There is an old adage that says "In this world nothing is certain but death and taxes." Ironically, however, even the death of a taxpayer does not eliminate his need to file a tax return. After the death of a taxpayer, a personal representative or surviving spouse will need to file a tax return on the decedent's behalf. To ... Read More
Why Child Support is Neither Tax Deductible nor Taxable Income
Child support does not qualify as taxable income by the parent who receives the payments. Neither current child support payment nor back child support payments constitutes taxable income. As such, a parent who receives child support is not required to claim that money as income on his or her federal tax return. Child Support ... Read More
Kelly Monaco the Latest Tax-Troubled DWTS Alumn
It’s becoming a question of whether celebs go on the hit ABC show Dancing with the Stars because they are struggling financially, or if the stars’ tax woes arise as part of some sort of DWTS curse. According to The Detroit News, Kelly Monaco is the latest Dancing with the Stars alumn to have a tax problem made public, as the ... Read More
How to Calculate and Pay 2011 Self-Employment Taxes
If you are thinking of becoming self-employed, it is important to consider the tax impact and to understand the new tax reporting requirements that you will be subject to. When you are an employee, your employer takes care of withholding taxes from your paychecks. However, once you become self-employed, you must calculate and ... Read More
Filing and Penalty Relief for 2010 Estates Being Offered by IRS
The Internal Revenue Service (IRS) has announced that large estates of those who passed away in 2010 will be given until early 2012 to file required returns and pay estate taxes. Additionally, the IRS is offering penalty relief to beneficiaries on 2010 income tax returns. With this decision, large estates, those with a value of ... Read More
Guide to IRS Estimated Taxes: Due Dates, Payment Forms & More
If you have income that does not have tax withholding, chances are that you will need to pay estimated tax to the IRS. Estimated taxes are required for corporations, partnerships, S corporation shareholders, sole proprietorships and - in certain circumstances - individuals. Estimated taxes are calculated on income where taxes ... Read More
IRS Tax Relief and Deductions Available After Hurricane Irene
If you experienced damages and losses as a result of Hurricane Irene, you may be able to take tax deductions at tax time to help offset the expense. In general, people can claim casualty losses, like damages or losses from hurricanes, floods, fire, earthquakes or volcanoes on their federal income tax returns – provided they ... Read More
When to Fire an Accountant or CPA and How to Go About Doing It
Most businesses and individuals with complicated tax returns require the help of a certified public accountant (CPA). A good CPA not only files your taxes, but also analyzes your financials and gives you advice on how to minimize your bottom line. Unfortunately, not all CPAs are good, nor are they all trustworthy. Being able to ... Read More
2011 Standard Tax Deduction: Amounts & Knowing When to Itemize
Preparing and filing your tax return can be daunting, especially when trying to determine which deductions you qualify for and choosing between taking the standard deduction and itemizing. It is a difficult decision to make, but ultimately you will want to go the route that will result in you having the lowest possible tax ... Read More
2011 California Tax Amnesty Program: 8/1/11-10/31/11
For as long as there have been taxes, there have been people who try to avoid paying them, which is certainly the case in California. However, the Franchise Tax Board (FTB) has been steadily improving its technology and reporting capabilities, so it is getting easier than ever for them to locate taxpayers who avoid or ... Read More
Legally Reduce IRS Income Taxes Using These Tax Credits & Deductions
If there is one thing that all taxpayers can agree upon, it is the desire to pay less in taxes and keep more of your hard-earned cash where it belongs - in your pocket. With the ever-changing tax laws and so many life-changing events occurring, staying on top of one's taxes is essential to avoid overpaying. As a general rule, ... Read More
When Income Reported on Tax Returns Doesn’t Match Bank Records
If you think that you can get away with reporting income on your tax return in a manner that is different from what your bank deposits show – think again. The IRS and the banking industry are on the same team, and in an attempt to deter tax crimes, the IRS requires banks to report all large cash transactions. Additionally, the ... Read More