Roth IRA or Traditional IRA-Which is Best?

First, you should determine if you are qualified to contribute to either. You may contribute to either traditional or Roth IRAs only to the extent you have earned income includible in gross income. The maximum contribution for a taxpayer and the taxpayer's spouse is $4,000 each. Individuals who are at least age 50 will be able to make an additional contribution of $500 ($1,000 for 2006).

S Corporations Can Reduce Self-Employment Tax

As a sole proprietor, 100% of your profits are subject to self-employment taxes. The self-employment tax is 15.3% of all profits up to $94,200 (for 2006). Profits beyond the first $94,200 are subject to a 2.9% self-employment tax. If the profits from your business are $200,000, you will pay self employment taxes of $17,037.

Revealing the Truth Behind the Garnishment Laws

Garnishment law has been in force to improvise the mode of collection of payment for the money due towards the federal government or any other creditor. Garnishment law also states wage garnishment according to which the money is deducted directly from the person's salary after assessing the monthly expenses vis-a-vis monthly income.

Tax Preparation and Electronic Tax Preparation Options

Just in time for tax season you will find yourself presented with this years editions of popular tax preparation programs that promise to make tax filing a breeze for the average person. Which one is right for you and what are some of the most popular electronic tax filing solutions? Read on as we discuss your tax preparation options and explore the popularity of electronic tax filing.

Should You Itemize?

When you finally decide it is time to prepare your taxes, the first question is whether you should itemize your deductions or take the standard deduction provided by the IRS.

Marriage and Taxes

Getting married is the greatest day for 50 percent of couples. The other 50 percent get divorced. Perhaps the marriage tax penalty has something to do with it.

Tax Returns for the Deceased

Two things in life are certain – death and taxes. Here’s what to do if the two are combined as far as filing a tax return.

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.

Where to Deduct Tax Preparation Fees

Are tax preparation fees deductible only as a miscellaneous itemized deduction for all taxpayers? Has the IRS issued a ruling that shows where taxpayers may deduct tax preparation fees to save the most in taxes? If you own rental real estate or you are self-employed, you need to read this article.

What To Do If You Didn't Get a Form 1099

If you earned revenues as an independent contractor in 2005, you should have received a 1099 Form for the work. So, what if you haven’t received one?

2005 Child Tax Credit Good News for Parents

The Child Tax Credit provides a welcome tax break for many families. What makes the credit so nice is that it isn't a deduction from your taxable income, it is an actual reduction of your taxable income.

Save Taxes Using the Section 179 Deduction

The Section 179 deduction is one of the best deductions in all of the Internal Revenue Code. A business may deduct up to $108,000 of business equipment, furniture, machinery, and off-the-shelf computer software that the business purchases and places in service in 2006. Some limitations and special rules apply. The Section 179 deduction also saves self-employment tax for self-employed individuals.

How to Deduct Points on a Real Estate Loan

Points represent prepaid interest on a real estate loan. Usually, a taxpayer must amortize the points by deducting them ratably over the life of the loan. However, a taxpayer who uses the cash method of accounting may usually deduct points in the year paid on a mortgage loan to purchase or improve the taxpayer's principal residence. The taxpayer may deduct these points even if the seller pays them.