50-State Guide to Business Income Tax
Most states tax at least some types of business income derived from the state. In most states, corporations are subject to a corporate income tax while income from “pass-through entities” such as S corporations, limited liability companies (LLCs), partnerships, and sole proprietorships is subject to a state’s tax on personal income.
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50-State Guide to Forming an LLC
While its not difficult to form a limited liability company ("LLC"), the rules for how it must be done vary state by state. To find out the requirements for forming an LLC in your state, choose your state from the list below.
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Avoiding Capital Gains Tax When Selling Your Home: Read the Fine Print
If you sell your home, you may exclude up to $250,000 of your capital gain from tax or up to $500,000 for married couples.You probably know that, if you sell your home, you may exclude up to $250,000 of your capital gain from tax.
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Can a Tax Refund Affect SSI Eligibility?
I think I may get a tax refund this year because I had to quit working last year due to my disability. Is this going to cause my SSI payments to stop?
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Can employers accept a receipt for a replacement document for I-9 purposes?
Do I have to terminate her employment and rehire her once she gets the documents, or can she work while she waits for the documents?
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Can my husbands ex and I share the same last name without problems?
I am getting married; my first time, his second. I will be taking his name when we marry. Will there be any problems if his ex keeps her married name, too? We dont have the same first name.
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Canceled Mortgage Debt: What Happens at Tax Time?
The Mortgage Forgiveness Debt Relief Act gives some taxpayers a break.
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Choosing a Fiscal Year for Your Business
All businesses are required to pay taxes and keep accounting records year by year. You automatically choose your tax year when you file your tax year when you file the first tax return for your business. After that, you have to get IRS permission to change.
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Claiming an Unmarried Partner as a Dependent on Your Tax Return
To claim tax benefits for your dependent partner, there are fivetests your partner must pass.
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Current vs. Capital Expenses
Tax rules cover not only what expenses can be deducted but also when in what year they can be deducted. Some types of expenditures are deductible in the year they are incurred but others must be taken over a number of future years.
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Deducting Medical Home Improvements
Ordinarily, you cannot deduct the cost of permanent improvements to your home. But these is an important exception: such improvements can be deductible as a medical expense. However, changes brought about by the Tax Cuts and Jobs Act (TCJA) make it harder for most taxpayers to deduct these expenses than in the past.
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Deducting Organizational Costs for Single-Member LLCs
Many people who start one-owner businesses form single member limited liability companies (LLCs) to own and operate the business. Single-member LLCs are legal in every state. However, for tax purposes they are “disregarded entities”—this means that a single-member LLC is treated the same as a sole proprietorship unless the LLC owner elects to have the LLC treated as a corporation (which is rare).
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Deducting Repairs to Your Home Office
If you have an office in your home that qualifies for the home office deduction, you’ll be able to deduct a variety of home expenses. These include not only a portion of your rent or mortgage payments and utilities, but some home repairs as well.
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Deducting Your Property Taxes
If youre a homeowner, you almost certainly have to pay property taxes. These are local taxes based upon the assessed value of your home. The more your home is worth, the more youll have to pay. Fortunately, property taxes are deductible from your federal income taxes. However, the Tax Cuts and Jobs Act imposed new limitations on this deduction.
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Do LLC Members Need to be 18 Years Old (or Older)?
However, great business ideas are not limited to adults, minors (those under 18 years of age in most states) have them too. Can you form an LLC if you’re under age 18? Can you even be a member of an LLC if you’re a minor?
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Do You Qualify for the Adoption Tax Credit?
Adopting a child is expensive. If you do it through an adoption agency or privately, it can cost anywhere from $5,000 to $40,000 or more. International adoptions can range from $7,000 to $30,000. The federal government wants to encourage adoptions and has put its money where its mouth is by establishing an adoption tax credit.
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Does employer need to complete a new I-9 for a rehired employee?
I am rehiring an employee who worked for our company last summer. Do I need to do a new I-9 for her?
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Eliminating Tax Debts in Bankruptcy
Most taxes cant be eliminated in bankruptcy, but some can.You may hear radio commercials offering the hope of eliminating tax debts in bankruptcy. But its not as simple as it sounds. Most tax debts cant be wiped out in bankruptcy youll continue to owe them at the end of a Chapter 7 bankruptcy case, or youll have to repay them in full in a Chapter 13 bankruptcy repayment plan.
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Estate Tax: Will Your Estate Have to Pay?
Only some estates, larger than $5 million, owe federal estate tax.
Most estates dont owe federal estate or gift tax, because you can give away or leave substantial amounts of property tax-free.
