Tax Filing

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    1040EZ Vs. 1040

    The Internal Revenue Service offers different versions of the Form 1040 personal income tax return to meet different taxpayer situations. There are rules for determining which form to use in your personal tax situation. The Form 1040EZ is the simplest federal tax form, but you ...

    The Advantages or Disadvantages of Doing Your Own Taxes Vs. Hiring a Professional

    Each year everyone required by the Internal Revenue Service to do so must file an income tax return, either one prepared by them or by a paid professional. For many, the complexities of these forms deter them, and they would never consider completing the documents themselves. ...

    How to Avoid IRS Tax Penalties for a 401(k) Early Withdrawal

    By saving consistently over the long term, you probably will accumulate a large sum of money in your 401(k) plan at work. This money is designed to be a nest egg for your retirement, and to discourage tapping into the funds, the Internal Revenue Service assesses a 10 percent ...

    Can I Be Denied a Tax Extension?

    If tax deadlines are looming and you’re nowhere near ready to file, a tax extension might be the perfect solution. The IRS can’t deny a tax extension if your request is made timely, but you’ll want to secure proof of your application in case the IRS ever ...

    Can Domestic Partners File Joint Taxes?

    Internal Revenue Service rules prescribe different tax treatments for legally-registered domestic partnerships and other forms of legal union depending on whether the couple involved is comprised of a man and a woman or two same-sex partners. In general, the IRS tax rules for ...

    Can I E-file if I Owe?

    E-filing your tax returns can save time, reduce the likelihood of math errors and make the tax process easier overall. If you end up owing money, e-filing is still an option for completing your tax return. You can even submit payment electronically as one of the last steps in ...

    Can My Estranged Wife File Married Filing Separately?

    Deciding the filing status you and your estranged wife should choose at tax time can be challenging. The Internal Revenue Service provides only two filing status choices for married couples — joint or separate. Your estranged wife can file separately, but depending on your ...

    Can You File Married Jointly if Your Wife Does Not Work?

    You and your wife can file a joint federal income tax return even if she doesn’t work. While each couple’s tax situation is different, generally, you can claim more deductions and credits by filing a joint return. In most cases, your tax liability will be lower. ...

    When Can Newlyweds File Jointly?

    The Internal Revenue Service regulations provide five filing statuses for taxpayers. Married taxpayers can file separate or joint returns. Single taxpayers may choose the filing status of head of household or qualifying widow or widower if they meet the requirements; otherwise, ...

    Can You Receive More Than One Tax Credit?

    A tax credit is an amount of money that is used to offset your tax liability -- that is, tax credits are directly subtracted from the amount you owe. There is no limit on the number of credits you can claim in a tax year, as long as you meet the eligibility requirements to claim ...

    Any Consequences for Not Doing Your Taxes Together With a Wife?

    Filing a joint tax return with a spouse is an option, not a requirement, because filing separately is occasionally beneficial. For example, when you are married filing jointly, you are responsible for all of the tax liability rather than just half or the part attributable to ...

    How to Declare Gifts on Tax Returns

    The Internal Revenue Service requires that you declare on your taxes all gifts that exceed the annual exclusion amount. For example, the annual exclusion amount for the year 2012 is $13,000. Therefore, any qualifying gift you make exceeding that amount in the year 2012 must be ...

    What Do I Enclose With a Form 1040X?

    Income tax returns are notoriously complex and require you to assemble many different pieces of information in order to file an accurate form. In this process, it is easy to overlook key information that can change your tax situation. The Internal Revenue Service recognizes this ...

    Do You File Jointly if Your Spouse Did Not Have Reportable Income?

    If you are married, you can file a joint tax return with your spouse even if only one of you had income. There is nothing in the tax rules requiring that a husband and wife both have income in order to file jointly. Although federal law doesn’t permit same-sex married ...

    Do We Have to File Married Filing Jointly Every Year?

    Just because you're married, this doesn't take away your right to file an income tax return on your own if you want to. The election to file a joint married return or a separate married return is one you can make yearly, and there's no rule that says you must do it the same way ...

    How to File as Married Head of Household

    The Internal Revenue Service considers you either married or single when it comes to filing taxes. Generally, you can use the head of household filing status if you are unmarried but support a qualifying child. In some cases, you can also file as head of household if you are ...

    What if You Filed Your Taxes & Forgot Interest Income?

    Say you sent off your completed tax return and then received a late 1099 form in the mail from a savings account you forgot about. The account earned interest, which you’re obligated to report on your tax return. Depending on how much interest the account earned, you may ...

    I Forgot to Send a Copy of My Schedule A With My Income Taxes, What Do I Do?

    When you send tax forms by mail, it’s easy to miss important documents that should accompany your return. If you realize you’ve forgotten to send your Schedule A, which is used to record itemized deductions, the Internal Revenue Service will notice it's missing and ...

    Does Giving a Car as a Gift Affect Taxes?

    Giving away any type of property triggers the possibility of gift tax just as gifting money would. Fortunately, some exceptions exist to dodge the tax. The gift tax for giving a car is determined by the value of the vehicle. It's also important to note whether the gift giver and ...

    What Happens if I Get a 1099 After I File My Taxes?

    The Internal Revenue Service requires that 1099 forms be mailed to individuals by Jan. 31. However, via client or company error or oversight, or mail mishap, you may find you receive your 1099 as late as March or April. If you have already filed your taxes and then receive a ...

    Is it Illegal to Not File Taxes?

    Filing taxes every year is not something to look forward to, but it's necessary nevertheless. While not everyone needs to file taxes to be in compliance with tax codes, most adults who earn money do. The legal and monetary penalties for not filing taxes depend on your reason for ...

    IRS: Tax Liability Upon Death if Married and Filing Separately

    Upon the death of a U.S. taxpayer, the Internal Revenue Service immediately categorizes the deceased person's estate as a separate entity as far as income tax liability is concerned. For example, a taxpayer that dies on July 1 would have a personal income tax liability through ...

    Penalties for Not Filing a 1099 Misc Form

    The tax form 1099-MISC, Miscellaneous Income, allows business owners to report funds paid to independent contractors to both the contractor and the Internal Revenue Service. According to the IRS, the 1099-MISC must be filed with the IRS by February 28 on paper, or by April 1 if ...

    What to Do If You Receive a 1009-C After Filing Taxes

    When a lender forgives a debt you owe, it will report the forgiven amount to the Internal Revenue Service as income paid to you using form 1099-C. You must report this income to the IRS for the tax year in which it was received. Do not ignore this form, even if you receive it ...

    Will I Receive a 1099 From My Stock Broker on Dividends?

    If you receive more than $10 in dividends from stocks and mutual funds you own in a brokerage account, you will get a Form 1099-DIV from your broker. Your broker sends the same form to the IRS. Understanding the information on a 1099-DIV – see Resources for an example ...

    Do I Have to Report Earnings Under $600?

    A common misconception among independent contractors revolves around reporting income and 1099-MISC forms. Although it is true that your client doesn’t have to issue a 1099-MISC unless that client pays you more than $600, you still have to report those earnings on your ...

    Tax Changes if I'm Getting Married

    It’s important to have the right amount of federal income tax withheld from your earnings so that you don’t owe Uncle Sam money at tax time. Life events such as a change in marital status can change your tax withholding for the year. If you go ahead and change the ...

    Tax Filing Requirements When Earning Income in Two States

    Earning income in more than one state may require that you file your taxes a little bit differently. The filing requirements will depend on the state(s) that you claim residence in. You may live in one state six months out of the year and six months in another. As long as you ...

    Tax Laws on Unfiled Taxes

    The Internal Revenue Service requires most taxpayers with U.S. income to file a return each year. Certain individuals are exempt from having to file and this is usually based on incomes lower than the standard deduction awarded to each filing status. The IRS receives information ...

    Tax Returns When Donating Money

    The Internal Revenue Service allows you to deduct the amount of certain donations to nonprofit organizations from your taxable income on your federal income tax return. You must carefully follow IRS rules when preparing your tax return. Only donations to certain organizations ...

    What to Do If Your W2 Shows the Wrong State for Taxes?

    Although your employer is required to provide you with a completed, correct W-2 form, you still need to check it for inaccuracies. If you discover that your state of residence is incorrect, you need to fix it as soon as possible. This is because you need to use the information ...

    Can Taxes Be Filed As Married Filing Separately Without a Separation Agreement?

    Married couples are allowed to file either joint or separate returns, according to the Internal Revenue Service’s guidelines. Although it is normally advantageous to file a joint return, there are occasions when separate returns are preferred. The IRS does not require ...

    The Penalties for Non-Payment of Income Tax Returns

    When you prepare your taxes each year, you will typically have a refund coming or you owe the Internal Revenue Service more money. If you are due a refund, there’s no penalty if you don’t file a return, but you can’t get the refund until you do. If you owe ...

