Our Guide to Taxes

It's time, once again, for a review of the upcoming income tax changes for 2012. As was the approach over the last several years, we'll outline changes to Social Security and Medicare, federal income tax standard deductions and exemptions, mileage deduction rates, earned income credits, Hope and Lifetime Learning tax credits, in addition to changes to 401k plans, IRAs, and Roth plans.

It's time, once again, for an annual review of the income tax changes for 2011.  The Great Recession appears to be subsiding, but carryover plans from prior years continue in 2011.  As was the approach last year, we'll outline any changes to Social Security, standard deductions, exemptions, mileage deduction rates, earned income credits, Hope, American Opportunity and Lifetime Learning tax credits, as well as changes to retirement savings accounts such as 401k plans, IRAs, and Roth plans. 

What better way to start the New Year then with a review of the income tax changes for 2010?  Due to the economic recession, there were not a lot of changes to the tax provisions in 2010.  That being said, we will outline changes to Social Security, standard deductions, exemptions, mileage rate deductions, earned income credits, Hope and Lifetime Learning tax credits, as well as changes to retirement savings accounts such as 401k plans, IRAs, and Roth plans.

Once again, we're going to start out the New Year with our review of the tax changes for 2009.  This publication will outline changes to Social Security, standard deductions, exemptions, mileage rate deductions, earned income credits, Hope and Lifetime Learning tax credits, as well as changes to retirement savings accounts such as 401k plans, IRAs and Roth plans.

We're going to start the New Year with our annual review of tax changes that apply to the coming year - 2008.  We'll brief you on changes to IRA contributions, tax exemptions, as well as standard deductions, and mileage reimbursement rates for 2008.

It's time once again for our annual review of tax changes for the coming year.  For those of you preparing for the tax year 2007, we're providing that help by summarizing some of the income tax changes in 2007.

For those of you preparing for the tax year 2006, we thought it would be helpful to summarize some of the income tax changes in 2006.   We're going to start with good news.  As was the case in 2005, April 15th falls on a weekend.  That means the official filing date should be April 16, 2006.

Each year, the laws outlining the collection of federal income taxes expire, are extended, or modified somewhat.  In this publication, we're going to explain some of the income tax changes taking place in the tax year 2005.  This includes some good news concerning deadlines for filing your taxes with the IRS.

If you didn't take advantage of the IRS e-file system last year, then you're among a shrinking segment of Americans that still files paper copies of their federal tax forms.  If you're reading this publication, then you have Internet access.  This means you have the ability to file electronically.

Several years ago, the federal government extended its e-file service to include Free File Fillable Forms.  This program allows taxpayers with access to a computer and the Internet to prepare and file their federal income tax returns.  As was the case with earlier programs, electronic filing is both a fast and accurate way to securely file your return.

When tax time rolls around, everyone's interested in the latest changes, and they also have many questions.  This includes explanations of the recent changes to tax code, as well as what the change means to their tax return.  The IRS appreciates it when people pay their taxes on time.  Finding mistakes on tax forms makes more work for everyone involved.

There is no doubt that the IRS is a wealth of information when it comes to federal income tax forms.  To help round out our section devoted to taxes, we've taken some of the most common income tax forms and grouped them by type.

As the April tax deadline draws near, taxpayers start gathering the IRS forms they need to complete their income taxes. Even if you're confident that you don't need help finding any of the many IRS forms published, we thought it useful to provide a guide to the most common tax forms used to prepare a return.

In casual conversation, the term tax return is used rather loosely for two related, but different subjects.  When some people talk about tax returns, they are really talking about filling out a tax form.  Other individuals use the phrase tax return to talk about their refund.  So as not to play favorites, we'll talk about both topics in this article.

This is the latest information on federal income tax brackets for the tax years 2011 and 2012. You'll also hear this information referred to as tax tables or tax rate schedules. The tables can be used to figure out the incremental federal tax you pay on each additional dollar of income.