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Filing a Tax Return When You Live Outside the United States
The long arm of the tax code does not stop at the U.S. border.
If you live abroad and have income, you will still have to file a tax return. You must also either have taxes withheld from your paycheck or pay quarterly estimated taxes if you are working abroad.
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Filing and Paying Taxes Late
The penalties for filing or paying your taxes late, and how to request an extension.
What if April 15 rolls by and you havent had time to complete your return, or you cant pay what you owe?
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Hiring Workers in Your Home: Legal Requirements
Understand your responsibilities when hiring a nanny, housekeeper,gardener, or handyperson.
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Homeowner Tax Breaks: Recent Developments
Learn about recent tax credits and tax deductions for homeowners.
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How to Form an LLC
MAP is your resource for assistance with managing problems at home and at work. MAP provides you and eligible family members with a no-cost, confidential and user-friendly resource for life management concerns
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How to Hire a Tax Professional for Your Small Business
Hiring the right tax professional for your small business is important. Getting good tax help can translate into money for your business. Ideally, you should form a long-term relationship with a tax professional so you have someone to call year-round.
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How to Reduce the Chance of an Audit
Here are some suggestions to help you file a return that wont raise any audit eyebrows at the IRS.
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IRS Installment Payment Plans
If you can pay your debt over time, an installment plan may be the right solution.The most widely used method for paying an old IRS debt is the monthly installment agreement, or IA. If you owe $25,000 or less, you should be able to get an installment payment plan for 60 months just by asking for it.
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IRS Penalties Most Likely to Affect Small Businesses
Learn about common tax mistakes made by small businesses, and the IRS penalties that can result.If your small business fails to comply with tax taws or tax filing requirements, those mistakes can be costly.
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IRS Tax Bill Collections: What You Can Do
Heres what to do when the IRS tries to collect a tax bill.The IRS has far greater powers than any other bill collector: The IRS has the power to take your wages, bank accounts, and other property without first granting you a hearing.
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Keeping Employee Records for Tax Purposes
Small businesses can avoid trouble with the IRS by keeping the right employee records and tax documents.
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Keeping Tax Papers
Keep anything related to your tax return for at least three years after you file.In general, the IRS has up to three years after you file your tax return to complete an audit of you.
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Negligence Versus Tax Fraud: How Can the IRS Tell the Difference?
The difference between cheating on your taxes and negligentlyfiling them, and how the IRS distinguishes between the two.
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Preparing for a Business Audit
Be prepared for an audit of your business.
Whos afraid of the IRS? Almost everyone. The key to surviving a tax audit and even coming out on top is not to panic, but prepare.
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Pros and Cons of Appealing an IRS Audit
Filing an appeal, in the majority of cases, results in some savings but rarely a total victory.
Here are some of the pros and cons to appealing an IRS audit and the steps you need to take to get started.
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Rules of the Game Tax Laws
Tax code, regulations, rulings and court cases: why we need themall.
Congress writes the tax laws, which become part of the Internal Revenue Code (IRC), or tax code for short.
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Seven Steps to Lower Your Taxes
Learn basic tax-saving strategies you should know to help reduceyour taxes.
Weve all heard that death and taxes are inevitable. Well, death may be inevitable, but taxes are not.
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Small Business Tax Debts: Dealing With the IRS
If your small business owes taxes, how should you handle the IRS?
Small businesses with tax debts face the daunting powers of the IRS and the various methods that the agency can use to collect overdue taxes many of which could spell the end for your business.
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Small Business Tax FAQ
Answers to common tax questions on tax deductions for small businesses.
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Tax Abbreviations You Should Know
The world of taxes is filled with abbreviations. Understanding some of the basic abbreviations commonly used will help you when dealing with tax professionals and the IRS.
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Tax Bill & IRS FAQ
Frequently asked questions about handling a tax bill from the IRS.
I am faced with a tax bill that I cant pay. Am I completely at the IRSs mercy, or do I have some options?
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Tax Breaks Every Parent Should Know About
Learn about child tax breaks available to most parents.
New parents often find themselves overwhelmed by the expenses that come with a baby. From nursery furnishings to countless diapers, your little bundle of joy is going to cost you, well, a bundle
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Tax Court: The Small Case Division
Federal tax court has a user-friendly division to help taxpayers resolve small disputes.
Small claims courts are a vital part of each states court system. Unfortunately, the federal government has not incorporated the user-friendly, informal, and inexpensive forum of small claims court into its trial court system with one notable exception: the small case division of federal tax court.
