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Getting a tax refund can seem a bit like winning a small lottery. In 2012, more than 120 million taxpayers got $322.7 billion in refunds, according to the Internal Revenue Service. That worked out to an average of $2,860 per person. A refund can be tempting to spend -- in fact, one-third of Americans planned to shop with their 2013 refund, according to a Capital One Bank survey. Of those, 30 percent are putting it toward everyday expenses; 23 percent, a vacation; and 15 percent, electronics. But there are ways to use that money that can improve your financial situation…
When figuring out estate tax, one thing you're going to have to do is value all of your household items. Value household items for estate tax with help from an expert attorney in the real estate industry in this free video clip.
Tax planning is always a very important topic, but it becomes especially so when social security enters into the equation. Find out about tax planning for social security with help from a professional public speaker and radio personality in this free video clip.
Getting audited by the Internal Revenue Servuce can be a nightmare. Fortunately, it’s not that common for most people. During 2011, the IRS audited a little more than 1.56 million of the more than 140.8 million individual returns filed, or just about 1.1 percent. But despite the relatively low risk, it’s always worth a little worry: The IRS selects some returns randomly for audit. In most cases, say preparers, the IRS has three years from the time you file to audit a return. If it determines you under-reported income by 25 percent, it can look at your returns for six…
The biggest mistake on your tax return might not be incorrectly entering your Social Security number or forgetting to sign the return -- two of the repeat top offenders the IRS sees. Rather, it may be not claiming enough deductions and credits. Two-thirds of taxpayers take the standard deduction, IRS statistics show. For tax year 2012, that’s $5,950 for singles and married people filing separately, $8,700 for heads of household and $11,900 for married couples filing jointly. It’s not spare change -- yet those who itemize tend to take far more. In 2009, the latest figures available, taxpayers who itemized…
Filing your tax return is no fast process. According to the IRS, taxpayers spent an average of 23 hours working on their 2010 tax returns. Becoming more organized could substantially cut that time, but resolutions to do so don’t stick long enough to make a difference. “Getting records together is like that diet everyone goes on at the beginning of the year,” says Brian Tankersley, a certified public accountant based in Knoxville, Tennessee. “You say you’re going to do it, but you never manage.” The right organizing apps for a smartphone or tablet might make a difference. Here are six…
They say there are only two things certain in life: death and taxes. But even with taxes, your must-dos in a given year are far from certain, thanks to annual tax code changes and other trends. Some of the biggest changes for 2013, though, are in tax technology. Consumers and professional tax-preparers have access to more advanced software that makes for faster tax preparation, a more accurate return and -- if you’re lucky enough to be owed one -- a speedier refund. We talked to tax experts about five changes taxpayers should keep an eye on.
You can calculate a property tax percentage by taking a few key aspects of your situation into account. Calculate a property tax percentage with help from a managing broker with Windermere Real Estate in this free video clip.
Putting your tax refund on your Green Dot card only requires that you follow a few particular steps. Put your tax refund on your Green Dot card with help from an accounting professional in this free video clip.
A tax sale and mortgages are different concepts in a few important ways that you should know about. Learn about the concepts of tax sale versus mortgages with help from a real estate expert in this free video clip.
The audit process for a liquor tax has a few very specific elements that you're going to want to be familiar with. Learn about the audit process for a liquor tax with help from a taxpayer representative in this free video clip.
A premium pre-tax conversion plan relates to group insurance offered in an employer sponsored employee benefit package. Find out about a premium pre-tax conversion plan with help from the president of The Stratford Financial Group, Inc. in this free video clip.
If you're planning on giving a college gift to a minor, there are a few tax issues that you're going to need to plan for. Learn about tax planning for a college gift to minors with help from a certified public accountant in this free video clip.
Changing the address on your income tax refund requires you to follow only a few basic, easy to manage steps. Change the address on your tax refund with help from a certified public accountant in this free video clip.
Tax audits aren't just there to annoy tax payers - there are actually very clear purposes and objectives in place. Learn about the objectives and purposes of tax audits with help from a certified public accountant in this free video clip.
Deferring taxes means that you delay a payment that needs to be made for a period of time. Defer taxes on a sale of a business for five years with help from a certified financial analyst in this free video clip.
How lotto money is taxed depends on a number of different factors, including where you live. Find out how lotto money is taxed with help from a certified financial analyst in this free video clip.
When children file tax returns it can turn out to be a relatively complex process. Get tax information for minors with help from a certified public accountant and financial planner in this free video clip.
A covered call strategy increases your taxes in a few different ways. Learn about how a covered call strategy increases your taxes with help from a certified financial planner in this free video clip.
Real estate taxes upon foreclosure have some very specific meanings for the borrower. Learn about the borrower's responsibility for real estate taxes upon foreclosure with help from a licensed realtor in this free video clip.
