A tax credit is an amount you subject off the total tax owed. Many people often confuse “credit” and “deduction”. A tax credit is typically much better than a tax deduction. A tax deduction only reduces your taxable income. An actual tax credit will reduce the amount you owe in taxes. Here is an example: [...]
Taxes
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James
A lot of people get their pay stubs and see they had their money deducted from them but don’t know why. One of those items appears as “FICA”. It stands for Federal Insurance Contributions Act, 12.40 percent of your earned income up to a certain annual limit must be paid into Social Security, and another [...]
Most people pay the IRS throughout the year by having their employer withhold tax dollars from their paychecks. Your employer then determines how much of your hard earned paycheck should be withheld and sent to the government based on the W-4 form you filled out when you start a new job or at the start [...]
Many people often make plans on how to spend tax refunds that they are suppose to get before they even receive the actual refunds from the government. For those who want to check the status of their refunds, they can either call the IRS or check the IRS website, available in English and Spanish. Check [...]
When people hear the words, “audit”, some shrek in fear. Don’t fear, audit rates have declined over the past few years but have started to increase for those with self-employment income. The IRS have caught on to those trying to push what qualifies as business expenses. Realistically, your chance of having your personal tax return [...]
Filing taxes is hard enough with you are single, but what about when you get married? Marriage Filing Status Decisions Getting married affects your tax situtation by giving you an option of either filing jointly, married or separately. Check with your tax expert or accountant to see whats the best option for you and your [...]
An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed. Absent special circumstances, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or [...]
Links to state specific tax forms.
List of Federal tax forms
Most people pay the IRS throughout the year by having their employer withhold tax dollars from their paychecks. Your employer then determines how much of your hard earned paycheck should be withheld and sent to the government based on the W-4 form you filled out when you start a new job or at the start [...]