Tax Planning

The amount of federal income tax withheld from your pay is based on your tax bracket and the information you provide on your W-4. This information includes your filing status, withholding...

The primary reason to identify individual stock lots for sale is to minimize taxes. If you have already taken capital gains during the year, you could choose tax lots that are trading at a loss to...

No one ever said that tax planning and tax filing would be easy, but the sooner you start the planning process, the better off you will be. By understanding your finances and how they relate to...

Estimated taxes are the government's way of making sure you pay your taxes throughout the year so that you don't have to face an extremely large tax bill when April 15 rolls around. It is used for...

Tax season is when many taxpayers look for ways to help reduce their tax burden including seeking tax strategies which can reduce what they owe. A certified accountant, financial planner or other...

Estimating taxes on retirement pension income requires some patience and calculation, but the Internal Revenue Service (IRS) provides guidance in Form 1040-ES, Estimated Tax for Individuals. The...

Each April worrying about filing taxes and taxes due becomes the great American pastime. Everyone wants to know whether they will get a refund or pay, and if so, how much? By filling out a 1040...

Your life undergoes many changes when you retire, but one thing remains the same: taxes. You may no longer have a paycheck from which taxes are withheld, but you still probably receive income from...

Estimated taxes are due four times a year and should be claimed on your income tax return at the end of the year. For some taxpayers, a problem arises when they lose track of how many estimated...

Advance taxes are simply taxes that are paid before they are due. For individuals who receive a regular paycheck, advance taxes are withheld from each paycheck, usually at a rate designated by the...

A federal tax identification number, also known as an employer identification number, or EIN, is a number the IRS assigns your business, non-profit organization or the estate of a deceased person....

Someone who owes back taxes often doesn't fully understand the implication it has on a spouse. When a couple files a joint return, they are individually and jointly responsible for the full amount...

You've carefully filled out the Form W4 for your employer so that the proper amount of tax can be withheld from your payroll checks, but every year when you file your return, you owe the Internal...

Using Profile Tax software allows the individual or business to get a snapshot of their current tax liability. This is not only valuable information for the company or individual, but helps...

To effectively manage your taxes, keep track of the liabilities that you incur and think about them all year, not just on April 15. This approach goes against the grain for many of us, but it...

You just lost your job. You're thinking about starting a business or moving. You're worried about your tax bill. Fortunately, the Internal Revenue Service (IRS) has many resources to help the...

Federal income tax withholding is the amount of money your employer deducts from your paycheck and pays to the federal government to cover your income taxes. You determine federal withholding by...

No one wants to pay more taxes than they have to. With careful examination of different avenues for saving taxes, one can significantly reduce the taxes owed ever year. The following steps walk...

People have many reasons for requesting an extension for filing their income tax return. The Internal Revenue Service recognizes that personal circumstances can make filing by the April 15 due...

Subcontractors are considered independent contractors by the IRS. This means they are responsible for paying self-employment taxes and making estimated tax payments, because they do not have an...

In order to ensure that taxpayers comply with IRS rules, the Internal Revenue Service assesses penalties on tax returns that are not filed and taxes that are not paid by April 15. Since the U.S....

Working as a consultant has a number of important advantages, including the ability to set your own hours and work at your own pace. Even so, consultants and other self-employed individuals need...

We all hate paying taxes, but we have to do it anyways. If you're like any other normal American, you wish you could pay less in taxes. Well thanks to tax planning, you may be able to save a few...

Giving money to charity makes you feel great, and those charitable donations can save you money on your taxes as well. But with the IRS cracking down on tax cheats and increasing the number of...

According to the IRS, taxpayers who file a joint return share joint responsibility for both past and present tax problems. However, the IRS has adopted new procedures, which afford the innocent...

Are you the parent of two children in college? Is your adjusted gross income for 2009 or 2010 above or near $160,000? If so this article is written just for you. Assuming you have two dependent...

Annuities are great investment vehicles to help you defer taxes during your lifetime and pass assets on to beneficiaries upon your death. Remember that you get tax deferral on money not removed...

Year end tax planning is an important step for all individuals. It does not matter how much money you make or do not make. It does not matter whether you are single or married. Year end tax...

If you are trying to figure out on how you can keep your tax rebate after you get it, there are some steps you can take. Using the time and effort to implement the steps will help ease the process...

Congress encourages Americans to save for retirement by investing in tax-deferred accounts such as 401(k)s, IRAs and 403(b)s. The contributions grow tax free, but at age 70 1/2, the IRS wants...

Taxpayers are expected either to have federal tax withheld from their paychecks or make estimated tax payments to the Internal Revenue Service. If you underpay your taxes, the IRS may assess you a...

The loss of a loved one is a horrible and sad time for anyone who is going through it. Not only is there the loss of a person close to you, there is also all of the things you have to do to get...

Every year working American’s are required by law to pay income taxes. These taxes are typically deducted by your employer from each of your paychecks throughout the year. Depending upon the...

The Internal Revenue Service (IRS) processes millions of individual tax forms each year, using a combination of electronic methods and manual processing. IRS computers flag tax returns with...

Everyone wants to walk away at the end of the year not owing the IRS any more money than required. Tax tips for individuals are meant to help people lower their tax bill in a legal and ethical way.

Taxes can be a burden both on your pocketbook and on your mind. You may not know what you can deduct or what you even owe. After you file your taxes with the Internal Revenue Service or your state...

How you feel about filing your taxes probably has a great deal to do with whether you will be writing a check or getting a refund check. Those who can claim a big refund often can't wait to file...

Paying taxes may not be pleasant, but taxes are essential to the way our country functions. Income taxes are a fact of life in the United States, and it is important to prepare for them carefully....

Working as a waitress can be difficult, and so can figuring out the taxes you owe on your tips. Reporting tips accurately is important, and the IRS recently has been taking a harder look at tipped...

By now, you're probably aware that a special 2009 tax credit is available for first-time home buyers. What you may not know about this credit could prove costly, whether you're planning a home...

The federal government's estate tax has been a controversial topic in the past and is likely to be again, thanks to upcoming changes in the tax system. While the Internal Revenue Service (IRS)...

It has often been said that nothing is certain except death and taxes. Paying taxes may not be pleasant, but it is mandatory. Taxes are simply too important to leave until the last minute, so...

If you run a small home business like an in home day care or even if you are a freelance writer you can get a tax credit for the things you purchase for that business. You can even get a credit...

Federal tax withholding was started in 1943 to help taxpayers better plan for the tax bill they would have to pay when they filed their taxes. It was also used to lessen the blow of taxes because...

Most people rarely give taxes another thought once the April 15th deadline has passed. In fact, it is probably safe to say that they wait until they are right up against the deadline before even...

While working on your taxes may not be your favorite thing to do, it is important. Whether you have just joined the workforce or have been toiling away for decades, taxes are a fact of life. The...

The alternative minimum tax (AMT) was instituted by Congress in 1969 to ensure that the most affluent taxpayers pay at least a minimum amount of tax. The AMT increases the amount of tax owed by...

IRS audits are the dental equivalent of a root canal. If you live long enough, you will likely have one. The trick is to know what you can do to minimize the likelihood of an audit from year to...

If you're paying too much or too little in federal taxes, it might be time to adjust your tax withholding. Events such as the birth of a child, a new job, retirement or a new home purchase can...

Both high school and college bring new opportunities for students and their parents. Many of those opportunities introduce new financial concerns to the student's family. Knowing the tax...