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Are you an employer? If so, you’ve got a major challenge to accomplish in the next few months. Most businesses aren’t ready for the new overtime rules and worker classification changes to the Fair Labor Standards Act (FLSA) that the Department of Labor recently published, which will impact millions of U.S. workers and their employers. The new overtime rules go into effect December 1, unless...

Have you been using some help around the house? Hiring a babysitter or other house staff could be a luxury or a necessity. Regardless, this activity, under the right circumstances, could affect your taxes. If you hire a babysitter or other house staff, you may need to: Report the amount you paid to this employee to the IRS when you file your taxes. Pay employment taxes, income taxes, and...

If you can’t pay your taxes in full, the IRS will work with you. Past due debts like taxes owed, however, can reduce your federal tax refund. The Treasury Offset Program can use all or part of your federal refund to settle certain unpaid federal or state debts, to include unpaid individual shared responsibility payments. Here are five facts to know about tax refund offsets. Bureau of the Fiscal...

Do you receive income from a foreign source? Are you a U.S. citizen or resident who works abroad? If you answered ‘yes’ to either of those questions, here are some tax tips to keep in mind about reporting foreign income: Report Worldwide Income. By law, U.S. citizens and residents must report their worldwide income. Be sure you’re reporting foreign income from foreign trusts and foreign bank and...

April 18 was this year’s deadline for most people to file their federal tax return and pay any tax they owe. If you are due a refund there is no penalty if you file a late tax return. If you owe tax, and you failed to file and pay on time, you will most likely owe interest and late penalties on the tax you pay late. To keep interest and late penalties to a minimum, you should file your tax return...

The Internal Revenue Service today reminded people with home-based businesses completing their 2015 federal income tax returns that they can use the simplified home office deduction when claiming a deduction for business use of a home. In tax year 2013, the most recent year for which figures are available, more than 3.4 million taxpayers claimed deductions totaling just over $9.6 billion for...

Money you paid for higher education in 2015 can mean tax savings in 2016. If you, your spouse, or your dependent took post-high school coursework last year, there may be a tax credit or deduction for you. Here are some facts from the IRS about key higher education tax credits. The American Opportunity Credit (AOTC) is: Worth up to $2,500 per eligible student. Used only for the first four years at...

Your medical expenses may save you money at tax time, but a few key rules apply. Here are some tax tips to help you determine if you can deduct medical and dental expenses on your tax return: Itemize. You can only claim your medical expenses that you paid for in 2015 if you itemize deductions on your federal tax return. Income. Include all qualified medical costs that you paid for during the...

On Nov. 26, 2013, the IRS issued final regulations implementing the Additional Medicare Tax (AMT) as added by the Affordable Care Act (ACA). Some taxpayers may be required to pay an Additional Medicare Tax if their income exceeds certain limits. Here are some things that you should know about this tax: Tax Rate. The Additional Medicare Tax rate is 0.9 percent. Income Subject to Tax. The tax...

Most states and cities get a good portion of their operating revenue from sales taxes tagged onto just about everything you buy. But on the federal level, Uncle Sam lets taxpayers use those taxes to help reduce their IRS bills. The sales tax deduction is particularly welcomed by taxpayers in states that do not collect income taxes but do levy state sales taxes, like our own great state of Texas....