    How to Pay IRS Advance Taxes

    Advance tax payments are payments of taxes made before they are due. Although federal income tax returns are normally due every April 15, the Internal Revenue Service requires that you make advance estimated tax payments at least quarterly. If you are an employee, advance taxes ...

    Can You File Married Jointly After Your Spouse Dies?

    The Internal Revenue Service uses your income tax filing status to determine key information, such as the amount of your standard deduction. Your income tax status is determined primarily by your marital status as of the last day of the filing year, which can be confusing if you ...

    Is it Better to File Taxes Jointly When Married?

    The Internal Revenue Service recognizes five filing statuses, all of which are based on your marital status. If you were married as of the last day of the year, the IRS considers you to have been married for the whole year, and you have the option of filing your tax return using ...

    Can You Claim Head of Household If Married?

    For some people, like those who are single and don't have any dependents, choosing the correct filing status on their taxes may be the simplest section of the tax form to fill out. If you’re married, you can generally choose between filing jointly and separately. However, ...

    If Federal Taxes Were Not Withheld, Do I Qualify for the Standard Deduction As Head of Household?

    The amount of your standard deduction is based on your filing status, and your filing status is based on your marital status as of the last day of the year. If you're single and meet the Internal Revenue's three qualifications, you can take a larger standard deduction by filing ...

    How to File Taxes When Newly Widowed

    The federal tax law allows new widows and widowers to file a joint return in the year of their spouse's death. For the two years following the year of death, the Internal Revenue Service also allows some newly widowed taxpayers to continue taking advantage of the tax benefits of ...

    Can Married Couples File Income Taxes As Single?

    If you're married, you can't file your taxes using the "single" filing status. However, this doesn’t mean you necessarily have to file a joint return. In addition to the married filing jointly status, you have the option of filing separately, and in some cases, ...

    How to File a Tax Return for Irrevocable Trusts

    According to the Internal Revenue Service, an irrevocable trust is a trust that cannot be amended, modified or revoked by the grantor, or the creator of the trust. When you file an income tax return for an irrevocable trust, you must treat the trust as a separate entity, ...

    Adjustment for Federal Tax After Taxes Have Been Filed

    If you make an error on your tax return, you may file an amended return, or the IRS may correct the error for you. If your error resulted in an underpayment, penalties and interest will accrue. If it resulted in overpayment, you are probably entitled to a refund. Sometimes -- ...

    Difference Between Head of Household & Married Filing Jointly

    Claiming married filing jointly and head of household on your tax returns have specific requirements that must be met. Basically, married filing jointly means you are married on the last day of the tax year. Head of household means you are unmarried or considered unmarried, but ...

    One Spouse's Income Is Below $500: Do You Have to Claim It if Married Filing Jointly?

    Married couples have the option of filing a joint federal income tax return or filing separate returns. While there are advantages and disadvantages to both filing statuses, most married couples file a joint return because it is usually easier to figure, provides more ...

    Can I Take Both the IRA Contribution Deduction and the Retirement Savings Credit?

    The government offers tax breaks for people planning for retirement. You can reduce your tax liability to save money now while securing your future. The Internal Revenue Service allows you to deduct the annual amount you contribute to a qualifying individual retirement account. ...

    Can I Claim Head of Household if I'm Still Legally Married but Not Living Together With My Spouse?

    Filing your taxes as a head of household means your tax rate will be lower than if you filed as single or as married filing separately. You also receive a higher standard deduction than singles or married people filing separately. You may be able to claim unmarried ...

    Can I File a Tax Return Using Bank Statements?

    There are two situations in which you might use bank statements to help you file your tax return: if you have interest income that you must report, and if you failed to receive documents such as Form W-2 and Form 1099-MISC because they were never sent to you. In the latter ...

    How to File a Decedent's Taxes

    Not even death can deter the taxman from collecting his due. Among the sad tasks falling to a deceased’s survivors is filing final federal and state tax returns. When an executor is named in the decedent’s will, he is usually the person responsible for this duty. If ...

    When Should a Married Couple File Taxes Separately?

    When you are married, there are some cases when filing a separate tax return makes more financial sense than filing a joint return. When you file jointly, you and your spouse agree to be responsible for the other's tax return. When you file separately, you are responsible only ...

    Are Annuities Taxable Income?

    An annuity is an insurance product that pays income. The product is purchased with a lump sum of money or through a series of payments. When you retire, the investment is converted into a stream of income. If you take distributions before age 59 1/2, you will face a 10 percent ...

    What Happens If You File Separate Federal Tax Returns When Married?

    Most married couples file a joint tax return, and with good reason. You can file a joint return even if one spouse did not have any income. You get to combine both of your incomes and deductions, and in most cases your tax obligation is lower than it would be if you filed ...

    How to File Taxes If One Just Got Married

    Beginning with the year of your marriage, the way you file your taxes is going to change. You can no longer use the single filing status, but you will have two new options instead: married filing separately and married filing jointly. Whether you decide to file jointly with your ...

    What Credits Do I Lose When Filing Married Filing Separately?

    Married taxpayers who do not want to file jointly can choose married filing separately as their filing status. You can choose this status if you want to report only your income or if you and your spouse will owe less tax by filing separately instead of filing jointly. But by ...

    How to Determine My Modified Adjusted Gross Income

    Calculating your modified adjusted gross income is an important step in determining your total tax obligation. Numerous deductions and credits are related to the amount of your MAGI, and a higher MAGI may render you ineligible for certain tax benefits. For example, you may not ...

    1040 & Nonqualified Stock Options

    If you work for a company that rewards you with options to purchase company stock at a discount, it may be a double-edged sword. While the extra gain on the shares is a bonus, the Internal Revenue Service considers non-qualified stock options as compensation -- and taxes the ...

    Where Can I Find My Modified Adjusted Gross Income on My Taxes?

    Modified adjusted gross income is an important figure on your taxes. If your MAGI is too high, it may limit or restrict the availability of certain deductions. Your MAGI isn't listed on your actual tax form as a separate line item. You must compute your MAGI on your own, using ...

    How to Sign Tax Return if Taxpayer Dies Before Filing Taxes

    The Internal Revenue Service collects income taxes, even for taxpayers who died during the year. The surviving spouse -- if there is one -- can file and sign the return. An estate executor or a personal representative, who is often a relative of the deceased, can also sign the ...

    How to Sign Federal Tax Forms If Your Spouse Is Deceased

    When your spouse dies, one of the somber duties that must be undertaken is the filing of the final tax return. You have to include the decedent's income until the date of death, along with your own income, if your filing status is married filing jointly, completing Internal ...

    What to Do When a 1099 Is Sent to the IRS for a IRA Rollover?

    When a Form 1099-R arrives in the mail for an IRA rollover that is supposed to be tax-free, you probably get nervous. Especially when you see the information on the form saying that the information has been forwarded to the Internal Revenue Service. IRA trustees are required to ...

    What Are the Benefits of Joint Tax Returns?

    Filing a joint tax return means you and your spouse combine your respective incomes, exemptions, deductions and credits and report them on your income tax return as though you were one person. Filing one return instead of two typically saves time and money in filing costs. Joint ...

    Tax Benefits for a Husband & Wife-Owned Business

    When a husband and wife own a business, they enjoy numerous tax benefits together. However, if you own a business with your spouse, you must make sure that you both benefit from the tax advantages, not just one of you. Many joint-venture couples make the mistake of filing tax ...

    Circumstances Under Which IRS Will Hold Tax Refund

    The Internal Revenue Service authorizes refunds for over payment of taxes based on the information provided on the taxpayer's tax return. However, sometimes that refund is subject to seizure by other government organizations or by the IRS itself for various reasons. The seizures ...

    How to Recover a Tax E-File PIN

    To taxpayers, filing returns electronically is convenient and can lead to a speedy refund. For the Internal Revenue Service, however, e-filing represents an invitation to fraud. That's why the IRS added an extra layer of security to its identification procedures. In addition to ...

    How Much State & Federal Tax Is Withheld on Casino Winnings?

    If you are lucky enough to win when you go to the casino, you will not necessarily have to report the winnings on your tax returns. For practical purposes it does not make sense to report winnings every time you win 50 cents in a slot machine. Instead, the federal government has ...

    Proving Home Ownership on Taxes

    Homeownership provides tax benefits such as deductions of mortgage interest and credits for new homeowners and energy efficiency. These benefits come with strict documentation requirements to ensure people don't claim credits and deductions for which they do not actually ...

    What Happens If You Pay Your Federal Taxes and Had to Amend Them and They Owe You Money?

    It is not unusual for a taxpayer to leave a deduction or credit off his original tax return, only to learn of it after the return is filed. If that happens, the procedure for correcting the original return is to file a form 1040X. This form contains a summary of your ...

    When Should My Spouse and I File Separate Tax Returns?

