Tax Evasion v/s Tax Avoidance: What is the difference?
Tax avoidance is a method of reducing tax liability within the legal boundaries by exploiting loopholes in the tax laws. Tax Evasion refers to the illegal act of avoiding paying taxes by means of deception or concealment.
8 Essential Tax Planning Tips
Your tax bracket is the range of income that is subject to a specific tax rate. Good tax planning will help you in making smart financial decisions.
Home office tax deductions – All you need to know
There are generally two options for determining the home office tax deduction. The simplified version, however, may result in a smaller tax break. The standard option, on the other hand, needs extensive calculations and record-maintaining to offer a larger deduction.
Are you Eligible for Earned Income Tax Credit?
Apart from having low to moderate income, there are several other factors that determine whether you qualify for earned income tax credit.
How Charitable Donations Help Save on Your Tax Bill
You can claim tax-deductible charitable donations while filing your tax return by itemizing the contributions on Schedule A of IRS Form 1040 or 1040-SR. It is usually limited to a certain percentage, for instance, 60% of the taxpayer’s adjusted gross income (AGI).
Bonus Tax Rate: How are They Taxed and Who Pays?
The bonus comes under the category of ‘supplemental wages’ by the IRS which also includes things like severance and commission. This is where confusion sets in because the IRS confuses bonuses with severance and commission.
What is an IRS Tax Payment Plan and How Does it Work?
Payment plans are available from the IRS, and you may be able to get on one on your own – possibly for free – if you apply. Read on for more details.
How to Get Electric Vehicle Tax Credit: Eligibility and Guidelines
Taxpayers buying clean, plug-in electric or plug-in hybrid vehicles can take advantage of the electric vehicle tax credit, also known as the EV credit. Depending on the vehicle’s weight, how many cars the manufacturer has sold, and whether you own it, the non-refundable credit will range from $2,500 to $7,500 for the tax year 2022 (taxes filed in 2023).
How to File Your Own Taxes in 2023
The 2023 tax season is here and it’s time to get your paperwork in order! The IRS kicked off the tax return acceptance on January 23, so grab your favorite pen and get ready to file your 2022 taxes.
What is the 2023 IRS Mileage Rate: Deduction Guidelines
Taxpayers should consult the IRS guidelines if they have any questions or concerns about claiming mileage deductions on their tax returns. By using the IRS Mileage Rates, taxpayers can avoid the need to keep detailed records of actual operating expenses, such as fuel and maintenance costs.