If you are in the midst of a divorce, or if your divorce was finalized this year, your tax return will require extra attention this year. It’s important to consult with a qualified tax professional to ensure that your return is completed properly and accurately and that you claim all of the tax benefits to which you are entitled.
Below are just a few of the questions that your recent or pending divorce may raise about your return.
Filing taxes for the first time doesn’t have to be intimidating. Doing it right does require a certain amount of focus and organization, however. Taking these steps will help you to ensure that your first tax return is accurate and complete.
Prior to 2014, taxpayers who wished to claim the home office deduction had to fill out a lengthy form (Form 8829) and often make complex calculations in order to do so. In an effort to lighten the burden on small, home-based businesses, however, the IRS introduced a simplified method for taking the home office deduction, which became available for the first time for the tax year 2013. This new, simplified method makes it easy to claim the home office deduction to which you’re entitled.
The gift tax is a tax levied on the transfer of property from one person to another in exchange for nothing or for less than the property’s full value. While this seems to cover many transactions that most of us make many times throughout the year, the exceptions to the gift tax actually make taxable gifts fairly rare.
Starting your own business can be exciting and rewarding. It is critically important, however, to understand all of your tax and recordkeeping obligations. Use this guide to help you make sure you are ready for tax season.
One of the first things you will need to do is decide what type of business you will establish. Each carries its own legal and tax requirements. For detailed information on the types of business taxes to which you may be subject, see http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Business-Taxes.
If you have access to a 401(k) plan, contributing at least the amount for which your employer will provide matching funds is one of the best ways to save for retirement. That has been true for some time. However, the IRS has just given you more incentive to pack money into your 401(k).
A first job can be an empowering and educational experience for teenagers. It provides them with their own money, which they must learn to manage. It gives them a sense of what things cost and what it takes to earn them. It teaches them to prioritize wants and needs and can form the basis for good lifelong financial management practices. It is also an opportunity for them to begin learning about income taxes. Most teens do not earn enough to have to file a tax return, but in some situations, minors are required to file, and some who are not required will benefit from filing anyway. When teenagers begin their first jobs, understanding a few basic tax principles will help them to understand their tax obligations and how they might limit the income tax they will owe. Parents will also benefit from understanding how their children’s jobs may affect their own tax returns.
Tax Tip: If you are struggling to put away money for retirement, the Saver’s Credit can help.
If you are a low- to moderate-income earner, the Saver’s Credit provides a wonderful opportunity to reap additional benefits from putting money into a retirement plan.
If you are wondering how to save for your child’s college education, looking into a 529 plan is a good place to start. 529 plans are among the most popular tax-advantaged college savings plans available. The flexibility and tax advantages of the 529 make it well-suited to a wide range of investors.
When you begin searching for a tax preparer, you encounter a wide range of choices. There is no one right choice for everyone; the right choice for you will depend a great deal upon your individual preferences and tax needs. The only way to find the best fit is to ask questions. The following questions can help you learn more about the tax preparers you are considering and decide which is the best fit for you.
