There are a lot of positive things about getting married, but the IRS' marriage penalty isn't one of them.
The marriage penalty occurs when you pay more tax as a married couple than you would as two single filers making the same amount of money. It pops up again and again in the federal tax code.
Wouldn't it be nice to have a source of nontaxable income? You may be more fortunate than you realize. Listed here are a number of income items that the IRS does not tax.
If a parent or loved one died this past year, you may wish to consider filing a final tax return even if not technically required to do so.
One of the more common tax questions is whether you need to file a tax return this year. The answer is: It all depends. Here are some quick tips to help you determine your answer.
Most taxpayers receive at least one 1099 each year. Virtually every small business, including sole-proprietors, must issue at least one 1099 each year. Here is a summary of the most common of these informational tax forms that you will need to file your tax return this year.
Now is the time to make your estimated tax payment
If you have not already done so, now is the time to review your tax situation and make an estimated quarterly tax payment using Form 1040-ES. The fourth quarter due date is now here.
Your Home. A Bundle of Tax Benefits.
There are many tax benefits built into home ownership. Here is a review of the most common. It may be worth a quick check to ensure you are maximizing your home ownership tax benefits.
Interest deductibility. Mortgage interest is one of the few allowed deductible interest expenses. It is limited to the first $1 million dollars in loans secured by your primary residence. Bonus: You can also deduct interest on a second home (cabin).
All too often when you sell an investment there are errors made in recording the taxable gain or loss on the transaction. Here are some ideas to ensure your tax bite is accurate.
Keep good cost documentation. Brokerage firms are now required to keep track of the cost of your purchases and report them to you and the IRS when you sell. Unfortunately, they are not always accurate. The only way to ensure accuracy is to keep personal records of how much an investment cost. Then you can double-check the accuracy of any Form 1099 received.
In this issue:
This month's issue outlines the benefits and risks of reverse mortgages, includes a recap of all too common IRS tax scams, reviews some common educational benefits and provides a list of "frequently missing" information that can often hold up filing your tax return.
[block type="rounded" color="#FFF" background="#000000"]Going into business with a franchise[/block]
Have you ever wanted to be your own boss, but didn't want to start a business from scratch? If so, buying a franchise might be the right choice for you.
When you purchase a successful franchise,
Don't forget about the nanny tax!
A good domestic worker can help take care of your children, assist an elderly parent, or keep your household running smoothly. Unfortunately, domestic workers can also make your tax situation more complicated.
Reasons to File Your Taxes Early
While late changing tax laws make it impossible to file your income tax return prior to January 20th this year, there are a number of reasons to file your return as soon as possible. Here are five of the most common:
Not all "income" is taxable
There are several sources of revenue that are not subject to income tax.
Here are the most common sources of money that are not taxed on your federal income tax return:
Here is a quick look at 2015 tax rates and their associated income levels. Use this information to help prepare for your tax situation this year. Using your 2014 tax information, you can plan for your tax obligation next year starting now.
Don't forget that tax payers in the higher income levels are also subject to an additional .9% Medicare surtax as part of the Affordable Care Act. This will impact those with incomes over:
Ideas to Help Audit Proof Your Return
No one likes the stress involved when your tax return is under the audit spotlight. Here are some ideas to avoid some of the more common audit triggers.
Age matters in the world of taxes
Are you aware of the numerous age-related provisions in the IRS code? They are probably more plentiful and significant than you thought. Here are a few examples of the age-related tax rules that could affect you and your dependents.