The IRS Publication 17 And You

IRS Publication 17

IRS publication 17 deals with general instructions and guidance for people using form 1040. Paying income tax can be daunting but reading this publication will aid you in this process. The materials contained in this publication are the interpretation of the Internal Revenue Service of court decisions, treasury regulations, tax laws, and additions to the tax code. It also deals with general rules and reminders to help you file your return.

Paying taxes is required for both citizens and...
Paying taxes is required for both citizens and non-citizens. (Photo credit: Wikipedia)

IRS publication 17 can be extremely helpful for filing your tax returns.  If you are new to the workforce, it can tell you whether you have to file a return and if you do which form to use. It also gives you guidelines as to which records to keep, information on dependents, what is a filing status, and what exactly income is. E filing, how to check the status of a refund, and what to do if you make a mistake are also covered in this publication.

There are many flowcharts, everyday illustrations, and various scenarios of how the tax laws apply to real-life situations. For example IRS publication 17 illustrates tax questions; such as can you claim medical expenses you paid for a deceased spouse if you remarry and file jointly with your new spouse.  The answer is yes; you may claim these expenses. It also clarifies charitable donations with an example of a donated coat that originally cost $300 but the charity thrift store sold the coat for $50; the fair market value of the coat would be $50, which could be shown as a charitable contribution. However, if you are self-employed IRS publication 17 is useful but not all-inclusive; there are other publications that will give you further information on various tax laws and forms for business tax filing.

If you have questions about how to file, where to file, or how to determine income or expenses for IRS form 1040, IRS publication 17 should be the first place you look for information.

Know the Impact of Bankruptcy on Your Taxes

Know the Impact of Bankruptcy on Your Taxes

The term bankruptcy is considered as a legal status of an individual or company that happens to be unable to repay their incurred debts from their creditors. In most cases, bankruptcy is being imposed by the court orders. It is usually initiated by the debtor. However, sometimes the weight of the issue is given to the debtor from the creditors.

YOU ARE ONE OF 50,000,000 AMERICANS WHO MUST F...
YOU ARE ONE OF 50,000,000 AMERICANS WHO MUST FILL OUT AN INCOME TAX RETURN BY MARCH 15. FILE YOURS EARLY. – NARA – 516201 (Photo credit: Wikipedia)

The IRS pub 17 2013 signifies the legal implications on income taxes. This involves the possibility of declaring bankruptcy and its variable forms. Chapter 11 bankruptcy pertains to the debts of the person being reorganized. In this scenario, the debtors have ways to repay some or total amount of their debts. The Chapter 7 bankruptcy involves the liquidation of the debtor’s assets and liabilities. In this situation, the debtors have no means to repay most, if not, the total amount of their debt.

How can Bankruptcy Create an Impact to Debts

Basically, filling of bankruptcy is very complicated. This makes it important for you to consult a bankruptcy lawyer to ensure that all actions you make are done appropriately. In general, bankruptcy does not create impacts to your income tax return, even if there is a cancellation of debt, which is normally taxable on your tax returns.
The reason behind this is that any sources of debts discharged in bankruptcy are excluded from the incomes under the income tax regulations. The regulations pertaining to bankruptcy in relation with income tax returns are:

1. If you are being audited, filling of bankruptcy will not stop the auditing. However, it will stop the collection process while the bankruptcy is on pending status. Moreover, the time collection activities stop, such as during the time that you are deemed as not collectible or during the processing of the compromise state is extended. Always consider these concerns before declaring bankruptcy.

2. Not all of tax debts are entitled for discharge in bankruptcy. Items that are considered as priority debt are not dis-chargeable, as well. This includes student loans, child support, fines stemming from committing of felonies, and drunk driving cases. The priority debts should be fully repaid, which are classified under the Chapter 13 bankruptcy.

Forgiveness of debt is usually considered as taxable income. However, it becomes ineffective to insolvency and bankruptcy. Sometimes, it is good to present offer in compromise by settling your tax debt. It is still suggested to confer your debt issues with a tax professional and bankruptcy attorney in order to come up with a set of appropriate course of action. This can help you eliminate the possibilities of applying legal actions, which are not suitable for your specific case.

Electronic Version Of Pub 17: Getting Cozy With The IRS

Electronic Version Of Pub 17

The electronic version of pub 17 is in PDF format. It contains valuable information about filing your federal tax return. The precise link from which to download the PDF is http://www.irs.gov/pub/irs-pdf/p17.pdf. The easiest way to work with it is to save the document on your computer hard drive. That way, you won’t need Internet access if you have to refer to the file again in the future.

Seal of the United States Internal Revenue Ser...
Seal of the United States Internal Revenue Service. The design is the same as the Treasury seal with an IRS inscription. (Photo credit: Wikipedia)

Most likely, you’ll need to look into it more than once, especially at crunch time, when the tax deadline is near. If you have enough time, you may want to familiarize yourself with the document so you know everything important. Doing this will help you compute your federal tax return accurately and avoid mistakes that can cost you come tax assessment time.

