If you are making contributions to a savings plan, whether employer-sponsored or to an individual retirement arrangement, you maybe eligible to a tax credit. This tax credit is designed for low-to-moderate income earners saving for their retirement. Depending on your income and filing status, you could get up to 50% of your savings for your [...]

Like any other income, a child’s investment income is also subject to taxation. However, it may be subject to either the parent’s rate or the child’s. Under certain conditions, parents maybe able to avoid having to file tax returns by including the child’s income on the parent’s tax return.
The first thing a parent must do [...]

Tax on your capital gains are usually lower than those applied to your other income, but for 2209, the maximum tax levied on capital gains is 15% while those in the lower income individuals may get 0% tax on all or some of their capital gain incomes. To find out more on capital gains and [...]

Tapping your retirement fund early may have some impact on your income tax return. If you receive payment before you are 59 ½ years old is generally considered by the IRS as early or premature distributions, and therefore subject to an additional 10% tax. However, there are exemptions to early distribution tax, like if you [...]

The Internal Revenue Service has recently posted a revised tax form that allows employers to claim the newly enacted special payroll tax exemption that applies to newly hired workers.
The Hiring Incentives to Restore Employment (HIRE) Act signed by President Obama recently allows for a 6.2-percent payroll tax incentive, in effect exempting employers from their share of Social [...]

Paying someone to care for your children may help you reduce your federal income tax. Up to $3,000 for each qualifying dependent maybe used as qualifying expenses to figure out the tax credit for 2009. Up to 35% of your qualifying credit maybe saved depending on your adjusted income. But there are always exceptions to [...]

New and small businesses maybe eligible for tax credits if they provide health care to their employees according to the Affordable Care Act approved by Congress in March and signed into law by the President. The small business health care tax credit, which is in effect this year, is designed to encourage small employers to offer health insurance [...]