Will your itemized deductions for 2013 be right around the standard reduction amount? If so, you can bundle expenses for every other year and claim the standard deduction in the in between years. Over two years, this will significantly cut how much income you’re taxed on.
Read More
Did you know anyone paid for babysitting has to report that income to the IRS if they made over $600? Or let’s say you and a neighbor want to trade cars, you’ll still have to pay taxes on what the fair market value of the car you bartered. But not all income is taxable. Here are some examples of income you don’t have to pay taxes on:
Read More
Living abroad for work can be a tricky tax situation. In many cases both countries want to tax your income that you’re making while working and living overseas. While many countries have different requirements, here’s what you need to know about the IRS’s requirements.
Read More
Looking for work costs money. Things like resume paper and printing, a new suit, and paying for premium online job search services can add up. This can be a little tough on job seekers who are likely unemployed. Sometimes these job seekers even have to take a class or two to be more marketable. The government tries to mitigate these expenses by allowing these folks searching for work deductions on their tax returns.
Here’s a list of common deductions you can take:
Read More
Starting a new business is exciting! At least until you get the paperwork part. It’s important that you first identify just what type of business you in regards to the IRS.
If you’re starting a new business here’s what you need to know about filing statuses for businesses:
Read More
The most affordable city to go to this summer is the one you live in.
If it’s a lean year or you have some financial goals you are working towards and looking to cut back on spending for a while, a staycation may be a great option.
Most people can live somewhere for such a long time and rarely or never see some of what makes their city great. Sometimes people never go to these places unless someone comes to visit from out of town. So take some time and find what makes your city amazing. And save lots of dough by doing so.
Read More
For some, just what number to write on each line, seems to get more confusing every time it needs to be filled out.
A W-4 is a form an employer gives you to fill out as a part of new hire paperwork. This form decides how much money gets taken out of each paycheck for taxes. But as hard as the IRS tries, the instructions on how to fill it out and what each line means is a bit confusing.
Read More
When you need some hired help around the house, you’ll need to know how to handle your tax obligations. This post will tell you how.
It may seem ok to hire a family friend just graduating high school for the summer to take care of the kids and pay some cash to her every week. Or perhaps have one of the guys from church do the lawn every week. You know, “under the table.” It’s normal to feel this way when you’re part of a close community. But the consequences can be dire if you didn’t do your part to meet tax requirements.
Read More
While the IRS considers rent paid to you as income, there is one way to make some extra cash and keep it all.
No, unfortunately you can’t just rent out your properties tax-free indefinitely, but you can for up to fourteen days. This is an exemption called the “Masters Exemption.” Under the Masters Exemption, you are allowed to rent out your property for up to 14 days and not have to pay taxes on the income.
Read More
There are simple tax strategies and there are complex strategies. At the end of the day, these fundamental goals should still be reached.
There are many tax strategies out there to help you. It can be a little overwhelming determining which ones can help. As you examine each one, measure the strategy against these 5 goals.
Read More
Why is it some businesses seem to simply “go out of business” and some have a liquidation? Find out what liquidation really means.
Essentially, liquidation means that a company’s assets are worth more than the value of the business’s ability to generate income. So when you see a furniture store having an “Everything Must Go” sale, they mean it. They are selling everything! So it’s interesting to note that liquidation is also referred to as “winding-up.”
Read More
Avoid IRS hassles by starting off on the right foot.
You start your own business because you found you have something valuable to give the world and you’re good at it. But like most entrepreneurs starting out, you learn there’s a bunch of red tape that has to be handled in order for you to get to the business you set out to start. Following these tips will get you on your way:
Read More
The IRS can’t audit everybody but just how many taxpayers are being audited? Find out the percentage by income.
There are over 200 million tax returns filed every year. There’s no way the IRS could audit all of them. So just how many of these returns are being audited? Out of all of those filings, the IRS audits just a little over 1%.
Read More
When it comes divorce or being an unmarried parent, who gets to claim your dependents can be a bit tricky. Here’s what you need to know.
Many times, divorced or unmarried parents can cause headaches because both parents attempt to claim their son or daughter as a dependent. The headache comes when the parent to claim the child second gets their claim rejected.
Read More
Ever wonder about what the Earned Income Tax Credit is? You just might qualify!
Essentially, the Earned Income Tax Credit, also known as the EITC, is way to help US citizens that work hard but still have lower income. What’s great about this credit is that it is a refundable credit. That means that even if you don’t owe taxes, you can get a refund of the credit.
Read More
Putting off your taxes until it’s too late can be damaging.
Filing your taxes late can mean that you’ll owe even more money. Or, if you have a refund due, it can lessen how much you get back. Either way, you’re losing money.
Read More
If you bought a house or owned in house in 2013, there may be more deductions than you knew about.
For itemized deductions, most people know that you can deduct the interest you pay on your mortgage. Here’s a list more deductions you may be able to take as well.
Read More
Sure getting married means you’ll more than likely change your filing status, but there are also some other administrative things that need to happen as well.
Congrats on getting married! And now there’s some paperwork that needs to get done. Here’s a list of some steps you need to make before filing your taxes with your new spouse.
-
The first thing you’ll want to do is update your information with the USPS so any tax information will be sent to the right address.
Read More
Not sending out 1099s can be costly. Here’s what business owners are responsible for.
If you used independent contractors such as graphic designers, consultants, and attorneys, you are required by the IRS to send a 1099 if you paid them more than 600 dollars in the tax year at hand. Not doing so can result in a penalty of 250 dollars; that can really rack up quick if you used several contractors throughout the year.
Read More
The distinction between capital expenditures and expenses may seem obvious. But the IRS may see it differently.
There are capital expenditures and there are expenses. And most of the time, the line between them seems pretty clear to business owners come tax season. But there can be some gray areas.
Read More
If you incurred a significant amount of healthcare and dental cost costs last year, you may be eligible for a deduction when making your itemized deductions.
There are several things that you can deduct provided your healthcare costs were over at least ten percent of your yearly gross income:
- Surgeries
- Hospital Stays
- Prescriptive Eyewear
- Prescription Drugs
- Doctor Visits (including therapists and medical counsellors)
- Travel Costs (if you had to travel for a specific treatment)
Read More
If you’re taking care of a parent in their sunset years, you may be able to claim them as a dependent.
It doesn’t have to be a parent per se, it can be a family member that you are giving care to. It can be a family member such as an aunt or uncle.
Read More
Did you invest in making your home more energy efficient last year? If so, you may qualify for a tax credit.
If you bought new insulation, doors, windows and/or roofing that improved the efficiency of your home, you may be able to get a credit of up to 10% of your costs. If you went really green and installed some serious energy savers such as solar panels or installed a wind turbine, you may get a credit for up to 30% of the installation costs.
Read More
If you’re self-employed, there’s a treasure trove of expenses you can deduct.
There are all sorts of expenses you can deduct as a result of being self-employed. It’s important to note that even if you’re a full-time employee at a company but have a business on the side you can still deduct those expenses.
Here’s a list of expenses you can deduct:
Read More
Budgeting the same for all the months is a pitfall. Here’s some things unique to January that you should be budgeting for.
Read More
Receiving a notice from the IRS can be daunting. Here’s some facts to eliminate the fear of the unknown.
There are a multitude of reasons the IRS sends notices to millions of taxpayers per year.
More times than not, a notice sent by the IRS is specific to one issue. The most common reasons are:
- Request for Payment
- Notification of Account Changes
- Request for Additional information
Notices from the IRS are always sent by mail, so no need to fret missing an email from the IRS.
Read More
Children may raise your blood pressure but they can lower your taxes. Here’s how:
Depending on your situation, there are a few ways children can lower your taxable income.
Read More
Dealing with unfiled past taxes isn’t as stressful as it you might think.
The longer you go without paying your taxes and filing a claim, the more expensive it gets. So it’s best to take care of it now. Even if you know you can’t pay all you owe, it’s best to make sure you file on time as you may qualify for a payment plan. However, paying by the due date is the way to go about paying the least.
And if it’s already late, here’s what you need to do:
Read More
A third of major retailers’ revenue comes from the last 2 months of the year. So obviously the Holiday season gets people to spend way more than usual.
Let’s face it, there’s lots of pressure to buy gifts for lots of people. It seems once the buying starts, there’s more and more people you think of that you should buy a gift for. So we have 3 questions you should ask yourself before buying a gift for someone.
Read More
If you sold your home this year for a profit, it may not be taxable income!
In most cases, if your home has been your primary residence 2 out of the 5 years you’ve owned it, you may not have to report it as income. Usually, you don’t have to report up to $500,000 dollars for joint returns—$250,000 for individuals.
If you received a 1099s, you’ll need to report the sell of your home as income however. But generally, the sell of your primary residence can be excluded.
Read More
