When a loved one dies, taking care of tax matters may be the very last thing on your mind. However, some tax issues may come up in the months after death. If you are the surviving spouse or parent, you'll want to begin planning so that you can arrange your loved one's affairs. Knowing how to handle taxes after a child's or spouse's sudden death can make it easier for you to care for financial matters such as estates and tax returns.
Do you dread tax season each year? If so, getting a jump on your tax preparation now can help you avoid the stress of trying to make the filing deadline. Here are three tips to help you prepare for filing your taxes next year.
I
f you have a credit card, you may be eligible for a rewards program. Credit card companies often offer rewards programs in an attempt to draw new customers. If you are a member of a rewards program, you may be subject to federal income taxes on certain types of rewards. Here is a review of which credit card rewards are taxable and which are nontaxable.
Finding an affordable nanny or baby sitter can be a real struggle for working parents. If you're fortunate enough to find a good nanny, you're likely to use his or her services on a regular basis. However, if you pay a baby sitter or a nanny often, you may actually be subject to a household employee tax or the "nanny tax".
ered several forms of income tax assistance to taxpayers over the years. These aids are designed to help individuals understand, prepare, and pay their taxes. Here are 10 cool tools available from the IRS this tax year.
The Affordable Care Act (ACA), which is commonly referred to as "Obamacare", allows U.S. citizens to purchase health insurance at a reduced rate. Those who do not buy health insurance by the deadline are subject to a tax penalty. For those who cannot afford the insurance, though, there is an Affordable Care Act hardship exemption that allows them to escape liability for the tax penalty.
As the filing deadline draws closer, many taxpayers realize that they won't be able to submit their returns on time. These individuals often turn to filing a tax extension to have more time to prepare their forms. Is this a wise thing to do? Does filing a tax extension make it more likely that the IRS will audit you?
When a wealthy celebrity dies, news reports might mention the estate tax that is levied against the assets afterward. The estate tax is often nicknamed the "death tax" because it only comes into force following a death, but it's not actually a tax on death. What is the estate tax? Who is required to pay it? Does the IRS offer any estate tax deductions?
Are you expecting a large tax refund this year? Congratulations, you'll be receiving tax-free money that you can use however you like! If you want to be smart with your taxes and finances, though, you'll need to learn how to invest your tax refund. While using the funds for a luxury item such as a television or a new wardrobe might be tempting, using your tax refund as an investment will pay off in the long run.
The capital gains tax is an income tax levied on profits from sales of capital assets. However, if you're subject to the capital gains tax, your effective tax rate can be as low as zero or as high as 20 percent. What is the capital gains tax? Which assets are subject to the tax? How is the tax rate calculated? Here's a primer on what the capital gains tax involves.
