Taxes

Taxation, Forms, Payments

Taxes Corporate, personal, and sales tax information, forms, electronic, and online refund status. - Learn About Taxes - The basics about TAXES.

What is a Tax?
A tax or "duty" is a financial charge or other levy imposed on an individual or a legal entity by a state or a functional equivalent of a state (e.g., tribes, secessionist movements or revolutionary movements). Taxes could also be imposed by a subnational entity.

Taxes may be part of a direct tax or indirect tax, and may be paid in money or as labor. In modern, capitalist taxation systems, taxes are levied in money, but in-kind and taxation are characteristic of traditional or pre-capitalist states and their functional equivalents.

The means of taxation, and the uses to which the funds raised through taxation should be put, are a matter of hot dispute in politics and economics, so discussions of taxation are frequently tendentious.

Public finance is the field of political science / economics that deals with taxation.

When planning for taxes, we usually think of the Federal filing deadline of April 15, however, you are required to pay taxes throughout the year. Paying the right amounts throughout the year will save you from having to pay penalty charges for underpayments.

Throughout the year, there are important tips to follow in order to prepare for your taxes. First of all, get organized. Experts recommend the use of personal finance software to enter and maintain accurate records. Keep records of expenses such as automobile mileage incurred for business purposes and get receipts for charitable contributions. It is also very important that you maintain accurate records of the purchasing and selling of stock as well as stock options.

For most people, the payments we make throughout the year are made on our behalf through our employers. Employers automatically withhold taxes from our gross earnings before giving us our net earnings, the little numbers on our paychecks (or big numbers for you lucky ones). Your employer is also responsible for reporting your total income and taxes paid by submitting form W-2 to the IRS. You must then file your taxes-which tells you the total amount of taxes owed and the total amount of taxes already paid-and either pay the difference (if your automatic deductions were too small) or collect the difference (if your automatic deductions were too big).

You may have heard before that you should contribute the maximum to your 401(k) retirement plan ( 401(k)). Doing so will let you defer the taxes you pay on your contributions and will allow your contributions to increase through compound interest. Adjust your withholdings if your marital status changes or if you are in a different tax bracket than the previous year. If sufficient taxes are not withheld from your paychecks, or if you are self-employed, make estimated tax payments to the appropriate tax authority to avoid year-end penalties.

Make contributions to your IRA as early as possible in the year due to the benefits of compound interest ( IRAs). Also, consider tax-efficient investments such as tax-free municipal bonds or tax-efficient mutual funds ( Municipal Bonds, Mutual Funds).

Information to help you minimize the total amount of taxes that you pay.

US Taxes Information - Benefits And Pensions. Estate, Gift, And Inheritance Taxes.

Tax Compliance. Corporate Taxation. Exempt Organizations. Employment Tax-Related Penalties.

Real Estate Taxation. Income Tax. Deferral Of Taxes. Bankruptcy And Insolvency.

Legislation And Lawmaking. Passive Foreign Investment Companies (PFICs). International Taxation.

Sales And Use Taxation. Practice And Procedure. Tax Havens. Tax Policy. Tax Incentives. Tax Accounting. Tax Technology. Tax Treaties.

IRS Web Site - Internal Revenue Service - US

IRS Businesses - Tax Information For Businesses. Provides tax information and forms for US businesses.

IRS Students - Tax Information For Students - These questions will help you determine if you need to file a Federal Income Tax return or if you need to stop your withholding so you will not have to file.

New York Tax Department of Taxation and Finance - Corporate, personal, and sales tax information, including downloadable forms, electronic filing information, and online refund status.

Utah Tax Utah State Tax Commission; information about Utah taxes; Utah tax forms and publications.

California Taxes - California Tax Service Center - Simplified income, payroll, sales and use, and other tax information for you and your business.

Minnesota Taxes US Minnesota Department of Revenue - Information and tax forms. Online filing and payment options for individuals and businesses. Income tax information also in Spanish.

Michigan Taxes - Taxes Department of Treasury provides state income and business tax forms and information.

Ohio Tax Department of Taxation - File your income tax return and other electronic filing services. If you're due a refund, get it fast.

Idaho Tax State Tax Commission - If you have any questions on taxes or procedures, please contact Taxpayer Services. If you are having problems with one of our electronic filing or payment

North Dakota Tax - Office of State Tax Commissioner (ND)

World Taxes Data -

Tax - Economic Definition and History.

CRA ARC Canada Revenue Agency - Canada Child Tax Benefit. Working Income and Tax Benefit payments.

Taxes Yahoo Tools, Articles, Calculators, Tools, Advice - Taxes on Yahoo! Personal Taxes - Articles, Calculators, Tools for Personal Finance. Government Taxes Directory

Market Watch Online Tax Advice - Tax Preparation Help - Income Tax Tips Income Tax Tips - MarketWatch offers online tax advice and tips. Look no further then our site for income tax preparation tips.

Taxes and Money CNN - Tax News for Home and Business from CNNMoney. The latest in tax law updates, news, forms & advice. Includes a refund savings calculator, and interactive tax lessons.

Direct UK Money, tax and benefits - Information on new penalties for errors on returns . Apply to receive tax-free interest on your savings

India Taxes - National Portal of India Citizens Income Tax, Filing Returns, Wealth Tax! Provides you with useful facts

About Tax Planning

UK Gov Taxation Directory - Catalogue of U.K. taxation resources on the Internet, incorporating the email directory of U.K. tax professionals and other information on U.K. tax matters.

