Tax Changes You Should Know for 2005 Returns

Every year, you have to file tax returns and every year there are changes to the tax code. Here are some key changes for 2005 to keep in mind when you prepare returns.

What To Do If You Didn't Get a W-2

If you worked in a salaried position during 2005, your employer should issue you a W-2 form for your tax reporting. So, what if you haven’t received one?

Get a Jump Start on Your Taxes

Preparing and filing your taxes is a less than exciting task. Much like visiting the dentist it something that must simply be done. There are ways to make it a little less painful.

Tax Season – Time for Scams

As tax season draws irresistibly closer, the scam artists are polishing their latest techniques. This article should help you keep an eye out for these nasty individuals.

Royalty Tax Payments in Franchising Agreements

As many government agencies attempt to collect more tax revenue some have decided to tax royalty payments of franchisors who have franchise outlets within their jurisdictions.

Build Wealth with a Tax-Free Gain on the Sale of Your Home

If you owned and lived in your home for at least two of the five years before you sold it, the gain is tax free up to $250,000 if single or up to $500,000 if married. However, if you ever used part of the home for business purposes, such as a home office, only the gain due to depreciation recapture is taxable. You can maximize the benefits of this exclusion by buying a home below value such as a foreclosure or building a home while acting as your own general contractor.

New for 2006, the Roth 401k

Beginning in 2006, a 401k plan may include a Roth 401k. A Roth 401k plan is similar to a Roth IRA. The money contributed to a Roth 401k plan is not tax deductible, but the money grows tax free and can be received tax free at retirement. Unlike the Roth IRA, the Roth 401k is not subject to income limits. In addition, a taxpayer may contribute a much larger amount to a Roth 401k than to a Roth IRA. In 2006, a taxpayer may contribute up to $15,000 ($20,000 if age 50 or older) a Roth 401k plan

Minimizing the Income Tax on the Receipt of Lump-Sum Social Security Benefits

Taxpayers who receive Social Security benefits in one lump sum might have to pay taxes on up to 85 percent of those benefits. This article explains to how minimize the income tax burden from the receipt of lump-sum Social Security benefits by making the proper election under Section 86(e) of the Internal Revenue Code.

What You Need To Know About Tax Write-offs For Casualty Losses

Life is full of ups and downs, and there is no way of predicting when you will suddenly find yourself in a bad situation. However, there is at least one up side to disaster; most can be counted as casualty losses or deductions on your taxes. While you won’t get all the money back you lost, for major losses, it is worth claiming the deduction.

Don't Go to Jail for Failing to Pay State Sales Tax on Internet Purchases

Many online sellers believe Internet sales aren't subject to state sales taxes. Bookseller Steve Weber explains why it's best to check with your state revenue office.

Avoid the Tax on Capital Gains by Donating the Property to a Charity

May a taxpayer avoid the tax on capital gains ty donating capital gain property to a recognized charity? This article explains the basic tax rules for donations of property to a charity and how a taxpayer can use them to save taxes.

Second Homes - Tax Benefits and Potential Tax Pitfalls

Many people are buying a second home to use for vacations or to acquire a home to be used in retirement. Some provisions of the tax law treat a second home the same way as a primary home. However, other tax provisions applicable to a second home differ from the tax rules that apply to a principal residence. This article explains the tax benefits and potential tax pitfalls in owning a second home.

Deducting Miles Driven on Behalf of a Charity

How much may a taxpayer deduct for miles driven on behalf of a charity? Do exceptions and limitations apply in some circumstances? Is a higher than normal deduction allowed in some cases? How does the tax law treat parking fees and tolls paid on behalf of a charity? If you drive your automobile on behalf of a charity, you need to read this article.