General Tax Information

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    Do 401(k) Contributions Avoid AMT?

    Retirement planning with tax benefits is critical to minimizing your tax liability while allowing you to save enough money to stop working at some point. 401(k) plans are just one way for taxpayers to plan their finances to minimize tax liability. While many legal ways exist to ...

    What Is a 501(c) Non Profit?

    The designation 501(c) is an Internal Revenue Service label indicating an organization's exemption from paying income tax. A 501(c) organization provides nonprofit services or support to the public or other charitable groups and is responsible for complying with standards ...

    How to Add a Qualifying Child That You Never Used Before to Your Taxes

    Adding a qualifying child to your return increases the number of exemptions you’re entitled to and lowers your taxable income. In some cases, you may also be eligible to claim additional tax credits or deductions, such as the child tax credit, the child and dependent care ...

    How to Adjust Withholding on Bonus Income

    The tax withheld from bonus income is often more than the tax withheld from your regular pay. Your payroll department either withholds tax on your bonus income at a flat rate or applies your regular rate to your combined salary and bonus income. Although your regular rate is ...

    How to Calculate My Payroll Tax With Pretax 401(k) Contributions

    Whereas a Roth 401(k) retirement plan is structured so you make contributions with after-tax dollars, a traditional 401(k) plan allows you to make contributions with pretax money. If you have the latter, your employer subtracts your contributions from your gross income before ...

    How to Calculate SS Taxes After Pretax Deductions

    Social Security tax is also called Federal Insurance Contributions Act tax because the FICA mandates its collection. Pretax deductions are employer-sponsored benefits that meet the regulations of the respective Internal Revenue Code. As an employee, your employer is required to ...

    Can I Gift Monies From an IRA?

    Investing in an Individual Retirement Arrangement allows you to accumulate funds for retirement. When you are ready to begin withdrawing from your IRA, you may want to help family members or close friends by gifting money from the account. Gifting money will not reduce your ...

    Can You Use Credit Card Statements as Proof for Tax Write-Offs?

    The total earnings in your W-2 or business profit-and-loss statement rarely equal your taxable income. The U.S. tax code has provisions that allow you to reduce your tax liability by claiming certain credits and exemptions. You may also qualify to deduct some out-of-pocket ...

    How to Check Status of a State Tax Refund in Alabama

    Alabama provides two automated methods to receive information about your state income tax refund 24 hours a day. The quickest option is the online system, but if you prefer to check your refund status by phone, a refund hotline is available. Each system requires information from ...

    What Could Cause Under-withholding?

    The Internal Revenue Service expects to receive the money that you owe in taxes at regular intervals throughout the year. This requires your employer to withhold money from your paycheck. If you do not pay enough money to cover your tax liability throughout the year, you will ...

    Do I Declare a Dividend on a Tax Return if It Is a DRIP?

    Dividend reinvestment plans offer the convenience of automatically reinvesting any cash dividends paid by the company in new shares without you having to touch the money. However, just because you don't receive the money in your bank account first doesn't mean you don't have to ...

    Deductible Expenses of Fixing Up a House

    Fixing up your personal home or a rental property can be a time-consuming and expensive process. However, you can deduct the cost of some home improvement and repair projects on your tax return. These deductions reduce your taxable income and decrease how much you owe the ...

    What if I Didn't Keep My Tax Receipts?

    There are any number of reasons why taxpayers might have no receipts to document the deductions taken when filing a tax return with the Internal Revenue Service. Perhaps you had no clue you would need proof of these expenses, or a fire, flood or tornado destroyed the documents ...

    What Is the Difference Between a 1099R and a 1099 Misc?

    In addition to the W-2 form you receive from your employer, you might also receive a 1099 form, or an "information return." Many varieties of the form exist, each to report a specific type of income. For example, a 1099-INT form includes the total amount of interest ...

    The Difference Between Pretax and After-Tax Medical Insurance Payments

    The main difference between pretax and after-tax medical payments is the treatment of the money used to purchase your coverage. Pretax payments yield greater tax savings, but after-tax payments present more opportunities for deductions when you file your tax return. However, ...

    Federal Tax Refund Status Information

    Many people overpay federal taxes throughout the year and get a refund in the springtime. Every January the Internal Revenue Service releases a schedule for anticipated refund dates based on the filing date. Once you file your tax return, the IRS offers three tools for ...

    How to File a Construction Loan on Taxes

    Under normal circumstances, the proceeds you receive in the form of a loan are not taxable to you as income. However, if the creditor forgives all or part of a loan, the IRS considers that to be income to you, or to your company if your corporation took out the loan. Meanwhile, ...

    What If I Forgot to Include My Check With My Taxes?

    Forgetting to send anything to the Internal Revenue Service -- especially money -- can cause just about anyone to panic. However, the IRS does allow you to send your check separate from your tax return. You’ll include a payment voucher with your check so the IRS can ...

    What Happens if You Change Your Withholding to Exempt?

    Unlike Social Security and Medicare taxes, which are withheld at flat percentages of your pay, federal income tax is a multilayer affair. In the case of income tax, your employer determines your withholding conditions from your W-4 form. If you meet the requirements, you can ...

    Does Illinois Require You to Pay State Taxes on an IRA Withdrawal?

    When you withdraw money from your individual retirement account or other qualified tax-deferred retirement account, you will owe federal income taxes on the amount you withdrew. Depending on your state, you may also owe state income taxes on your IRA distributions. States may ...

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