A tax bracket is a range of incomes that the federal government taxes at a particular rate. There are seven tax brackets in the U.S. tax code. The federal income tax system is also progressive, meaning it taxes a larger percentage of income for taxpayers with higher incomes.
The federal income tax system is progressive, meaning the higher your income, the higher the percentage of your income you’ll pay in taxes. Maybe you’ve heard people talk about tax brackets or wondered what tax bracket you fall into — and how your bracket affects the rates at which your income is taxed.
Accounting mistakes can impede the growth of your small business and put it on shaky ground. Unfortunately, mistakes are all too common, especially for new or quickly growing businesses. In this article, we’re sharing five of the most common accounting mistakes small business owners make – and some tips for avoiding them.
College students or their parents who paid qualified tuition and college expenses during the tax year will need Form 1098-T from their school if they want to claim certain education credits.
Dealing with taxes is a pain for any business owner. On top of the day-to-day running of your business, you need to track income and expenses, pay quarterly estimates, and drop everything to prepare your return when tax season rolls around. As if that weren't bad enough, there's the looming threat of learning the IRS selected your return for an audit.
Tuition costs are high, and increases seem inevitable, but there are ways to alleviate the financial burden. The federal tax code currently offers several tax credits and deductions that can help you recoup some of that cash at tax time.
Do you have a talent that provides value to others? If so, you may have considered turning that skill into a money-making venture. But would that venture be a hobby or a business? For tax purposes, the distinction matters.
When you file your Form 1040, U.S. Individual Tax Return, you have the option of itemizing deductions or taking the standard deduction—an amount predetermined by the IRS, based on your filing status. Typically, if your total itemized deductions are greater than the standard deduction available for your filing status, you’ll opt to itemize.
If you work in the United States, you’re probably paying Social Security tax. Everyone pays the same Social Security tax rate regardless of earnings, but the Social Security wage base helps determine how much of your income will be subject to the tax.
The 2019 tax season (when Americans file returns for the 2018 tax year) is the first year that many rules from the Tax Cuts and Jobs Act of 2017 take effect.
For some people, the new law simplifies tax filing. For others, things just got a lot more complicated. If you’re in the latter camp (or not sure where you stand), you may be wondering whether it’s time to hire a CPA or tax professional.
Not all states are created equal when it comes to where to start a new small business. Some states, not surprisingly, are a better fit for budding entrepreneurs than others. Now you might think that “better” means “cheaper,” or “lower taxes,” but these days that’s not all that matters for a small business.
For many homeowners, their home equity represents a significant portion of their net worth, and it’s an asset they’re willing to leverage. In June 2018, LendingTree analyzed home equity loan requests since the start of the year to find out how homeowners plan to use proceeds from home equity products. Perhaps not surprisingly, many homeowners use their home’s equity to generate more. Let’s take a look at the three ways you can tap your home’s equity and the pros and cons of each.
If you’re thinking of declaring bankruptcy or just went through the process, you may already know it will damage your credit, possibly lowering your credit score by hundreds of points, and will stay on your credit report for seven to 10 years.
The good news is that you can rebuild your credit, even while the bankruptcy is on your credit record.