When you finally decide it is time to prepare your taxes, the first question is whether you should itemize your deductions or take the standard deduction provided by the IRS. Choices, Choices Tax deductions are a very simple part of a theoretically simple tax reporting system. If youve ever prepared your own taxes, you know […]

Two things in life are certain death and taxes. Heres what to do if the two are combined as far as filing a tax return. Tax Returns for the Deceased If a person dies, their finances are immediately converted into something called an estate. The estate is then responsible for filing a tax return covering […]

Few people realize that starting a side-business on eBay is actually a great way to save money on your taxes. The trick is to make sure youre putting all the additional expenses you incur against your additional income. Running an eBiz allows you to take numerous deductions that can add up to a lot of […]

They say death and taxes are the only two certain things in life. Alas, this wasnt always the case. Well, at least for the income tax. The History of Income Taxes Our great nation came into existence in fits and starts. Following the revolt against the British, a federal government was elected and the fun […]

Lets all sing a new version to the tune of the 60s sitcom Gilligans Island Just sit right back and you’ll hear a tale, a tale of mishandled use; that started with our nations past to form a fiscal noose. The tax was a mighty hurtin vice, our wallets paid the price; working hard to […]

The taxes that are withheld from paychecks amount to about 25% of your gross pay (including federal tax, state tax, social security tax and medicare tax). But these taxes that are withheld could be working for you as investments if you employ what I call the ultimate tax strategy. This tax strategy consists of how […]

Here are seven reasons for not being late filing your income tax returns. 1. Avoid Late Filing Penalties Late filing can result in substantial and continuing penalties. This is in addition to any interest that is due. 2. Receive Better Service from Your Accountant The earlier you get your paperwork to your accountant, the sooner […]

You’ve probably read in the newspapers of various celebrities and successful business who manage to avoid or at least substantially reduce their UK taxes whilst a significant proportion of the general public are paying close to 50% of their income in tax. Well, there’s nothing to prevent you using some of these techniques to slash […]

What are the qualifying characteristics of a dependent for tax purposes> Following is a general explanation on how to determine dependents, and how it relates to your tax status, liability and the credits you can claim on your tax return. There are a few assessments that a person must pass in order to qualify as […]

The first known income tax that Americans were legally required to pay was enacted during the 1860s, and the Presidency of Abraham Lincoln. The Civil War was proving very costly to fund, and the President and Congress created the Commissioner of Revenue and enacted a law requiring citizens to pay income tax.