If you're looking for the 2005 tax brackets you've come to the right place.  You can use these tax rate schedules to calculate the incremental tax you pay on each additional dollar of taxable income for the tax year 2005.

Publications typically circulate their tax planning tips at the end of the tax year. Quite frankly, tax planning can take place all year long. It's something you really want to start planning now, whether tax season is 12 months away or just around the corner.

It's always the right time to be thinking about new tax-savings ideas.  Whether it's the start of a new year, or you're up against the April income tax-filing deadline, there's usually something you can do to help reduce your tax bill.  When it comes to taxes, having a plan can help maximize those savings.

You've prepared your income tax return, filed it with the IRS, and now you're waiting.  But you're not just waiting for a tax refund; you're anxiously waiting to see if you're going to be involved in a tax audit.

Each year we go through the ritual of gathering the information we need to file our federal income tax return.  Once we've completed our return, we organize our current records and file them with our existing paperwork.  We then stare at the files from prior years, and think to ourselves...  How long do I need to keep my tax records?

Each year, the IRS announces how much money is available to individuals through unclaimed tax refunds.  The most common cause of a refund going unclaimed is failure to file a tax return.  But there are also undeliverable refunds due to bad mailing addresses as well as other credits that remain unclaimed.

If you've ever filled out a tax form, then you understand the entire process is focused on taxable income and tax deductions. You start your 1040 by identifying all sources of income such as wages, salaries and tips; from your form W-2. Then figure out how much income you had from other sources. This includes rents, interest income, capital gains, pensions, and other similar types of earnings

When filing your tax return, you are faced with the decision of taking itemized deductions or the standard deduction. You have to make that decision on line 39 of the IRS Form 1040. If your itemized deductions are greater than the standard deduction, then income taxes owed will be lower.

If you use part of your home to conduct business, then you may be eligible to take a home office deduction on your federal income tax return.  The requirements are fairly simple and, if you qualify, the deductions are reasonably generous.

Several years ago, there were some important changes made to the tax code concerning gifts to a charity.  There are also some significant tax breaks for IRA owners, if they're willing to transfer funds to charitable organizations.

The best approach to tax planning is starting early in the year. But it's never too late, even as the April tax filing deadline approaches, for some last minute tax savings tips. After all, a taxpayer's obligation is to pay their fair share of income taxes, and not a dollar more.

Tax Credits are on the minds of taxpayers as the April filing deadline draws near. Tax credits are different than tax deductions. If you consider preparing your taxes "fun," then you will enjoy taking tax credits even more than deductions. Here's why.

Generally, a tax shelter is a program that allows individuals or businesses to permanently reduce or defer the payment of income taxes.  Certainly tax shelters are not right for everyone; even legitimate tax shelters involve a level of risk that not every investor will be comfortable undertaking.

The American Recovery and Reinvestment Act of 2009 contains a number of tax relief provisions that will save both individuals and families money over the next several years.  In total, there are ten different provisions under this economic stimulus package that can help lower the tax burden of many Americans.

Federal Inheritance Tax is one of those topics many people don't like talking about, but it is a part of the cycle of life. Possessions have been passed down from generation to generation throughout history, and they provide us with both sentimental and monetary value. Thankfully, we don't have to deal with inheritance issues all the time, but we want to provide some information for those that need it.

Inheritance tax is paid when property is transferred to someone else after the passing away of the original property owner.  Inheritance taxes, or estate taxes, are calculated based on the fair market value of all of the property transferred to the beneficiary of the estate.

The Alternative Minimum Tax is not new; in fact it first appeared on tax forms dating back to 1978. Unfortunately, more individuals are falling victim to the alternative minimum tax, and they don't completely understand its purpose.

Generally, capital gains tax, or CGT, is owed on any type of property that is sold for a profit. Taking a more accurate approach to determining a capital gain, we first need to completely understand what a capital asset is, then figure out the cost basis for the asset.

