When tax time is looming, Benjamin Franklin’s famous quote about death and taxes is often mentioned. His “Nothing is certain except death and taxes” quote is one of the most enduring quotations from the inventor, politician, writer and founding father. However, few people really understand why the words were uttered and under ... Read More
Tax Law Changes
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
2012 IRS Standard Mileage Tax Deduction Rate?
The 2012 IRS mileage rates (2013 IRS mileage rates) vary depending on whether you are claiming mileage for business travel, moving expenses, charitable work or medical-related traveling. Each category of travel has its own mileage rate used to calculate the tax deductible expenses related to driving your vehicle. IRS mileage ... 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 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
California Sales Tax to be Collected by Amazon, Overstock, Others
A new California tax collection requirement mandates that large out-of-state retailers, such as Amazon.com and Overstock.com, collect sales taxes on all online purchases made by customers in the state of California. The new legislation was signed by Gov. Jerry Brown last week and went into effect on Friday, July 1, 2011, ... Read More
IRS Interest Rates Q3 2011: Rates for Overpayments & Underpayments
The IRS has announced that interest rates for the third quarter of 2011 will remain unchanged from the second quarter’s rates. According to the IRS website, interest rates will be as follows: four (4) percent for overpayments [three (3) percent in the case of a corporation]; four (4) percent for underpayments; six (6) ... Read More
New Marijuana Tax Legislation Proposed by Congress
Businesses which dispense medical marijuana may soon have the same options as other small businesses in regards to business expense deductions. This is due to the recent introduction of bills which would protect access to medicinal marijuana through banking and tax laws. As reported by AccountingToday.com: “The bills were ... Read More
Standard Deduction 2010: How IRS Standard Deduction Works & Amounts
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
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
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
