Tax News

Interest on a tax deficiency (underpayment) generally runs from the due date of the return until the tax is paid. Interest is compounded (interest is charged on interest), so the longer the dispute g...

E-file is the IRS system for submitting tax returns electronically. E-filing can be done through a paid preparer or by using a home computer (through commercial software or the FreeFile program). Go...

The federal tax system is based on the idea of "pay as you go." You can't just wait until April 15 each year to pay the taxes you owe. The law requires you to make payments throughout the year-through...

Congress has overridden a presidential veto to enact the Food, Conservation, and Energy Act of 2008, creating $1.7 billion in tax incentives for farmers. Some key provisions that will help farmers an...

With summer around the corner and the real estate market ripe for the picking (because real estate prices and mortgage interest rates are both down), the number of owners of vacation property could gr...

Medical residents may receive stipends for work they perform in the course of their studies. Are these stipends treated as wages for the purposes of Social Security and Medicare (FICA) taxes? It depen...

Taxpayers who used direct deposit for their 2007 refunds automatically received their stimulus checks in the same way. Direct deposits of 2007 tax refunds could have been directed not only to checkin...

American citizens who work abroad remain taxable in the United States on their worldwide income. However, they can enjoy certain tax breaks designed to alleviate the burden of paying taxes to two cou...

Generally, the value of a deceased individual's property is determined on the date of death. However, the person's estate can opt to use an alternate valuation date, which is 6 months after t...

If you participate in a 401(k), 403(b), or 457 plan and leave your employer, you have a unique opportunity to profoundly impact your future retirement income. Instead of leaving the funds in the plan ...

You've filed your return and are waiting for the check to arrive. Use an online tool to track the check's progress. The IRS's "Where's My Refund?" application lets you see w...

A whistleblower, Marrita Murphy, was awarded $70,000 for emotional or mental anguish for injury to her professional reputation in a suit against her former employer. She maintained that this money wa...

Joint custody is common today when parents divorce, but it does not automatically confer the right to claim a dependency exemption or child tax credit for one parent or the other. Generally, the righ...

If you have a high outstanding balance on your credit card, you may be able to negotiate with the credit card company for a reduced settlement. While such a settlement can save you thousands of dollar...

The 13th Amendment to the U.S. Constitution was ratified in 1913, making the income tax a permanent feature of the tax law. The IRS (formerly the Internal Revenue Bureau) started publishing income tax...

When you invest your contributions to a 401(k) plan, you take a risk that you can make or lose money, depending upon your investment choices and market performance. The responsibility is yours and you...

Certain taxpayers who are not otherwise required to file a tax return because their income is below the filing threshold must do so this year in order to receive a rebate check under the Economic Stim...

Call it role reversal, but a growing number of children are caring for their parents. According to a 2007 USA TODAY/ABC News/Gallup poll of baby boomers, 41% who had a living parent were providing fin...

If you call the IRS's toll-free number, you'll hear an automatic phone message telling you that rebate checks will begin to be sent in May. Most of the 130 million taxpayers who are eligible for rebat...

On January 24, 2008, President Bush and leaders of the House agreed to a $150 billion tax package intended to put money into the economy quickly. The winners Singles with adjusted gross income (AGI...