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Do you owe more tax than you can afford to pay when you file? If so, don’t fail to take action. When you do not file and pay your taxes on time, you will be charged interest on any unpaid balance, and you may also be subject to penalties, such as the failure-to-file and failure-to-pay penalties. Here is what to do if you can’t pay all your taxes by the due date. File on time and pay as much as...

The Internal Revenue Service requires all taxpayers, regardless of age, to file a tax return and pay the appropriate income tax in any year their gross income exceeds certain levels. This requirement extends to the children you claim as dependents. However, unlike adult taxpayers, you may or may not have to file a child’s tax return. Dependent children Your dependent children must submit tax...

When you give a gift to charity that helps the lives of others in need, it may also help you at tax time. You may be able to claim the gift as a deduction that may lower your tax. Here are eight tax tips you should know about deducting charitable contributions: Qualified Charities. You must donate to a qualified charity if you want to deduct the gift. You can’t deduct charitable gifts to...

If you use your home for business, you may be able to deduct expenses for the business use of your home. If you qualify, you can claim the deduction whether you rent or own your home. If you qualify for the deduction you may use either the simplified method or the regular method to claim your deduction. Here are six tips that you should know about the home office deduction. Regular and Exclusive...

On Nov. 26, 2013, the IRS issued final regulations implementing the Additional Medicare Tax as added by the Affordable Care Act (ACA). Some taxpayers may be liable for an Additional Medicare Tax (AMT) if your 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 AMT applies to...

The Internal Revenue Service today reminded taxpayers that they still have until April 15, 2015 to make IRA contributions for 2014, and in many cases, qualify for a deduction or even a tax credit. Roth vs. Traditional IRAs Available in one form or another since the mid-1970s, individual retirement arrangements (IRAs) are designed to enable employees and self-employed people to save for...

Adopting a child doesn’t only provide a benefit to your family, it can help your taxes, too. If you adopted or tried to adopt a child in 2014, you may qualify for a tax credit. If your employer helped pay for the costs of an adoption, you may be able to exclude some of your income from tax. Here are some things you should know about adoption tax benefits. Adoption Tax Credit or Exclusion. The...

Many people who carry on a trade or business are self-employed. Sole proprietors and independent contractors are two examples of self-employment. If this applies to you, there are a few basic things you should know about how your income affects your federal tax return. Here are six important tips about income from self-employment: SE Income. Self-employment can include income you received for...

The Child Tax Credit may save you money at tax-time if you have a qualified child. Here are the top things you should know about the credit. Amount. The Child Tax Credit may help reduce your federal income tax by up to $1,000 for each qualifying child that you are eligible to claim on your tax return. The Child Tax Credit is generally limited by the amount of the income tax you owe as well as any...

Did you spend a lot of money on your medical care last year? If so, you may be eligible for the medical expense deduction. In total, you must spend more than 10% (7.5% if you are age 65 or older) of your Adjusted Gross Income (AGI) on medical expenses in order to possibly benefit from the tax break. For some people, that’s a lot of dough, but if you qualify, the tax deduction can be significant....