It is hard to beat the convenience of a credit card for purchases, but does that same convenience make it worth paying your taxes by credit card? It might, but that depends on several factors involving money and time. “Your credit card is usually a high-interest option, but it is an option,” opines Betterment Head
Tax Returns
Waiting until the last minute to pay your taxes can cost you if you are expecting a refund, since the government hangs on to your money and receives more interest on it. However, if you owe money to the government, that same principle applies to you. Why not wait until the last minute?
There is
Have you ever cheated on your taxes? If so, you are in the minority – but you aren’t alone, either.
A new Credit Karma survey finds that 6% of American taxpayers have knowingly cheated on their taxes. The real total may be higher, since the survey only captures those who are willing to admit it.
If you are nowhere near ready to file your taxes as the deadline approaches, you may file an extension with the IRS that gives you up to six more months to file your taxes. Filing an extension will spare you from late filing penalties — 5% of the amount of tax you owe for each
In general, deducting pet expenses on your tax return can get you into hot water with the Internal Revenue Service (IRS). Usually pet expenses will not hold up should the IRS audit you. However, specific cases exist that allow you to take legitimate tax deductions for spending on your pet.
Regardless of how you justify
The Internal Revenue Service (IRS) budget has been cut by $900 million
since 2010 and it now has 21,000 less employees than it did then, making IRS customer service challenging to say the least. The latest figures show that the IRS subjected 8.8 million taxpayers to “courtesy disconnects” through the 2015 tax-filing season that ended
Contributing to a retirement account can be difficult for lower income households, but one can argue that it is even more important for those families to take advantage of all the retirement savings options that are possible. One of the lesser-known options applies directly to lower-income families – the credit for qualified retirement savings contributions,
Thanks to the Affordable Care Act (ACA), you should receive 1095 forms along with the W-2, 1099, and other tax forms that you receive from employers and financial institutions. The 1095 forms verify your health care insurance status for tax purposes. 1095-A forms debuted in 2015, while taxpayers received 1095-B or 1095-C forms for the
MoneyTips The last few years have been difficult ones for the IRS with respect to security issues, and the agency is determined to improve security during this year’s filing. Electronic filing is particularly vulnerable because of the speed of the process — it is a favorite method among thieves who steal information from taxpayers and
If you have done your homework leading into retirement, you probably already know that Social Security benefits may be subject to federal taxes under certain circumstances. Did you know that some states also impose taxes on Social Security?
Currently there are thirteen states that impose at least some tax on the benefits of Social Security
On June 26, 2015, the Supreme Court settled the issue of same-sex marriage in the U.S. with the landmark decision in Obergefell v. Hodges. This decision requires states to issue marriage licenses to same-sex couples and for states to recognize such marriages that were performed in other states. Gay marriage became legal in all 50
Are you counting on your tax refund to pay off bills? You may need the cash before your refund arrives.
The IRS website states that typical refunds take less than 21 calendar days if you e-filed your return. However, if you are claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit
Taxpayers tend to shy away from taking the home office deduction, assuming that they will be targeted for increased scrutiny from the IRS. That is certainly possible, especially if your deductions are unusually large – but if you truly were entitled to the deduction, why wouldn’t you take it?
You may feel that you have
What two words cause the most panic to Americans? There are probably a hundred funny responses running through your mind right now, but we were thinking of a less humorous response: “IRS audit.”
Your odds of avoiding an audit are usually pretty good. The IRS reviewed 1.03 million tax returns in fiscal year (FY) 2016,
Computers and the Internet have become mainstays in virtually every area of American life in the 21st century. There are tremendous benefits and conveniences to this, of course, but there are also some downsides — such as the increased risk of identity theft that arises as we share more of our personal information online.
In
By Eric Olsen, Executive Director, HELPS Nonprofit Law Firm
At this time of year, creditors sometimes send out what is called a Form 1099-C. They email it to the Internal Revenue Service (IRS) and copy the person who owes them debt. The form tells the IRS that they, the company who is owed the debt,
By Kelly Hartog
One of the most significant changes in the GOP tax plan is the abolition of the alimony tax break. Until now, the person paying alimony in a divorce could claim a tax deduction on that money. The spouse receiving alimony then had to declare those funds as taxable income.
However, with the
By Ryan Coon, CEO and co-founder of Rentalutions
While the unusually fast push-through of the Tax Cuts and Jobs Act raised eyebrows around the country, potential real estate investors have reason to cheer now that it’s passed. The law, which will affect the taxes we file for 2018 (meaning those we submit in 2019) through
Congratulations! You’ve got your first major job. Unfortunately, you’ve also got new tax obligations. Welcome to the workforce.
You probably want to deal with your taxes as quickly as possible. Most people do, regardless of their age. Unfortunately, if you breeze through tax forms, you might miss potential money-saving strategies like the ones below.
1.
Like most Americans, you probably want to get through your taxes as quickly as possible. However, do not rush through your return so quickly that you simply take the standard deduction and ignore deductions that can bring you a healthy refund. Consider these commonly overlooked tax deductions. For the 2018 tax year, fewer of us
Every direct employee of a company receives a W-2 form in January. The W-2 is the base document that defines your tax obligations, so it is important that you review and understand yours. However, some people are confused by some of the form’s numbers — for example, why the wage listed on a W-2 form
If you’re a traditional employee, every year you receive a W-2 form from your employer that records your earnings for the year and the amount of taxes withheld from those earnings. IRS 1099 forms are complements to the W-2 form for non-traditional employee relationships. They are generally designed to record sources of income that have
The 2017 Tax Cuts and Jobs Act will bring significant changes to individual taxpayers, but states will also be affected by some of the law’s provisions. The limitation on deductions for state and local taxes has grabbed the most headlines, because by definition, it affects taxpayers in states with high property values and high taxes
Should you itemize deductions or take the standard deduction for tax year 2017 (the taxes you will file in early 2018)? Either path may be right for you, but don’t just assume the standard deduction is your best option. With today’s sophisticated tax software, it’s relatively easy to calculate your itemized deductions and see if
The Earned Income Tax Credit (EITC) is a program designed to provide tax relief for American workers with low-paying jobs. Could you qualify for this tax credit? If you have a relatively low income, take some time to find out.
Earned Income Tax Credit Qualification Some eligible taxpayers miss out on EITC savings because they
After weeks of negotiations between the House and the Senate, Congress finally passed tax legislation designed to lower taxes and stimulate the economy. President Trump signed the Tax Cuts and Jobs Act on Friday, December 22 – right before leaving for the Christmas holiday.
As a homeowner, did this bill leave financial presents under your
Certified Public Accountants (CPAs) are incredibly busy during tax season. Their time is precious, even more so this year with the passage of the Tax Cuts and Jobs Act. That makes it even more important for you to prepare for your allotted tax preparation time.
Your CPA needs the following four categories of information to
Tax Season Arrives In January Are you ready for tax season? Ready or not, tax season, defined as the first day that the IRS accepts tax forms to the tax filing deadline, will be here soon.
For the 2018 filing season (covering the 2017 tax year), tax season begins on Monday, January 19 and ends
Charitable giving is one of the most popular (and fulfilling) ways to save on your taxes. Not only does it make you feel good to help others, but end-of-year charity donations can also help you save on your taxes — if you do it correctly. To help you with your giving efforts, the IRS offers
The holiday season is full of plans and activities that make December incredibly hectic. Late federal tax legislation is making it even more so. If you are the average American, tax considerations and financial adjustments are pretty low on your holiday to-do list. However, you are not the average American — you enjoy saving money,