    Married couples have the option to file two separate tax returns or one joint return. Most married couples file jointly to get a lower tax rate and claim valuable tax breaks like the child care and college tuition credits not available to spouses who file separate returns. But ...

    How to File a Tax Return for a Previous Year With the IRS

    Under Internal Revenue Service regulations, if you do not expect to owe any tax, you do not have to file your federal return by April 15 of the following year. In fact, you have three years from that tax-filing date to get your return in to the IRS. So if your original due date ...

    Ten Short Facts About Tax Returns

    Most U.S. citizens and permanent residents must file tax returns. Many types of tax returns are required under particular circumstances -- gift tax returns, estate tax returns and corporate tax returns, for example. The most common type of tax return, however, is the individual ...

    Do I Owe Taxes on Unclaimed Funds?

    The U.S. government requires all income to be taxed in the year when it becomes recognized. If you come across funds that were previously unclaimed, you might feel lucky, but you may still be obliged to pay taxes on this newfound cash, depending on the source. Administrators of ...

    Can I File for Taxes Using a Married Name if My W-2 Is in My Maiden Name?

    Whoever said "Love conquers all" must have overlooked the bureaucracy that comes with changing your name. Even if you received a marriage license without a hitch, your tax situation may become confused the year in which you get married. If you receive a Form W-2 with ...

    Taxes Benefits of Filing Separately When Married

    A married couple can choose to file their federal income tax returns either jointly or separately. Most couples choose to file jointly, and even the IRS warns taxpayers that filing separately is likely to increase their tax bill. Although filing separately carries with it ...

    Joint Vs. Single Filing of a Tax Return

    When you marry, you have two filing options -- you may file jointly with your spouse, or you may file separately. You can only file jointly if your spouse agrees to do so, however. Although most married taxpayers choose to file jointly, some taxpayers file separately due to ...

    Tax on Severance Pay

    Getting fired or laid off is a terrible feeling. Making it worse, the government requires that you pay taxes on any severance that you are able to collect. This unfortunate circumstance adds insult to injury when you need the income most. However, some mitigating circumstances ...

    How to File a Missing Year's Tax Return

    If you forgot to file your taxes for a particular year, try to file the missed year's tax return as soon as possible to reduce your penalties and interest. You cannot use the IRS's electronic filing system to file returns for past tax years. Instead, you must file these returns ...

    Who Is Not Required to File Tax Returns?

    The Internal Revenue Service requires you to file a tax return in order to claim a refund or pay tax deficiencies on certain income. Otherwise, you might not be required to file. Other than certain special situations, the IRS bases requirements primarily on your gross income and ...

    How to Change Your Tax Filing Status

    The first thing you need to do to file your federal tax return is select your filing status. Choosing a filing status is critical since this determines the amount of your standard deduction, the correct rate at which you should be taxed, whether you are required to file at all, ...

    How to File a Quarterly Federal Tax Return

    If the IRS classifies you as self-employed, you are required to file an annual federal income tax return and pay estimated quarterly taxes on Form 1040-ES, Estimated Tax for Individuals. Estimated quarterly taxes are a prepayment of Social Security, Medicare and federal income ...

    How to Find My IRS Estimated Taxes Paid

    Taxpayers who run their own business or work as contractors and don't have federal taxes withheld from each paycheck are expected to make quarterly estimated tax payments. Any miscalculations along the way get squared up when the final tax return is filed, but the Internal ...

    How to File an Income Tax Amendment

    If you are required to file a federal income tax return, you must do so by the due date,which is usually on or around April 15. If you can't file by the due date, you can request an automatic six-month extension, but you'll still have to pay any taxes you owe by the due date. ...

    How to Sign an E-File If You Have Never Filed Taxes Before

    According to the IRS, e-file is the safest, fastest and easiest way to submit individual tax returns. Signing electronic tax returns requires a personal identification number, or PIN. A PIN is a five-digit number that serves as your electronic signature. Taxpayers who filed ...

    How to Apply My Form 1099R on My Tax Return

    Form 1099R is a tax information form you'll receive if you've taken a distribution from a retirement plan. The IRS requires the custodian of the plan issuing you the distribution to forward a copy of the 1099R to both you and the IRS. Most distributions from IRAs, 401(k) plans ...

    How to Add a 1099 to a Previous Tax Return

    The Internal Revenue Service requires taxpayers to file federal tax forms each year. You are expected to include all income sources on your federal tax return, but sometimes you might forget to include the income from one of the 1099s you receive, or you might get a 1099 in the ...

    Can Income Taxes Be Filed From Previous Years?

    The IRS allows you to file federal income taxes from previous years, regardless of whether you never filed your return or simply need to amend an error. You won't be penalized for late filing if you didn't owe the IRS money on the date your return was due.

    What Causes a Tax Return to Be Rejected?

    Online usable forms and computer software help you do your taxes and take a lot of the worry out of filing your own taxes, but some common mistakes can still cause your tax return to be kicked back to you. Errors on your tax form could also keep you from getting a refund or even ...

    Can I Amend If I Missed a Deduction?

    Discovering you’ve made a mistake on your tax return isn’t unusual. If you simply make a math error or forget to attach a W-2 or other form, you don’t need to file an amended return. The Internal Revenue Service will send you a notice if they need further ...

    The Earned Income Credit for Divorced Families

    The earned income credit is a refundable tax credit for families and individuals with low and moderate incomes. To qualify, taxpayers must have a source of earned income for the year. The amount of the credit varies, depending on income and number of children claimed. When ...

    How to Amend a Return to Increase Deductions & Claim Dependents

    Everyone makes mistakes, and with the complexities of the U.S. federal income tax code, it's not unlikely they could occur when filing your taxes. If you discover you've made a mistake that resulted in you paying more taxes than you actually owe -- for example, you discovered ...

    How to Determine Your Income Tax Return With Your Pay Stubs

    The Internal Revenue Service requires employers to send each worker a W-2 form summarizing wages, taxes withheld and other information for the previous year by Jan. 31. If your W-2 does not arrive or is lost and your employer does not replace it by Feb. 14, the IRS says you can ...

    Is Savings Bond Interest Reported As Capital Gains or Income?

    U.S. savings bonds appeal to investors who want a guaranteed return. Your investment is not subject to fluctuating interest rates or stock values; you buy a savings bond for a discounted price and redeem it for face value at maturity. Unlike a share of stock or interest in real ...

    What Are Some Reasons My Tax Return Can Be Denied?

    Every spring you are inundated with 1099s and W-2s in preparation for filing your yearly taxes. Once you navigate the complicated waters of your tax return, you submit it to the IRS with a sigh of relief that you are done. Unfortunately, until the IRS accepts your return you are ...

    Who Needs Tax Form 1099?

    IRS form 1099 is for everyone who earns income other than as a W-2 employee of a business. There are multiple types of 1099s for the different types of income sources for taxpayers. Companies paying people who are not legal employees of theirs must issue 1099s to the taxpayer ...

    How Does a First-Time Tax-Return Filer Get a PIN?

    To file a tax return electronically, you must use a Personal Identification Number to serve as an electronic signature. PINs can be established in one of several ways for first-time filers.

    How Much of a Difference Does It Make to File Head of Household?

    When filing your income tax return, your tax filing status can have a significant effect on the amount of tax you owe. Most taxpayers fall under one of four tax filing statuses: single, head of household, married filing jointly or married filing separately. The head of ...

    Requirement for Tax ID Numbers

    Tax identification numbers are primarily used to file tax returns, but some ID numbers are also used to document wages, process credit and debt information, and secure other forms of identification. All tax ID numbers consist of nine digits, so it may be difficult to distinguish ...

    Who Pays Taxes on a Custodial Account?

    The rules for custodial accounts can vary somewhat from state to state, but one factor that remains pretty consistent: taxation. The Internal Revenue Service and the federal government have some firm rules and requirements when it comes to the income a custodial account earns. ...

    What Is the Maximum You Can Earn and Not File Federal Income Taxes?

    Whether you need to file tax returns depends on your earnings, your age and your filing status. In many cases, even if you meet regulations eliminating the need to file a tax return, you may want to if you qualify for tax credits that could generate a rebate. Always check the ...

    Where to Claim Groceries for Day Care Provider Tax Deductions

    The cost of feeding children is considered a business expense for day care providers. Therefore these costs can be subtracted from your taxable income. The Internal Revenue Service has some specific rules and record-keeping requirements, as well as two different methods for day ...

    Things to Remember When Amending a Tax Return

    The intricacy of the IRS tax code makes it remarkably easy to make mistakes or omissions on your tax return. Whether you missed a 1099 form or you forgot a deduction, you may amend your tax return to reflect your true tax liability. The IRS provides a detailed procedure for ...

    Is a 401(k) Loan Reportable on Your IRS Income Taxes?

    Some 401(k) plans permit participants to borrow directly from their funds. If plan participants may take out loans, the written plan description states that borrowing is allowed. Although withdrawals from a 401(k) by participants younger than 59 1/2 usually result in a penalty, ...

