The IRS wants you to pay your share of taxes as you earn your money. For individuals whose total tax obligation is more than $1,000, they must pay at least 90% of their taxes to avoid possible penalties and interest. To learn how to pay this obligation through withholding or estimated payments, read this C.P.A. Insight.
Gifting is a way to reduce your estate by passing on property to others while you are still alive. Individuals are allowed to gift up to $13,000 in property to an individual per year. You may make as many $13,000 annual gifts as you wish to any number of individuals, without being required to file a gift tax return. For more information on the basics of gifting, read this Financial Strategy.
If you used your credit card to pay your federal individual income taxes, your credit card company likely charged you a fee close to 2.5% of your total payment. The good news is that the IRS has announced this convenience fee is deductible. For more information on how to deduct these fees, read this C.P.A. Insight.
If you have had the unfortunate experience of watching one of your securities investments plummet to worthlessness, you may be eligible for a tax deduction. However, the IRS has a strict definition of "worthless." For more information on what qualifies a stock to be worthless and how a taxpayer can take advantage of a loss of a stock that has a miniscule amount of value, read this C.P.A. Insight.
If you are like many, you already know how you plan to spend your tax refund, but the question many still have is, "How long do I have to wait?" The IRS offers two ways, by Internet and phone, that allows taxpayers to check the status of their refund. For more information on the IRS’ turnaround time, read this C.P.A. Insight.
After all your business trips to New Jersey you finally have enough frequent flyer miles for a roundtrip ticket to Hawaii. Now the question is, "Are those frequent flyer points considered taxable income?" For more information on the IRS’ treatment of frequent flyer miles, read this C.P.A. Insight.
A successful estate plan takes more than good intentions. If you do not have a Will in place, a nameless, faceless court will decide how your assets will be distributed. This is one of many pitfalls you could face if you do not revisit your estate plan, as your family situation or federal and state laws change. For more information on areas you should consult your estate planning attorney or tax adviser on, read this Financial Strategy.
Of the two sure things in life, death and taxes, you might be surprised to know taxes have nearly an equally lengthy history. The United States was founded in large part to avoid taxes; however, once the Constitution gave Congress the authority to tax in 1789, citizens have weathered scores of changes. For more on the history of U.S. taxation, read this C.P.A.Insight.
For a minor to own investments in his or her own name, a custodial account must be used. A custodial account is established through the Uniform Gift/Transfer to Minors Act and allows a custodian to control a savings account until the child reaches the age of majority, when the account becomes the sole possession of the child. For more information about custodial accounts and to learn about some the advantages and disadvantages, read this Financial Strategy.
In the event that you move, you are required to inform the IRS of your new address and contact information so that they can update it in their files. If you fail to do so, any vital information regarding your taxes that is sent to your "last known address" is legally effective, even if you never received it. For more information about the steps to take to keep your information up-to-date with the IRS, read this C.P.A Insight.
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