Tax avoidance is the legal utilization of the tax regime to one's own advantage, to reduce the amount of tax that is payable by means that are within the law. By contrast, tax evasion is the general term for efforts to not pay taxes by illegal means. The use of legal methods to modify an individual's financial situation in order to lower the amount of income tax owed. This is … [Read more...]
The U.S Tax Withholding System
Understanding The U.S. Tax Withholding System As we all know that Income taxes aren't always withheld from people's paychecks. In fact, income tax withholding is a relatively recent development. Tax withholding first occurred in 1862 under Abraham Lincoln for the purpose of helping to finance the Civil War. The federal government also implemented a plethora of excise … [Read more...]
7 Ways To Avoid Self-Employed Tax Penalties
When you're self-employed, you're required to send in quarterly estimated tax payments. But if your income varies from month to month or year to year, it's tough to determine the amount of taxes to pay each quarter. You don't want to send in so much that your daily expenses suffer, or too little that you get a shocking tax bill at tax return time - plus underpayment penalties … [Read more...]
Tax Deductions:Tips for Individual Real Estate Investors
Tax deductions are not the top priority for almost all individual real estate investors. They often work out of their home with no employees, other than those on-site at the property. Challenges which includes selecting what property to purchase, screening tenants, repairs, managing expenses, obtaining financing, and deciding when to sell. This articles addresses tax … [Read more...]
How Do You Get Tax Preparation Services For Free?
Filing a tax return is the tedious job that many of us don't really want to do it ourselves , so we hire accountants or take help from one . The computer and the internet have made the annual preparation of income taxes so much easier, including the advent of tax preparation services. I can remember working up to the last minute, reading every possible allowable deduction on … [Read more...]