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Know What’s Not Taxable
When you begin preparing your tax return, you learn that there are not many things that the IRS considers not taxable. Some of the obvious taxes that we all pay are taxes on wages, rent, interest, commissions, tips, and dividends. You are also taxed on capital gains, prizes, and on gifts that you receive. Forgiven or canceled debts even come at a taxable price. If you think you can avoid paying on certain taxable items, you ...
read more »Affordable Care Act Tax Potholes: Know These Tax Breaks
Although it’s widely accepted that the tax code is complex, there is little forgiveness for making mistakes on a tax return. Tax filing procedures can fluctuate - the tax rules change, filing requirements are updated and the IRS rules can be amended. Two of the most important evolving factors to consider are tax credits and deductions. These not only reduce the tax liability at the time of return preparation but also help in financial and ...
read more »Who Should Make Estimated Tax Payments
Those whose income is not subject to withholding need to make estimated tax payments. Income from self-employment, dividends, rent, interest, alimony, prizes and awards, and gains from the sale of assets are subject to estimated tax payments. Those whose income is being withheld are only required to pay estimated tax if their tax liability is more than the amount withheld from their wages. Estimated Tax Payment Limit Self-employed individuals need to pay estimated tax only if their ...
read more »Frivolous Tax Arguments
Some taxpayers who are in tax debt try to avoid paying what they owe by using arguments that are not reasonable. A common example of a frivolous tax argument is that you don’t believe in taxes. Such arguments, when presented before the court, do not stand up, and therefore, should be avoided in the first place. The Right to Challenge The IRS Every taxpayer has the right to contest their tax liabilities and challenge the IRS in ...
read more »IRS Penalties and Interest
If you owe back taxes, your balance steadily grows each month that it remains unpaid. After the filing deadline has passed, the IRS will begin to charge both penalties and interest on the amount owed. These charges can quickly increase your balance. The IRS stops charging penalties and interest only after you have resolved your tax debt permanently or the entire tax debt is forgiven. There are two types of penalties charged on a tax debt, ...
read more »A Smart Way to Boost Your Tax-Free Retirement Savings
If you are making regular contributions to a 401(k), hopefully, you’re saving the most in taxes by maxing out your contributions. How do you save taxes? You can increase your tax savings by knowing the new IRS rules regarding retirement accounts, including the maximum pre-tax contribution limit, moving your after-tax contributions, and distribution rules. Knowing the tax rules for your retirement accounts will help you to take the maximum advantage of the tax savings allowed ...
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