Tax Law

Taxpayers can make the government an offer to settle a tax debt for less than the total amount owed. Such an offer is called an offer in compromise. The IRS generally accepts an offer in...

Tax fraud refers to the act of reducing one’s tax liability through fraudulent means - that is, by lying about actual income, hiding income or assets, or general avoidance of paying the amount he...

Everyone who lives or earns money in Canada is responsible for paying taxes. Even international students studying in Canada generally are required to file tax returns. Residents, non-residents,...

Some, but not all, of the funds you receive from a settlement must be reported as taxable income. The Internal Revenue Service (IRS) determines whether the income is taxable by evaluating what...

The IRS, short for the Internal Revenue Code, is a U.S. tax law organization that controls and collects taxes One problem the IRS deals with is the refusal of some individuals to pay their income...

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...

An income tax return is a form that needs to be completed and returned to the Internal Revenue Service (IRS) every year. Anyone who earns or receives taxable income during the year is required to...

In addition to paying federal taxes, West Virginia residents, and certain other individuals and organizations that have connections with West Virginia, must pay taxes at the state level. There are...

Marginal income tax relief is a program under Irish income tax law that combines tax exemptions and tax refunds into a single program geared toward low-income taxpayers. If you are an Irish...

The United States government generates the bulk of its operating revenue through the assessment and collection of income tax--both from individuals and businesses. Although there are some...

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 variety of mechanisms are used to collect taxes. One process is tax deducted and collected at the source. This method for collecting taxes is used in many countries across the globe, including...

If you are an immigrant to the United States, you will be expected to file a federal income tax return every year unless limited exceptions apply. If you are considered a legal U.S. resident by...

Under the Internal Revenue Code, taxes must be paid on income "from any source derived." Considering that rather broad definition of taxable income, there are some exceptions to benefits a...

The amount of tax you must pay on salary paid outside the US depends on where you were located at the time the services were performed, the specific jurisdiction that is asserting taxation...

US citizens and permanent residents are taxed on their worldwide income. Nevertheless, exemptions exist that will allow most US taxpayers to avoid paying US federal taxes on their foreign-earned...

Tax deduction limits vary according to the type of deduction claimed, and the tax laws that apply for the current tax year. Tax deduction limits can change from year to year as new laws are passed...

Income taxes in Canada are fairly straightforward. The system is administered by the Canada Revenue Agency (CRA) except in Quebec, whose system is administered by Revenue Québec. The system...

The U.S. Government Accountability Office (GAO) reported in 2009 that in comparison with their male counterparts, women earned 75 cents on the dollar. This puts single moms at a distinct...

The Temporary Tax Relief Act of 2007, also known as the Tax Increase Prevention Act of 2007, is the bill passed by the 110th U.S. Congress (H.R. 3996). It became public law 110-166 Dec. 20, 2007....

The Internal Revenue Service (IRS) is a federal governing body that oversees taxes in the United States. There are tax laws that apply to most teenagers and adults earning income. Failure to file...

The Common Experience Payment is a cash settlement given to qualified individuals as part of the ndian Residential Schools Settlement Agreement. The payment--also known as the CEP--is just one...

The IRS is fickle when it comes to your income tax. Sometimes, they let you reduce your taxable income, sometimes they give you tax credit to eliminate your tax liability but that's all they will...

Getting that letter from the IRS that says they have assessed an additional tax on your tax return is never pleasant. And quite often, it can be scary. It may be that you claimed a deduction...

Taxes can be complicated to understand as the rules change annually. Many tax codes consist of many pages. Fortunately, some of the basic theories stay the same. The answer to the question "Is...

The taxation of business entities is quite different from the taxation of individuals. In addition, applicable tax law varies according to whether the business is a sole proprietorship, a...

Labor union and public employee union members may be able to deduct their union dues as a miscellaneous deduction on their U.S. federal income tax form if they itemize their deductions. While...

Developers have been using a federally funded tax credit to provide affordable housing for low-income citizens since 1987. Unlike other housing initiatives, the Low Income Housing Tax Credit...

When you earn money working in the United States, you have to think about income tax laws. Income taxes are filed on your own, which means it is up to you to make sure they get filed. Nobody will...

Federal income tax laws apply to everybody who earns money while working in the United States. The laws are enforced by the Internal Revenue Service (IRS). The most important part of federal...

Although there are no major tax regulations that apply specifically to doctors who work abroad, there are special tax exclusions applicable generally to U.S. taxpayers who work abroad. Since most...

Taxes on personal income in the United States have been in existence since the Civil War. Today, we are required to file a federal income tax return to pay taxes on the income we have made during...

Very few individuals enjoy handing over a portion of their income every year to the federal government. Did the founding fathers not want to avoid a central government from taking our money? The...

Self-employed people have to supply the work tools and equipment they use on the job. For them, tools are just part of the cost of doing business and are fully tax-deductible. Unfortunately, many...

Taxes are a major corporate expense, sometimes leading to corporate bankruptcy. Furthermore, many people complain that corporate income is unfairly taxed twice--once when the corporation receives...

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...

Although U.S. citizens are taxed on their worldwide income, substantial tax benefits apply to U.S. taxpayers who spend all or part of the tax year overseas. The IRS foreign-earned income exclusion...

The earned income credit helps workers, especially those caring for children, keep more of their money. The credit is targeted at wage and salary earners not earning investment income, and who...

Keeping good records is an important part of filing accurate income tax returns. Records should be retained even after taxes are filed, in case of an audit or if a correction needs to be made to...

To claim a tax deduction on a tax return, the deduction must be authorized by the tax laws or IRS regulations; knowing the most commonly claimed deductions could save you a significant amount of...

An IRS form 1099 is an information return. The 1099-INT provides information regarding interest income earned during the year.

Nearly every United States citizen and resident alien must file a tax return at the end of each year, unless your income falls below a certain level. Even if you don't earn enough money to pay...

There is one simple rule in tax preparation: deduct everything you can legally deduct, and don't deduct anything else. It seems simple enough in theory, but in practice, it can be hard sometimes...

Children are expensive, but come tax preparation time, those little angels can save you a pretty penny or two on your tax bill. In addition to claiming a standard exemption for your dependents,...

It may come as a shock to some people to learn that a gift they received may be considered taxable income by the federal government, but sometimes this is the case. Though prosecution for tax...

Income tax doesn't have a long history in Canada; the country has only utilized income tax to fund government activities since World War I. The history of Canadian income tax may be short, but it...

A tax that is levied is charged to a taxpayer. People have taxes levied against them practically every day--think about the price you have to pay when you buy something at a retail store (sales...

Supplemental Security Income, or SSI, is a monthly payment made by the federal government to persons of low income who are over age 65, disabled or blind. The amount of the payment is based on...

Katrina is the fifth-deadliest hurricane to strike the United States, the sixth-most powerful of all recorded Atlantic hurricanes and the most costly hurricane as well. Thousands of families lost...

Retirees can keep the benefits from pension investment by protecting income. Tax relief is available for the gains made on salary investment. A pension plan is an investment that secures the...