Members of the United States Armed Forces and their families may be eligible for tax deductions and savings under the Military Family Tax Relief Act. This provision was specially designed to provide financial assistance to military personnel, especially assistance that allows them to take advantage of additional tax credits because of the itinerant nature of their work. To claim these provisions, though, members of the military should become familiar with all the benefits they may qualify for.
Do you own a rental property? Are you currently leasing or looking to lease it to someone? If so, you may be eligible for certain tax deductions based on the expenses you incur during the course of your rental business. However, you'll need to acquaint yourself with several provisions in the IRS tax code to make sure that you claim your expenses correctly, document them properly, and adjust them as necessary.
s who make contributions to retirement plans administered by their employers may be eligible to claim the Retirement Savings Contributions Credit, also known as the Saver's Credit, on their federal income tax returns. This credit allows qualified taxpayers to receive a tax credit based on the amount they contribute to their retirement plan during the tax year. While it is relatively easy to file for the Saver's Credit, meeting the qualifications to claim it can be a bit tricky.
The Internal Revenue Service has allowed for disabled taxpayers to receive several breaks, deductions, and credits on their income tax returns. In some cases, these credits are available simply because taxpayers meet certain standards regarding age and disability. Some other tax breaks must exceed a certain amount or be used for a specific purpose in order to be considered qualified expenses.
The Earned Income Tax Credit (EITC) is one of the most commonly claimed income tax credits in the IRS code. This credit, which is designed to provide financial assistance to low-income taxpayers and their families, is one of the few refundable tax credits allowed by the Internal Revenue Service. Unlike other tax credits that simply reduce the amount of tax liability, the EITC directly increases a taxpayer's refund. However, in order to claim the credit, taxpayers must meet very strict requirements regarding their qualifying relatives, earned income amounts, and filing statuses.
Dealing with an IRS collection action such as a levy, a lien, or an IRS property seizure can be stressful and time-consuming. The process for appealing one of these actions can also be a lengthy ordeal. Because your property and assets may be at stake, it is important for you to understand your rights and responsibilities in these situations. You do have the right to appeal most IRS collection actions, but you must do so by following a very specific time frame in order to have your appeal heard.
Are you facing an impending IRS collection? If so, you may feel that you have no choice but to accept the decision. However, the agency does give taxpayers the option to appeal IRS decisions relating to collections. Taxpayers do not have to fear that their appeals will be tossed aside. The agency handles appeals in a completely separate department from collections, and the two groups are forbidden by law to communicate. This precaution ensures that taxpayers receive a fair appeals hearing.
If you own a business and you have employees, then you are no doubt familiar with the requirement to withhold payroll taxes and submit them to the IRS. According to federal tax regulations, employers are required to deposit their employees' payroll tax withholding amounts, as well as their matching deposits, once every three months. For bosses who neglect or refuse to comply with this payroll tax requirement, the IRS has instituted a penalty called the Trust Fund Recovery Penalty (TFRP).
When taxpayers are searching for overlooked end-of-year tax deductions to include, they may wonder whether they qualify to deduct the cost of any funeral expenses they had during the year. In the vast majority of cases, however, funeral expenses are a nondeductible expense, which means that they cannot be deducted on a tax return. There are a few tax returns each year. They may legitimately include the cost of funeral expenses as a deduction.
Every year, the IRS imposes tax penalties upon individuals and businesses. In most cases, these penalties are related to minor oversights such as failure to submit a tax return on time or a failure to pay a tax bill on time. In some cases, taxpayers may be subject to more than one penalty at a time, which can raise his or her tax liability substantially. One of the penalty relief provisions the IRS offers is called a first-time penalty abatement. While the agency is strict about imposing tax penalties where necessary, some first-time tax offenders may qualify for penalty reduction or removal under this arrangement.
