[This deduction has been suspended from 2018 to 2025 for nonmilitary taxpayers] If you recently experienced a career change that necessitated relocating to a new city, you could claim most of your moving expenses as a deduction on your tax return. You would use Form 3903 to figure out your moving expenses and report them as ... Read More
Difference of a Tax Audit, Correspondence Audit & Adjustment Letter?
Nothing sets off panic in the heart of a taxpayer quite like receiving official correspondence from the Internal Revenue Service. Images of being grilled by an IRS auditor in a dank office are sure to dance in your head. But if you do receive an envelope in the mail from the IRS, don’t panic. There are a variety of different ... Read More
Tax Tips and Tax Deductions for Bloggers
Many people regard blogging as a hobby—something that they do in their spare time, for their own personal enjoyment. But if blogging is your profession—an activity that you do for the purpose of making a profit—you probably qualify for various tax deductions that can help decrease your taxable income. Before asserting any tax ... Read More
IRS Fresh Start Program – What it Means for Taxpayers
On May 21 of this year, the Internal Revenue Service expanded its Fresh Start plan. The plan supplements the Offer in Compromise (OIC) program that makes it possible for some people who owe back taxes, but are in financial distress, to settle their accounts with the IRS. The Fresh Start initiative makes it possible for many ... Read More
How to Prepare for Filing Your 2012 Tax Return.. Now!
Tax preparation should be a year-round process. If you have not started thinking about your 2012 taxes, now could be a great time to start. With a few exceptions, the documents you will need to file your tax return stays the same each year as well. There may be occasions when certain changes in your life warrant additional or ... Read More
Carried Interest and the Debate Over Tax Rates
The subject of tax rates on what is known as “carried interest” has been the subject of vigorous debate for a number of years but the news during the Republican presidential nominating season earlier this year that a substantial percentage of Mitt Romney’s earnings came from carried interest brought new attention to the ... Read More
Sales Tax Takes a Holiday in the US: Dates & Descriptions of Holidays
More than one dozen states across the U.S. now offer sales tax holidays, days where shoppers can stock up on essentials like clothing and school supplies without paying any extra to Uncle Sam. The programs are typically offered over a weekend, often in conjunction with the beginning of the school year. In southern states that ... Read More
Employer Identification Numbers (EIN): How & When to Apply for One
If you’re thinking about starting your own business, you may have heard you need an Employer Identification Number (EIN). An EIN is a Federal Tax Identification Number for businesses, similar to a Social Security number for individuals. Not all businesses are required to get an EIN, but if your business needs one, there are ... Read More
2012 Standard Deduction Amount & What It Means
The vast majority of people subject to filing a federal income tax form with the United States Internal Revenue Service are entitled to what is known as a standard deduction. What is it and how does it work? Are there instances where it actually makes sense to decline the standard deduction? The Standard Deduction The standard ... Read More
Tax Deduction & Tax Benefit for Donating a Car to Charity
When going over your finances in any given year, it is not only important to assess your income, but it is also vital to see which types of tax deductions you qualify for. Donating a car can equate to a significant tax donation depending on how much your car is worth, as well as the amount of money the charity sells it for. Keep ... Read More
Tax Tips for Independent Contractors
Independent contractors are not employees of another company, which means they have different tax requirements than individuals who receive a W2 from their employer. Independent contractors are self-employed, either as a sole proprietor or business, and offers tax deductions an employee wouldn’t be able to claim. Here are some ... Read More
Cigarette Taxes in the United States
Tobacco taxes have a long history in the United States, dating all the way back to the early years of the formation of the country. Since that time, cigarette and tobacco taxes have continued to provide a significant amount of revenue for local, state and federal government. The taxes are also typically supported by public ... Read More
