This tax season, you may want to do what millions of people do and hire a tax preparer to help you file your income tax return. To choose the best professional to help you with your specific tax needs, there are several criteria that you should consider. When making this important decision, be sure to take the following factors ... Read More
Mitt Romney released his tax returns on January 24th, 2012. His 2010 earnings showed $21.7 million in income with an effective tax rate of just 14%. Newt Gingrich shared his tax return last week and his tax rate came in around 31%. Why is Romney's Tax Rate so low? Unlike Newt, Romney's income mostly comes from dividends that ... Read More
Newt Gingrich Shares His 2010 Tax Returns
Newt Gingrich shared his 2010 tax returns on his website on January 19th, 2012. Newt and his wife, Callista, filed a joint tax return with an adjusted gross income of $3.14 million. They paid a total of $994,708 in income taxes. According to the tax returns, Callista was paid $191,827 in W-2 wages in 2010 and Newt received $2.5 ... Read More
2011 Business Reporting Requirements for 1099-MISC
If you are a small business owner who pays independent contractors, service providers and other individuals for freelance or contract work, you are required to issue IRS Form 1099. These forms are sent to any individuals who you've made payments to in order to be used in their own tax filing. The information on Form 1099 is ... Read More
Filing a 2011 Tax Extension: 2012 Deadline Dates & How to File
The tax deadline to file your 2011 tax return is April 17, 2012. If you are unable to file your return by the due date, in most cases you will want to file for an automatic tax extension. Here is a look at all that you need to know about filing for a tax extension, along with any special filing circumstances that you may ... Read More
The Bonus Tax Rate: Understanding Taxes on Year-End Bonuses
There is generally some confusion as to how bonus income is taxed. Many people mistakenly believe that the bonus they receive from their employer during the holiday season is taxed at a higher rate than regular income. Others believe that a year-end bonus could bump them into a higher tax bracket, resulting in their being ... Read More
What is the Alternative Minimum Tax (AMT) for 2011 & 2012?
If you’ve been doing your research on tax credits and deductions, some of the sources that you've come across might mention that you’ll want to watch out for the AMT when using them. The alternative minimum tax (AMT) system is intended for higher-income taxpayers, but over time has come to affect middle-class families as well, ... Read More
Backup Withholding Tax Rate: When it Applies & IRS Notifications
If you are an employer or some other entity that makes payments, you must withhold taxes from your employees' paychecks and certain other payments that you issue. However, you must also be aware of any additional taxes that you may have to withhold. For payees who do not furnish a correct Tax Identification Number (TIN), you ... Read More
Charitable Tax Deductions: How to Deduct Donations to Charity
Are you trying to determine whether or not a charitable donation that you've made - or are thinking of making - will be a tax deduction? The good news is that most donations made to charities qualify as tax deductions. The bad, news, however, is that if you plan to write off charitable contributions, you will need to itemize ... Read More
Tax Breaks for Veterans and Active Military Members
If you are a veteran, you may be entitled to certain tax breaks. While veterans must pay taxes on their regular earned military and veteran pay, there are other areas that they do receive tax breaks. If you are a military veteran, here is a look at what you need to know: Property Tax Exemptions for Veterans Certain veterans ... Read More
IRS Worker Classification: Independent Contractor vs Employee
If you're a business owner who utilizes independent contractors, it is crucial for you to be aware of the differences between an independent contractor and an employee in terms of how the IRS defines each. While there are tax benefits to using independent contractors rather than hiring employees, you must be very careful in ... Read More
The Traditional IRA Tax Deduction: Benefits and Taxes of IRAs
Saving for retirement should be a priority for every working adult, regardless of age. In fact, the best time to start saving for future expenses is when you begin your career, whereby you enable years of contributions and interest to grow into your nest egg. Regardless of when you start saving for retirement, knowing which ... Read More