Posts Tagged ‘Taxes Articles’

Federal Tax Table – What Is It?

April 6th, 2017 Comments off

The Federal tax table outlines the percentage amount you’re required to pay in tax on the money you earn throughout the financial year. The amount you earn will dictate in which bracket you fit.

There are several ways to calculate how much tax you are liable to pay, but your first step should be to consider the federal tax table.

The following Federal Tax Table is for a single person:

* If you earn between $ 0 and $ 8350, your tax bracket is 10%

* If you earn between $ 8350 and $ 33,950, your tax bracket is 15%

* If you earn between $ 33,950 and $ 82,250, your tax bracket is 25%

* If you earn between $ 82,250 and $ 171,550, your tax bracket is 28%

* If you earn between $171,550 and $372,950 then your tax bracket is 33%

* If you earn between $372,950 and above then your tax bracket is 35%

Following the federal tax table for a married couple filing jointly:

* If you earn between $ 0 and $ 16,700, your tax bracket is 10%

* If you earn between $ 16,700 and $ 67,900, your tax bracket is 15%

* If you earn between $ 67,900 and $ 137,050, your tax bracket is 25%

* If you earn between $137,050 and $208,850 then your tax bracket is 28%

* If you earn between $208,850 and $372,950 then your tax bracket is 33%

* If you earn between $ 372.950 and your tax bracket is 35%

Before the time comes to file your income tax return for the IRS, you could potentially save some more money.

You may be able to increase the amount of tax return you could get by knowing how much you have earned throughout the year and work by the number of tax deductions that you qualify.

When you’ve calculated what your new taxable income is likely to be after you’ve factored in your deductions, then you may find that you’ve reduced your income far enough to drop into a lower bracket on the federal tax table.

Another option you might consider if you are married and you usually file your taxes as married filing together, and then take the time to work out the difference in tax rates if you were to file your taxes instead of married filing separately.

The federal tax table shows a difference for income eligible before jumping into the next bracket.

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Need Help Keeping Financial Records QuickBooks is the answer.

February 23rd, 2017 Comments off

Behind the scenes of a small business there is usually one person doing a great deal of work. This person is responsible for running the business, acquiring clients, managing employees (if any), and making sales among other things. While running a small business can be very exciting and fun, not every aspect of it will be as enjoyable. One dreaded task is keeping track of your financial records as well as preparing the taxes. In bigger companies these jobs are normally delegated to an accountant. But small businesses might not be able to afford a person to work on their paper work. Accountants are highly trained individuals dealing with mountains of paper work as well as complicated number crunching. This may be intimidating to many small business owners but there is a solution. Intuit Inc has released a computer program that will solve all your accounting problems. QuickBooks is an accounting program which small businesses can utilize to prepare tax forms and record financial transactions.

Ever since its commencement in the early 1980s Intuit Inc has been dedicated to bringing helpful solutions to financial management for all small companies in the form of computer programs. QuickBooks, Turbo Tax, and Quicken were all designed to help small businesses prepare taxes and even provide payroll processing applications. Intuit Inc also offers programs for professional accountants, such as ProSeries and LaCerte. Intuit Inc clearly is a company that wants to help individuals as much as possible with financial management.

To start using QuickBooks first you will have to install it on whichever computer you are running your business from. After a successful installation you will be greeted with a guide programmed to get you started. Before you move on to anything you must first enter your business information such as the company name, phone number, address, etc. After filling out the required information you will be guided by a very user friendly interface. This interface will guide you through the QuickBooks Simple Start allowing you to immediately begin. Follow the steps provided by the QuickBooks Simple Start. Once you have done these you wont have to repeat the process over again.

After following the guides instructions select the bank option and enter in your bank information. Without recording your bank information you will not be able to receive electronic payments from customers or record any business transactions. Without the proper records your taxes will be incorrect and incomplete.

After that step you can begin by entering the meat of the program and start entering all your clients and assigning them client accounts. By utilizing client accounts you are now able to document and record all the payments and business transactions made by clients. Youll also be able to print out invoices and bills. The default version of QuickBooks only offers 20 slots for client accounts but you can purchase the expansion and gain much more spaces for more clients.

Once you get started setting up clients accounts, sending out invoices, and receiving payments QuickBooks is really a simple program to use. Using QuickBooks is a great way to manage the financial record for your small business. It takes all the headache out of being your own businesses accountant.

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Used Car Donation – Where Do You Begin?

October 26th, 2016 Comments off

Got an unwanted vehicle that you want to get rid of? Not sure about what to do? Let us give you the facts on California car donation. Now before you go handing over the keys to your car, lets have a look at the facts, and ask some questions. This will only take a moment, there are a lot of things to think aboutfirst.

The two most important things to consider, and ask yourself are as follows. Does the vehicle I want to donate require extensive maintenance? Is it in that bad a shape to even donate? Donating a car or vehicle that needs repairs to a charity just to get rid of it isn’t a nice thing to do. Giving one that’s going to fall apart in the first ten miles is even worse, so don’t do it.

Who needs the vehicle the most? This isn’t an easy question to answer to yourself, but imperative if you want your donation to be of most benefit. Why should I even bother? Because there are a lot of people who could use a good vehicle. Besides, if you have one you no longer need, its just gathering rust.

Finally the most important question. To whom should I give it? You’ve compiled your lists of charities that need a car from churches, to community outreach programs. But in the end you only have one vehicle, and you can only give it to one groups regardless of how much they all need one. If you want to make an impact globally, then give it to the Red Cross, or another organization fighting world problems.

If none of these interest you, then find a student who needs one. They don’t have a lot of money and can’t afford a car by themselves. Ask yourself if any neighbors need a car. Also see if there’s a homeless person who needs a chance to relocate and get back on their feet. Finally you could ask inside your own family.

