that relates to unreasonable and/or excessive fuel tax credit claims.
The EITC is for people who work, but have lower incomes. If you qualify, it could be worth up to $4,700 this year. So you could pay less federal tax or even get a refund. That’s money you can use to make a difference in your life.
If you have access to a computer and the Internet you may be eligible to prepare and file your 2007 federal tax return electronically—for free. Free File is an easy way to file your taxes and get your refund in half the time.
Want your refund faster? Have it deposited directly into your bank account. More taxpayers are choosing direct deposit as the way to receive their federal tax refunds. More than 61 million people had their tax refunds deposited directly into their bank accounts in 2007. It’s a secure and convenient way to get your money in your pocket faster.
Every year, more taxpayers discover the benefits of filing their tax return electronically. Whether you use a professional tax preparer authorized by the IRS or do it yourself from a home computer, there are many reasons to consider e-filing your tax return this year.
The failure to file a federal tax return can be costly — whether you end up owing more or missing out on a refund.
Newlyweds and the recently divorced should ensure the name on their tax return matches the name registered with the Social Security Administration (SSA). A mismatch could unexpectedly delay a tax refund.
If you changed your home or business address, notify the IRS to ensure that you receive any refunds or correspondence. While the IRS uses the Postal Service’s change of address files to update taxpayer addresses, notifying the IRS directly is still a good idea.
If you gave any one person gifts in 2007 that are valued at more than $12,000, you must report the total gifts to the Internal Revenue Service and may have to pay tax on the gifts. The person who receives your gift does not have to report the gift to the IRS or pay gift or income tax on its value.
The Internal Revenue Service has many forms and free publications on a wide variety of topics to help you understand and meet tax filing requirements. If you need IRS materials try one of these easy options:
There are two easy and convenient options for obtaining copies of your federal tax return information — tax return transcripts and tax account transcripts — by phone or by mail.
Earlier is better when it comes to working on your taxes. Taxpayers are encouraged to get a head start on tax preparation, especially since early filers avoid the last minute rush and get their refunds sooner.
With the tax filing deadline close at hand, here are some tips for those still working on their paper tax forms:
Tax season just got two days longer, thanks to a holiday in the District of Columbia. The IRS has announced that filers will have until April 17 to file returns or extension requests because the traditional filing deadline of April 15 falls on a Sunday and April 16 is Emancipation Day, a legal holiday in Washington, D.C.
IRS has launched a new online tool designed to help individual taxpayers determine whether they might benefit by electing to deduct their state and local general sales taxes, the agency announced on Jan. 29.
Are you facing a lot of different tax questions this year? IRS experts have pulled together an overview of common tax issues in one convenient place — Publication 17, Your Federal Income Tax. This updated publication, available on the IRS Web site, IRS.gov, contains a vast array of helpful information for individual taxpayers.
Don’t wait in line, go on-line. The IRS Web site is home to a great resource for answers to tax questions that arise during the filing season. Access 1040 Central at IRS.gov under the “Individuals” tab and discover user-friendly tools that will make completing your 2006 tax return quick and easy.
You may be able to take advantage of certain tax breaks enacted in the final days of 2006. Claiming deductions for state and local sales tax, higher education tuition and fees, and educator expenses will require special handling if you file a paper income tax return for 2006.
You may be able to take advantage of certain tax breaks enacted in the final days of 2006. Claiming deductions for state and local sales tax, higher education tuition and fees, and educator expenses will require special handling if you file a paper income tax return for 2006.
You may be able to take advantage of certain tax breaks enacted in the final days of 2006. Claiming deductions for state and local sales tax, higher education tuition and fees, and educator expenses will require special handling if you file a paper income tax return for 2006.
Taxpayers who pay someone to do their taxes should choose a preparer wisely. If you choose to use a paid tax preparer, it is important that you find a qualified tax professional. Taxpayers are ultimately responsible for everything on their return even when it’s prepared by someone else
Whether to itemize deductions on your tax return depends on how much you spent on certain expenses last year. Money paid for medical care, mortgage interest, taxes, charitable contributions, casualty losses, and miscellaneous deductions can reduce your taxes. If the total amount spent on those categories is more than the standard deduction, you can usually benefit by itemizing.
The three forms used for filing individual federal income tax returns are Form 1040EZ, Form 1040A, and Form 1040. If you are filing a federal income tax return on paper, use the simplest form you can. Using the simplest allowable form will reduce the chance of an error that may cost you money or delay the processing of your return.
