During divorce proceedings, some spouses balk at having to split their family wealth 50-50. Yet, some of these people unknowingly fork out 45% of their income in estate taxes on their death. In America almost everything is taxable and the gifts you give to friends and family during your lifetime could also be taxable depending [...]
Some of the confusion about taxes come from the multiple forms the taxpayer has to wade through before deciding which form is right for their income tax return. Most people need the standard Federal tax form 1040 which covers common income and deductions fields. On the other hand, if you have low income for the [...]
In these unsettled times when job security is a thing of the past, you need every dollar you can earn. In good times some people treat money as they use water, foolishly sending it down the drain because it is plentiful. The same goes for income tax refunds. Imagine someone calculates a $5,000 plus refund [...]
Yesterday, I could not believe what I was hearing while listening to a video about clients of a firm that helps taxpayers negotiate favorable deals with the IRS. But it seems the IRS has some unreasonable laws to work with when dealing with you. This chap spoke about having a significant amount of money deducted [...]
I just heard from a long-time friend of mine who is in a hurry to file her taxes. This woman hurries through everything in life and I often wonder when she will slow down. Anyway, she thinks she needs money coming from her return, so she has gone into online tax prep mode. Well, that [...]
Recently, we wrote about the myth of getting tax refunds. Today, we want to continue that trend by showing you a special video on this subject. Yes, getting a tax refund doesn’t mean you get free money, as many people think. It is just payback time. The IRS is returning the excess money your employer [...]
Many taxpayers consult a CPA for tax planning, yet others think the fees charged by these certified accountants are too much for the service they provide. Therefore, most people go to the ordinary tax preparer and are very happy with their service. It is true that you get what you pay for but in this [...]
Everyone is so worried about getting audited by the IRS, but the reality is the IRS have only so many auditors to go around. The tax man can only send his auditors to a fraction of the millions of taxpayers who file tax returns. The chances of getting audited are probably a game of chance, [...]
When John (not his real name) moved from the hot Texas climate, he figured he would get some Texas tax back. John’s situation is not unique because many Americans move from one state to another in search of employment or family bliss. Depending on the time of year you leave one state for another, you [...]
Many small business owners get confused about the differences in tax reporting and their regular reporting to their shareholders. That is why some accountants tell about many unrealistic claims owners make when completing their 1099 taxes. Naturally, a going concern will incur expenses, but not all expenses are deductible. Even when certain expenses are [...]