No one wants to make a mistake when filing his or her taxes to the federal government. Unfortunately, filing on your own can be a bit difficult. If you want to file correctly, you probably want to take the time to look at free tax tips. Below are a couple sources of free tax tips for your 2013 or 2014 filings.
One of the best places to start looking for tax tips is always with the IRS (www.irs.gov). Not only is this the official source for tax information in the United States, but its tips are actually quite easy to follow. If you want a bit more information, it might be useful to take some time to look at some of the tax processing sites out there. Sites like TaxAct (www.TaxAct.com) and TurboTax (www.turbotax.com) have a great deal of filing information available even for those who do not choose to use the services. If you want to go straight to a trusted information source for even more, though, you might want to check out CNNMoney (money.cnn.com) for information when it gets closer to tax time.
If you are looking for more traditional sources, large tax processing services like H&R Block tend to have information about filing taxes available around tax time. In fact, it may be possible for you to get a quick class on how to file your own taxes from a similar giant, or even from a local tax accountant. Free classes tend to pop up around January each year, so taking the time to look at these information sources can be helpful.
Having your own small business can be a rewarding experience. There are many aspects that can be difficult to accomplish on your own though. The most important issue that needs to be watched and completed correctly is taxes. Ten free tax tips offered by the Score business website can be helpful to any business owner.
Deductions are the most important thing to remember with your own business. Do not overlook those deductions that may not be the most obvious. Even trips that combine business and pleasure can be used as a write off, just make sure more than half is business related. If your business has employees, you need to worry about getting the correct taxes out of paychecks. Social security, medicare, state and federal taxes all must be withheld. Also unemployment taxes and employer matching are also important.
Keep all of the tax documents for at least seven years. Good record keeping could save money in the end. Business tax returns and licenses should be kept indefinitely though.
Make sure that all of the business tax deadlines are met. April 15 may be the personal deadline but it is not the same for business. All business owners know that estimated taxes are due four times a year. And they remember that sales taxes are due either monthly or quarterly or their bookkeeper keeps track of the dates for them. Employee taxes are even more difficult, they are due either weekly, monthly, or quarterly. This will decide manly on the size of the business. All of these different rules can affect the business greatly. Keep on top of your taxes to avoid tax penalties and interest charges from the IRS.
The Lifetime Learning Credit 2010 gives a tax credit of up to $2,000 dollars for types of higher learning. It differs from the American Opportunity Tax Credit because it can be claimed for part-time students and even for courses that don’t count towards a degree. This credit has been made available through 2011, 2012, and again this year. Eligible Expenses include Tuition but not room and board, Books, Equipment, and fees that may be required by the University. The Lifetime Earning Credit isn’t eligible with tuition paid fro by a scholarship, employer funds or a grant. Even if multiple students are eligible the Lifetime Learning Credit can only be claimed once a year per household. The tax credit reduces taxes by 20% for non qualified expenses for up to $10,000 dollars for a total of up to $2,000.
You may claim the credit if you, a dependent or your spouse attends an eligible university or educational institution. even if only one class is taken, the tax credit may be claimed. All accredited colleges and universities are eligible as well as vocational schools as long as their also eligible for the US Department of Education’s Federal Student Aid Programs. Single head of households and qualifying widows earning between $53,000 and $63,000 have been phased out for 2013. If you’re married and filing jointly, the phase amount is $107,000 to $127,000. This amount is up from 2012’s phase out range of $52,000 to $62,000 for qualifying widows and single, head of household and a range of $104,000 to $124,000 for Married couples filing jointly.
Talk with your tax professional to have full knowledge on how Obamacare may affect your company or the company you work for. This should make employers take notice on how they are affected, since they are the primary tax targets.
Remember companies are up against the situation of uncontrollably increasing healthcare costs. Over 12 times the health costs have increased and we know that not many firms have not tripled their profits since 1999. I am wondering about those companies who have not done any redundancy, what will they do when they ponder over $24k per-employee increases.
The tax penalty for 3rd party health care is about $2,000 annually per full-time worker. This tax is a heavy duty to any tax payer and the more information we know, the more we discover. A full-time worker is anybody working 30 or more hours in a week and is subject to the penalty. Only the first 30 workers are exempt of the $2,000 tax penalty.
However, the law defines ‘expensive’ on the sliding scale as maybe not charging the worker more than 3.01% to 9.5% of his or her ‘family income.’ The household income range increases to 400% of the federal poverty level or $93,000 in a single year. The Act’s language basically says: you’re perhaps not going to know your family income, therefore the IRS will figure it out and send you a bill. The government estimates depict collecting about ten million in taxes here. It is obvious that avoiding charges has been nearly impossible. An employer can never estimate the earnings of employees and their family. Think, commissioned revenue representatives, incomes of couples, cutbacks, changing amounts of relationship, dependents, divorce and so much more.. it is quite impossible to estimate it all!
