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
Tax Tips
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
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
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
Back to School Tips: Tax Deductions for Teachers
A sad aspect of America's educational system is that, despite the fact that schools are often helped out financially by fundraisers and parent donations, their budgets remain small, requiring teachers and other school staff to frequently buy supplies and equipment in order to properly educate their students. The good news, ... Read More
Tax Issues for Same-Sex Couples to Be Aware Of
As if tax season isn't complicated enough, it can be a complete nightmare for same-sex couples. Same-sex couples face numerous challenges when it comes to filing income tax returns. While it is important for everyone to keep good records for tax time, it is even more critical for same-sex couples to do so. Extra time and ... Read More
Can the IRS Find My Real Estate, Bank Accounts & Other Property?
Many people attempt to “sneak one past” the IRS, but anyone who attempts to hide real estate, bank accounts or other assets that he owns is asking for trouble, plain and simply. The IRS has a number of tools and methods that facilitate the uncovering of an individual's assets, and the risks involved in hiding these assets are ... Read More
