Brackets are More Than Punctuation, Also for Income Tax
Last Updated on Wednesday, 28 December 2011 07:59 Written by Frank Ellis Wednesday, 28 December 2011 07:59
- $139,351-$212,300- The tax rate for this bracket will increase to 28%.
- $212,301-$379,150- The tax rate for this higher income level will be about 33%
- If you earn anything above $379,151 then you will be taxed at 35%.
These amounts are actually a decrease in percentage amount from the previous years and you could find yourself saving some money on your federal taxes this year.
Standard Deduction Amounts
- Standard Deduction for married filing jointly is $11,400
- Standard Deduction for Head of Household is $8,400
If you find that any of these new changes will affect the way you currently file your return, then visit TurboTax Online. It is very important to start your tax planning early so there are no surprises come April 17th.
Plenty more on the IRS income tax brackets here.
Learn MoreWhat Federal Tax Forms are there in 2011?
Last Updated on Friday, 16 December 2011 08:21 Written by Frank Ellis Friday, 16 December 2011 08:21
All of these 20111 federal tax forms are offered completely free when you file with TurboTax. You only will have to pay if you decide to use their service to file your income tax return. If you file a simple tax return, it is completely free even to file your federal income tax return.
They offer many other great benefits when filling out your tax forms. They promise privacy and security for all of the information you enter as well as audit defense to help avoid being audited. TurboTax Online has the #1 rated tax software available.
2011 Federal Tax Forms For Business Owners
If you are a small business owner, then there is no need to worry when using TurboTax Online. They also offer all the federal tax forms needed to file your business tax return this year and they also have the necessary state income tax forms if your state has income taxes due.
Learn MoreJust What Is the 2011 Gift Tax Exclusion?
Last Updated on Thursday, 8 December 2011 09:06 Written by Frank Ellis Thursday, 8 December 2011 09:06
2011 Annual Gift Tax Exclusion
If you do not want to pay too much estate tax and you want to ensure that your assets will stay within your family, the best thing to do is to give certain amounts of money to your children or grandchildren.
The annual gift tax exclusion makes it possible for you to give money to any number of people without having to pay gift or estate taxes. In the years 2010 and 2011, the amount of money needed to be gifted in order to be eligible for annual gift tax exclusion is $13,000.
What is the Annual Gift Tax Exclusion Amount?
Each year you are able to give away money or property in the form of a gift. These gifts will be nontaxable as long as they are below the gift tax exclusion amount allowed by the IRS.
Gift Tax Exclusion Amounts
- You may give up to $13,000.00 to one individual or any number of people if you file as single.
- If you file married, then you may gift up to $26,000.00 to one person or any number of people.
What Tax Table Should I Be Looking For?
Last Updated on Wednesday, 7 December 2011 12:16 Written by Frank Ellis Wednesday, 7 December 2011 12:16
State Income Withholding Tax Tables
State income withholding tax tables can help you determine the amount you should have withheld from your paycheck. Employers will need the tax tables to make sure they are taking the right amount of taxes out of their employees checks.
Employees: The amount of the withholding tax will vary from state to state but should be available for you to view at any time by going to your State Government website.
Tax rates and withholding tables apply separately at the federal, most state, and some local levels. The amount to be withheld is based on both the amount wages paid on any paycheck and the period covered by the paycheck. Federal and some state withholding amounts are at graduated rates, so higher wages have higher withholding percentages.
Learn MoreHow to Gauge the Federal Income Tax Rates 2011
Last Updated on Tuesday, 22 November 2011 11:55 Written by Frank Ellis Tuesday, 22 November 2011 11:55
Federal Income Tax Rates 2011:
Taxes withheld include federal income tax, Social Security and Medicare taxes, state income tax, and other taxes by a few states.
If you live and work in the United States, your employer must withhold taxes from your paycheck.
Employees: Income tax amount withheld on wages is based on the amount of wages less an amount for declared withholding allowances (often called exemptions).
The amount to be withheld is based on both the amount wages paid on any paycheck and the period covered by the paycheck. Federal and some state withholding amounts are at graduated rates, so higher wages have higher withholding percentages.
What about inheritance tax?
Withheld income taxes are treated by employees as a payment on account of tax due for the year, which is determined on the annual income tax return filed after the end of the year (federal Form 1040 series, and appropriate state forms).
Learn MoreAnother Visit to the EIC Tables
Last Updated on Friday, 18 November 2011 08:48 Written by Frank Ellis Friday, 18 November 2011 08:48
The key to taxes is doing the research ahead of time to make sure that you’ll be prepared and eligible to claim everything you’d like to. The eic tables are no exception.
You must meet the following requirements to be eligible for the EIC:
- You must be married and filing jointly, head of household, qualifying widow, or single. If married, you may not file separately.
- Qualifying children must be under 18, or full-time students.
- Household members must have valid Social Security numbers.
- You must be a U.S. Citizen.
- You must have earned income.
- You cannot be a qualifying child on someone else’s return.