A tax refund can be held up by a number of different things. Find out what can hold up a tax refund with help from an attorney in this free video clip.
An "assisted refund" in tax terminology is defined in a very specific way. Learn what an "assisted refund" means in a tax refund with help from a practiced attorney in this free video clip.
If you've just gotten married one of the first things you'll need to do is get your taxes in order. Learn about tax information for newlyweds with help from an attorney in this free video clip.
Real estate investors have significant tax advantages when preparing their tax returns. These generally result from the upgrades or repairs they do on their rental properties each year. In some cases, these deductions are greater when the upgrades result in greater energy efficiency. In other cases, deductions are simply made to account for the increased upkeep of the property. Rental property owners can take advantage of Internal Revenue Service provisions in this area.
Though taxes can be complicated, you shouldn't let them leave you feeling overwhelmed. Learn about taxes on SS retirement money with help from the manager at an independent investment advisory firm in this free video clip.
You can't control audition conditions, so you have to learn to control your voice. Clear vocals can make you a standout. You must make a plan so that you can sing your best and know that the judges can hear you. If you prepare yourself, you can sing over distracting noises, judges' chatter and poor acoustics in the audition room. Make a checklist before each audition so you can be sure you have made your best effort to get prepared.
To promote energy-efficient renovations of existing houses, Congress passed laws starting in 2006 offering tax credits for certain approved renovations, including energy-efficient windows. Because energy efficiency differs depending on regional climate, determining whether your renovations meet requirements for this tax credit can be complex. In addition, certain credits have a lifetime cap including those related to energy-efficient windows. Even approved windows may not get you a credit if you've claimed other energy-efficient credits in the past.
Whether you are dancing, singing, acting or playing an instrument, auditions are a necessary but nerve-wracking ordeal. Old adages like "Picture the judges in their underwear" or "Pretend you're just practicing in an empty room" are sometimes easier said than done for anxious performers. While there is no magic potion to avoid getting stage fright during auditions, you can decrease your anxiety and perform with more confidence through constant practice and judicious use of relaxation exercises.
If you are paid a delinquent property tax in Mississippi, you are responsible for ensuring the county is paid past due money immediately. If property taxes go unpaid, a tax lien could be issued on your property. The longer taxes go unpaid, the more money will be owed due to interest charges and fees associated with the advertisement of the tax lien. County tax collectors manage property tax payment in each Mississippi county.
A lien is a claim by a lender on a debtor’s property as a means to satisfy a debt. The debtor can recover the money he is owed if and when the debtor sells his property by taking what is owed from the proceeds. In the state of Illinois, liens against property must be publicly published to ensure that people who may acquire property are aware of obligations of the current owner. Finding out if there is a lien on your property is a matter of going to the right resource.
When the U.S. Constitution was being drafted in 1787, the northern and southern states disagreed over how the slave population should be counted for the purposes of representation in Congress and tax distribution. The so-called Three-Fifths Compromise established the formula that each slave would be counted as three-fifths of a person when making these enumerations. Later critics viewed the compromise as a racist formula because it essentially meant that people of color, who constituted the majority of slaves at the time, had a lesser value than white people.
Non-profits are organizations designed to serve a charitable purpose, and as a result are not generally focused on activities that produce revenue. Nonetheless, to serve their organizational mission, non-profits must secure resources somehow. This means that non-profits, while not organized to make money, do have income, and in some cases are subject to the income tax. Because the failure to report and pay taxes on income can threaten a non-profit's tax-exempt status, it is good to know about the tax treatment of different revenues the organization might earn.
Both 1099-MISC and W-9 forms are commonly used to report taxable transactions between companies and the contractors they hire. A company that uses multiple contractors usually sends out W-9 forms at the beginning of a contractor relationship and sends out 1099-MISC forms at the end of a tax year as a report of how much it paid that contractor throughout the year.
New York state residents need not fear double taxation when they live and work abroad. For people who maintain a home base in New York, the state has residency rules that determine their tax classification. Provisions in the tax regulations give residents credit when they report income tax that they have paid to foreign governments. The benefit for New York residents is a guarantee that they will not be headed to prison for income tax evasion after they clear immigration and customs when they return home.
For federal income tax purposes, the IRS treats trusts as taxpayers that are separate and distinct from its beneficiaries and grantors. The general framework of the tax rules requires trustees to file annual tax returns on Form 1041 to report all income and to pay the appropriate tax. However, when the trust distributes the money to beneficiaries within the same tax year, the responsibility for paying tax can shift from the trust to the beneficiaries.
A 529 is a state-sponsored college savings plan that offers both state and federal tax-saving benefits. The federal tax impact of cashing in your 529 account depends on how your investments inside your plan have performed, and what you spend the money on. Each state has its own tax rules related to 529 withdrawals, so you may need to check your state's rules to see what type of impact withdrawals will have on your state income tax.
