Unfortunately, most people cannot choose their tax status when it comes to filing taxes. Your status is determined by your current set of life circumstances and your income. If you are unmarried without children, you must file as single. If you are a single parent, you can claim yourself as head of household. Only married couples have a choice as they are able to either file jointly or separate.
Being... [Read more of this post]
Having to file a tax return late is always a tough situation. The extra fees can be steep and the longer you wait the more in danger you are of being subject to the failure-to-pay penalty. However, if you find yourself in this position it’s important to know what the penalties are so you plan for them in advance.
The Failure-to-File Penalty
The failure-to-file penalty applies to you if you did not... [Read more of this post]
Here are five major tax write-offs freelancers shouldn’t ignore when they are getting ready to pay taxes.
This should be the most obvious since most freelancers work out of their home. The IRS allows freelancers to deduct a portion of their mortgage or rent, provided that this space is not used for anything else. It must be designated for work purposes only.
You can deduct... [Read more of this post]
Americans have many fears when it comes to filing taxes. One of the most common is missing the tax filing deadline. Everyone is well aware of this date, but many people procrastinate and run out of time. Below is a list of the most common fears related to taxes experienced by Americans.
Having to Pay
When you find that you have to pay and are not getting a refund, take a second look at your return.... [Read more of this post]
Deadlines and dates get away from people all the time. In our fast-paced, hectic society, missing a deadline on occasion is practically inevitable. The good news is that if you have missed your tax deadline, there are remedies available which are not detrimental to your financial stability. The few tips below will help you understand what to do if you did miss the deadline.
Use IRS Free File
If you... [Read more of this post]
Planning ahead for the next tax season should begin with the new tax year on January 1st. It is best to determine how much tax you will be expected to pay and where you can make cuts to make those savings. When you are able to plan ahead, not only does it cut down the time in your preparations, the entire process will be less stressful.
View Credits for the Upcoming Tax Year
It is important to be aware... [Read more of this post]
Offshore bank accounts can cause a lot of trouble, especially for those that do so purposely to hide assets. If you are working and living abroad, the trouble can lead to revoked passports, fines and penalties. Here is some useful information regarding offshore bank accounts and how they can potentially lead to trouble during tax season.
The United States government requires that all... [Read more of this post]
The wealthy seem to have all kinds of tricks up their sleeves to avoid paying taxes. While some simply do not file, others have learned where the loopholes are. It may be a good idea to put some of these tricks to use to help reduce your individual tax liability.
If you own a business or are a regular stock trader or investor, having an overseas account may be a good idea. However,... [Read more of this post]
Society is becoming technology based. Applications have been designed for mobile devices to make it easier to keep track of spending, donations, mileage and more. The apps are convenient to use.
ItsDeductible Donation Tracker
If you make charitable donations to offset tax liabilities, this app is a big help. Users can track the amount of a donation, the organization’s name and keep track of itemized... [Read more of this post]
It is possible to estimate your tax refund or the amount that you might owe before getting your tax documents from employers. Doing so helps you budget for expected payments or make plans for your refund. There are a few options to help you compute your estimate accurately.
Online Tax Estimating Software
Nearly every online tax preparation service has a refund estimate tool available. If you have filed... [Read more of this post]