Tax Laws | Best Tax Tips

Tax tips if you changed your marital status

If you were married or divorced recently, there are a couple of things you’ll want to do to ensure the name on your tax return matches the name registered with the Social Security Administration. Here are five items for recently married or divorced taxpayers. Following these steps will help avoid problems when you file your tax return. Image by stevie withers via Flickr 1. If you took...

January 8th, 2010 by The Tax Man

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Have you paid you're income tax this month ?

Tax-saving Moves for the Rest of 2009

April 15 is still several months away, but it’s not too soon to give your 2009 tax situation some extra attention. Here are some pointers that could lighten your federal income-tax burden. Image by Walt Jabsco via Flickr Buy a car. State and local sales or excise taxes paid on the purchase of a new vehicle are potentially tax deductible. Tax credits are available for purchases of new energy-efficient...

October 12th, 2009 by The Tax Man

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Municipal bond issued in 1929 by town Kraków (...

New Municipal Bond Benefit

Municipal bonds offer investors three significant tax advantages. Municipal bond interest is exempt from regular federal income taxes. Image via Wikipedia Because it is exempt, the interest does not have any effect on adjusted gross income (AGI). Keeping AGI as low as possible is often a tax planning goal. Many states do not tax their residents on the interest they receive from in-state...

October 8th, 2009 by The Tax Man

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Cost Basis Complications

You can sell investments held in tax-deferred retirement accounts without worrying about income taxes. But that’s not the case with investments you own outside of tax-deferred accounts. To figure your capital gain or loss on the sale of mutual fund, stock, real estate, and other investments, you have to compare the amount you realize on the sale to your “adjusted basis” in the investment. Understanding...

October 5th, 2009 by The Tax Man

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Bad Debts

It is virtually inevitable that all of us will at one time or another incur financial losses in our business and personal lives. One frequently occurring type of loss is a bad debt. Whether made in the course of business, or to a friend or relative, sometimes a loan simply cannot be repaid despite the best intentions of the debtor, and if there is little or no prospect that repayment can be made in...

September 24th, 2009 by The Tax Man

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NEW YORK - MAY 20: In this photo illustration...

Paying taxes by credit card has just gotten cheaper

Taxpayers may deduct convenience fees charged for paying individual income taxes electronically by credit or debit cards. The convenience fees are deductible in the tax year in which they are paid as a miscellaneous itemized deduction subject to the two percent of adjusted gross income (AGI) floor. This treatment is available to individuals who itemize their deductions and will be able to take advantage...

September 7th, 2009 by The Tax Man

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Seal of the United States Internal Revenue Ser...

Amending a Tax Return

Taxpayers who need to make a change or adjustment on a return they already filed can do so by filing an amended return. Here are the top 10 things every taxpayer should know about amending your federal tax return. 1. Taxpayers needing to amend their return use Form 1040X, Amended U.S. Individual Income Tax Return. Image via Wikipedia 2. Taxpayers can use Form 1040X to correct previously filed...

July 5th, 2009 by The Tax Man

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Internal Revenue Service issues standard letters and notices

The Internal Revenue Service issues standard letters and notices on a routine basis. Some will require specific actions on your part if you have received one of these letters. It is of course best to act on these as soon as possible so you do not lose any of your rights. Below is a list of standard letters and notices and actions you may take regarding each: Image via Wikipedia Letter...

April 7th, 2009 by The Tax Man

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National Bank of the Republic, Salt Lake City 1908

UBS ENTERS INTO DEFERRED PROSECUTION AGREEMENT

Bank Admits to Helping U.S. Taxpayers Hide Accounts from IRS; Agrees to Identify Customers & Pay $780 Million WASHINGTON – UBS AG, Switzerland’s largest bank, has entered into a deferred prosecution agreement on charges of conspiring to defraud the United States by impeding the Internal Revenue Service (IRS), the Justice Department announced today. Image via Wikipedia As part...

March 4th, 2009 by The Tax Man

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Independent Contractor vs. Employee

Understanding the difference between an employee and an independent contractor is very important. If you are an employer, you are required to withhold and contribute a matching amount of FICA and Medicare taxes from your employee’s income. However, if your workers are independent contractors, you are only required to report payments of $600 or more on a Form 1099-MISC (Miscellaneous Income)....

January 15th, 2009 by The Tax Man

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