If you meet the requirements for the earned income credit, look for one of the online tax calculators available through online tax preparation software sites that will calculate the amount you are eligible for.
Learn MoreWhat do the Federal Tax Tables Look Like?
Last Updated on Friday, 18 November 2011 08:13 Written by Frank Ellis Friday, 18 November 2011 08:13
If you are currently employed or soon to be, then you may be wondering what your withholding should be when you fill out the necessary tax forms to begin working. When you begin working you will be required to fill out a W-4.
If you don’t familiarize yourself with the federal tax tables then you’re choosing to be unprepared. The W-4 tax form will ask you to fill out whether you are filing single, married, or head of household, and the amount of withholding from your paycheck will be based on the information you enter on your W-4 tax form for each week.
The amount entered on your W-4 can be changed at any time if you choose to. If your filing status has changed or you have had a child, then you will need to complete an updated W-4.
Learn MoreA Brief Foray Into the World of Futa Tax Limits
Last Updated on Friday, 18 November 2011 07:37 Written by Frank Ellis Friday, 18 November 2011 07:37
Reporting and depositing payroll taxes to the appropriate agency in an accurate and timely manner is vital to your business. Late or inaccurate deposits may result in penalties and interest charges. These complex payroll tax requirements may seem intimidating but by using the online payroll tax calculator you can simplify this responsiblilty.
Calculate FUTA Tax Rates
As the employer, you will have to file Form 940. By the way, the whole point of this tax is to collect funds to pay to employees who have lost their jobs. We have all heard of someone collecting unemployment haven’t we? Well this money did not just magically appear. The employer has been paying the FUTA tax. This money is not withheld from the employee’s wages.
Learn MoreTax Planning Advice
Last Updated on Tuesday, 9 August 2011 02:21 Written by Frank Ellis Tuesday, 9 August 2011 02:21
If you think tax planning is a year-end event, you’re wrong. You should plan your tax strategy year round. In this challenging economy we have to be on our toes even more when it comes to making decisions about our taxes.
Some tax laws have changed and maybe your life has also changed. Staying current on tax information is one of the best strategies you can implement into your tax planning system.
Pay Attention to the Details of Tax Law
If you’re not excited about reading up on tax law changes, I understand completely. The tax planning advice I would have for you would be to use an online tax preparation software company which will do all of the hard work for you.
Free Tax Return Estimate
Last Updated on Monday, 8 August 2011 07:59 Written by Frank Ellis Monday, 8 August 2011 07:59
You are probably wondering how your tax return is going to turn out as many of us are. I always wonder how the numbers will crunch and I want an early bird estimate of my tax return. Are you looking for a free tax return estimate?
You should go to Turbo Tax Online and use their free tax return estimator. Click on the link for tax calculators and tips.
Calculator and Tips
If you haven’t used their calculator then, you’re in for a treat. They use graphical icons to direct your choices and they ask simple questions.
Learn MoreNJ, New Jersey Unemployment Tax Rate
Last Updated on Sunday, 7 August 2011 03:48 Written by Frank Ellis Sunday, 7 August 2011 03:48
NJ, New Jersey Unemployment Tax Rate
Unemployment Insurance is a federal-state program financed through federal and state employer payroll taxes.
If an employer pays wages to an employee totaling $1,500, or more, in any quarter in a calendar year, the employer must pay both state and federal unemployment taxes. The employer must have at least one employee during any day of a week during 20 weeks in a calendar year. It doesn’t matter if the weeks were consecutive or not.
Federal Laws State laws
Some state laws are different than the federal laws and employers need to contact their state workforce agency to learn about the exact requirements of their individual state. The money paid to state workforce agencies is used to pay to benefits of the unemployed worker.
Learn MoreIRS Tax Credits
Last Updated on Friday, 5 August 2011 10:44 Written by Frank Ellis Friday, 5 August 2011 10:44
Oh how we love our tax credits! How do we love them? Let me count the ways!
- Adoption Tax Credit
- Child and Dependent Care Tax Credit
- Child Tax Credit
- Credit for the Elderly and Disabled
- Earned Income Tax Credit
- Foreign Tax Credit
- Hope Tax Credit
- Lifetime Learning Tax Credit
- Mortgage Interest tax Credit
I could go on and on but, I’ll spare you. Do you know how many tax credits there are? If you don’t then you should definitely use an online tax preparation software program like Turbo Tax Online that will search for all of the tax credits you deserve to take.
Learn MoreNew Unemployment Tax Rate in State of Michigan
Last Updated on Thursday, 4 August 2011 04:36 Written by Frank Ellis Thursday, 4 August 2011 04:36
New Unemployment Tax Rate in State of Michigan
Our entire country has been under financial hardship for some time now but some states have been struggling more than others. Some states are quickly running out of unemployment funds. Michigan has recently seen a huge increase in individuals filing for unemployment due to the recent failures of the auto industry. The unemployment rate in Michigan in September of 2008 hit a new high of 8.7%.
