{Editor’s Note: This post was originally published in September 2013 and has been updated for accuracy and comprehensiveness.}
When tax season rolls around, many people look for ways to reduce their bill—and rightly so. But understanding how different tax breaks work can make a big difference in how much you actually save. Two common tools in your tax-saving toolbox are tax credits and tax deductions. While they might sound similar, they work in very different ways. Let’s break it down.
{Editor’s Note: This post was originally published in August 2013 and has been updated for accuracy and comprehensiveness.}
Some taxpayers might feel that they don't need to keep their income tax documents unless they have particularly complex tax situations. The reality is that all taxpayers should keep their essential tax documents on file. Depending on your circumstances, you may need to keep your records for several years, in case of an audit or to back up a claim.
{Editor’s Note: This post was originally published in April 2015 and has been updated for accuracy and comprehensiveness.}
The IRS requires that you file your taxes by midnight on April 15. Even with this deadline set in stone, you may still be unable to get your taxes filed in time. If that is the case, you are not alone. According to a study by IPX, roughly 31% of Americans procrastinate filing their taxes. So if April 15 has passed and you haven't filed, here are a few things you can do to minimize the consequences of late filing.
Editor’s Note: This post was originally published in January 2014 and has been updated for accuracy and comprehensiveness.
Having a baby is an exciting life event, but it also comes with significant expenses—many of which start during pregnancy. The good news is that certain pregnancy-related medical costs may be tax-deductible, helping you ease the financial burden. However, not all expenses qualify. Understanding which maternity costs you can and can’t deduct will help you keep better records and maximize your potential tax savings.
At any given time, about 1% of US workers are probably experiencing a wage garnishment. Wage garnishment can feel like a heavy weight on your shoulders, especially if you're trying to regain financial stability. Many people wonder if switching jobs will put an end to their wage garnishment or if there are other ways to stop it. Let’s break it down into simple terms so you can understand your options and take action.
As the calendar winds down and the holiday season approaches, it's the perfect time to reflect on your financial health. Tax planning is a vital part of securing your financial future, and strategic tax planning can unlock significant benefits. Whether you're an individual taxpayer or a business owner, taking the right steps now can lead to substantial savings and peace of mind.
If you’re dealing with tax issues, you may have heard the term “tax levy” mentioned as one of the possible actions the IRS can take to collect unpaid taxes. But what exactly is a tax levy, and what types should you be aware of? Let’s walk through the basics so you’ll know what to expect and, more importantly, how to protect yourself.
If you’re facing a visit or call from an IRS Revenue Officer, you might feel a mix of confusion and stress. After all, most of us never expect to deal directly with the IRS, let alone with one of their Revenue Officers. But it can happen to anyone, especially if you have overdue tax debts, haven’t filed tax returns, or are dealing with payroll tax issues. So, let’s walk through some tips to help you manage this situation calmly and effectively.
Editor’s Note: This post was originally published in December 2011 and has been updated for accuracy and comprehensiveness.
If you're behind on your taxes, you've likely heard the term "tax levy" thrown around—but what does it actually mean, and how could it impact you?