    The Obligation to Report Tips on an Income Tax Return

    Tips are an essential part of service in America and have become a staple of eating out and in other industries. Meant as a way to ensure quality service for customers and give an incentive for servers who go out of their way to provide a good experience, tips are also a key ...

    What Are the Maximum Allowances You Can Put on Your Tax Return?

    To make certain that the right amount of income tax is withheld from your paycheck, you need to claim the correct number of allowances on the W-4 form that you file with your employer. You have less money withheld when you claim more allowances. Much confusion exists between the ...

    Does a US Citizen Still Pay US Taxes When He Retires to a Foreign Country?

    Whether you dream of retiring in a favorite vacation spot, or you want to spend your retirement in a place where your dollar goes farther, retiring to a foreign country may be in your plans. But if you remain a U.S. citizen, the long arm of Uncle Sam extends to all parts of the ...

    Foreign Earned Income Tax Form Rules

    When you earn income from work you performed while in a foreign country, your income is considered foreign earned income even if you worked for a U.S. company and were paid in U.S. dollars. If you qualify for the foreign earned income exclusion, you must pay federal income tax ...

    What Can Hold Up a Tax Refund?

    It’s no wonder the 90-day tax refund window promised by the Internal Revenue Service is enough to set off a panic for some on day 91. We’re a nation of impatient individuals: She wants her double mocha cappuccino now, he requires a quick lunch and both crave ...

    Business Will Not Give an Independent Contractor a 1099

    If a company hires you as an independent contractor and pays you more than $600, it must send you a Form 1099-MISC. If the company fails to give you a 1099-MISC by the Internal Revenue Service deadline, which is usually between the middle and end of February, you still must ...

    Can Georgia Charge Income Taxes on Income From Florida?

    Georgia residents pay income tax on all wages generated in the State of Georgia. However, if income is earned out-of-state – even from employment in foreign countries – residents are still required to file Georgia state income tax. Under state guidelines, anyone ...

    Are There Time Limits to File a 1040X for a Particular Tax Year?

    The Internal Revenue Service imposes general time limits for making changes to a tax return you previously filed, although it does allow exceptions for certain situations. You’ll use Form 1040X to make these changes. There is also an important distinction to make between ...

    Do Children Collecting Their Dead Parents' Social Security Pay Income Taxes?

    The type of Social Security benefits children receive when their parents are deceased is called survivors benefits. In 2011, more than 4.3 million children received some form of Social Security benefits, including survivors benefits. Survivors benefits are paid out on a tax-free ...

    When Filing Tax Returns, Where Do You Put Stocks and Bonds?

    Your stock and bond investments pay dividends and interest that you need to report on your tax return. If you sell any of your investment holdings, the result will be a capital gain or loss, which also must be reported. To report your investment earnings, gains and losses ...

    When Is a Gift Tax Return Required?

    The Internal Revenue Service will assess gift taxes when you give a gift over a certain amount to an individual, but it does allow higher gift amounts to and from married people in certain cases. A gift tax form must be filed if you make a taxable gift. In some cases, you should ...

    Income Tax Filing Requirements for Retired People

    The Internal Revenue Service imposes taxes on a variety of unearned income sources such as interest, dividends and withdrawals from certain retirement accounts that can force retirees to file tax returns. Requirements for filing income tax returns depend on age rather than ...

    What Will Happen if I Filed My Income Taxes and Forgot a W-2?

    If you work more than one job or switch employers during the year, you'll end up with multiple W-2 forms. The Internal Revenue Service computers match returns with W-2s on file, so it's important to include information from all your forms. If you simply forgot to mail a copy of ...

    I Forgot to Send My Virginia Tax Return Last Year

    If you forgot to send your Virginia income tax return last year, using a bad memory as your excuse won't help you avoid any penalties. When you finally realize your mistake, it's important to take immediate steps to file your return.

    Do You Have to Be Legally Married to File Married Status for Income Taxes?

    The rules regarding marriage are some of the more complex in the Internal Revenue Code. You have to be legally married to file a joint married return, but beyond that, the issue isn't clear cut. "Legally married" has a lot of different nuances and it doesn't just ...

    Can You File a 1040EZ If You Received Social Security Benefits?

    The Internal Revenue Service offers taxpayers a choice of three individual income tax return forms: 1040, 1040A and 1040EZ. The EZ is simplest, but restricted in its use. The 1040 is the only option that allows itemizing deductions and handling situations like self-employment ...

    Do I Need to File an IRA Tax Form 5498?

    The Internal Revenue Service, which regulates the operation of tax-advantaged retirement accounts, requires issuers and trustees of individual retirement accounts to submit annual reports of contributions, distributions and other financial activity in the accounts. An account ...

    Are Worksheets Required to Be Turned in With a Tax Return?

    Depending on the complexity of your taxes, the Form 1040 that you are using may require you to fill out worksheets to determine the number to enter on your tax return. You are not required to provide any worksheets to the IRS with your return, but you should keep the worksheets ...

    Do You Have to Claim Retirement Plan Monies on Federal Income Taxes?

    If you withdraw funds from an individual retirement account (IRA) or employer-sponsored retirement plan, you may have to claim the money on your federal income tax return. The Internal Revenue Service allows tax deferral on certain types of contributions to encourage taxpayers ...

    Instructions for the Gift Tax Form 709

    While you may choose to make a gift to others based on your own generosity, these types of transfers may be a taxable event, according to the IRS. A gift giver is responsible for reporting the gift and paying the taxes. Exclusions apply to what is considered a gift, and how much ...

    Who Must File 1099 Forms?

    Business transactions often set up a taxable event, and the IRS requires that you notify it of these transactions in certain cases using an informational tax return. Form 1099, in all of its variations, is one of the more common of these forms. Many versions of Form 1099 exist ...

    How to Change My Tax Refund Payment Method

    When you file your tax return you have the choice of receiving your refund by check or by direct deposit. Additionally you can use part of your refund to purchase a U.S. Series Savings Bond. You are allowed to change the way you receive your refund from the method your tax ...

    Tax Lien Process

    When a property owner fails to pay property taxes, the municipal or county taxing agency may place a lien on the property. The lien guarantees that the taxes will be paid if the property is sold. A lien has a monetary value, and many taxing entities prefer to have the taxes paid ...

    What If You Forgot to Deduct Your IRA Contribution?

    Not every deposit you make to an IRA is tax-deductible. Roth IRAs give you a tax break when you start taking distributions at retirement while traditional IRAs work the other way: You take a deduction the year you set the money aside and pay income taxes when you withdraw it. If ...

    Does the IRS Get Notified of an IRA Distribution?

    Whether you make a withdrawal from your individual retirement account to use the money or to roll it over into another retirement account, the Internal Revenue Service requires the payer to report the distribution on Form 1099-R. As the account holder, you also receive a copy of ...

    IRS 2106 Form Instructions

    If you incur expenses related to your job that are ordinary and necessary for your job, you can deduct these expenses using Form 2106. Ordinary expenses are common and accepted to your profession, and an expense is necessary if it is helpful and appropriate for your business. ...

    What Are the Stipulations to Filing Married But Separate on Income Tax?

    There are good reasons why some married couples prefer to file separate tax returns. If your incomes are significantly disparate or if you both earn very good incomes, separate returns might mean that you pay less in taxes. If you file jointly, you're both responsible for the ...

    Do You Pay State Income Taxes Based on Where You Lived or Where Your Income Was Earned?

    When you work in one state and live in another, income taxes can become confusing. Although you must typically pay income tax to your state of residence even if you earn your income outside the state, you may also owe income tax to the state in which you are employed.

    What Is a Fiduciary Income Tax Return?

    Executors of wills or administrators of trusts held for a decedent are considered fiduciaries because they hold money or other assets on behalf of a beneficiary. The Internal Revenue Service requires these fiduciaries to file Form 1041 and pay any applicable taxes before ...

    Filing a Joint Tax Return When Married & Living Apart

    Your marital status as of the last day of the year is a major factor in determining your filing status for your federal income tax return. If you were married as of Dec. 31, the Internal Revenue Service considers you to have been married for the whole year, and you can file a ...

    Can a Separated Married Couple Both Be Head of Household?

    Claiming head of household filing status on your federal tax return involves complicated qualifying factors, only one of which is your marital status. You're not prevented from filing as head of household if you're separated but not divorced yet, at least not for this reason ...

    The Advantages of Filing Taxes Married With Two Incomes

    The former so-called "marriage penalty" has been minimized since 2001, when tax changes eliminated some inequalities in the IRS code. While married couples with roughly equal incomes could land in a higher tax bracket, those couples with one spouse having significantly ...

    Tax Suggestions for Married Filing Jointly

    All five of the Internal Revenue Service's tax filing statuses are based, at least in part, on your marital status as of the last day of the year. If you tie the knot on New Year's Eve at 11:59 p.m., the IRS considers you to have been married for the whole year, and you have the ...