Your federal tax filing status is based on your marital and family situation. It is an important factor in determining whether you must file a return, your standard deduction and your correct amount of tax.
You must file a tax return if your income is above a certain level. The amount varies depending on filing status, age and the type of income you receive.
Earlier is better when it comes to working on your taxes. Taxpayers are encouraged to get a head start on tax preparation, especially since early filers avoid the last minute rush and get their refunds sooner.
On November 1, 2006, the Internal Revenue Services released the 2007 optional standard mileage rate to be used with the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Due to the closure of the IRS headquarters building, there is a temporary change of address for the delivery of taxpayer requests for rulings, requests for determination letters, Applications for Change in Accounting Method (Form 3115), and other documents that are permitted to be hand-delivered to the main headquarters building.
Every year, taxpayers hand over their financial records to tax preparers for the preparation of the annual tax return. Before choosing your tax preparer, do the following to assure yourself that your preparer will meet your needs.
Your state and federal tax filing status is based on your marital and family situation. This is an important factor in determining if you have to file a return, what your standard deduction is and the correct amount of tax liability.
You must file a tax return if your income is above a certain level. The amount varies depending on filing status, age and the type of income you receive.
Earlier is better when it comes to working on your taxes. Taxpayers are encouraged to get a head start on tax preparation, especially since early filers avoid the last minute rush and get their refunds sooner.
On December 2, 2005, the Internal Revenue Services released the optional standard mileage rate to be used with the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
The IRS has announced an increase in the optional standard mileage rates used by employees, self-employed individuals, and other taxpayers for the last four months of 2005. The rate has been increased to 48.5 cents per mile for all business miles driven between September 1 and December 31, 2005. This represents an increase of eight cents from the 40.5-cent rate in effect for the first eight months of 2005, as provided under Rev. Proc. 2004-64, I.R.B. 2004-49, 898. The increased four-month rate used for computing deductible medical or moving expenses is 22 cents per mile. The 14 cents-per-mile rate used for providing services to charitable organizations is set by statute and did not change.
Internal Revenue Service officials announced today the launch of a study to assess the reporting compliance of S corporations. The study, carried out under the National Research Program (NRP), will examine 5,000 randomly selected S corporation returns from tax years 2003 and 2004.
Are you expecting a tax refund from the Internal Revenue Service this year? If you file a complete and accurate paper tax return, your refund should be issued in about six to eight weeks from the date IRS receives your return. If you file your return electronically, your refund should be issued in about half the time it would take if you filed a paper return — even faster when you choose direct deposit.
If you can't meet the April 15 deadline to file your tax return, you can get an automatic four-month extension of time to file from the IRS. The extension will give you extra time to get the paperwork in to the IRS, but it does not extend the time you have to pay any tax due. You will owe interest on any amounts not paid by the April deadline, plus a late payment penalty if you have paid less than 90 percent of your total tax by that date.
Although electronic filing is becoming more and more the filing method of choice for taxpayers, there are many who file paper returns. If you are one, the IRS recommends you take a few minutes to make certain that all information is complete and accurate before sealing that envelope. This simple precaution could help you avoid mistakes that can delay your refund or result in correspondence from the IRS.
If you haven’t contributed funds to an Individual Retirement Arrangement (IRA) for tax year 2004, or if you’ve put in less than the maximum allowed, you still have time to do so. You can contribute to either a traditional or Roth IRA until the April 15, 2005, due date for filing your tax return for 2004, not including extensions.
Taxpayers who refinanced their homes may be eligible to deduct some costs associated with their loans.
Qualified housing interest, which generally is deductible for alternative minimum tax purposes, includes interest paid on a mortgage that has been refinanced more than once, the Internal Revenue Service confirmed today (March 17, 2005).
Reservists called to active duty and enlistees in the armed forces may qualify for a deferral of taxes owed if they can show that their ability to pay taxes was affected by their military service, according to the Internal Revenue Service. The Servicemembers Civil Relief Act provides this benefit.
As is often the case, the end of matrimony often leads to the start of alimony. However, what individuals usually don’t think about is how this will affect your tax liability at the end of each year.
What should you do if you don’t receive or receive an incorrect W-2, 1099 and/or Schedule K-1? What should you do if the company responsible for generating these documents to you refuses to respond to your requests?
