Federal Taxes

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How to Get an EIN for a Revocable Trust

All trusts may have an EIN for tax purposes, although most revocable trusts aren’t required to have one until the grantor dies. When a grantor passes on, a revocable trust automatically becomes irrevocable, and irrevocable trusts must have an EIN issued by the Internal ...

How to Deal With Difficult IRS Agents

The Internal Revenue Service is a large agency with thousands of employees. Many IRS agents are pleasant and helpful to work with, but some may be difficult. If you find it hard to deal with your agent, feel your case is being handled unfairly or find yourself in a financial ...

529 Plan Tax Reporting

To help save for college, states and some educational institutions offer 529 plans, which have both state and federal income tax benefits. These plans come in two varieties: prepaid tuition plans, which allow you to buy credits for future education, and 529 savings plans, which ...

What Happens If I File Taxes Married Jointly & Forgot to Add My Income?

Tax season brings a ton of paperwork, tax jargon and stress. It's not difficult to forget to add something to your tax return before you send it in. The IRS even provides a quick, efficient means to amend a tax return to get the correct information filed. Failing to add your ...

Tax Laws & Regulations on Travel Expenses

The IRS allows tax deductions for many types of travel. Most travel-related tax breaks are available for business- or employment-related travel. You may be able to take advantage of these tax breaks whether you are employed or in business for yourself. However, the IRS imposes ...

How to Report a Stock Loss on an Income Tax Return

You report stock losses on your income taxes in the year that you actually sell the stock. For example, if the price of a stock you own tanks, but you hold it in hopes that it will rebound, you can't claim the loss on your taxes. However, once you sell the stock, you can use the ...

Is Injury Settlement Income Taxable?

Receiving an injury settlement means that you suffered harm, so you might think that the government should not expect a share. Depending on the type of settlement you receive, you are right. While no one wants to experience the harm that leads up to an injury settlement, knowing ...

How Does a Distribution From a 529 Plan Get Reported?

States maintain 529 plans to help save for college. Contributions to such plans aren’t deductible, but the money grows tax-free while it remains in the plan, and if you use the money for qualified educational expenses, the earnings remain tax-free. When it comes time to ...

Do You Pay Federal Taxes on Social Security Retirement?

Although not everyone who collects Social Security retirement benefits is required to pay taxes on the monthly payments, some people do have to pay federal taxes on a portion of their benefits. Generally, the federal government taxes up to 50 percent of your benefits if you ...

Are the Wages Deducted for a Cafeteria Plan Tax-Exempt?

Cafeteria plans, also known as Section 125 plans, allow employees to customize their benefit plans. Employees decide which of the employer-offered benefits they need and choose whether to take the benefit or receive cash instead. If the employee chooses cash, such payments are ...

Can I Have Two 401(k) Plans at the Same Time?

If you hold two jobs with separate employers or worked for more than one employer during the tax year, you can be in a tax-deferred 401(k) retirement plan with each of your employers. There are no rules or laws preventing you from having two or more 401(k) plans at the same ...

Tax on an IRA Vs. Stock Account

Individual retirement arrangements offer several tax benefits that make them more advantageous for saving for retirement than regular stock accounts. However, IRAs penalize you for taking money out early, while stock accounts offer the potential for lower long-term capital gains ...

How Often Can You Change Your Payroll Exemptions?

Payroll exemptions are allowances that apply to federal income tax withholding. The Internal Revenue Service allows you a specific sum for each allowance you claim on your W-4 form. Your employer is supposed to give you a W-4 to complete when you are first hired. As an existing ...

Tax Write Offs for Hobbies

Hobbies are expensive, but the United States tax system won’t pay for your hobby. The Internal Revenue Service has different regulations for hobbies and businesses and restricts what you can write off on your income taxes as hobby expenses. You can claim legitimate ...

Tax Deduction for Mileage Due to Voluntary Work

People who perform volunteer work for a tax-qualified charitable organization can claim a tax deduction for direct out-of-pocket automobile operating expenses they incur while working on behalf of that organization. But the Internal Revenue Service doesn’t allow them to ...

How to Amend Your Tax Return to Add Alimony

Alimony is taxed differently than child support. It's important to understand the difference when you are filing income tax returns. Alimony is taxable as ordinary income to the recipient, but money paid as alimony is not subject to income tax on the part of the payer. For ...

How to Estimate AGI

AGI, short for adjusted gross income, represents your gross income minus adjustments to that income. Knowing your AGI not only helps you estimate your tax bill, but it also helps you determine your eligibility to claim other itemized tax deductions. When you estimate your AGI, ...

Giving Money to Your Adult Children

Your adult children have needs and dreams, and you can help. You can give your time baby-sitting grandchildren or helping them make repairs around the house. You can even give advice, but if you give much money to your adult children, you’ll have to file a gift tax return ...

Can a Short Form Filer Deduct Property Taxes?

Owning a home or car comes with a lot of extra expenses that can make your wallet lighter during the year. However, the Internal Revenue Service offers a number of tax deductions that can make your wallet feel a little heavier come tax time, but filing your taxes will take a ...

IRS Rules for 529 Plans

A 529 plan is an investment plan designed to help families save for college expenses while enjoying certain tax advantages. The name comes from the Internal Revenue Code's Section 529, which allows the plan format and details its tax implications. The plans, which are also ...

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