Every year Michigan borrows money from the feds to cover the unemployment funds that are disbursed. In the past Michigan has been able to repay these loans quickly and has avoided interest and penalties. Michigan is currently out of funds to repay these loans to the federal government so that means as of January 1, 2009 they will have to begin paying interest on their loans.
Learn MoreState Income Tax Information
Last Updated on Friday, 29 July 2011 07:15 Written by Frank Ellis Friday, 29 July 2011 07:15
Taxes taxes taxes. No matter what anyone says about taxes from their origins to their future, we still have to pay them.
There are, however, seven states that have chosen to not impose an income tax: Alaska, Florida, South Dakota, Texas, Washington, Wyoming, and Nevada. These states often levy a higher sales tax in order to generate more revenue. The highest sales tax goes to Hawaii at an astounding rate of 11%.
Some states have a tax rate that remains flat no matter what; these would be: Colorado, Illinois, Indiana, Massachusetts, Michigan, Pennsylvania, and Utah.
Some states, like New York, allow certain cities to raise additional taxes above the already-imposed federal taxes.
Basically, state income taxes are an extra tax that’s on top of the federal income taxes. It’s also separate from payroll taxes that contribute to Social Security and Medicare
Learn MoreEnergy Tax Credits
Last Updated on Wednesday, 27 July 2011 04:07 Written by Frank Ellis Wednesday, 27 July 2011 04:07
Energy Tax Credits
How do I apply for energy tax credits for 2011? Many taxpayers are asking this question because some of the federal energy tax credits are due to expire.
Please keep in mind the technical rules that apply to each energy tax credit item. For example, these energy tax credit items only apply to an existing home or principal residence, not to a rental home or new construction. Here is a list of items that had to be installed by December 31, 2010.
- Biomass Stoves
- Heating, Ventilating, Air Conditioning (HVAC)
- Insulation
- Roofs (Metal & Asphalt)
- Water Heaters (non-solar)
- Windows and Doors
TurboTax Freedom Edition
Last Updated on Tuesday, 26 July 2011 05:06 Written by Frank Ellis Tuesday, 26 July 2011 05:06
Did you know you may qualify for the TurboTax Freedom Edition software to prepare and file your income tax return? Tax preparation software companies have an arrangement with the IRS called the Free File Alliance.
File Your Income Tax Return for Free
If you qualify, you can have free use of participating tax filing services such as Intuit’s TurboTax Freedom Edition. Even though Intuit is a partner with the IRS in the Free File Alliance program, you should know Intuit has provided free tax preparation to millions of lower income tax payers through the Tax Freedom Project.
Tax Forms 1040, 1040A, 1040EZ
If you qualify to use the TurboTax Freedom Edition you will be able to use tax forms 1040, 1040A, and 1040EZ, but you will need to keep in mind the Freedom Edition does not support tax situations which involve things like investments, royalty income, or rental property income. In reality, taxpayers with lower incomes usually do not have income from sources such as those mentioned.
W-4 2011 Tax Form
Last Updated on Monday, 25 July 2011 08:04 Written by Frank Ellis Monday, 25 July 2011 08:04
W-4 Tax Form
You should complete a new W-4 Form if your personal situation or finances change. Do you know what the purpose of the W-4 Form is? The W-4 Form is a tax form that helps your employer to calculate how much income tax to withhold from your pay.
Exempt from Withholding
One of the first topics that will come up is if you can claim exempt from withholding or not. What in the world is exempt from withholding? Well, first of all it only applies to federal income tax, not Medicare or Social Security.
Exemption from withholding means no federal income tax will be withheld from your paycheck. You may be able to claim exemption from withholding on your W-4 tax Form if you expect a refund from all federal income tax withheld because you expect to have no tax liability.
Learn MoreAverage Tax Return
Last Updated on Sunday, 24 July 2011 05:33 Written by Frank Ellis Sunday, 24 July 2011 05:33
The average tax return has increased per taxpayer over the past year. On average, early tax filers are seeing an increase of $200 per taxpayer in their refund, which reflects approximately a 9% increase.
There are a few reasons for the increase, partly due to tax changes that have been put in place to benefit taxpayers starting last year. For example, there has been an increase in the child tax credit, and also a slight increase in the earned income tax credit for low-income families. There are also higher deductions for education including deductions for tuition and fees.
Deciding how many exemptions you want withheld from your wages primarily dictates whether you will receive a larger refund in the spring or receive more money each pay period in your paycheck.
Capital Gains Tax Rate
Last Updated on Thursday, 14 July 2011 02:57 Written by Frank Ellis Thursday, 14 July 2011 02:57
Almost everything you own and use for personal or investment purposes is a capital asset. Your home, your furniture, stocks, or bonds held in a personal account are all examples of assets. A capital gain is the profit you made above and beyond the base price you paid for the item when you purchased it.
Once you know the dollar amount of your capital gain, you will want to know what your capital gains tax rate will be. First of all, you have to classify it as a long-term capital gain or a short-term capital gain. Short-term capital gains are profits made from the sale of an item held for less than a year. Long-term capital gains are profits made from the sale of an item held for one year or longer.