IRS Tax Tip: Know the difference between standardized and itemized deductions

It’s a good idea for people to find out if they should file using the standard deduction or itemize their deductions. Deductions reduce the amount of taxable income when filing a federal income tax return. In other words, they can reduce the amount of tax someone owes. Individuals should understand they have a choice of […]

Get schooled: Education savings accounts can be a benefit

Parents with college-bound children are undoubtedly concerned with setting up a financial plan to fund future college costs. The goal for parents whose children are already of college age is to pay for current or imminent college bills. The two main education savings account vehicles are Coverdell Education Savings Account and a 529 College Savings […]

Are you paying your fair share?

Tax policy often hinges on questions of fairness, in particular, are the wealthiest Americans paying enough in taxes compared to middle- or low-income earners. According to recent IRS statistics, high-income earners continue to pay a greater percentage of their income in taxes. Kiplinger reports that in 2012, the most recent year available, the top 1 […]

Be sure to stay on top of quarterly tax payments

To make sure that individuals pay their federal income taxes, the government requires that sufficient funds are withheld from salaries or else it mandates that the taxpayer pay an estimated withholding amount each quarter. Estimated tax payments are typically four equal payments that are normally paid on April 15, June 15, September 15 and January […]