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Posts Tagged ‘taxes’

Businesses, Hobbies and Taxes

May 20, 2016  |   Tax News   |   Tags: , , , , ,  

When you engage in an activity that earns income, you need to consider if it is a business or a hobby. Depending upon whether you have a business or a hobby, your tax liability changes. A business is required to pay certain taxes, including income tax, estimated tax, employment tax, and self-employment tax. Also, if a business is operating on a loss, it can take the deduction on the return. A hobby, however, cannot use ...

Tax Issues in Divorces

A divorce is always difficult, even when it is without the legal hassle. One of the problems that divorce brings is with taxes. Your filing status changes, your finances may fluctuate and with it, your tax liability. To manage the tax changes, gather as much information as you need, and seek help from a tax professional – especially before filing your return the first time after divorce. ...

U.S. Taxes for Americans Staying Abroad

U.S. citizens living overseas are required to report their worldwide income to the IRS, including financial accounts held overseas. The IRS’ persistent efforts to curb tax evasion lead to the strict enforcement of the Foreign Account Tax Compliance Act (FATCA). Failure to report income results in a serious penalty. The Motley Fool shares: “Deadlines “Let's start with deadlines. The one for filing your income ...

Are You Taking Out Too Much or Too Little in Taxes from Your Paycheck?

Income earned from wages is taxable if it exceeds a certain amount. If the income earned is from wages, the employer withholds taxes from the paycheck of the employee and transfers them to the IRS. The amount an employer withholds depends upon the wages and the information provided by the employee on Form W-4. How Inaccurate Withholding Affects You If you have a single source of income, i.e. ...

Tax Breaks When You’re Out of Work

March 15, 2016  |   Tax Advice,Tax Tips   |   Tags: , , , , ,  

There are advantages and disadvantages to taxes when you’re unemployed. You do not earn an income on which you must pay taxes, but your unemployment compensation is very much taxable. If you receive income from other sources such as rent, dividends, interest, etc. then you’ll need to figure out if your total income is above your filing threshold. On the bright side, there are ...

Business Tax Myths to Watch Out For

The IRS keeps a close watch on business tax returns. In 2015, the tax agency examined early 62,000 business returns, a slight increase from 2014. Typically, those with income and larger businesses have greater chances of being examined. Unintentional errors or simple oversights can be dangerous for businesses. A single error can call into scrutiny not only your tax information for 2015, but possibly from previous years. ...

Qualifying for the Home Office Deduction

If you use a part of your home exclusively for business purposes, you might be eligible for the home office deduction. Available for homeowners and renters, this deduction is application to all types of homes. Generally, you cannot deduct items related to your home, such as mortgage interest, real estate taxes, utilities, maintenance, rent, depreciation, or property insurance, as business expenses. However, ...

Sharing Your Finances with the IRS

Usually, in cases of non-payment of taxes, the IRS asks taxpayers to share their financial information. Handing over complete financial information to the IRS gives them the power to better determine collection action. After review, they can place a lien on any property or asset, or determine the maximum amount a taxpayer can pay to satisfy the tax debt. Payment of Tax Debt The IRS usually asks for the sharing of financial information for larger tax debts, ...

Businesses, Hobbies, and Taxes

October 06, 2014  |   Tax News   |   Tags: , ,  

These days, it’s becoming remarkably easy to make a little money doing something that a person usually enjoys as a hobby. For instance, a person who likes knitting can sell all sorts of creations on popular craft selling sites or even at street fairs. However, just because someone decides to make a little money on something they enjoy doesn’t mean that they are operating a business. In fact, the IRS views many activities as hobbies. ...

How health care reforms affect your taxes?

September 11, 2014  |   Tax Advice   |   Tags: , ,  

With the Supreme Court's ruling on the Affordable Care Act, commonly known as Obamacare, many wonder how the new healthcare laws will affect them. The Affordable Care Act is bringing about a significant change in how health insurance coverage is treated under law, not the least of which is the tax implications. Some changes to tax credits ...