The ‘budget’ charge makes falling party protection and sending employees to private health dealings via HRA, an extremely attractive alternative for the government. Individual plans are generally 50% – 66% cheaper than group protection. Moreover, the HRA allows workers the freedom to have personal insurance that most readily useful fits their particular needs. The employers contribute some tax-free fixed number of dollars described by the employer.
A McKinsey study showed that of employers within the Obamacare tax regime absolutely engage 60-inch intend to drop group health coverage just after January 2014. Described Benefit Programs that get a handle on the cost of company health benefits and may replace group coverages as employees transfer from company to individual coverage. This can be performed with an arrangement from the Health Reimbursement (HRA).
Expense Surcharge – The relation of the expense surcharge to health has not been described, but it can use a 3.8% boost to dividends and capital gains for households making over $250,000. Small business are hitted by this disproportionately difficult as many small business owners fall in this type of expense, and this totally does not refer to people like Donald Trump.
‘Special Needs’ Tax – Caps the amount that may be preserved in Flexible Spending Accounts at $2500 per year. It is called the ‘Special Needs’ tax because it particularly hurts families with special needs like children. The tax is a pain as families spend proportionally more on medical care and tuition for special education.
Medical Spending Deductions Cap – The new tax increases the threshold for the amount on medics above which the spending might be taken from 7.5% of incomes to 10% of incomes. People with continuing medical expenses that fall under the ceiling can no longer apply for the discount, and people with higher expenses miss out on 2.5-4 of what they had previously been able to deduct.
The price employers should pay will definitely increase, with bonuses already squeezed by the old economy, companies it is likely that raises will not take place as the number of the damaged employees increases.
Medical Device Manufacturers Tax – A 2.3-liter excise tax on medical devices worth significantly more than $100. An excise tax is one that is required on a production of goods rather than on the intake of that object. It’s a ‘hidden’ tax since many people do not see the tax, only a growth in the prices. This has already hit the devices industry difficult and numerous companies have reported layoffs.
It is good to take count on the Obamacare tax as it affects a lot of the low income earners in the US…
Welcome to the June 18, 2013 edition of Tax Carnival Ecstasy. In this edition we start with an article by Jason Hull on tax accountants for your business. John Schmoll has a great post on retirement planning and saving for college together. Bill Smith takes a look at the online sales tax proposals that have been made. And we have an article on fake charities popping up after the recent events in Boston and how to protect yourself. Hope you like all the articles, bookmark, share, tweet, and like on Facebook.
Jason Hull presents Tax Accounts for Your Business posted at Hull Financial Planning, saying, “Don’t forget that if you own a business which is treated as a partnership for tax purposes, you’ll be personally liable for the taxes at the end of the year!”
John Schmoll presents Retirement Planning and Saving For College: Can They Co-exist? posted at Frugal Rules, saying, “Retirement planning and saving for college are both items that take years to save for. While it may not always be easy to balance the two, it can be possible to do so without sacrificing the other.”
John Schmoll presents How to Invest in Stocks When You Do Not Know Where to Start posted at Frugal Rules, saying, “Investing in stocks, or anything in the market, can be overwhelming for many. The key to overcoming that fear is knowing where to start and educating yourself so that you can set up an investment portfolio that’ll help you grow your wealth and reach your long-term retirement goals.”
Cherry Liu presents 30 Blogs Featuring the Most Reliable Tips for Estate Shoppers posted at House Sitting Jobs, saying, “Real estate laws, taxes and investment options constantly change to reflect the state of the economy, which is why the smartest investors know stay ahead of the game.”
That concludes this edition. Submit your blog article to the next edition of tax carnival ecstasy using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.
Filing and preparing taxes each year is a responsibility of all American wage earners. While it is a recurring obligation, the process of filing and preparing taxes can be pretty complicated considering the complexity of the current tax code. When filing your taxes, it would be a good idea to take advantage of online tax preparation and guidance services provided by TaxBrain.com. Update: TaxBrain.com Software has been discontinued.
Through the use of TaxBrain.com, you will receive a number of different services. The primary advantage is that you will be able to take advantage of all the current tax code benefits. While taxes are required every year, deductions and credits that you qualify for could vary considerably from one year to the next. The software will allow you to input all of your personal information and then will determine what exactly you qualify for, which could end up saving you a lot of money.
Another advantage of using the personal accounting website is that you can be assured that your taxes are compiled and filed correctly. This can help assure that your annual tax bill is accurate, which could help you avoid fees and other tax penalties in the future.
Beyond paying taxes each year, you should also spend time tax planning for future years. Through the use of a tax calculator, you will be able to determine what you future year’s tax liability will be. Based on this information, you will be able to determine better if you should withhold more or less taxes during the year.