    Can You E File With Last Paystub?

    If you're anticipating a tax refund, you'd like to have that money in your hands, or in your bank account, as soon as possible. But your employer doesn't have to send you a W-2 form until Jan. 31, delaying your ability to file and claim a refund. If you file your taxes ...

    How Do I Report Ordinary Dividends to the IRS?

    When you buy stock you are actually buying a small piece of a corporation, and you are entitled to participate in that corporation's financial fortunes. If the company prospers, the market price of its stock might rise. If the company earns a profit, its board of directors might ...

    Can You File a Joint Return if Your Husband Died?

    Few people escape paying income tax, even after death. If your husband dies, you – or the executor of his estate – must still file a return and report any income he earned up to the date of his death. You can typically do this by filing a joint return with him for ...

    E-Filing Tips to Save Time and Money

    In 2011, nearly 120 million taxpayers e-filed their income tax return. When you e-file, you agree to transmit all of your income tax return information to the IRS electronically, over the Internet. This allows faster processing of the tax return, and is intended to increase the ...

    What Happens If You Don't Pay Quarterly Tax Installments on Time?

    If you're self-employed or you have income from which taxes aren't withheld, the Internal Revenue Service requires you to make estimated tax payments each quarter. By the time tax day rolls around, you should have already paid most of the taxes you owed. It that isn't the case, ...

    If My Wife & I Are Separated, Should I Claim Head of Household?

    Whether you claim head of household status when you file your tax return isn't so much an issue of "should": there are several advantages to doing so, and it's almost always in a taxpayer's best interest. The real question is whether the Internal Revenue Service will ...

    If My Husband Owes Back Taxes, How Do I File?

    Marriage is based on sharing, but not all taxpayers want to share their spouse's tax debt. The Internal Revenue Service respects this and there are ways you can avoid the repercussions of back taxes your husband hasn't paid. The easiest way is to avoid filing a joint married ...

    Can I Amend My Tax Return From Single Status to Married Filing Separate Status?

    Where the Internal Revenue Service is concerned, you're either single or married – you can't be both. If you're married, you can't file as a single taxpayer, and if you're single, you can't file as a married taxpayer. If you made a mistake, however, you can go back and fix ...

    Split Tax Return When Divorcing

    Divorcing presents a host of practical problems, not the least of which might be how to file your taxes. In most cases, the Internal Revenue Service considers you legally married until your divorce is final. This limits your filing options and – depending on where you live ...

    Can You Itemize if You File Married Filing Jointly?

    When you file an income tax return, your tax filing status determines the tax brackets you face as well as whether or not you qualify for certain tax deductions and credits. Most married couples choose to file jointly, because for most people this filing status affords more tax ...

    Who Must File a Tax Return in Michigan?

    The Michigan Department of Treasury recommends that any taxpayer in the state who files a federal income tax return should also file a Michigan return. However, not every taxpayer is legally required to do so. It depends on your income, whether you will have taxes due with your ...

    Do I Have to File State Taxes If I Owe Nothing?

    The Internal Revenue Service has a federal filing requirement for everyone who meets a minimum income level or who received certain types of earnings. State tax-filing requirements, however, differ from state to state, so even if you don't owe state tax you may be required to ...

    How to Estimate My Itemized Deductions

    Federal income taxes can be one of the largest expenses that you must pay as a consumer, so it makes sense to know what effect different scenarios have on your tax situation. Itemizing deductions can save you some money on taxes. Estimate your itemized deductions if you are ...

    How to File Income Tax for Someone Who Has Died

    The death of a spouse or relative can present many issues and questions for families, especially when it comes time to file the tax return of the decedent. According to the Internal Revenue Service, if before dying, a taxpayer earned wages or received other income during the ...

    How to Claim Head of Household on Taxes

    When you file your income taxes each year, your status has a significant impact on whether you'll receive a big refund or a hefty tax bill. Claiming head of household status allows you to take advantage of a higher standard deduction and a lower overall tax rate than you would ...

    Reporting Earnings From Metal Detecting to the IRS

    Metal detecting can start out as a hobby but grow into a business if you find enough treasure. If that happens, the Internal Revenue Service will want its share of your profits. While you must claim your income from this venture accurately, you may also be able to write off the ...

    If You Are Separated Can You File Single on Your Tax Return?

    When it comes to your filing status for tax purposes, only one day of the year matters: December 31. If you were still legally married on the last day of the year, you typically cannot file your taxes as a single taxpayer, even if you were no longer living with your spouse. It's ...

    IRS 1041 Schedule D Instructions

    Form 1041 reports income, losses, capital gains and taxes on a domestic decedent's estate or trust. The fiduciary must file this return on or before the 15th day of the fourth month after the fiscal year end. For example, If the trust or estate is based on the calendar year, the ...

    How Do I Report Income for Married, Filing Separately in Arizona?

    Community property law doesn't just affect divorce. It has an impact on your federal tax returns as well – particularly when spouses elect to file separate married returns. The Internal Revenue Service defers to state laws regarding marriage and Arizona is a community ...

    The Best Tax Form for Married People With No Dependents

    Choosing the best tax form involves a great deal more than your filing status or whether you have dependents. The bottom line is always the size of the check you must write the Internal Revenue Service when you're finished completing the form and making your calculations. Your ...

    The Procedure for Filing Estate Taxes for a Deceased Parent

    Sorting through the financial details of your deceased parent's life can be a headache, particularly when you're grieving. Fortunately, you have a little time before you have to worry about tackling an estate tax return. It's basically a matter of tallying up everything your ...

    What Is the Deadline for a Mortgage Interest Statement?

    Mortgage interest can be one of your biggest deductions at tax time. In most cases, your lender will provide your total mortgage interest payments and other information at the end of each year on a Form 1098, Mortgage Interest Statement. The lender must have the statement in the ...

    How to Report an IRA Gift

    If you give all or part of your traditional IRA to a qualified nonprofit group after you reach 70 1/2 years of age, you may qualify for special tax treatment that benefits both you and the charity. Under rules of a qualified charitable distribution (QCD), you don't have to claim ...

    If I Worked for Only Two Days During the Tax Year Do I Still Need a W-2?

    No matter how short a period you worked at a job, you still will need to include a W-2 from that employer to properly file your income taxes. The Internal Revenue Service requires that income from all jobs be included on your tax return, even if the job lasted only one or two ...

    How to Report Stock Options to the IRS

    Stock options let you purchase shares at a specified price, no matter what the market price is on that day. The price is set on the date the company grants the option. The tax treatment of your option depends on whether it is considered an incentive stock option or a ...

    Requirements to File IRS Schedule D

    Schedule D is a form taxpayers can use to report the capital losses or gains they realize during the year. Taxpayers typically realize capital losses or gains when they sell or otherwise dispose of capital assets. Schedule D may also be necessary when a taxpayer has capital ...

    Can You File a Joint Return if You Are Married & Don't Live Together?

    Filing a joint tax return usually offers several tax advantages over filing as single or married filing separately. Even if you and your spouse lived apart the entire year for any reason, you can still file a joint return if you were legally married on the last day of the tax ...

    Tax Filing for a Married Couple Household

    There are five tax filing statuses, and all of them are based at least in part on your marital status as of the last day of the year. If you were married as of Dec. 31, the Internal Revenue Service considers you to have been married all year long, and you have two options when ...

    Can a Married Woman Be Head of Household With the IRS?

    The head of household filing status was designed to give single parents who support a family some of the same advantages that married taxpayers receive. If you are legally married, you normally cannot claim head of household status, even if you file a separate tax return and ...

    Tax Liability After a Divorce

    Couples who divorce face unique tax challenges during filing season. In addition to their emotional burdens, they face the daunting task of determining what income is taxable or what deductions to take. Discussing these details may not be an option, especially if one or both ...

    Do I Have to File My Earnings if a Church Pays Me?

    When it comes to payroll taxes, the Internal Revenue Service generally treats churches as just another employer, particularly with respect to lay employees who handle a church’s secular affairs such as building upkeep or bookkeeping. But there are a couple of unique tax ...

    Can I File as Married Filing Jointly If I Am Separated & My Spouse Moved to a Different State?

    The filing status you use when you file your federal income tax return can have a huge impact on how much you owe in taxes and in how big your tax refund check might be. If you are married, your filing status choices are pretty simple. You can file a joint return or separate ...

    Can I File the Short Form if I Have Mortgage Interest?

    The simplest way to file your income tax return is with the 1040EZ form, but it's not always the best choice. If you want to write off mortgage interest on your income taxes, it's definitely the wrong choice. You can only claim mortgage interest by filing the full 1040 form, not ...

    Can I File As Head of Household if I Am Married & My Spouse Does Not Work?

