Earned Income Tax Credit

The Know-How on Tax Returns

Nice cool mornings, beautiful warm sunny days…yes, spring is in the air. That can only mean one thing: tax time is near. If you still owe tax money on your earnings you may be dreading the fact that taxes are due by October 31st. Most Australians, however, look forward to getting a tax refund cheque.

Tax Credits – Why You Should Be Focusing on Them

To say the subject of taxes is a complex one is to make just a minor understatement. That being said, the subject of tax credits is one you want to understand. Okay, so what is a tax credit?

Canadian Taxpayers – Registered Retirement Saving Plans (RRSPs) Explained

The story and example has been retold many times of a son who had taken the time to count up his parents net worth whom it seemed to be strung across town in a myriad of small bank accounts and as well in saving bonds. When the son explained to his father, the net worth of his wealth in total the father exclaimed – “We’re not rich. We never had money”.

Tax Obligations and Paying Low Tax

While taxes are all our obligation, there can be numerous ways on how we can pay low tax. Tax breaks and exemptions can be maximized if we have a detailed tax plan. Create a tax plan for your future with the help of tax specialists and reduce your taxes significantly.

Why the VAT Rate Change is a Future Scam Based on an Empty Promise

Since the UK VAT rate change was announced on Monday, thousands of people from financial experts to the average bystander have chipped in their opinions. Many of the opinions have been cautious, and some have been just plain negative, and for good reason…

How to Avoid an IRS Income Tax Audit

What is an audit and why do individuals cringe at the word? The Internal Revenue Service issues audits as a regulatory measure to ensure that society is completing accurate tax returns. Sometimes they are issued simply to check on something that seems awkward or you might get picked for an audit simply because your number was picked. Avoiding an audit or decreasing your chance for an audit is quite easy.

1099 Rules – How to Report 1099 Income

With the increase in bloggers, affiliate marketers, eBay sellers and other online business owners, the topic of reporting miscellaneous income and 1099 forms has been coming up a lot lately. While most people are aware they must report wages, salaries, interest, dividends, tips and commissions as income on their tax returns, many don’t realize that they must also report other income.

How Does the Government Recover the VAT Rate Change Shortfall?

Obviously, in reducing the VAT rate from 17.5% to 15% for a year will create a shortfall in the government’s finances for the year. There are a variety of predictions on exactly how much this will be, however, most agree that it will be somewhere in the region of £12.5 billion. This article deals with some of the ways the Government might make this shortfall up.

Solutions for Social Security Deficit

The annual report from the Trustees for the Social Security program indicates that this fund is starting to show deficits. The main cause of the problem is the “baby boomers” effect. In 2004, the annual deficit for the year 2033 was $300 billion, so it is projected to exhaust Social Security reserves in 2041. This issue has became “The Third Rail of American Politics,” in other words, if they touch it they are considered dead. Some presidential candidates offered during their campaigns to solve this problem, but it looks like their proposals did not take into account the current crises in Wall Street and in the housing market.

The Technique of the “Valuation Discount” For Family Limited Partnerships

The Family Limited Partnership (“FLP”) is often used to transfer interests to family members on a “discounted” basis, thereby lowering or sometimes even eliminating transfer taxes. The idea is to use a “discount” so that the value of the property appears to appraisers to be much less than it is.