#federal taxes
What to Know About Taxes on Found Property
It’s happened to many of us at some point—you may be walking along a street and look down. Lo and behold, there’s a $20 bill in your path. Or maybe it’s a silver bracelet. Either way, it’s found property. The tax ramifications of finding a $20 bill are negligible. The bracelet is a different story if it has any value. Now the Internal Revenue Service gets involved. See the full TurboTax article to get the breakdown on how the IRS treats found propertyattax time.
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Cost Basis: Tracking Your Tax Basis
“Basis” is one of the most important words in the lexicon of taxes. Sometimes you see it by itself. Sometimes it’s called “cost basis” or “adjusted basis” or “tax basis.” Whatever it’s called, it’s important to calculating the amount of gain or loss when you sell an asset. To find out more about this important tax concept, see the full TurboTax article.
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Work as a Hair Stylist? Tax Tips for Hairdressers
As a hair stylist, you’re probably more focused on giving your clients the perfectly tousled waves than thinking about your tax liability. But a bit oftax savvy can save you some serious dough at tax time—just make sure all your documentation is in line. See the full TurboTax article to learn how to get the most from your business deductions and minimize the taxes you may owe.
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Tax Tips When Sending Kids to Private or Public Schools
The decision to send your child to a public or private school is a personal choice. If you settle on private K-12 schooling, there are a few benefits that can help to reduce your federal tax liability and, in some states, your state tax as well. You’ll really see a tax benefit, though, when you send your child to college. Both private and public post-secondary educations come with some generous tax breaks for your family to help make education more affordable. To learn more, see the full TurboTax article.
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What Are Tax Brackets?
The United States uses a progressive tax system, which means different portions of your income are taxed at different rates. To learn more about this system and how it impacts your taxes, see the full TurboTax article about tax brackets.
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Tax Tips for Nannies and At-Home Caregivers
When it comes to working in people’s homes, the working arrangements are often casual and wages are paid out in cash. This grey area can lead to confusion for both parties, but determining if a nanny or an at-home caregiver is considered a household employee can make tax filing simpler for everyone involved. To learn more, see the full TurboTax article.
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Do You Have to Claim Pell Grant Money on Your Taxes?
The IRS treats a Pell grant as a scholarship, which means it’s possible that you’ll have to report the grant money on your tax return and maybe even pay income tax on the money. For details, see the complete TurboTax article.
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Cash for College: Tax-Free 529 Plans
With a 529 plan, you can stack up the books, not the debt. No matter how old your child is, it might be time to consider a qualified tuition program (QTP), also known as a 529 plan. For many families, such a plan offers a more convenient way to save money for college. To find out more, see the full TurboTax article.
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Top 5 Reasons to Adjust Your W-4 Withholding
Common lifestyle changes, like getting a job or getting married, can change your tax liability. To avoid being caught off guard by an unexpected tax bill or huge tax refund, you’ll need to adjust your withholdings on your paycheck. To find out more, see the full TurboTax article.
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5 IRS Penalties You Want to Avoid
Careless mistakes at tax time can leave people paying more money to the IRS. Those mistakes are avoidable through awareness of and strict adherence to the tax rules, including deadlines. See the full TurboTax article to learn the five most common IRS penalties and how to avoid them.
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Top 4 Red Flags That Trigger an IRS Audit
Certainred flags in a tax return are sure to draw scrutiny by the IRS. Some are easy to sidestep. Others, can’t be helped. These include:
- Not reporting all of your income
- Breaking the rules on foreign accounts
- Blurring the lines on business expenses
- Earning more than $200,000
To find out more, read the full TurboTax article.
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Sending Kids to College
TurboTax can help you take advantage of tax breaks to ease the financial burden of sending kids to college, including tax credits, tuition deductions, tax-free savings and more. To learn more about what is available and who is eligible, see the full TurboTax article.
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Tax Tips After You Retire
Even if your current retirement income plan doesn’t provide maximum tax benefits, you can still restructure your payment strategies to optimize your tax results. For money-saving details, see the full TurboTax article.
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About Student Loans and Tax Credits
The federal government offers two tax credits that reduce your tax bill on a dollar-for-dollar basis for your school-related expenses—the American Opportunity credit and the Lifetime Learning credit. To find out more, see the full TurboTax article.
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Tax Tips for Bloggers
Blogging is a relatively new profession, but it’s covered by the same tax laws that apply to many other occupations. The main danger from a tax perspective is that, as a self-employed blogger, your taxes won’t be automatically withheld from your earnings, as is typical with traditional employees. Additionally, you’ll owe self-employment taxes that most employees don’t pay. However, you may be able to take advantage of certain deductions to reduce your tax bill. See the full TurboTax article for details.
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Real Estate Tax Tips: Owning Property as a Tenancy in Common
“Tenancy in common” (or TIC) refers to a situation in which ownership of a piece of property is divided among multiple people. When the owners of a piece of real estate have a tenancy in common, it can create a number of complications related to taxes. See the full TurboTax article for details.
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Tax Tips for Part-Time Workers
Some people work part time because they can’t find a full-time job. Others choose to work part time because they are a student or are self-employed. Whatever your situation, there are some simple ways to decrease your taxable income and possibly bring you a tax refund. To find out more, see the full TurboTax article.
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Losing a Job
Leaving a company? In between jobs? TurboTax handles taxation of separation pay, writing off job-search expenses, and more. See the full TurboTax article for details.
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Strategies for Managing Your Tax Bill on Deferred Compensation
Deferred compensation refers to money received in one year for work performed in a previous year—often many years earlier. Typically, you receive deferred compensation after retiring or leaving employment. If you’re receiving deferred compensation, or considering an offer than includes a deferred compensation plan, it’s important to understand what you can do to reduce your tax bill. To find out more, see the full TurboTax article.
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Penalties for Not Filing a 1099-Misc IRS Form
If you receive income from a source other than earned wages or salaries, you may receive a Form 1099-MISC,Miscellaneous Income. Generally, the income on this form is subject to federal income tax and state income tax. The IRS requires those that pay miscellaneous income in the course of their trade or business to issue Form 1099-MISC to their payees and requires the payees to include these payments on their tax returns. For details, see the full TurboTax article.
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