According to the IRS, Return Preparer Fraud generally involves the preparation and filing of false income tax returns by preparers who claim inflated personal or business expenses, false deductions, unallowable credits or excessive exemptions on returns prepared for their clients. Preparers may also manipulate income figures to obtain fraudulent tax credits, such as the Earned Income Tax Credit.
IRS establishes Tax Tips web page for all tax payers
Congress recently passed legislation that is supposed to result in a more "sensitive" Internal Revenue Service. You know, not such a lean, mean, tax-collecting machine. I DON'T THINK SO! Here's why:
More than half the nation's taxpayers sharpen their pencils or boot up their computers to prepare their own tax returns every year, according to the Internal Revenue Service. But the rest need help, and that means finding a good tax preparer.
Most have heard the phrase, “If it sounds too good too be true, then it probably is!” Then why do honest tax paying citizens fall for tax avoidance schemes?
HEAVY sport utility vehicles (SUVs) have come under attack not only for being gas guzzlers and hazards for smaller cars on the road, but also for generating unintended tax breaks for taxpayers who use them for business driving. The "American Jobs Creation Act of 2004," which passed both the House and Senate, addresses some of the unintended tax consequences by limiting the cost of a SUV that may be expensed to $25,000, effective for SUVs placed in service after the enactment date. (Code Sec. 179(b)(6), as amended by Act Sec. 910).
Basic tax planning starts with accelerating deductions into the current tax year while deferring income into the following year.
The IRS has advised educators to save their receipts for books and other classroom supplies. They will be able to deduct up to $250 of these expenses again this year, following recently enacted legislation.
The IRS will double the business expense threshold to $5,000 from $2,500 for filing the Form 1040, Schedule C-EZ. The change will mean a savings of 5 million hours of paperwork burden for small business taxpayers.
Many people are taking advantage of college savings plans ("529 plans") as a way to put money aside for the increasing cost of a college education.
If you are considering making charitable contributions before the end of the year, it may be advantageous to contribute property -- such as stock, artwork, or antiques -- that have appreciated in value.
Despite the recent run-up in the stock market, you may still be sitting on some losers in your current portfolio. Although capital gain rates were lowered by the new tax law, it may still be the right time to salvage some tax benefits from those losses.
One of the ways the IRS classifies their notices is by the type of tax form they're about. They call notices they send about business-related tax forms such as Forms 941, 1065, and 1120, business filer notices. Notices they send about Form 1040, 1040A, 1040EZ, or any related schedules, forms, or other attachments are called individual filer notices and are listed elsewhere. If the business filer notice you have isn't listed below, check back often. They’ll be adding more on a regular basis.
One of the ways the IRS classifies their notices is by the type of tax form they're about. They call notices they send about Form 1040, 1040A, 1040EZ, or any related schedules, forms, or other attachments individual filer notices. Notices they send about business-related tax forms such as Forms 941, 1065, and 1120, are called business filer notices and are listed elsewhere. If the individual filer notice you have isn't listed below, check back often. They’ll be adding more on a regular basis.
Listed below are the "Top 50" overlooked deductions for individuals. While not all may be applicable to everyone, many will be.
Affected taxpayers in a Presidential Disaster Area have the option of claiming disaster related casualty losses on their Federal income tax return for either this year or last year.
Higher income taxpayers often find out that phase-outs prevent them from taking advantage of the college education tax credits.
Most cars will be subject to this luxury auto limitation rule, but there is a significant, and widely-publicized exception.
In recent years, many charities have solicited donations of automobiles as a great way to make a significant charitable contribution, avoid the hassle of selling or trading the old car, and receive a tax deduction.
Many employers offer flexible spending accounts as a benefit to their employees. These accounts allow you to set aside a portion of your compensation -- before taxes -- to fund future medical or dependent care expenses.
The 30 percent “bonus depreciation” incentive, enacted in 2002, continued this year for purchases of certain property made on or before May 5, 2003.
If your employer provides a 401(k) plan, you can reduce your taxable income by increasing your contributions to it.
The Internal Revenue Service recently released the optional standard mileage rates to use for 2004 in computing the deductible costs of operating an automobile for business, charitable, medical or moving expense purposes.
You may be able to reduce your 2003 taxable income by setting up or contributing to an existing Individual Retirement Account (IRA).
To stimulate the economy, a large tax-cut package was signed into law during 2003. Many taxpayers will get to keep a little more of what they’ve earned in 2003.
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