    People who file as head of household as of 2012 usually get a lower tax rate than the rates applied to those who are single or married filing separately. A head of household also gets a larger standard deduction. As a general rule, you must be unmarried to file as a head of ...

    How to Report Nonstatutory Stock Options

    If a company grants you stock options outside a stock-purchase or incentive plan, it's a nonstatutory option. The tax-reporting requirements depend on whether you can determine the value of the option. If the stock is traded on an established market and you have the right to ...

    Can I File as Single and Head of Household if I'm Still Married but Estranged?

    Filing income taxes after the break-up of a marriage can be a daunting task, especially if you haven't gotten a divorce or legal separation. You may be faced with having to file a separate tax return after years of filing joint returns with your spouse. This means choosing a new ...

    How to File Profits Generated Through Forex Trading

    Forex trading profits are reported to the Internal Revenue Service in two different ways. IRS code Section 1256 treats Forex profits as either short-term or long-term capital gains. Under code Section 988, profits are treated as interest income and taxed at ordinary income tax ...

    What Defines Being Able to File Married Filing Separately?

    Once you tie the knot, you have three filing statuses available to you. You can file a single joint return. You and your spouse can file separately. If you live apart from your spouse but with a dependent, you can claim head of household status. For federal taxes, your spouse ...

    Can I File Head of Household if I Got Married in July?

    Getting married alters your tax picture and filing choices. A change in marital status that occurs by Dec. 31 usually applies to the entire year, according to the Internal Revenue Service. Regardless of when the wedding took place, a taxpayer's marital status at year-end helps ...

    Can I File Married Separately & Deduct the Mortgage While My Spouse Claims the Standard Deduction?

    Once you get married, you might notice that itemizing your deductions for such things as mortgage interest doesn't provide the same proportional savings impact as it did when you were single. You might be better off taking the higher standard deduction for married couples on a ...

    How to Report a Disallowed Loss Amount on Schedule D

    One aspect of reporting stock market earnings income on your taxes that can trip you up is the 30-day wash rule. Basically, any time you sell stocks or securities at a loss, you can't claim the loss on your taxes if you bought substantially identical stocks or securities within ...

    Does a Business Expense Reimbursement Count as Income?

    Both employees and independent contractors can deduct business expenses on their tax returns to lower their taxable income. But if you're reimbursed for your business expenses, you can no longer claim the expenses as deductions. Reimbursements are not counted as taxable income ...

    Do I Need a 1099-R Form After Using My IRA to Buy a House?

    Uncle Sam is watching your IRA. If you take money out too early, you may have to pay a penalty. But you can often claim an exception if you dip into your account to buy or build a first home. Your financial institution will report your withdrawal to the Internal Revenue Service ...

    Married Filing Jointly and Proof of Marriage

    When you marry your significant other, you face many details to prepare for married life, including combining your households and managing your finances together. After the end of the first calendar year in which you got married, you'll need to tackle your first income tax ...

    What Do You Do if Married Filing Jointly & Spouse Won't Give Tax Information?

    If your spouse refuses to provide you with his tax information, you are still obligated to file your taxes with or without him. The Internal Revenue Service provides you with a solution when these problems arise -- file separately. Even without your spouse's consent, you can ...

    Can I E-File if Married and Filing Separately in Texas?

    The state of Texas does not collect state income taxes; therefore, filing married but separately from your spouse is not an option at the state level. The Internal Revenue Service, however, does collect federal taxes and allows almost any taxpayer to e-file, regardless of filing ...

    Can You Claim Yourself as a Head of Household if You Live Alone?

    The phrase "head of household" brings to mind a large family with a patriarch or matriarch ruling the roost. For tax purposes, however, a single parent living with one child can potentially qualify as head of household. Under some very specific circumstances, a single ...

    Should You File Taxes Jointly If You're Married Without Children or a Mortgage?

    Married couples have the choice whether to file joint or separate tax returns. Most file jointly -- whether or not they have children or a mortgage -- and for most couples, filing separately would result in a larger tax bill, because IRS rules eliminate or reduce certain tax ...

    What Status Can Married Persons With Dependents Claim on Their Taxes?

    Your federal income tax filing status affects your deductions, tax credits and tax rate. Married couples generally file jointly, but married persons with dependents may also qualify for married filing separately or as a head of household. If you qualify for more than one filing ...

    Can I File Single on My Taxes If I Am Married to a Non-Resident Alien?

    When you are married to a nonresident alien, how you file your income taxes is your decision. The Internal Revenue Service grants you the ability to treat your spouse as a resident alien and file jointly or you can waive that provision and file separately. You are still ...

    How do I Report Stocks on Federal & State Income Taxes?

    Unless your investments are in a retirement account, such as a 401(k) or IRA, you'll have to report all of your stock transactions to the Internal Revenue Service every year. If you live in one of the 43 states that assess state income taxes, you'll also have to report your ...

    Do I Need to Enter My Wife's W-2 if We Are Married, Filing Separately?

    Individual state laws can complicate tax filing tremendously when spouses elect to file separate returns, and you'll want to make sure you get it right. If your wife earns $30,000 reported on a W-2, and if you wrongly include it on your return, you would have to pay taxes on it. ...

    Disadvantage of Electronic Filing

    E-filing your taxes might appear to be the easiest, most convenient solution, but sometimes appearances can be deceiving. A few disadvantages associated with e-filing might make you think twice the next time you are filing a tax return. By knowing the cons of filing and not just ...

    Penalty for Filing Head of Household Incorrectly

    Claiming head of household filing status when you don't qualify probably won't put you in jail, but it might result in an audit. The Internal Revenue Service is well aware that the rules for filing for head of household are complicated, so you might just end up with a bill for ...

    How to Report an IRA Distribution That Was Refunded Within 60 Days

    Since individual retirement accounts carry special tax benefits, you generally have to report the movement of money into and out of an IRA. If you take a distribution from your IRA, you have to notify the IRS when you file your taxes. If you return the distribution within 60 ...

    Can I File Head of Household Without a W-2?

    Usually, if you're not married you have to file your tax return as single. However, if you meet certain conditions, you might be able to file as head of household. Even if you don't have a W-2, you might still be able to take advantage of the higher standard deduction and other ...

    The Taxes on Stock Trading in an IRA Account

    One of the advantages of trading stock in an individual retirement account is that you may be able to postpone taxes. In some cases, you can avoid taxes altogether, but stock trading in an IRA isn't always advantageous. Due to the tax structure of IRAs, you may end up paying a ...

    What Causes Delays in the IRS' Approval of Electronic Tax Returns?

    E-filing is the most popular way to file personal income tax returns, with more than 80 percent of all returns being sent electronically. If you e-file your return, the Internal Revenue Service is usually quick to process it and send you your refund, if you are eligible. ...

    Can I Claim Head of Household if I Am Unemployed?

    The Internal Revenue Service has established different filing statuses for taxpayers. They determine their standard and other deductions, as well as credits and exclusions they may claim in their tax returns. Head of household is one such filing status, as are also single, ...

    The Advantage of Filing Your Income Taxes as Single Instead of Married Jointly

    Your tax filing status can affect your standard deduction -- both when you file your taxes and when you fill out your W-4. If you're married, you can't file as a single person. Instead, you'll file as married filing separately, but the standard deduction for single people is the ...

    When Do You Report Early IRA Withdrawls?

    After you reach age 59 1/2, you can withdraw money from your IRA without incurring any penalties. However, if you make a withdrawal before you satisfy this requirement, you must typically pay a 10 percent early withdrawal penalty to the Internal Revenue Service by April 15 of ...

    The Taxes on a Disbursement From an IRA With a 1099

    Individual retirement account distributions are reported to both the Internal Revenue Service and the account owner via IRS Form 1099-R. The purpose of the form is to record the transaction and ensure that the appropriate tax, if any, is paid on the distribution. Form 1099-R has ...

    What Happens If Your Income Tax Is a Minus?

    As odd as it sounds, your tax bill can indeed be less than zero. In fact, through the magic of a tax animal called a refundable tax credit, you might actually get all of your tax withholding for the year back from the IRS, plus more. All tax credits lower your tax bill, but only ...

    Can I Force My Separated Husband to File Income Tax as Married Filing Jointly?

    It's impossible to file a joint married tax return without your husband's cooperation because the return requires both your signatures. You'd also need access to all his income information, which could prove difficult if you're no longer living together. Legally, both spouses ...

    How to Amend Tax Returns to Close on a Mortgage

    Once you've reached the closing stage of the mortgage process, the loan terms are pretty much set in stone. However, filing an amended tax return can slow the process way down, and any financial changes reflected in the amendment may disqualify you for the loan. Lenders usually ...

    Can Married People Filing Jointly With ITINs Claim Dependents?

    Taxpayers who aren't eligible to receive a Social Security number must file income taxes using an individual taxpayer identification number, or ITIN. Claiming a dependent isn't limited to married couples -- single taxpayers with an ITIN can also claim a dependent. If you support ...

