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.
There are some rather unique tax-filing considerations for members of the clergy. Ministers in all established faiths are not subject to the regular tax-withholding requirements. As a consequence, ministers who wish to prepay their taxes in advance throughout the year must take specific actions to ensure that the amount of their prepayments is sufficient.
Despite the lack of withholding, members of the clergy are generally treated as church employees for income-tax purposes.
As a homeowner, you understand firsthand that the true cost of ownership far exceeds the mortgage payment. All these costs can create a strain and even cause you to file behind on important obligations, including your property tax payment. Failure to pay off this balance puts you at risk of losing your home through a public tax sale. Learn what you can do to protect your home.
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When you're running a small business, you may need to keep your personnel costs low by choosing the employees that can do the most for your business. So when it comes to the many types of financial employees-- including consultants, accountants, and bookkeepers-- who do you choose? Here is a guide to help you decide who could add the most to your business.
A consultant is the best choice if you only need help with a specific aspect of your financial management.