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
Tax Tips
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
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
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
2011 Tax Deductible Medical Expenses: Eligibility and Limits
The price of medical care in the U.S. can run into the thousands of dollars each year for routine care once you factor in the cost of insurance premiums, co-payments and medications. In addition to the already hefty expense, some families are also faced with extremely costly medical conditions or diseases, which require medical ... 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
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
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