On December 9th, the IRS revised the standard mileage reimbursement rates for the calendar year 2012. These rates should be used to calculate the tax-deductible costs for using a car for business, charitable, medical, and moving purposes. The most common use of these mileage rates is to reimburse employees for expenses involving use of their own cars for business purposes.

As the saying goes, if it sounds too good to be true, then it's probably a tax scam.  Peak activity of these scams occurs around tax preparation time, but even scammers need to make their monthly mortgage payments, so you can run into one of these ploys all year long.

You have a new job, and they're offering you $1,000 a week to start! That's good news, but even more important than how much money you're making each week, is how much money is making it into your pocket. Payroll taxes can take quite a large bite out of our weekly paychecks.

As you travel from state to state, the money owed on purchases can be confusing due to differences in state sales tax rates. Adding to that confusion is the World Wide Web, which makes purchasing merchandise from a company doing business in another state an everyday affair.

We've put together a lot of information on federal income tax brackets, so here were going to add to the income tax story with a listing of state income tax rates. Keep in mind that state income tax is not the end of your tax bill, because property tax and sales tax are used to pay for essential services too.

In this publication, we're going to discuss the topic of tax-friendly states.  That point of view will be from both a residential standpoint as well as a business perspective.  When we pay taxes, we're providing sources of income or revenue to those entities that are providing the essential services that we all enjoy.  But there is no doubt that some states are more tax-friendly than others.

According to the U.S. Treasury Inspector General for Tax Administration, over 2 million taxpayers fail to take a state sales tax deduction on their federal income taxes.  This works out to nearly $4 billion in missed deductions each year.

As the close of the year draws near, many taxpayers are concerned about limiting their tax liability in 2012. By understanding their incremental federal income tax rates, taxpayers can better understand the benefit received from a potential tax deduction.

Payroll taxes for Social Security benefits are collected under the authority of the Federal Insurance Contributions Act, or FICA. Many people simply refer to these taxes as FICA tax. This tax had its origins back in 1935, when the tax was introduced as part of the Social Security program.

Federal income tax and debt are the two main sources of funding for the U.S. government.  But with the national debt in excess of $14 trillion, the government is looking for additional sources of money to fund their spending.  One of those potential sources is a national value added tax, or VAT.

If you own a home, property taxes are usually a large part of your monthly mortgage payment.  While politicians like to talk about lowering property taxes, in most towns across the nation, this tax increases almost every year.

If you have rental property or property used for business purposes, then Section 1031 of the Internal Revenue Code has a tax shelter that might apply in your situation.  Section 1031 simply states that no gain or loss will be recognized on the exchange of property held for productive use in a trade or business, or for investment, so long as the property is exchanged for like kind.

When we decided to put this article on tax liens together, we weren't sure if it belonged in the Investing, Buying a Home or Taxes section of this publication.  That's because the topic of tax liens cuts across all three of these areas.

There have been natural disasters over the last several years that have affected many taxpayers.  In this publication, we'll talk about some of the tax relief that might be available to individuals that have been affected by these storms or other natural disasters.  Fortunately, there is a special disaster tax-relief provision that helps taxpayers recover from the financial impact of nature's wrath.

As the saying goes, taxes are one of those guarantees in life.  That's why tax relief programs are always a source of debate among politicians.  If you're wondering if you qualify for income tax relief, then this publication should help by running through some of the recently introduced tax relief programs in the United States.

The income tax filing deadline is quickly approaching, so we thought this might be a good time to write an article on income tax.  We'll talk briefly about the history of the tax itself, the concept of tax brackets, where to get various IRS forms, and even some information on websites that allow you to complete your income tax forms online and submit them to the IRS - for free.

IRS Forms are on the minds of most taxpayers, as each April 15th deadline quickly approaches.  Even if you've already conquered your taxes for the year, we thought it would be nice to offer a more complete guide to the most common IRS tax forms used.

Tax Brackets is the term generally used to describe the incremental tax you pay on each additional dollar of earnings.  For example, if you are in the 28% tax bracket, then for each additional dollar of income you had in 2004, you would owe $0.28 in federal income taxes.