Experts Say Charitable Tax Deduction is Safe from Congress

According to experts from the nonprofit sector, charitable tax deduction laws will likely remain unscathed from Congress in the near future. However lawmakers are still dealing with several charitable tax break issues that expired in 2013 and there is uncertainty on whether such tax breaks for charities will continue to exist.

President Barack Obama has consistently tried to limit the amount of tax savings the rich get for itemized deductions and will likely mention this issue is his upcoming proposed budget. However individual adjustments in tax policy typically don’t stand a chance in getting passed unless they’re grouped together

with other tax items. Experts say creating such a large tax bill likely won’t happen before midterm election in November.

Adding to the difficulty of altering charitable tax deduction policy is the probable change in Congress. Democrat of Montana and chairman of the Senate Finance Committee, Sen. Max Baucus, is soon … Read the rest

Avoid IRS Scam Pitch When Filing Tax Returns

Brett Doubikin, a 43 year-old Morrow County contractor, received a phone message informing him that the IRS was investigating him. Fear made him return the call while he tried to remember if he missed something when he filed his taxes.

What Doubikin later realized is that the call was part of a sophisticated phone scam involving fake IRS employees who present fraudulent claims in order to get money from people with little or no tax knowledge. The charlatans posing as IRS employees are known to threaten people with either jail or deportation if these victims fail to deliver the declared debt amount. Part of these scammers’ scheme was to inform victims that their taxes were not paid, which must hence be settled through wire transfer or by using a pre-paid debit card. To make things appear legitimate, the callers use false IRS badge numbers, acquire the last four digits in … Read the rest

IRS Tax Adjustments

IRS Tax Adjustments and the Pickle Salesman Photo by Michael Vadon

Taxes in 2014 are set to undergo various adjustments, affecting more than 40 tax provisions. The Revenue Procedure 2013-35, published on 18 November 2013, provides detailed information of each adjustment.

A tax rate of 39.6% will affect singles whose annual income exceeds $406,750 and married couples with joint returns exceeding $457,600. This is up from the current amounts of $400,000 and $450,000 respectively. The Revenue Procedure describes the rates that apply to other thresholds.

In terms of standard deductions for singles or married couples filing separate returns, the amount rises from $6,100 to $6,200. For married couples filing joint returns, it rises from $12,200 to $12,400. On the other hand, the standard deduction that applied for heads-of-households has risen from $8,950 to $9,100.

Both the personal exemption and the alternative minimum tax exemption will also rise. Couples who file jointly and have three or more qualifying … Read the rest

Filing Taxes After October 15

Filing Taxes In 2013 After October 15

If you were unable to pay your taxes earlier in the year, you might have been dreading the October 15th deadline for your deadline extension. Now that the 15th has come and gone, you might realize that you still have not filed – and that major problems may soon occur. Your first impulse should be to file as quickly as possible.

Luckily, even those who forget to file can still go through the process of filing taxes in 2013. Unfortunately, though, you will be without quite a few of the tools that you would normally use. Most of the web-based providers like TurboTax or TaxAct have shut down for the year as they prepare to transition from taxes 2013 to taxes 2014. E-filing has also been suspended in preparation for the 2014 tax season, meaning that you will not only have … Read the rest

Tax Made Easy – 7 Usefull Tips For Business

For many businesses, especially small businesses, taxes can be quite a handful. Moreover, it’s not just paying taxes, it’s knowing what can be taxed and/or deducted. So, we made a list of things every business should know about taxes, along with various tips for your business tax. This will help make our tax life a lot easier.

Make sure you keep Track of Everything

While we realize this may seem like one of the most obvious tips for your business tax, many businesses forget to keep track of everything. Every expense, purchase, deduction, refund and even car mileage –  keep track of them all. This helps you file accurate taxes. Remember, an inaccurate tax filing can lead to legal problems.

Separate your Expenses

One of the most important tips for your business tax is to always set apart your business expenses from your personal ones. Your personal expenses are not … Read the rest

Top Five Reasons To Adjust Your Withholding

Your withholding is the amount of money you have taken out of each paycheck to apply toward income taxes.  When your taxes are filed at the end of the year, any amount that the Internal Revenue Service withheld is credited toward your tax bill.  I, like many others, am unable to afford my own certified public accountant, and just hope that  the amount withdrawn from my income will match up to the total taxes I owe.  Usually that isn’t the case, but luckily, up until this point, I’ve only overpaid and earned a refund back from the IRS.  Those who underpay end up getting a stiff bill, and may end up having to pay penalties as well.

According to the IRS, the average individual tax refund in 2012 was $2700.  That calculates out to an average individual overpayment to the IRS of $225 per month.  I have learned through a … Read the rest

Tax Return Extensions Made Easy

Tax Return Extensions Made Easy

Most people these days have such busy schedules and isn’t it a hassle to personally file our tax returns? We agree that there are better things to fill your day than filing taxes, but yet it is necessary that we do so.

Turbotax 2013 can help you dedicate your time to more important things. If you are not able to file your tax return before a certain time, then software dedicated to filingtax return extension could be just what you need.

With a few easy steps you could be on your way doing things aside from filling in complicated and time-consumingtax extensions forms. Out of sight and out of mind.

By using Turbotax2013 and its easy extension service you will be able to file you federal extension right from the comfort of your home. No need to personally go to the tax office.

If … Read the rest