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Tax Deductions for Your Charitable Contributions and Volunteer Work
Charitable contributions and volunteer work can reduce your taxes and enrich your retirement.
After retirement (and even before), many people are looking for meaningful ways to spend some of their newly free time and to make a difference in the world.
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Tax Exemptions and Dependents: Six Things to Know
Understand IRS rules for claiming dependents as exemptions on your tax return.
Tax rules on dependents and exemptions apply to everyone who files a federal income tax return.
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Tax Relief for Child Care Expenses
The child care tax credit and dependent care accounts could save you thousands of dollars.
Every working parent knows that the cost of good child care is expensive and ever-increasing.
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Tax Returns: If You Havent Filed in a While FAQ
Answers to frequently asked questions about failing to file tax returns.
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Tax-Saving AB Trusts
Wealthy married couples get a big tax break when it comes to the federal gift/estate tax. Together, they can transfer nearly $11 million without owing federal gift tax or estate tax.
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Teen Jobs: Paying Taxes & Saving for Retirement
Help your teen maximize earnings by following these tax and retirement saving tips.
If you are the parent of a teen who has just landed his or her first paying job, you have a great opportunity to teach your teen about money management, spending, saving for retirement, and taxes.
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The Charitable Trust: Do Good and Get Tax Breaks
Give to charity and get a tax benefit.
A charitable trust lets you donate generously to charity, and it gives you and your heirs a big tax break.
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The Home Office Tax Deduction
Running a business from home can help you lower your tax bill.
When you use part of your home for business, you may be able to deduct expenses for what the IRS calls the "business use of your home.
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The Kiddie Tax: Limits on Shifting Unearned Income to Children
Learn about the kiddie tax and how to avoid it with smart investments.
For a long time, a popular tax-saving strategy for high-income families was to funnel unearned income through their children to reduce their overall taxes.
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The Simplified Home Office Deduction
If you use a home office exclusively for business purposes, you can deduct as a business expenses a portion of the cost of operating your home. However, the home office deduction can be complex.
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Tips for Last-Minute Tax Filers
Tips for those that file their tax return at the last minute orwho need to get an extension.
Still havent filed your taxes? Dont worry, youre not alone; millions of people wait until the last minute to do their taxes.
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Top Seven Tax Deductions for Seniors and Retirees
Heres a list of the top tax deductions for those over 50.
If you are a senior or retired, be sure to understand and take advantage of the deductions available to reduce your income taxes each year. Heres some of the most important tax deductions.
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Top Ten Tax Deductions for Landlords
Learn about the many tax deductions available to rental property owners.
Every year, millions of landlords pay more taxes on their rental income than they have to. Why? Because they fail to take advantage of all the tax deductions available for owners of rental property.
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Top Ten Tips for Surviving an Audit
Convince the IRS you were entitled to the credits, deductions, andexemptions you took.
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Using an Offer in Compromise to Settle a Tax Bill
How to settle a tax bill with the IRS for pennies on the dollar using an offer in compromise.
It is sometimes possible to wipe your tax slate clean at an enormous discount.
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What are State Business Tax Laws?
Generally speaking, if your business makes money, then that money will be subject to income tax in the state where your business is located. The tax will either be paid directly by the business, or by the individuals who ultimately receive the business income. Moreover, apart from a tax on income, your business may be subject to a tax merely for existing in a particular state.
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What Auditors Look for When Examining a Business
Know what an IRS auditor looks for when examining your business and its records.
If your small business is being audited by the IRS, you should do two things: First, prepare for the audit. (For information on this, see Preparing for a Business Audit.)
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What Employers Should Do After E-Verify Issues a Tentative Nonconfirmation for an Employee
The first time an employer using the E-Verify system receives a Tentative Nonconfirmation (TNC) can be a shock. By way of background, E-Verify compares information from an members Form I-9, Employment Eligibility Verification, against data in the files of the U.S. Department of Homeland Security (DHS) and the Social Security Administration in order to check whether the employee is eligible to work in the United States.
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When Visa or Green Card Holders Must Pay Taxes
If the U.S. government considers you a tax resident, you must filea U.S. tax return. Heres how to determine your status.
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Where to Form Your LLC
Choosing where to form your Limited Liability Company (LLC) can sometimes be as perplexing as selecting the best legal structure for your new business. You have two basic options regarding where to register your LLC.
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Which Type of Business Entity Needs an Employer Identification Number (EIN)?
The purpose of an employer identification number (EIN) – also known as a taxpayer identification number, or TIN – is to allow the IRS to track wages and other payments from your business to the businesss members and owners.
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