The good news is that the IRS has absolutely no authority over the lenders whose business it is to decide whether or not you are eligible to buy a home. The bad news is that the money you owe the IRS could impact your loan application in other ways that you haven't yet anticipated. Before you apply
Under Internal Revenue Service (IRS) tax law, unearned income and earned income are two distinctly different types of income. Based upon this distinction, the IRS treats the two income types differently, though it is all placed on the same tax return.
Although the purpose of an IRA is to save for the future, it is not uncommon for taxpayers to 'borrow' money from their account. Unfortunately, there are severe tax penalties that are assessed when you ...
Federal, state, county and local governments all run off of the taxes we pay. As you probably have noticed, they get a bit touchy when you don't pay the amount you owe or do it on time. If you owe past taxes, you are going to have to deal with the problem sooner or later. How you do it is a mat
Nowadays, outsourcing tax preparation is becoming the trend in the business industry. It has been in the business for the past five years and is not showing any sign of bringing it to an end. The more
Although itemizing deductions may seem like a relatively easy way to save money, the reality is that many taxpayers do not itemize deductions because to do so would actually cost them more money. Furthermore, many of those who would like to itemize their deductions find that the IRS imposes limits o
One of the most common questions accountants hear every year is how long should I keep my tax records? The answer is it depends, but at least 3 years is advisable but six years is better.
To avoid tax penalties for failure to pay income taxes throughout the year, taxpayers submit estimated tax payments. These payments are calculated for income sources that do not have withholding, such as investments and self-employment. Estimated tax payments are required for anyone who had tax liab
The estate and inheritance tax are often misinterpreted as being the same tax, commonly referred to as the "death tax." The estate tax is a federal tax on an estate worth more than $2 million (increased to $3.5 million for 2009). An inheritance tax is a state tax on the portion inherited by the indi
Paying your own taxes is one of the hard things about being self-employed due to the self-discipline required to save the money. Paying taxes quarterly means you have to come up with the amounts every three months instead of paying it all to the Internal Revenue Service (IRS) in April. If you think
If you discover a deduction mistake after you've submitted your tax return -- whether it favors you or the government -- it should be corrected. If you find the error before April 15, merely submit a new, correct return. If you discover the mistake after April 15, you must file an amended return via
Nowadays, the internet has definitely become an indispensable element of all kinds of business across the globe. At the final period of the tax season, all earners highly consider the official procedure of income tax return filing a priority. While a number of taxpayers have found it trouble-free to
Some nursing home expenses are tax deductibletax forms image by Chad McDermott from Fotolia.comYes, If Resident Is There for Medical ReasonsNursing homes are considered medical facilities. Under U.S. law, most medical expenses a person incurs can be written off as a deduction on their tax...
What if you owe IRS back taxes and your spouse does not?Even if you file Married Filing Separately your spouse might still get his or her wages garnished if you live in a community property state.To find out if you live in one of these states and what to do about it, read on!
The federal tax system is a pay-as-you go system which means that as you earn income you must make estimated tax payments. For most people who work as employees, the money is automatically withheld from their paychecks. However, if you are self-employed or do not have enough income withheld from you
Other states have a progressive tax rate, which rises with income. Thirty-four states fall into this category. For example, California has a personal income tax rate of 1 percent at the lowest level of income up to $7,165 and 10.3 percent at the highest income bracket of $1,000,000 or...
Senior citizens have a number of special tax considerations. Many seniors are retired or semiretired and collecting Social Security benefits. They frequently also rely on income from a variety of investments, whether from taxable interest, nontaxable interest from municipal bonds, money from capital
For a state where a four-hour drive can put residents and visitors within reach of both the Wilmington eastern shore and the Asheville mountains, North Carolina's police keep busy patrolling, providing security, fighting crime and solving problems. Police officers in North Carolina may belong to a t
Taxpayers who own their own small businesses can take advantage of several opportunities to decrease their federal income tax liabilities. Many small-business owners, including self-employed taxpayers, can use their businesses as effective tax shelters reducing their annual income taxes. For self-em
Turning your main home into a rental has both positive and negative tax consequences. As a homeowner, mortgage interest and insurance costs are still tax-deductible. With an investment property you can write off maintenance and repair expenses, but you must also pay tax on any profit that results f