Tax season is a stressful time of year for many. They may not have planned ahead for the taxes that they will owe or they may be feeling anxious about the process of filing, especially if they have a more complex tax situation. The good news is there are professionals who can take that stress away and make tax time easier. Plus, they can advise you all year long so that you make the best financial choices.
Filing your taxes jointly with a spouse has its benefits. Aside from larger deductions and special tax breaks, joint filing involves less hassle than filing separately. But filing jointly also puts you at risk if your current or former spouse makes mistakes or purposely reports incorrect tax information.
Innocent spouse tax relief can help get you out of hot water with the IRS over spousal tax issues. However, it's easy to confuse innocent spouse relief with injured spouse relief—another means of resolving spousal tax issues you weren't initially aware of.
If you own a small business, you need to keep an eye on when you make your payments and how those payments will impact your tax liability from one year to the next. The three payments that you need to pay close attention to are gifts and donations, expense payments and buying assets at the end of the year.
Gifts & Donations
When your business makes gifts and donations, they can be written off on your taxes.
Dealing with IRS problems is a stressful and scary ordeal if you fear that you may have done something wrong, either on purpose or completely by accident. The first thing to understand is that the IRS is generally willing to work with individuals who are willing to work with them. You can learn about some things that can get you in trouble here, as well as the best ways to try to work through those issues.
When it comes to income taxes, there are a lot of terms that are heard a lot but are rarely well understood. The idea of "deducting it" is one of those oft-heard but misunderstood terms. So, what is a deduction, and how do you use them to lower your taxes?
What is a Deduction?
A deduction is simply an amount of money that you use to reduce your taxable income. For example, if you earn $50,000 and are able to deduct $10,000, your taxes are calculated on the lower amount of $40,000, thus making your tax bill lower.