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As of 2018, you do not have to pay any taxes on an inheritance once it is under $11.18 million. This is because most states do not have a federal inheritance tax at all. However, six states: Nebraska, Iowa, Kentucky, New Jersey, Pennsylvania, and Maryland, do implement a state inheritance tax. Two things that often get confused are estate taxes and inheritance taxes. Usually, the inheritance will not be directly deposited into your account. It will be in the form of stock in a...
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While the Internal Revenue Service (IRS) encourages couples to file joint tax returns, there are times when this is not beneficial. For instance, when couples are separated, a spouse is investigated for tax evasion. Or in a situation where one spouse earns a considerable amount of money than the other. And other similar instances. Let’s examine some of the situations when couples should file separately: 1. Couples are separated In a situation where a couple is separated; the separation is protracted and it things look like...
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Well, it can happen. Simply put that’s referred to as tax evasion and it is a federal offense. However, it’s dependent upon your circumstances. Most likely, you will not go to jail if you simply can’t afford to pay your taxes, but if you lied on your tax forms or neglected to file them altogether, now that’s a whole different story. Generally speaking, if you were to file your tax forms and found out that you owed that year, but failed to pay, the...
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For many, tax season is a stressful time of the year. As such, a lot of taxpayers will go to tax relief services to relieve some of their stress, particularly those who owe tax money to the IRS or the government. However, some of these services could be a scam, so it is incredibly important to do thorough research before paying a tax relief service for their assistance. What Are Tax Relief Services? Those who work in tax relief services essentially help people with...
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Being self-employed can be extremely rewarding, particularly for individuals who work better without supervision and enjoy being their own boss. But, just like everyone who works, self-employed people have to pay federal and state taxes. This may be a bit difficult for those who have just begun self-employment. As such, below are some things self-employed individuals need to be aware of when they file their taxes. Tax Withholding/ Quarterly Tax Payment A quarterly tax payment form issued by the Internal Revenue Service (IRS) will...
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According to most accountants, a lot of people are not receiving what is owed to them in terms of tax returns. Many of us overlook tax credit deductions which can be discouraging considering the amount of taxes one has to pay per year. Below are some common ones that you should claim before next tax year. Child Care Credit For parents who are paying way too much for basic day care for their kid(s), child care credit is a deduction that is often missed....
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Filing for bankruptcy itself is difficult enough to consider, but it is even more daunting when one considers how bankruptcy and taxes affect each other. In certain circumstances, bankruptcy law allows taxes that are owed to be discharged, or cancelled. This usually depends on the type of bankruptcy that’s been filed or the type of taxes that are owed. Type of Bankruptcy for Tax Debt Discharge You have a higher chance of getting your tax debt discharged if you file for a Chapter 7...
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Paying taxes is a pain that everyone shares together. All adults are required to pay taxes, and must do so by April 15th or else they will incur penalties and fines. But in some cases, a penalty or a fine may be the least of your worries. Sometimes, a tax lien can get put on to your finances, or even on to your assets, such as owned property. What exactly is a tax lien? How does it affect your credit report? Read on to...
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Tax season is never easy, but many may agree that it’s still better than being in bad standing with the Internal Revenue Service (IRS). Sometimes, however, people find themselves in situations where they truly cannot afford their next tax payment. This may seem daunting, but there are still a number of things one can do to ensure that they don’t end up on the wrong side of the IRS. Avoid Penalties This is one of the most important steps to take when you can’t...
As of 2018, you do not have to pay any taxes on an inheritance once it is under $11.18 million. This is because most states do not have a federal inheritance tax at all. However, six states: Nebraska, Iowa, Kentucky, New Jersey, Pennsylvania, and Maryland, do implement a state inheritance tax. Two things that often get confused are estate taxes and inheritance taxes. Usually, the inheritance will not be directly deposited into your account. It will be in the form of stock in a...
While the Internal Revenue Service (IRS) encourages couples to file joint tax returns, there are times when this is not beneficial. For instance, when couples are separated, a spouse is investigated for tax evasion. Or in a situation where one spouse earns a considerable amount of money than the other. And other similar instances. Let’s examine some of the situations when couples should file separately: 1. Couples are separated In a situation where a couple is separated; the separation is protracted and it things look like...
Well, it can happen. Simply put that’s referred to as tax evasion and it is a federal offense. However, it’s dependent upon your circumstances. Most likely, you will not go to jail if you simply can’t afford to pay your taxes, but if you lied on your tax forms or neglected to file them altogether, now that’s a whole different story. Generally speaking, if you were to file your tax forms and found out that you owed that year, but failed to pay, the...
For many, tax season is a stressful time of the year. As such, a lot of taxpayers will go to tax relief services to relieve some of their stress, particularly those who owe tax money to the IRS or the government. However, some of these services could be a scam, so it is incredibly important to do thorough research before paying a tax relief service for their assistance. What Are Tax Relief Services? Those who work in tax relief services essentially help people with...
Being self-employed can be extremely rewarding, particularly for individuals who work better without supervision and enjoy being their own boss. But, just like everyone who works, self-employed people have to pay federal and state taxes. This may be a bit difficult for those who have just begun self-employment. As such, below are some things self-employed individuals need to be aware of when they file their taxes. Tax Withholding/ Quarterly Tax Payment A quarterly tax payment form issued by the Internal Revenue Service (IRS) will...
According to most accountants, a lot of people are not receiving what is owed to them in terms of tax returns. Many of us overlook tax credit deductions which can be discouraging considering the amount of taxes one has to pay per year. Below are some common ones that you should claim before next tax year. Child Care Credit For parents who are paying way too much for basic day care for their kid(s), child care credit is a deduction that is often missed....
Filing for bankruptcy itself is difficult enough to consider, but it is even more daunting when one considers how bankruptcy and taxes affect each other. In certain circumstances, bankruptcy law allows taxes that are owed to be discharged, or cancelled. This usually depends on the type of bankruptcy that’s been filed or the type of taxes that are owed. Type of Bankruptcy for Tax Debt Discharge You have a higher chance of getting your tax debt discharged if you file for a Chapter 7...
Paying taxes is a pain that everyone shares together. All adults are required to pay taxes, and must do so by April 15th or else they will incur penalties and fines. But in some cases, a penalty or a fine may be the least of your worries. Sometimes, a tax lien can get put on to your finances, or even on to your assets, such as owned property. What exactly is a tax lien? How does it affect your credit report? Read on to...
Tax season is never easy, but many may agree that it’s still better than being in bad standing with the Internal Revenue Service (IRS). Sometimes, however, people find themselves in situations where they truly cannot afford their next tax payment. This may seem daunting, but there are still a number of things one can do to ensure that they don’t end up on the wrong side of the IRS. Avoid Penalties This is one of the most important steps to take when you can’t...