Category: Taxes

The Laffer Curve and Taxation in the United States

The Laffer Curve, made popular in the 1980s as one of the premises behind supply-side economics and espoused by proponents of government tax cuts, has a long and...

Is Disability Income Taxable?

Publication 907 by the Internal Revenue Service (IRS) explicitly states that income from any benefit received in the form of disability insurance compensation becomes...

How to Get a Federal Tax ID Number

A federal tax identification number is also known as the Employer Identification Number (EIN). All the employers need to have it in order to be tracked by the government...

Check Out This Notable Information to Know How Bonuses are Taxed

Bonus amounts granted to employees are taxed, as the IRS considers it to be a part of the income. Facts About Bonus Payments Bonus payments are made by employers to...

Information about Claiming a Child on Tax Return

Having kids can reduce some amount of tax one pays to the government. Such a tax is known as ‘Child Tax Credit’. It is one of the many ways of availing...

Flat Tax Vs. Fair Tax

As the powerhouses in the US pit their wits against two startlingly different tax reforms to ever be implemented, the debate of flat tax vs. fair tax is an engaging one....

What are Withholding Allowances?

A withholding allowance is basically a tax compliance that is imposed by the Internal Revenue Service (IRS) of the United States, and is adhered to by the employees and...

Are Property Taxes Deductible?

There are a considerable number of deductions that can be used while one files the income tax return. The income tax in the United States of America, is basically a...

Capital Loss Carryover

Every year, companies calculate their annual profits and losses by preparing a set of statements that are collectively termed as the final accounts of the company. While...

Evolution of Tax Structure in the US

Federal, state, and local taxes in the United States have evolved in response to the changes that have occurred in the country. Over the years, successive governments...

Claiming Parents as Dependents for Tax Benefits

Taxes make us part with our hard-earned money. It unwillingly sets us back by a few hundred dollars every month. But cheer up! There are a few tax provisions through...

File Tax Return Without W2

Every one of us go through this yearly predicament where you bang your head against the wall to find out how to calculate income tax. Since your annual income is higher...

Minimum Income to File Taxes

The IRS does allow a bit of exemption on the income earned annually. That is to say, not everyone who made a penny in the past year is entitled to pay income tax....

How Can Married Couples File Taxes Separately

According to the tax laws, whether a person can tick either of the ‘married filing separately’ or ‘married filing jointly’ options depends on his...

Rules for Claiming Dependents on Taxes

Every financial year, you need to worry about paying income taxes, don’t you? But there are a number of exemptions available, with the help of which you can save a...

Exemptions on Tax Return

You as an individual have to pay taxes to the federal government, for the income you earn every year. So, you need to report your income by filling up a form and list...

Flat Tax Vs. Fair Tax

As the powerhouses in the US pit their wits against two startlingly different tax reforms to ever be implemented, the debate of flat tax vs. fair tax is an engaging one....

Penalty for Not Filing Taxes

If you think you can successfully evade taxes for one reason or the other, you are mistaken. The Internal Revenue Service (IRS) keeps track, and if not now, then later,...

Married Filing Jointly

A married person has two choices when filing his or her income tax return: married filing jointly and married filing separately. Let us try and understand what it means...

Tax Risk for Middle Class Americans: Increased Audits and AMT

By Erin Peterson Middle income Americans have become more exposed than ever to being audited by the U.S. Internal Revenue Service (IRS). If caught cheating on their tax...

Fiscal Policy

Economics can be broadly classified as Microeconomics and Macroeconomics. These have different objectives that are required to be achieved; the instruments for achieving...

Rental Property Tax Deductions

The deduction for rental property for a landlord is possible on certain grounds; however, the total amount is restricted. In case of tenement, this becomes possible only...

Is Alimony Tax-Deductible?

Alimony is an allowance that is paid by a divorced person to his/her spouse to provide financial support post divorce/legal separation. Such payments can include rent,...

Home Business Tax Deductions

Running a business from home is comparatively cheaper than renting a separate edifice and running your business from there. A spare room, den, garage, or even a part of...

Exemptions on Tax Return

You as an individual have to pay taxes to the federal government, for the income you earn every year. So, you need to report your income by filling up a form and list...

What do Charitable Contributions Tax Deductions Mean?

There is no specific meaning or definition that can be used to identity a charitable contribution. When it comes to taxation doctrine, payments that are made to...

Sales Tax Deduction for Vehicle Purchases

The tax deduction was introduced primarily to stimulate vehicle purchases in the American economy following the fall in demand during a crushing recession. So the...

Itemized Deductions Vs. Standard Deductions

The income tax department of the United States of America is known as the Internal Revenue Service. The IRS is responsible for collecting Federal income tax throughout...

Is Rent Tax Deductible?

Tax is an important revenue that is collected by any government. In a Federal or Unitary democratic system, such as the United States of America, which happens to be a...

Tax Write-Offs for Individuals

Annual taxation is an important revenue for any government, with the help of which, welfare activities are financed. The department or ministry of revenue collects a...

What are Tax Shelters?

It hardly matters whether you are a salaried individual or a businessman, when it comes to paying tax. The deduction calculated on your earnings always takes its toll on...

Here are Some Important Tips on How to Get Rid of Tax Debt

It’s income tax time again, Americans: time to gather up those receipts, get out those tax forms, sharpen up that pencil, and stab yourself in the aorta. –...

5 Easy Steps That Explain How to Calculate Tax Liability

Calculating tax liability is not exactly a very difficult task. After all, the calculation is nothing but a simple arithmetic computation. In addition to that, the rules...

What is Deferred Tax Liability and How it is Calculated

The concept of deferred tax liability is an idea which a student of commerce should know about. There are many accounting fundamentals that you need to grasp when...

IRS Debt Forgiveness

Taking into consideration the recent economic recession, the administration has made some vital reforms to the federal tax tables. These reforms, also known as the IRS...

Tax Debt Forgiveness

The recent economic recession that was observed in economies all over the world, saw the emergence of many weird and uncommon situations in the courts of law. All the...

Go Green and Save Money With Hybrid Cars Tax Credit 2011

President George W. Bush signed the Energy Policy Act of 2005, which considerably changed the energy policy of in the United States. As a measure to promote the use of...

Easy Ways to Claim Tax Credits on Home Improvement

The Internal Revenue Service (IRS) releases a large amount of tax deductions every fiscal year for the benefit of taxpayers. Such deduction lists are principally used to...

Reap the Benefits: Tankless Water Heater Tax Credit

What type of water heater are you thinking of buying? Well, you can choose either a tank water heater or a tankless model to serve your purpose. Tank water heaters that...

Federal Tax Credits for Consumer Energy Efficiency

The energy efficiency tax credit was first introduced in the year 2009 as part of the American Recovery and Reinvestment Act (ARRA). The tax credit still continues and...

Claiming the Child Tax Credit

The child tax credit comes into play when there are lots of dependent children in the family or the total income level of the family is lesser than USD 110K in a year....