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 Taxes
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
As an Employee, Which Business Expenses are Tax Deductible?
When you’re working for your employer on the road or from a home office, you’re likely to run up a lot of expenses, some of which may not be reimbursed by your employer. It is crucial that you do not throw away the receipts for those expenses. By keeping track of your business expense documents, you can add them to your ... Read More
Who Gets Audited by the IRS?
Are you worried about being audited by the IRS? Do you know whether or not you fall into a high-target area for an IRS audit? Even though most people will never be audited during their lifetime, there are certain tax filing categories that the IRS targets more frequently than others. If you fall into one of those categories, ... Read More
Filing Taxes for a Deceased Person
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
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
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
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
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