    Should I File Taxes If I Am Retired?

    Retirement usually means no longer going through the daily grind at work and having more time for things you enjoy. But, it doesn't automatically relive you of all your duties, including filing a tax return. Depending on your circumstances, the Internal Revenue Service might ...

    Instructions for 1040 Schedule A Itemized Deductions

    Uncle Sam offers you a quick and easy way to reduce your taxable income with the standard deduction, but you can opt out and instead claim the total of your itemized deductions. It can take some extra time in record-keeping during the year and a little more paperwork when you're ...

    Do I Put Both W-2s in for Married Filing Separately?

    The Internal Revenue Service provides five different statuses when it comes time to file your federal income tax return, and you might qualify to file your taxes using more than one status. For example, if you're married, you can usually file a joint return or you can elect to ...

    How Do I File Income Tax Form 1098: Mortgage Interest Statement?

    Business enterprises receiving more than $600 in mortgage interest from an individual or sole proprietor during the course of business must file Internal Revenue Service Form 1098: Mortgage Interest Statement. In addition to mortgage interest, this form also reports refunds of ...

    Do Both Spouses Have to Be Present to File Married but Separate Taxes?

    The Internal Revenue Service offers two options to couples who are married -- filing jointly or filing separately. When you and your spouse file jointly, both are responsible for the tax bill and must sign the income tax return. When you file separately from your spouse, ...

    Do I Need to Claim VA Benefits on My Tax Return?

    Understanding the tax designation of your income is the key to meeting your tax obligations. If you confuse taxable income and nontaxable income, you could end up underpaying Uncle Sam or paying too much -- either way, you could spend months trying to correct your mistake. VA ...

    How to Figure the Qualified Dividends on a Tax Return

    Figuring the tax on qualified dividends can throw even the most seasoned tax accountants for a loop. There are definitions to memorize, tax codes to adhere to and numbers to crunch. Even with all that, the process is bearable as long as you understand how to differentiate ...

    Does Selling Your Shares of Stock Mess Up Your Taxes?

    Investing in the stock market is one way to put your money to work for you so that it can grow even when you're asleep. However, when you sell your stocks, you have to share the news -- and a portion of your profits -- with Uncle Sam when you file your taxes. Filing taxes with ...

    Do I Need to File a Tax Return if I Only Have Excludable Capital Gains From the Sale of a House?

    If you earn a profit from the sale of your home, you may have a taxable gain in the eyes of the Internal Revenue Service. Fortunately, the IRS allows taxpayers to exclude up to $500,000 of gains on the sale of a house if they meet certain requirements. If you qualify to exclude ...

    Can I Collect a State Tax Refund From Three Years Ago?

    Although you are generally not required to file a tax return if your return will result in a refund, the Internal Revenue Service and your state's department of revenue urge you to file to claim your refund. Whether you were out of the country for work, incapacitated due to ...

    Does Filing Your Taxes Electronically Increase Your Chances of an IRS Audit?

    Being audited by the IRS is the most dreaded fear of most taxpayers, but instead of panicking, it would be helpful if taxpayers understood what triggers an audit. You may think the IRS is out to get you, but really, the service is just searching for discrepancies that indicate ...

    Penalties for Failure to File a Gift Tax Return

    Starting in 2011, IRS started cracking down on individuals who do not file a gift tax return after making a gift that requires reporting. Working with state or county agencies in 15 states, the IRS started using real estate property records to spot land transfers between ...

    What Happens If the Same Income Tax Return Is E-Filed Twice?

    The Internal Revenue Service has a strategic process for receiving and processing federal income tax returns. As one measure to prevent identity theft and tax fraud, the IRS uses your Social Security number to verify the authenticity of your return. If your Social Security ...

    How Do I File If I Received a 1099 and a W-2 From the Same Employer?

    If you earn money from working, regardless of whether you work as an employee or a self-employed independent contractor, the Internal Revenue Service wants its cut in the form of income taxes. While you must pay taxes on both forms of income, the way your employer reports that ...

    Can My Fiance & I File Jointly?

    You might have heard about the so-called marriage penalty, but many married couples get a marriage bonus: they pay lower combined taxes by filing a joint return than they would if they filed separately. You might be tempted to file a joint return with your fiance to take ...

    What Goes on Line 12a of a Federal Tax Form?

    Though you might not be working when you receive distributions from your pension, you may still owe income taxes on the withdrawals. If you're using Form 1040A, line 12a is only used if all or a portion of your pension and annuity distribution isn't taxable. Neither Form 1040 ...

    What If I Don't File a Gift Tax Return?

    If you give a gift and the fair market value exceeds $13,000 as of the 2012 tax year (rising to $14,000 in 2013), you must file a gift tax return. You must file the return between Jan. 1 and April 15 in the calendar year you made the gift. If you cannot meet the deadline, you ...

    Calculation of Back Taxes

    If you cannot file your federal income tax return by the deadline, file Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, to get a six-month extension of time by April 15. Otherwise, you owe back taxes to the IRS starting on April ...

    What Does It Mean If the IRS Is Correcting My Refund?

    In 2012, the IRS identified 2.7 million math errors made by taxpayers on their 2011 tax returns. Although the number of errors tax filers are making is steadily declining, you still stand a pretty good chance of receiving an IRS notice informing you that your refund is being ...

    Do Parking Expenses Count for Itemized Deductions?

    Opponents of the world’s first parking meter, unveiled in 1935 in Oklahoma, protested that charging for parking amounted to a tax on people’s cars. Indeed, every quarter you put in the meter is an after-tax quarter because, generally speaking, you can't deduct your ...

    Who Files the Property Taxes of a Deceased Relative?

    When a deceased relative leaves real property behind, the local taxing authority will continue to assess property taxes. If no one pays these taxes, the taxing authority can put a lien on the property and eventually foreclose. Depending on the deceased person's estate plan, ...

    How to Enter a Wash Sale on a Capital Gain or Loss Worksheet

    Internal Revenue Service Form 8949 contains capital gain and loss spreadsheets on which you can enter wash sale information. You use this form to calculate and report your capital gains and losses for the tax year. Many tax-preparation programs offer similar worksheets to guide ...

    Filing Taxes When You Don't Own a House

    It's common to hear about all the tax benefits you can claim when you own your own home. Sure, if you're renting that means you don't have mortgage interest or real estate taxes to write off. However that doesn't mean there's not lots of other good stuff to write off you file ...

    What Does It Mean if the IRS Is Reviewing My Return?

    When you file your income tax return electronically, a computerized system reviews your return, and if the return is error-free, the Internal Revenue Service will accept it. If your return does contain errors or includes credits or deductions that are out of the norm, a ...

    Can I E-File a Return With a Deceased Spouse?

    Each year, the Internal Revenue Service improves the electronic filing system, making it possible for nearly everyone to file taxes electronically. In 2012, almost 100 million taxpayers e-filed and the IRS expects this number to increase about 17 percent by 2018. If your ...

    Can a Married Couple File Jointly From Different States?

    You only have two requirements for filing a joint return. One is that you and your spouse both agree to file jointly; if you don't, you have to file separately. The other is that you meet the IRS definition of a married couple. If you qualify, you can file a joint return when ...

    Is Schedule D the Same for a 1040 and a 1041?

    Many taxpayers in the United States use Form 1040 to file their income taxes, but if you have to file a tax return as a trustee for someone who is deceased, you must file Form 1041 instead. For either form, you must report capital gains or losses on Schedule D, but the Internal ...

    Can a Husband and Wife Both Claim Flexible Dependent Care Benefits?

    Flexible Spending Accounts are established as a way to allow people to pay for either healthcare or dependent care expenses with money their employer withholds from their paycheck before taxes. Employers benefit from these plans, because they pay fewer payroll taxes by reducing ...

    Income Cap on Standard Deductions

    The standard deduction is available to most taxpayers who aren't dependents, regardless of how much money they earn during the year. This is because there's no income cap, or phaseout, that applies to standard deductions. But if you're subject to the alternative minimum tax ...

    How to File the Sale of Vacant Land With the IRS

    According to Internal Revenue Service publication 544, "Sales and Other Dispositions of Assets," you must report the sale of vacant land as a capital gain or loss. Use Form 8949, "Sales and Other Dispositions of Capital Assets," to figure the amount of gain ...

    Form 1099 Reporting Requirements

    If you pay a service provider such as a housekeeper, babysitter, attorney or landscaper, you may be required to report the payment to the Internal Revenue Service on Form 1099 at the end of the year. Form 1099 is also used to report distributions from retirement plans and IRAs, ...

    What Is Schedule E in Taxation?

    The Internal Revenue Service provides dozens of tax schedules to report income and losses from every conceivable type of business or financial activity. If your business or financial activities require a special tax schedule, you fill in the appropriate information and attach ...

