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If you make any mistakes on your tax return, you can end up owing even more money. This means you might miss out on the full refund you claimed.
There’s something known as the Taxpayer Bill of Rights, and it was put into place by the Internal Revenue Service itself. This list of 10 rights pertains to instances where you file your tax return, pay your tax balances, respond to letters or notices, experience being audited or appeal a decision made by the IRS regarding your tax situation.
When starting a family, you might be interested to know that you're now eligible to claim new credits and deductions, which ultimately lessens the total value of your tax liability.
One of the most significant tax benefits you as a homeowner will enjoy is arguably the mortgage interest deduction. This is applied to the interest you pay on your mortgage for your primary place of residence, though it may also apply to your second home or vacation home. For more insight into the specifics of this mortgage interest deduction, check out Publication 530 on the IRS website.
Back pay, or back wages, is the difference between what an employee was actually paid and what should have been paid. Maybe you inadvertently made a payroll mistake, but regardless of how the situation was created, you should know that there are several recourses available to your employee. You have to make it right, and make sure the Form W-2 reflects any change.
The Tax Cuts and Jobs Act affected a variety of calculations, and the tax liability differences between married and single taxpayers is a complex story. As the Tax Foundation notes: "One unintended feature of the United States' income tax system is that the combined tax liability of a married couple may be higher or lower than their combined tax burden if they had remained single. This is called the marriage penalty or marriage bonus."
Don't scramble to get all your finances together a few days before the deadline. If you do, you're setting yourself up for disaster.
A capital gain is a profit made when you as an individual or business sell a capital asset — investments or real estate, for instance — for a higher cost than its purchase price. A capital loss is incurred when there's a decrease in the capital asset value compared with its purchase price. Almost everything you own and use for personal or investment purposes is a capital asset: a home, personal-use items like furnishings, and collectibles.
An Interest-Charge Domestic International Sales Corporation (IC-DISC) can help companies involved in foreign transactions — especially exporting — improve cash flow and reduce U.S. tax liability. An IC-DISC is a federal tax export incentive entity structuring available for U.S. companies that export goods and services to foreign countries.
Rules regarding expensing and deduction are complex. Managers should keep an eye on the latest rules to make sure their businesses are in compliance and are taking full advantage of the provisions.
You may be trying to get your brain around how to figure out basis of property that you receive as a gift. Here's what you have to consider:
The Tax Cuts and Jobs Act made changes to deductions for meals. In fact, it eliminated the deduction for any expenses related to activities that used to be considered entertainment, amusement or recreation.
"In this world, nothing can be said to be certain, except death and taxes" is a quote often attributed to Benjamin Franklin. With that in mind, it's best to be prepared, at least financially, for taxes and tax season each year.
The amount of taxes you should withhold from your pension is dependent on your tax rate and your household sources of income and deductions. Basically, you add up all your sources of income and subtract your deductions to get your taxable income.
Identity theft is a challenge we all face — as individuals, businesses, organizations and government agencies. The IRS says it's making progress against tax-related identity theft using an aggressive strategy of prevention, detection and victim assistance. In fact, the agency notes that this is one of its highest priorities.
The new QBI deduction, created by the 2017 tax reform law, allows many owners of sole proprietorships, partnerships, S corporations, trusts, or estates to deduct up to 20 percent of their qualified business income. Eligible taxpayers can also deduct up to 20 percent of their qualified real estate investment trust (REIT) dividends and publicly traded partnership income.
The Internal Revenue Service has provided new guidance on deducting expenses under Section 179(a) and on deducting depreciation under Section 168(g). These rules, as amended by the Tax Cuts and Jobs Act in December 2017, generally apply to tax years beginning after 2017.
Property taxes are a major source of income for city, county and state governments. The tax is derived from a percentage of the assessed value of a property, true, but the municipality also determines how much money needs to be allocated for providing such services as education, transportation, emergencies, parks, recreation and libraries. These are funded by property taxes.
To collect unpaid taxes, the IRS is turning to private companies. The growing backlog of debt has proved too much for the agency, which continues to use four debt collection companies to round up outstanding payments from taxpayers who've been contacted numerous times and still haven't coughed up any cash.
Can you deduct medical and dental expenses? That's a complicated question. To start with, your deductions must exceed 7.5 percent of your adjusted gross income. And they have to fall into an IRS-approved category.
If you engaged in certain financial transactions during the calendar year as a small business or self-employed (individual), you are most likely required to file an information return to the IRS. Below are some of the transactions that you have to report.
Charitable contributions are deductible, says the IRS, only if you itemize deductions. And further, they are deductible only if you make contributions to qualified charitable organizations. The tax agency reminds us that contributions to individuals are never deductible.
There was much discussion about a completely new Form W-4 in the wake of the tax reform passed at the end of 2017. But after much discussion, the IRS has issued a form that is virtually identical to the 2018 version.
According to a statement from the IRS, starting in 2019, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
You're stuck in a tax audit. After an IRS examiner receives your documentation and makes a decision regarding proposed changes to your return, there are several options available as follows:
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