Many cities and charity groups will either pay cash for vehicle donations, or will give donors a tax credit. This is to encourage the type of people who don’t believe in giving to those in need. For others there is the feeling they get from having done something to help the disadvantaged – as well as the tax credit.

Medical research groups always need cars, as well as outreach programs. Cars, trucks and motorcycles are a commodity for them. A single car helps out immensely, far more than the average person can imagine.

If you’re really involved in the community though, there’s one choice that you’ve probably missed. It has been right under your nose the whole time, it’s your city. Yes your own town, you can save your city some cash by donating your vehicle to them for government workers to use on daily errands. This will save the city a few thousand that they can use for other things.

Have you asked your questions, and thought about the choices? Compiled your lists and checked them? Have you made sure your car is in operating condition, and not falling apart? Good, it can be a very mindboggling process, but I hope this has helped.

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Help, I Received an Audit

August 18th, 2016 Comments off

IRS tax audits can be absolutely terrifying. Unfortunately I received an income taxes audit and I was completely stressed out and overwhelmed. I had always filed my income taxes as honestly and morally as possible. I had no idea what triggered the audit. I got on the computer and started researching tax audits. I found out that there is no guarantee that you will never have to undergo an audit and that the best protection that I could have would be to enlist the help of a tax attorney.

I learned that the IRS computers randomly select returns each year for auditing. The random IRS tax audits can affect any type of worker from a part-time college student to a salaried wage earner. These random audits usually require that you furnish specific documents to the government by mail. Once you provide the requested documentation that the IRS wants, the income taxes audit will conclude.

The other type of audit that you may receive will request that you come into an IRS office and meet with an agent. These are the most nerve-wracking types of audits. The IRS will request that you bring along specific documents that they will want to look over and discuss with you.

When you receive an audit requesting that you meet face to face with an IRS agent, it is in your best interest to contact a tax attorney. A tax attorney will have the knowledge and the experience that is necessary to deal with the IRS.

By contacting an experienced and reputable tax attorney, you will drastically increase your chances of a reaching a successful outcome at the end of your income taxes audit. They can provide you with expert advice and they have extensive knowledge of tax law and fair practices.

One of the best benefits of enlisting the help of an attorney is that a tax attorney will attend the office audit on your behalf and deal with the IRS agents. They will not fall prey to the IRS’s attempt to obtain additional information that may incriminate you.

Tax attorneys can also provide you with the exclusive attorney client privilege that guarantees that everything that you share with them is entirely confidential.

IRS tax audits can take a physical and an emotional toll on you. Let an experienced tax attorney carry the bulk of the burden. They will work hard to make sure that the end result of the audit lies in your favor.

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Proposition 13: How Does Property Tax Trending Affect My Property Taxes?

May 2nd, 2016 Comments off

Property tax values in California increase from 0-2% annually, this percentage trend is from on the Consumer Price Index that measures inflation. Normally, California taxpayers pay approximately 1.25% of their assessed value in actual property taxes per year. If a house was bought for $100,000, the taxable base value would be $100,000. Since you pay about 1.25% of the assessed value, your property tax bill the first year would be approximately $1,250.

California taxpayers the property tax base value is capped unless there is a re-assessable event, the only variation is the two percent trend based on Proposition 13. So the second year the increases would max out at a $2,000 increase based on the 2% limit. The assessed value increases from $100,000 to $102,000 meaning the property taxes increase from $1,250 the first year to $1,275 the second year. The 2% increase compounds over time, so the amount that it goes up also increases over time because the assessed value compounds. Some years the percentage is less than 2%, based on the Consumer Price Index.

Sometimes, when certain exemptions are applied to your assessed value, the assessed value will not trend. For example, if a residence has a Proposition 8 decline in value (temporary decline in value due to market decrease) the value will not increase. Instead the assessed value is evaluated each year by the Assessor to decide if it should be adjusted. Also, if there is a Disaster Relief exemption also called Misfortune and Calamity applied to a residence the value will not increase, instead the Assessors Office will visit the house every year to see where the property owner is with repairs and will either modify the value or leave it depending on what has been done. Additionally, most exemptions for the disabled and/or veterans dont trend either. The general rule of thumb is that your base value will increase up to 2% per year every year unless there is some exemption that would apply.

Generally homes in California increase every year and consequently property owners have an increase in property taxes every year. After 30 years your assessed value will double. A clear example of this is my parents’ home which they bought in 1979 for $80,500 and the current assessed value in 2009 for thier house based on the $80,500 30 years ago is $138,783 so in 30 years they went from paying $1,006 per year to $1,734 per year. If you begin with a property tax base of $500,000 in 30 years your assessed value will increase to $887,922 meaning you will start off paying $6,250 per year and in 30 years be paying $11,099 per year!

If you can drop your property tax base you will save thousands in the long run! If you acquired your residence for $500,000 and today your property is only worth $300,000 you will save thousands! With a $300,000 tax base you will pay $3,750 per year and in thirty years your assessed value will be approximately $532,753 so you will pay about $6,659 per year in property taxes. Don’t settle for the temporary reduction in value the Assessor is offering right now called Proposition 8 Decline in Value. So PERMANENTLY lowering your property tax base by $200,000 will save you EVERY year you own your home! The California Little Black Book shows you how!

About the Author: Valerie Faltas, Property Tax Expert has been involved in all facets of real estate for over ten years including assessments, appraisals, estates and trusts, investing and much more. She is a Certified Property Tax Appraiser, Licensed Residential Appraiser and a member of the International Association of Assessment Officers. As a real estate investor and advisor she is well versed in all aspects of real estate. To contact Valerie Faltas go to her website: