Tax Audit-Common Questions Answered
Tax Audit-Common Questions Answered Tax audit-a phrase that strikes fear into most hearts. A tax audit is something we all want to avoid, but many are not prepared for what to expect. This article will answer some common questions about dealing with a tax audit. How Likely is a Tax Audit? This is one of the most common questions about tax audits. The good news is the probability is low. From 2010-2018, IRS data [...]
History of Taxes in the United States
History of Taxes in the U.S. The history of taxes in the U.S. may be shorter than in other countries, but it is full of information. In this article, we will go over a condensed history of taxes in the U.S. and how the past affects us today. Early History of Taxes Before the Revolutionary War, American colonists paid taxes to the British government. This was the case because there was not a government [...]
Filling Out a W4
Filling Out a W4 Filling out a W4 is an important part of successful tax planning. A Form W4 is an Employee’s Withholding Certificate. It is an IRS form that you fill out when you start a new job. Many are unsure on how to complete these properly. In this article, we will go over what this form is and how you should be filling out a W4. The Purpose of a Form W4 [...]
Revocable Trust Taxes
Revocable Trust Taxes Revocable trust taxes come into play after all parties that created the trust are deceased. Typically, during the lifetime of the grantors, there is not any special tax consideration. In this article, we will briefly go over revocable trust taxes and beneficiary taxation. Interest and Principal A trust fund is broken into two different categories: principal and interest. Principal refers to any assets placed into the trust before the grantors pass. [...]
10 Common Forms Your Tax Preparer Needs
Common Forms Your Tax Preparer Needs Though everyone’s situation is different, there are generally 10 common forms your tax preparer needs to complete your taxes. Typically, it is best not to go meet with your preparer until you have all your forms. In this article, we will help you identify 10 common forms your tax preparer needs and what they are used for. 1. W-2 If you are classified as an employee of a [...]
Schedule 3-Additional Credits and Payments
Schedule 3-Additional Credits and Payments Schedule 3 is an IRS tax form that allows you to claim tax credits. Tax credits allow you to reduce your tax liability on a dollar for dollar basis. In this article, we will go over the basics of how Schedule 3 works and the credits you can claim. The Basics Schedule 3 was created with the tax law changes that took effect in the 2018 tax year. This [...]