When tax time is looming, Benjamin Franklin’s famous quote about death and taxes is often mentioned. His “Nothing is certain except death and taxes” quote is one of the most enduring quotations from the inventor, politician, writer and founding father. However, few people really understand why...

Everyone is concerned about identity theft, and tax time can be of particular concern. Identity theft begins when someone gains access to your personal information – most often a Social Security number – and uses it for his or her own gain. The information may be used to get a job or to...

This tax season, you may want to do what millions of people do and hire a tax preparer to help you file your income tax return. To choose the best professional to help you with your specific tax needs, there are several criteria that you should consider. When making this important decision, be sure...

Mitt Romney released his tax returns on January 24th, 2012. His 2010 earnings showed $21.7 million in income with an effective tax rate of just 14%. Newt Gingrich shared his tax return last week and his tax rate came in around 31%. Why is Romney’s Tax Rate so low? Unlike Newt, Romney’s income...

Newt Gingrich shared his 2010 tax returns on his website on January 19th, 2012. Newt and his wife, Callista, filed a joint tax return with an adjusted gross income of $3.14 million. They paid a total of $994,708 in income taxes. According to the tax returns, Callista was paid $191,827 in W-2 wages in...

There is generally some confusion as to how bonus income is taxed. Many people mistakenly believe that the bonus they receive from their employer during the holiday season is taxed at a higher rate than regular income. Others believe that a year-end bonus could bump them into a higher tax bracket, resulting...

If you’ve been doing your research on tax credits and deductions, some of the sources that you’ve come across might mention that you’ll want to watch out for the AMT when using them. The alternative minimum tax (AMT) system is intended for higher-income taxpayers, but over time has come to...

The IRS has announced that interest rates will not change for the first quarter of 2012, which begins on January 1, 2012 and goes through March 31, 2012. Interest Rates for Q1 2012 IRS interest rates will continue to be charged as follows: 3% for overpayments (2% for corporations) 3% for underpayments 5%...

If you are an employer or some other entity that makes payments, you must withhold taxes from your employees’ paychecks and certain other payments that you issue. However, you must also be aware of any additional taxes that you may have to withhold. For payees who do not furnish a correct Tax...

Earned income is subject to federal taxes. A  To legally reduce the tax liability owed on earned income, taxpayers can claim deductions and tax credits when filing their annual tax return.  There are several tax deductions which lower the amount of income subject to tax, with taxpayers having a...