Tax Blog

I have a large check that I would like to use to open my new business account. I have not made any income in this business yet. Part of that large check needs to be used to pay my income tax liability. Will there be any negative tax liability from doing this?
I was able to get the check split into 2. Now I can leave it alone.
Problem solved.
Thanks though.

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Tax Blog

I am aware that I have to pay US income tax if my income exceeds certain amount even if I work for a foreign company in a foreign country and pay tax and social security of this country

My question is how much do I have to pay US tax after I already paid high income tax and social security in this foreign country. For example, if I would earn 100,000Euro/year in Germany, I am married with no kids and spouse has no job. How does US tax law apply to this situation? Based on what amount do I have to pay US tax? What kind of expenses could be written off for US tax?

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People seeking free tax assistance at the Cazenovia Community Resource Center in South Buffalo are encouraged to call and make an appointment.

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Tax Blog

We placed my parent’s property (personal home) into a irrevocable trust. The instructions was to sell the property upon the death of one of the parents with the proceeds going into trust account at a bank of our choosing. We are to distribute money from the proceeds to my surviving parent for living expenses, etc. As far as I know, the trust was not given a tax id (still checking with lawyer who drew up the trust for us).

So now that the bank trust account has the funds, can I as the trustee distrbute the money without any tax liabilities? Who owns, if any, the tax responsibilities here?

The property is in California and proceeds from the sale was less than $500,000.

Each year there are millions of Americans who prepare their own federal and state tax returns and even more individuals have their taxes professionally prepared. Whatever choice a taxpayer makes there are a number of important tax tips that everyone should know.

A W-2 or 1099MISC is needed to accurately prepare a federal or state income tax return. There is always a chance that a taxpayer may misplace these forms or for one reason or another the forms may not have reached them. For federal tax returns and most state tax returns a W-2 or a 1099MISC is required. Individuals who do not attach these items are likely to prevent their tax returns from being processed or cause a refund delay. The Internal Revenue Service (IRS) states that all taxpayer should receive their W-2 or 1099MISC forms before February 15th. Individuals who did not receive these items are encourage to contact their employer to determine why the forms have not arrived. Taxpayers who misplaced their W-2 or 1099MISC forms are encouraged to contact their employer right away to receive a copy. Taxpayers must do so because even if a wage or income form is missing a tax return is due on the traditional April 15th deadline or else late fees and penalties may be assessed.

Another one of the popular tax tips that taxpayers should know about is tax deductions. It is estimated that each year the American public loses millions of dollars from tax deductions that they were entitled to, but failed to claim. A professional tax preparer and a tax software program may prompt an individual to claim tax deductions that they qualify for. Individuals preparing their own paper taxes are more likely to miss tax deductions that they may claim. To prevent this from happening taxpayers are encouraged to research the most frequently overlooked tax deductions to determine which deductions they may qualify for.

Another one of the most common tax tips that taxpayers need to be aware of is what to do if they can’t pay the amount of taxes owed on federal or state tax returns. The biggest mistake that taxpayers make when realizing that they cannot pay the amount due on their taxes is to not file a tax return. Some people think that not filing a return will prevent a refund from being owed on time when in reality it can make the situation a lot worse. Taxpayers can file an extension deadline; however, the estimated amount of taxes owed is still due on the traditional tax deadline. The Internal Revenue Service (IRS) will impose a number of late fees and penalties on tax payments that were not received in time. Just ignoring the Internal Revenue Service (IRS) may increase the number of or the amount of penalties.

http://www.taxhelpdirectory.com/irs/irstaxlaw/

One of the most important tax tips that a taxpayer needs to keep in mind is that the Internal Revenue Service (IRS) and many state governments change or update their tax laws each year. For this is reason taxpayers are encouraged to check out the website of the Internal Revenue Service (IRS) or the website of their state tax department to determine if any of the tax law changes need to be applied to their federal or state tax returns.

These helpful tax tips are just a few of the many tax tips that can help tax preparation flow more smoothly. The above mentioned tax tips will also help to reduce the amount of money that an individual owes on federal or state taxes or even potentially increase the amount of their refund. Why pay late fees or lose money on tax deductions that you deserve? Let these and other helpful tax tips assist you this tax season.

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