    Some Tax Tips for the Last-Minute Filers

    Even though it's nearly four months after the end of the year, the April 15th tax deadline has a way of sneaking up on taxpayers. Even if you resolved to file your taxes early, having to wait for a form from an employer or a Social Security number for a newborn can hold you ...

    Pros & Cons of Requesting an Extension to File Your Taxes

    The Internal Revenue Service offers an automatic six-month extension of your time to file your tax return for any reason, as long as you request it before your tax filing deadline. However, an extension isn't a magic bullet that can solve all of your tax problems. In some cases, ...

    How to Spot a Bad Tax Preparer

    Although it's tempting to put complete responsibility for your taxes in the hands of your tax preparer, you are ultimately responsible for everything she files. An accountant who leaves out key information, who misses deadlines or who misleads the Internal Revenue Service can ...

    How Soon After You File Will You Know if the IRS Chooses You for an Audit?

    The U.S. Internal Revenue Service has the right to audit, or examine tax returns filed by individuals and businesses. Audits are typically conducted on tax returns that are viewed by IRS agents as falling outside the norm in terms of information provided by the taxpayer. For ...

    IRS Tax Tips for Those Who Missed the April 15 Deadline

    The Internal Revenue Service requires that U.S. citizens file individual tax returns by April 15 each year. If you miss this filing deadline, you run the risk of incurring fees, interest and penalties. Depending on how delinquent you are in filing, you could face other legal ...

    Who Pays Deferred Taxes After I'm Dead?

    It’s no accident that the death and taxes are often mentioned together in that order. Taxes come due even after you’re gone. While most deferred taxes arise in business situations, individual taxpayers can defer taxes on some types of property. Who settles the bill ...

    What Is Section 1231 Property?

    Selling or exchanging property that has been used in a trade or business may create a tax liability for the gain under Section 1231 of the Internal Revenue Code. You will be taxed at ordinary income rates instead of the long-term capital gains rate in certain circumstances. For ...

    Changing Accounting Methods & IRS Form 3115

    The Internal Revenue Service allows businesses to choose among different accounting methods that include how you recognize revenues and expenses, value inventory and depreciate assets. You don’t need IRS permission for the accounting methods you adopt when you start a ...

    State Income Tax Residence Rules

    If you work in one state but live in another or if you changed jobs as the result of a move, you could end up owing income taxes in both states. Whether you'll have to file multiple returns depends on your residency status. Each state has different guidelines that determine ...

    Does It Cost a Tax Preparer to E-File?

    The Internal Revenue Service has caught up to the digital age with its e-filing service, which allows taxpayers and tax preparers to upload tax forms and schedules via the Internet. The agency promises accurate processing of returns and quick refunds for e-filers, but doesn't ...

    Reporting Your Investment Earnings

    In most cases, when you make money from your investments or generate profits, you must pay taxes on those gains. The tax rules classify investment earnings into several different types, and you may need to use a range of tax forms to complete your tax return. A big picture view ...

    I Accidentally Paid State Income Tax to Two States

    Working in one state and living in another can make tax time even more confusing than usual. Your home state, if it charges income tax, expects a cut of your earnings, but the other state may want a slice too. The rules are set up so you don't usually get taxed on the same ...

    How to Pay Taxes on an IRA With MLPs

    An individual retirement account can invest in a wide range of assets, including units of master limited partnerships. Although IRAs shield investment income from current taxes, MLPs can generate unrelated business taxable income, or UBTI, that can require your IRA to make tax ...

    How to Report an IRA Rollover Gift

    The benefits of an individual retirement account include tax-deductible contributions and tax-deferred growth of investments. You must include withdrawals with taxable income, and you must begin taking minimum distributions once you reach age 70 1/2. That’s also the age ...

    Filing Your Tax Forms After Selling Your Restricted Stock

    When your employer gives you company stock, the grant typically arrives first as restricted stock units, or RSUs. Each unit represents a share of stock you will receive in the future. You’re restricted from selling the stock until it is given to you on a specified date. ...

    How to Report Gas Reimbursement on Tax Returns

    If you use your own vehicle as part of your job, your employer may reimburse you for part or all of your expenses, such as what you spend for fuel. Depending on how your employer treats these reimbursements will affect how you must handle them when you file your income taxes. If ...

    How to Prove Tax Was Paid on an IRA

    An individual retirement account provides you with tax benefits when you use one to save and invest for your later years. You deduct your contributions to a traditional IRA and pay ordinary income tax on withdrawals. A Roth IRA doesn't give you tax deductions, but you can take ...

    What Does Code 1201 Mean for IRS Tax Returns?

    When you finally finish your federal income tax returns and hit the "Submit" button to electronically file your taxes, few situations are more frustrating than getting an obscure error message. The IRS has hundreds of codes to let you know there's a problem with your ...

    How to File Jointly as a Disabled Married Veteran

    Although the Internal Revenue Service offers disabled veterans special tax-saving benefits, most of the tax rules -- including those that govern when you can file jointly -- are the same for all taxpayers. Filing jointly on your tax return form is fairly straightforward. Before ...

    Is a Child Required to File Schedule D to Report the Sale of a Bond?

    Whether a dependent child has to report investment income such as a bond sale depends upon whether the child meets the requirements for filing a tax return. The Internal Revenue Service mandates tax return filing for a dependent child when specified types of income exceed ...

    Tax Breaks for Common Law Couples

    Federal law provides a number of tax breaks to legally married couples who file joint returns. A limited number of states, however, recognize legal common-law marriages for people who live as married couples but don't obtain state licenses or participate in traditional marriage ...

    Where to Report Gain on a Surrender of Annuity Contract on IRS Forms?

    Life insurance companies offer annuities as investment contracts, transferring to the insurance company the risk of the insured living longer than his money. Many annuity contracts are written as deferred annuities, so the policy owner can contribute money for a number of years ...

    Federal Electronic Filing Instructions

    The Internal Revenue Service’s Free File program has several advantages over filing a paper return through the mail. Your return is immediately transmitted via a secure link to the Internal Revenue Service website. If you are expecting a refund, you will receive it faster ...

    The Average Deductions for Schedule E

    The deductions you’re allowed to claim for having Schedule E as part of your tax return depend upon the type of income reported. The most commonly-used sections of Schedule E are Part I -- where income from rental real estate is reported – and Part II, which lists ...

    What if All Information Doesn't Fit on Schedule D?

    If you haven't filled out a Schedule D in a while, you may not be aware that the Internal Revenue Service no longer has you list the details of every capital asset you sell on it. Schedule D is now only used to report your total gains and losses, so your information should ...

    When Is a Tax Return Due for a Trust When a Person Dies?

    When a grantor -- a living-trust creator -- dies, the trust becomes irrevocable. An irrevocable trust is an independent taxpayer in the eyes of the IRS, required to file its own tax return. Responsibility for completing the paperwork falls to the trustee appointed by the ...

    Are U.K. Social Security Benefits Taxable in the U.S.?

    The United Kingdom and the United States have an agreement that defines which Social Security system of the two nations covers an individual working outside his home country. U.S. citizens are entitled to U.K. Social Security from work history in that country. In addition, a ...

    Which Tax Form Do I Fill Out If I Inherit a Savings Account?

    When you inherit a savings account, the value of the savings account itself is not taxable. You are not required to report the face value of the savings account. However, any interest that accrues on the inherited savings account from the date of distribution to the end of the ...

    Can You Use "Various" in the "Date Acquired" Column of Schedule D?

    Beginning with tax year 2011, the Internal Revenue Service changed how you report the sale of capital assets such as stocks, bonds and mutual funds. Formerly, you reported the details on Schedule D-1 and summarized the information on Schedule D. In the new scheme, you use Form ...

    Can You Mark Stock Purchased at Various Times on a Schedule D?

    You must tell the Internal Revenue Service about the stocks you sell. The correct form to use is Form 8949, and you then summarize the information on Schedule D. To figure your taxes correctly, you must separate your long- and short-term capital gains on Form 8949. You must ...

    What Are the Treatments for Nondividend Distributions on Schedule D?

    Mutual funds must distribute virtually all of their income and capital gains each year. By doing so, funds avoid paying taxes but instead pass the chore off to shareholders. You don’t use Schedule D of Form 1040 to report dividend distributions, but you’ll need it to ...

    Where to Report Additional Federal Withholding on an Annuity

    The amount of taxes you will owe on annuity income depends on the nature of the annuity. You only pay taxes on the portion of an annuity that exceeds its cost basis, which is the amount of non-deductible contributions made. Qualified annuities, which you hold in an employer plan ...

    How to File a Late 709 for Irrevocable Life Insurance Trust

    Irrevocable life insurance trusts can allow the trustee to make distributions to the beneficiaries. These distributions are considered gifts that are tax-free for the beneficiaries. As the trustee, you are responsible for filing the gift tax return and paying the taxes. You ...

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