Federal Taxes

The income you receive from your investments, such as dividends, interest, rents and royalties, and income you earn as an independent contractor is normally not subject to income tax withholding...

Chances of claiming the first time home buyer credit are greater than before, as Congress has expanded the qualifications and extended the deadline. The deadline has been extended from November,...

The tax treatment of financial aid you receive in college depends on how you earn it, what expenses the money is designated for and how you use it. The tax treatment will also depend on whether or...

The 1099-R is an Internal Revenue Service distribution income reporting form. The IRS considers two types of distributions as income that you must include on your annual tax return: actual...

Earned income tax credit otherwise known as EITC tax credit, is a refundable tax credit that helps low-income workers offset the burden of U.S federal taxes. If you qualify for the 2009 tax year,...

Each year the federal government publishes an income tax table that lists the tax rates so that people can calculate their income tax. Income taxes accounted for just under half of the federal...

Although most U.S. citizens have to file taxes, filing is not required if your income is below a certain level and you do not meet other criteria that require filing.

Individual retirement accounts (IRAs) allow individuals to save for their retirements. Traditional IRAs were first introduced in 1974, and in many situations, contributions are tax-deductible....

Being a Tax Preparer is probably the smartest thing a person can do for EXTRA INCOME. Here are my reasons: 1) You don't have to pay others to do your taxes, 2) other People can pay you to do their...

When you begin working for a new employer, you will likely be asked to complete an IRS Form W-4. This form lets your employer know how much federal income tax to withhold from your paycheck. If...

Preparing your federal income taxes is a fairly simple procedure. While the Internal Revenue Service makes you fill out forms with fancy names like 1040 or 1099, the task itself is just a matter...

If you are self-employed or receive any income that does not have federal income taxes taken out for you, then you need to make quarterly federal estimated income tax payments. Making estimated...

Estimating your taxes to find out how much you may owe can be done using computer software and various online sites. Many online sites offer a tax calculator or estimator to determine how much...

Serving on a jury is considered one of the highest forms of civic duty, and while that may be the case, your jury pay is not exempt from taxes and must be claimed as income.

Adopting a child is often an expensive and lengthy process. The cost alone can make it prohibitive for some families to attempt. Before deciding that you can't afford to adopt you should know...

Employees and independent contractors are both responsible for paying the same income taxes, but they treated differently by the IRS when it comes to paying payroll taxes. Payroll taxes are also...

Federal income taxes must be paid on an annual basis and are based roughly on how much income you have earned during the year. According to the Tax Policy Center, the federal government collected...

The federal personal income tax system in the United States is a progressive tax, meaning that higher income levels are taxed at higher rates. For example, in 2009, the first $8,350 for singles is...

Electronic filing of your federal income tax form is so easy most anyone can do it, and it speeds up getting your tax refund if you have one coming. Online programs available through Free File...

As more boomers reach retirement age--or early retirement age, thanks to economic conditions--more questions pop up concerning one of what Ben Franklin called life's two certainties: Taxes (the...

The IRS requires that employers withhold part of your paycheck to pay for your taxes at the end of the year. All employees have to file a W-4 form that tells the employer how many exemptions you...

The Self-Employment Contributions Act (SECA) tax is the Social Security and Medicare tax paid by self-employed individuals who file Schedule C and farmers who file Schedule F with their IRS Form...

The federal government brought in about 45 percent of its revenue from personal income taxes in 2008, according to the Tax Policy Center. To determine how much you owe, you need to know how much...

You may have seen commercials on television for attorneys and tax preparation services offering to help people settle their IRS debt, but you probably thought that you would never need a service...

During the year, your employer withholds money from your paycheck based on what you are expected to earn for the year and how much tax you will owe. However, because of various deductions and...

Taxpayers are often quite anxious to get their income tax refund once they have filed the return. Many people plan on this money for a purchase or maybe to help with cash flow issues they could be...

Social Security, the federal income-support program for retirees, the disabled and the survivors of deceased workers, is financed with payroll taxes on every American worker and employer. However,...

The federal tax system is a pay as you go system, meaning that as you earn income, money is set aside by your employer to pay your estimated tax bill at the end of the year. Many times, because of...

Throughout the year, most people have money withheld during the year to pay their anticipated tax bill. However, this amount is only an approximation of what you are expected to owe, not an exact...

The federal tax system is a pay-as-you go system which means that as you earn income you must make estimated tax payments. For most people who work as employees, the money is automatically...

Taxes can be a confusing maze of forms, papers, and policies. Finding the specific policy for a given tax is often a test in endurance, even if you're following the IRS forms step-by-step. It's no...

The federal Earned Income Tax Credit is a refundable tax credit designed to ease the financial stress that low-income workers face at tax time. For the 2008 tax year, a low-income worker earned a...

People working as independent contractors receive a gross wage and have to pay their own federal, state and local taxes. The federal tax due includes income and FICA tax. States also tax wages, as...

Your federal adjusted gross income is your gross income from all income sources minus specifically stated IRS deductions. These deductions are not the standardized or itemized deductions. Your...

One easy way to reduce your income taxes is to receive income that the IRS legally allows you NOT to pay taxes on. There are many kinds of income and some is taxable, some is non-taxable according...

Although nobody wants them, student loads are often a necessary evil to help pay for higher education. Depending on where you go to school and for how long, your student loads might vary from just...

All adults who are either U.S. citizens, permanent residents living in the United States or U.S. income earners are required to file federal income-tax returns if their income meets certain...

Tax shelters are investment strategies designed to legally lessen the taxes that have to be paid. Of the numerous legal tax shelters available, many are created to transfer losses of one...

IRS quarterly payments have to be made by people whose withholding will not cover their tax bill at the end of the year. According to Bankrate.com, the IRS requires tax withholding to make sure...

Many people pay others to prepare their taxes simply so they do not have to deal with the hassle of learning tax laws and doing math. If you have a complicated tax situation as a tax professional...

Gifting assets to children can reduce both income and estate taxes. However, failure to do so correctly can result in unnecessary gift or estate taxes. Fortunately, this mistake can be easily...

Every year citizens have to settle up their tax bill with Uncle Sam by April 15. Individuals can calculate their tax liability by hand or buy software or pay a professional preparer to process...

Dividends are income. If you misrepresent your income on a tax return, there could be consequences. Luckily, you can amend returns from previous years to include dividends you hadn't originally...

Ebay income is treated like any other self-employment income. Use Schedule C so that expenses like inventory, fees, utilities and rent can be deducted from that income to define a profit, which is...

Learn how the tax system works if you want to save money on your taxes. The real issue isn’t numbers on your tax returns. It’s understanding what you have to include in your income, what you get...

The Form 1040EZ is the shortest of the three most common tax forms that are used to file individual federal income taxes. The other tax forms are the From 1040, which is the longest and the only...

The U.S. income tax rate schedule is complex because it uses a graduated tax rate system, exemptions, deductions and credits. The amount of money allowed at each tax rate changes each year but the...

Having your federal tax return prepared by a professional can cost you lots of money. If you are sick of paying extra to have your income taxes prepared, you have probably thought of doing them...

In a restricted stock arrangement, an employer gives an employee the option to purchase restricted stock or simply grants the stock to the employee. Recipients cannot vest in the stock until the...

The federal government relies heavily on income taxes to pay for its operations. According to the Congressional Budget Office, personal income taxes accounted for 45 percent of revenues and...