Tax Law

The IRS taxes amounts paid to an unemployed worker. The government pays money to the worker as unemployment compensation to replace lost income. During the period the unemployed worker does not...

Taxpayers who support a child or relative for six months or more can reduce their taxable income. Five common deductions add up to more than $10,000. Filers claim the deductions on Form 1040 and...

Earning money does not always mean every dollar you earn is subject to taxation. You can shelter some of your earnings from taxation. Taxpayers protect income by claiming deductions for home loan...

A 1098-T contains important information for figuring an income tax reduction for paid education expenses. You can use your Copy B to file form 8863 or 8917 with Form 1040.

U.S. taxpayers may be able to deduct certain license fees from their income in calculating their federal income tax liability. Whether license fees are deductible depends on the nature of the...

Poor retirement investment performance can leave you with a loss when you cash out all your investments. For a modest recovery, you can write off the loss on your 1040 Schedule A. Losses on a Roth...

IRS Form 1040 is not particularly difficult to master with the benefit of some basic guidance. However, there are some important tips that you need to take into account in order to avoid common...

Paying your taxes can seem like a complex task, especially for new filers. IRS Form 1040, the Federal Individual Income Tax return, includes a separate instruction book that's dozens of pages...

Total income means all income from all sources worldwide, regardless of whether this income had any connection with the United States (see Resources). If you were employed during the tax year, you...

The filing of a U.S. federal individual income tax return is subject to a number of rules. Although it may seem complex at first, only a few of them need to be mastered by most taxpayers. You will...

The process centers of the Internal Revenue Service (IRS) make corrections on math errors and can accept returns with some documents missing. If, however, you discover an error in your filing...

The federal income tax system can be look like an intimidating maze, especially for first-time filers or those for whom a sudden increase in income has made filing tax returns more complicated....

Using the correct form to prepare your federal tax return will not only please the Internal Revenue Service, but can ensure that you pay the least amount of tax to the government. Form 1040A is a...

The IRS individual income tax return, Form 1040, must be filed at a regional IRS Service Center by April 15 of each year, covering the previous calendar year. Although the process of filling out...

The Internal Revenue Service (IRS) standard deduction is a fixed amount that can be deducted from your adjusted gross income to arrive at your taxable income on Form 1040. You are not required to...

The Alternative Minimum Tax (AMT) was originally designed in 1969 as a way to prevent high income earners from avoiding paying income tax through the use of deductions and tax shelters. It uses...

If you make a mistake on your tax return and you later discover that mistake, you need to file a 1040X amended tax return. The IRS provides instructions for the 1040X, but those instructions are...

Filing taxes can be difficult, starting with what form you should use for your situation. If you are forgoing the use of a tax preparer this year, you may need help figuring out exactly which one...

It's April 15, the deadline to mail your tax return. Do you know where to file? Getting your federal tax Form 1040 to the right processing center helps prevent penalties for late filing and speeds...

Tax time can be stressful, and dealing with the IRS causes anxiety in almost everyone. Obtaining the forms to complete your taxes can be done easily by visiting the IRS website, by visiting a...

The Earned Income Tax Credit is not a refund of tax monies paid by a taxpayer, but rather a credit for low- to moderate-income families with dependent children. This credit can be claimed during...

What could be worse than a visit to the dentist? How about determining which of your dental expenses qualify as a deduction on your personal taxes? A step-by-step approach will help you not only...

The more you make, the more you can give. It seems obvious, but actually the IRS limits the amount anyone can deduct for charitable donations based on their income. Those with high incomes not...

Congratulations on your retirement. Retirement can have a number of attendant frustrations and joys. As with many profound change in lifestyle, subtle differences exist in the way one is expected...

Calculating your U.S. tax liability can be relatively simple or very complex, depending on your income and the number and complexity of your financial transactions. Nevertheless, it pays to get it...

Proceeds and losses from the sale of stock and certain other property are known as capital gains and losses. Taxpayers who make money on the sale of stock are required to report that gain and pay...

Now that you have donated your vehicle to a charitable organization, you want to get credit for the donation on your taxes. How do you get the deduction? Before you can claim the vehicle as a...

Everyone wants to save money on their taxes. No one wants to pay Uncle Sam more than is absolutely necessary. One of the best ways to do this is to be able to take deductions on your tax return....

That time of year has come around again. Tax season is one of the busiest times of year for businesses and individual citizens. There are many forms to prepare, one of which is Tax Schedule 1040....