Be careful out there, you can fall prey to a joke complicated tax return if you end up in a phishing site. To avoid this from happening, look closely at the URL to make sure that you are going to the authentic IRS website. Becoming a victim of a joke complicated tax return can make the process of filing your income tax difficult when it should be rather easy and straightforward.

The best way to really learn to do it is to do it by hand, that is, without depending on tax software that automate the process of computing your taxes. The idea is simple, you just need to ascertain your true income, declare your deductions and claim you tax credits.

Tax Amnesty Gives Kettering Ohio Six Figures

Thanks to a new tax amnesty program, Kettering Ohio has brought in more than $163,000 in the first five weeks since the program was kicked off. This program has allowed eighty-nine people to pay their income taxes and interest without having to pay tax penalties that would normally apply. This program will continue running until December 14.

By using this program, the tax payers did not have to pay $53,000 in penalties. These penalties have been waived by the city. This program was started before a mandatory tax filing of 2012 returns, which must be filed by April 15, 2013.

High Street in Kettering in Northamptonshire, UK.
High Street in Kettering in Northamptonshire, UK. (Photo credit: Wikipedia)

Although many residents will not owe any money, anyone 18 or older must file their taxes this coming tax season.

Officials think that a lot of people will still come in and take advantage of this program. Even those people that owe money from as far back as six years ago will be eligible along with businesses that need to pay their taxes. This program also works with businesses that are not withholding employees’ taxes.

The finance director of Kettering, Nancy Gregory, stated that everyone was happy with the way this program was working out. The majority of the people that have worked with this program have been very grateful for the opportunity to avoid the tax penalties.

Kettering is working hard to help people make these tax payments and be completely up-to-date when mandatory filing begins.

Gregory explained that while many people know what they were supposed to be paying taxes, there were still many people that did not understand all the regulations. A few people did not owe money before 2007 when Kettering increased the tax rate for income taxes from two to 2.25 percent. These people just need to pay the difference.

In different instances, people would come to pay their tax obligations and they found out that they did not owe anything after they completed their returns.

Gregory said that as of right now no businesses have come forward, but that there were some that should. After this program is over, everyone in violation will need to pay penalties. Gregory warned that there would be a huge push for enforcement after the 2012 deadline.

There have been two new auditors hired for the tax division as there could be a doubling of accounts when the mandatory filing begins in 2013. Gregory thinks that it will not mean double the money coming in, but there will be many more documents coming in.

Although no one really loves paying taxes, Kettering tries to make the process of filing taxes better. Many people are glad to do it and do not feel bad about that. Gregory wants people to bring in their documents and the city will complete individuals returns for free. What could be better?

Tax Day is Coming Soon, So Get the Help You Need

We’re approaching that time of year again when Uncle Sam asks his fellow Americans to help restock the coffers from which we will draw our necessary resources for the coming year. All the services this great country offers to its citizens require a little cash to keep coming, and we all have a duty to throw in our fair share. How much that fair share should be is of course a hotly debated question, and it has been since we were ruled by a king instead of a president. In any case, come April we all must go through our records and see how much we owe, or whether—as is sometimes the case—we are owed a little back.

Understanding Personal Taxes

Despite the fact that tax day returns unfailingly every year, many people do not understand the basics of taxation. Looking at the IRS’s website is a good place to start, but often, it is best for individuals to seek help from a professional to avoid costly mistakes. If you are looking for a Southern California tax attorney San Diego companies might be a good place to start. There are many San Diego accounting firms that provide tax assistance services. One of the first things to understand is the type of taxes you’re dealing with. For individuals, there are three different kinds of taxes:

  • Income taxes
  • Property taxes
  • Consumptive taxes

But knowing all the ins and outs of these taxes—how much you owe in each category, whether you qualify for any special breaks and how to negotiate other details of filing—is complicated. Fortunately, the best San Diego accountants will be able to help you figure out where you fit in.

Understanding Business Taxes

Don’t forget that businesses must pay their own special taxes, too. If you are a business owner, whether you manage a team of five hundred or five, it can help you save time and money to have your taxes and other accounting matters sorted out by a professional. Don’t wind up owing Uncle Sam more than you need to.  For businesses, there are four general different kinds of taxes to know about:

  • Income taxes
  • Employment taxes
  • Excise taxes
  • Self-Employment taxes

 

Tax day is coming soon, so get the help you need with taxes this year by researching the best tax firms online. With a qualified team of professionals on your side, you could be seeing great returns this year.

 

Jessica writes about a wide variety of topics.  She especially enjoys writing about taxes. You can learn more about tax attorney san diego at http://www.allenbarron.com