Earned income is subject to federal taxes. To legally reduce the tax liability owed on earned income, taxpayers can claim deductions and tax credits when filing their annual tax return. There are several tax deductions which lower the amount of income subject to tax, with taxpayers having a choice between claiming the standard ... Read More
Make Contributions to IRA Until April 18th to Reduce 2010 Taxes
Most people can deduct some or all of their IRA contributions, which means there is often some scrambling right before the tax deadline as people make their IRA contributions! For the tax year 2010, people get an extra weekend to contribute to an Individual Retirement Account (IRA) and still deduct the contribution on the tax ... Read More
Tax Refund: What You Should and Should Not Do With Your Money
When the IRS processes your tax return, they determine who owes money to whom. If you have paid an amount higher than your tax liability, you may receive a tax refund. Assuming there are no reasons to withhold your refund, you now have several options in how you will handle this lump sum payment. Filers are urged to carefully ... Read More
Federal Energy Tax Credits: IRS Tax Credits for Energy Efficiency
Did you make energy efficient home improvements in your home during 2010 or purchase an energy efficient vehicle? If you did, do you know that you may qualify for a credit on your 2010 income tax return. If you purchased and installed certain energy efficient items in your home last year or bought a hybrid vehicle you will want ... Read More
Child Care Tax Credit 2010: Qualifications for Dependent Care Credit
Did you pay someone to watch your child, spouse or other dependent during the 2010 tax year? If you did, you may be eligible for the Child and Dependent Care Tax Credit. Paying for child care or dependent care is costly so this is definitely one credit you won’t want to miss. Of course, in order to claim the credit you must meet ... Read More
Kelly Osbourne Tax Problem: Owes $35K in Back Taxes
Kelly Osbourne is yet another "Dancing With the Stars" celebrity to have a tax problem. Kelly is best known for being the daughter of Ozzy Osbourne and became famous after appearing on the reality series, "The Osbournes". After the reality series she went on to singing, acting, fashion, writing and many other things that likely ... Read More
Alternative Minimum Tax: What it is, Tips, History & Details
If you are confused about the Alternative Minimum tax, you are not alone. The Alternative Minimum Tax, also known as AMT, is a tax imposed by the government that has been enacted to help make sure that any tax payer who sees a benefit from certain tax advantages is not able to walk away owing the government little or no tax ... Read More
IRS Gives Taxpayers With Unreported Offshore Assets Until August 2011
The Internal Revenue service, or the IRS, recently announced a special voluntary disclosure initiative that was designed to help bring offshore money that should be in the US tax system back. The initiative is a means at giving taxpayers a second chance to disclose income that they have hidden in offshore accounts and bring this ... Read More
How to Get Free Tax Assistance for Elderly, Low Income & Military
Numerous income tax filers can receive assistance when it comes to preparation and filing of their tax returns this year. These services are most often free and include free filing as well. Here is a rundown of the different services that are offered in order to help you determine if you qualify. Volunteer Income Tax Assistance ... Read More
IRS Eases Up On Taxpayers Who Owe Taxes or Back Taxes
Last Thursday, IRS commissioner Doug Shulman announced a new set of initiatives to help taxpayers struggling to pay their taxes or pay off back taxes in this lackluster economy. Sometimes IRS enforcement actions (e.g. tax lien) can bury the taxpayer further which lessens not only their ability to climb out of the hole they are ... Read More
2010 Tax Filing Extension: Instructions & Forms to File IRS Extension
Most American taxpayers know that their tax returns must be filed by April 15th each year. There are occasional exceptions when the deadline for filing your tax return falls on a day other than the 15th, with 2011 being one such exception. This year, filers will have until April 18th to file their tax return without being ... Read More
Tax Credits, Benefits and Deductions for Disabled Taxpayers
If you are a taxpayer and have a disability or have a child or other dependent with a disability you may qualify for numerous tax deductions and credits when you file your income tax return. Here is a look at the different benefits and what you need to know. Increased Standard Deduction: If you are blind or partially blind ... Read More
