Tax credits and deductions both reduce tax liability, but in different ways. Tax deductions are qualifying expenditures that reduce taxable income. Tax credits, on the other hand, directly reduce the total tax liability, not taxable income.
Tax deductions are expenditures … Continue reading
Earned Income Tax Credit (EITC) is a tax credit available to low and middle-income working individuals and families. It helps taxpayers to keep more of their earned income. To take advantage of this refundable tax credit, you have an annual … Continue reading
Where there is a transfer of property or money and the giver is receiving nothing or less than the worth of the property or money in return, it is considered a gift. There are taxes to be paid on gifts. … Continue reading
The IRS has announced the 2014 optional standard mileage rates for business, charitable, medical or moving expenses. The new rates will come into effect beginning Jan 1, 2014. For the use of an automobile including cars, panel truck, pickups and … Continue reading
Charitable contributions are tax deductible if they are made to qualified organizations. An organization that has a tax-exempt status is not necessarily a qualified charity for tax deduction purposes.
Charitable contributions made to organizations such as specific individuals, political organizations … Continue reading
Tax resolutions are designed to suit specific needs of taxpayers. The financial condition of the applicants is a significant concern for the IRS. It heavily impacts whether a request for a payment plan is accepted or not. Tax Defense Network … Continue reading
Taxpayers that are in tax debt can seek relief from the entire debt amount using IRS’ Innocent Spouse Relief, if they fulfill the qualifying factors. In cases where married taxpayers file jointly, both the partners are responsible for the tax … Continue reading