All Taxes Articles

Most people hate filling out tax forms almost as much as they hate forking over dough to Uncle Sam. That's why you should use the simplest tax return you can, especially if you're still filling out your forms by hand. But choose carefully. While all the personal income tax forms -- 1040, 1040A and 1040EZ -- are designed to get the appropriate amount of your money to the Internal Revenue Read more...

Earlier is better when it comes to working on your taxes, for both you and the Internal Revenue Service. By getting a head start on tax preparation, you avoid the last-minute rush, when many filing mistakes are made. And the sooner the tax agency gets your return, the sooner it can process it and get your refund on its way to you. Here are eight ways to get a jump on your taxes long before the Read more...

Each December, the "season of giving" expands beyond family and friends. Many gifts also are made to charitable organizations. These donations pay off not only for the nonprofits, but also for the giver, who might be able to use them to arrive at a smaller IRS bill. Some older taxpayers will find giving easier this year. Some folks who donate household goods, however, are going to Read more...

Plummeting stock prices can cast a dark cloud over anyone's finances. However, at tax time, these capital losses can produce a ray of write-off sunshine. When you sell any pharmaceutical flops or banking blunders, you can use them to offset gains from more successful ventures -- or even a portion of your everyday income. A capital loss is the result of selling an investment at less than Read more...

Year-end tax planning moves are once again complicated by political uncertainty. But this time, Congress isn't the cause. Representatives and senators actually passed the expected end-of-session tax law changes in early October. The reason for tax planning ambiguity this time is President-elect Barack Obama. The soon-to-be commander in chief made it very clear during the campaign that some Read more...

If you're still waiting for your economic stimulus payment, it might be in one of the more than 383,000 pieces of mail returned to the IRS. Those envelopes were undeliverable because of bad addresses. That's left taxpayers frustrated as the IRS tries to figure out how to get $266 million in tax rebate and regular tax refund checks to their rightful owners. The good news is that it's easy Read more...

If you're planning to buy a home in the next 10 months, you may be eager to take advantage of the federal government's latest effort to jump-start the nation's moribund housing markets: A tax credit of up to $7,500 for certain homebuyers. The credit may appear to be an attractive opportunity, but you should be sure you read the fine print before you elect to claim it on your federal tax Read more...

Dear Tax Talk, My life partner and I have been living together for more than five years. She is a full-time student and is not working. I have been depositing money into her checking account so that she can pay for her medical insurance and bills. She has multiple sclerosis, so her medical bills can be significant. Will I be able to claim her as a dependent on my 2008 taxes? Will I be able Read more...

Dear Tax Talk, I am an engineering contractor; I get paid my base pay plus a per diem. I have been told that at the end of the first year, the per diem will also be taxed. I read in a couple of places that even after the end of the first year, I will be eligible for per diem because I have a house out of state. Or I can take a break for a week or two and then it will be counted as a new Read more...

As the economy weakens and prices soar on everything from gas to groceries, Americans are looking for quick ways to cut their expenses and hold on to more cash. Fortunately there are plenty of ways to chop your spending without a lot of time or hassle. Some of these cuts will save you just a few dollars, while others can net even bigger savings. Add them all up, and you could trim Read more...

Life expectancy has increased dramatically during the last 100 years, and the two main fears that people have are outliving their retirement savings and not having something to bequeath to their heirs. Many investors need options in addition to traditional and Roth individual retirement accounts, 401(k)s and pension plans. A key to investing is finding ways to avoid -- not evade -- taxes, Read more...

Gains on assets held one year or less are taxed as: a) Ordinary income b) The capital gains rate—i.e. 15%. c) A hybrid. (It is the average of your personal tax rate, and the capital gains rate. d) They are not. They are not taxed at all. See next page for answer. Answer A: They are treated as ordinary income and taxed accordingly. Read more...

Dear Tax Talk, Oh, I am too nervous to try to take advantage of the IRS; honestly they scare the hell out of me, but your last answer, regarding donating blood and deducting mileage to get there, made me roll up my hands and chuckle with an evil grin. Is there a written policy that says you would need to go to the "nearest" blood bank, or would San Diego to Seattle at 14 cents a Read more...

If you've always hated your kids, your spouse and the rest of your family, it's surprisingly easy to make sure the acrimony and hurt feelings keep going long after your funeral ends. However, if you actually like your friends and family, avoid these mistakes in planning your estate. 1. Stay ignorant about the process. As with most things, but especially with estate planning, when you Read more...

When Richard Hatch bared it all on "Survivor," he took home a million bucks. But when he was less revealing about his windfall with the Internal Revenue Service, he wound up facing possible prison time as a tax evader. Steve Kassel, a former IRS revenue officer who now represents taxpayers in trouble as president and founder of eTaxes.com, sees such blatant blunders on a Read more...

Whether you are self-employed or an employee, if you use a portion of your home for business, you might be able to deduct the associated costs. A home office deduction is generally easier for self-employed individuals to claim. But even then, the Internal Revenue Service has certain requirements a taxpayer must meet. General requirements First, your home office area must be used Read more...

You've planned for decades, saved your money and are ready fora comfortable retirement. You're plotting the perfect route for thatcross-country trip, signing up for an art class you never had time forbefore or getting standing tee times for 36 holes of golf a day. Taxes certainly aren't on your retirement to-do list. Butmaybe they should be.If you collect Social Security, some of it might be Read more...

Selecting the right tax preparer could make the difference between sitting at home enjoying the advantages of a healthy tax refund or sitting in an IRS office, nervously explaining every expense you claimed for the past five years. There are different types of tax preparation professionals, with varying levels of experience and appropriateness to your personal tax situation, and they Read more...

Even if your tax situation isn't complicated, there's still documentation the Internal Revenue Service demands. But tax filing doesn't have to be an ordeal. And it can be less frustrating and less time-consuming if you have all the material at your fingertips. By being prepared, you'll be ready to file your return at the earliest possible moment (the IRS usually starts accepting Read more...

Most taxpayers get refunds every year. And a lot of them do so because they have too much withheld from their paychecks. But such overwithholding is bad. You're giving the federal government an interest-free loan of your money for the year. The IRS would never reciprocate by giving you one, and in fact imposes stiff penalties and fees to those who don't file or pay on Read more...