Accurately calculating the exemption allowance for California income taxes requires using the worksheets that accompany the Employee's Withholding Allowance Certificate, Form DE 4. The worksheets help a taxpayer analyze his current situation to arrive at the appropriate exemption amount so income tax withholding matches the tax liability at the end of the year on Form 540, the California personal income tax return.
Michigan residents are eligible to receive property-tax deferments on their special-tax assessments. The state-tax deferment program is available to senior citizens age 65 and older with limited incomes. The Michigan Department of Treasury administers the state income tax deferment program on an annual basis. Residents receiving Social Security retirement or disability payments are eligible to participate in the deferment program, but the state counts their federal pension or disability earnings as income for eligibility purposes.
Courts have a wide array of tools for recovering debts, but a court’s abilities may vary somewhat from state-to-state. Though courts cannot typically seize federal tax refunds, certain courts and enforcement agencies may garnish tax overpayments to recover outstanding balances. In addition, the ability of courts to seize state tax refunds varies considerably from one state to the next.
Not only does home insulation help with climate control, but it also helps with home energy heating and cooling expenses. The federal government recognizes that energy-efficient home insulation is good for the environment. If you make your home more energy efficient by installing insulation, you may qualify for federal tax benefits.
Purchasing energy-efficient products for your home can provide you with a percentage tax credit on your federal return. A tax credit allows you to directly reduce your tax liability and increase your potential refund. At publication, the IRS does not have standard requirements for proving energy tax credits, so you must send as much purchase information as possible to the federal tax agency.
Federal law affords taxpayers the ability to deduct real estate taxes from federal income taxes. In order for a tax to be deductible for federal income tax purposes, the tax must be a state, local or foreign real estate taxes that are imposed equally on all property found within the jurisdiction. The amount of the tax is determined by the value of the property. Individual taxpayers must itemize their deductions in order to deduct state, local and foreign real estate taxes paid during the tax year and they will file on Schedule A of Form 1040 and estates deduct the…
A W-9 form is an information form that is sent by businesses to individuals or entities that perform work or services for the business. The purpose of the form is to gather information regarding the service provider so that the business making the payment has the proper name, address, and taxpayer identification of the entity receiving the payments. The W-9 form is unique in that it isn’t filed with the Internal Revenue Service. It is kept with the records of the business making the payments for services, so that a form 1099 can be issued at the end of the…
A 401(k) account can come in many varieties and impose multiple restrictions on the employers that offer them and the employees that use them. However, their primary benefit is that they make it simpler for you to save for your retirement. Unless their is a court order that says otherwise, when you open a 401(k), you are the payee; accordingly, when the enrollment form asks you for your name, you are naming the payee.
Comprehensive paycheck stubs provide employees with a detailed picture of how much tax is being withheld by their employer at each pay period. Withholding is based on information an employee provides on his W-4 Employee Withholding Allowance Certificate, which details how much money the employee wishes to have deducted in order to meet annual tax obligations. Employees may opt to increase the amount of withholding from their pay, exceeding the amount necessary to cover their tax bill, with the expectation of receiving excess funds in the form of a tax refund upon filing.
California welfare programs are administered at the county level through individual social service agencies. Programs for low-income individuals include food stipends, access to medical care and CalWorks training and employment services, which are available to those who are unemployed. When an individual or family applies for welfare assistance, a case worker is assigned to determine financial eligibility for various programs. Eligibility is typically based on average annual gross income and the number of people represented in the household.
Some types of private educational expenses can be deducted, at least in part, from state and/or federal income taxes. The taxpayer must meet certain criteria to be eligible for the deduction. Additionally, four states allow for the deduction of public or private tuition expenses: Illinois, Iowa, Louisiana and Minnesota. In addition, where tax deductions are unavailable, taxpayers may qualify for education-related tax credits at the state and/or federal level.
If you owed property taxes in North Carolina, but moved to Ohio, your wages can be garnished until your tax debt is paid in full. In fact, creditors often successfully garnish the wages of out-of-state debtors. Although some creditors must go through an extra step to reach a debtor in another state, other creditors don't even need a court judgment to garnish a debtor's wages.
If you plan to cash in on energy-efficiency tax credits for the installation of a green energy barrier, now is the time to act. Green energy barrier is a reflective foil insulation designed for attic installation. As such, it qualifies for energy-efficiency tax credits set to expire on Dec. 31, 2011, unless Congress takes measures to extend the credits. Several high-value, whole-home tax credits run through Dec. 31, 2016. The 2016 credits do not include energy-efficiency tax credits for any type of insulation products.
If you own the home you live in, many states will allow you to claim a homestead exemption on property taxes. Once you file the exemption -- also known as a homeowner exemption -- you can deduct some of your home's worth from the assessed value you pay property taxes on. Depending on your state, you may need to refile your deduction when you refinance.