Tax Forms

Publications

MSN Money Central Taxes Tax Info

Tax News

Tax Law

Tax Code

Commercial Tax Sites

Taxes Associations

Tax Foundation, National Association of Tax Practitioners, AICPA

Tax and Accounting Sites Directory

Smart Money Tax Guide

Online Taxes - Preparation and E-filing -

Taxes Software, Tax Tools and Utilities

MSNBC Personal Finance Calculators

Tax Term Glossary...

Tax Notes Tax News and Articles. Tax Analysts is a tax publisher and does not provide tax advice or preparation services. - Phone: 800-955-2444 - Hours: Monday to Friday 8:30 AM - 5:30 PM EST - Address : 400 S. Maple Avenue, Suite 400, Falls Church, VA 22046

State Forms

Sister States

Taxes and College Savings

Saving for College, College Saving Plan Network, The Best Way to Save for College: A Complete Guide to 529 Plans...

Tax Discussions

Tax Analysts, Google Group Discussion, Taxsites, Yahoo Tax Message Board...

Investorguide University, Tax Basics, Wikipedia Taxes, Investopedia...

Brief history of taxation: - Taxation has been used to raise capital to Political authorities throughout history. Taxation in labour was the basis of the Feudal system in medieval Europe. King Solomon of the Old Testament pointed to the need for taxes to be applied for civil purposes (1 Kings 4:7; 9:15; 12:4), and these amounts were increased during times of foreign occupation. In some pre-monetary societies, taxes were owed in labor (Incan empire - Mita).

The Roman Empire, developed the tax farming as the central powers could not practically enforce their tax policy across a wide realm. The tax farmers were obligated to raise large sums for the government, but were allowed to keep whatever else they raised. Christians support the payment of taxes, through Jesus's words "Render unto Caesar the things that are Caesar's". There ase a "telos" duty on merchandise or travelers (Matthew 17:25), an annual "phoros" on property tax (Luke 20:22;23:2), a "kensos" or poll tax (Matthew 22:17, Mark 12:14), or the tribute money of a temple-tax (Matthew 17:24-27).

Many taxes were originally introduced to fund wars and are still in place today For example the American government introduced war taxes during the American Civil War (1861-1865) The telephone tax was instigated at the start of World War I (War Tax Revenue Act of 1914). Income tax was first introduced into Britain in 1798 to pay for weapons and equipment in preparation for the Napoleonic wars and into Canada in 1917 as a "temporary" tax under the Income War Tax Act to cover government expenses resulting from World War I.

Tax Preparers

- Deductions and Refunds

Tax Preparers - If you are looking for assistance with tax returns or other financial records and preparations, a professional may be necessary. The best method of research to locate a competent professional is to simply ask for referrals. If people you trust have successfully worked with an individual, you can have much more confidence in your choice than in someone selected from an advertisement or a directory.

There are a variety of questions that you should ask before agreeing to work with a particular professional. Request and verify information on education, certification, and work history. Find out exactly who will be handling your work to prevent it from being sourced out to someone other than your initial choice. Learn what work will be performed and what procedures will be in effect if further work, as in the case of an audit, is eventually required. Know exactly how much and when you will be paying for the work that you have requested. You will want to meet with any professional you're considering face-to-face before making your decision. Some even offer a free consultation, which you should take advantage of.

Several types of professionals are available to process your tax returns. Tax preparers have the least formal training and usually work for large tax preparation firms. They can handle all the basic types of returns, and anything that isn't terribly unique or complicated. Enrolled agents are licensed and able to represent clients to the IRS. Therefore, they can take your place at an audit.
Certified Public Accountant (CPAs) are highly trained accounting professionals who should be able to handle even the most difficult tax returns. As you might expect, the more highly trained professionals charge more for their services, but they may have a better chance to save you money on your return if you expect your return to be complex. Also, some prefer to handle everything for you, while others are happy doing whatever specific things you want help with; so be sure to find someone interested in providing exactly what you need.

Helpful questions for learning about a tax preparer include:

What is your tax preparation training and experience?

Are you an enrolled agent, certified public accountant or lawyer?

How do you stay familiar with changes to tax laws?

How many tax forms do you prepare each year?

How is the accuracy of your work checked? Manually? By computer?

When and how can you be reached during the year and during tax season?

Are you able to and will you represent me at an audit?

How much will you be charging for your services? How does your fee break down?

How long will it take you to complete my work? End of the year Many people don't even think about their taxes until March. But there are good reasons not to wait until the deadline looms in the near future. As the end of the year approaches, there might be some things you can do to reduce the burden you will have when you files your taxes. Here are a few ideas:

If you have realized a large capital gain, you might consider offsetting that gain by selling an investment that has fallen in value. You can also apply another $3,000 in losses against ordinary income and additional losses can be carried over to subsequent years. (Note that it's dangerous to make investment decisions solely based on tax consequences, but if you're thinking about selling a losing investment, this might be an additional incentive.)

Check your mutual fund distribution date. If the mutual fund is down for the year, you can avoid paying taxes on the large dividends and distributions. If you sell the mutual fund before the distribution date, you can avoid paying those taxes.

Increase your contributions to retirement accounts such as a 401(k) account ( 401(k)). If you have not contributed the maximum amount, employers will let you make changes on specific dates during the year, and contributions must be made no more than 15 days after the end of the month for a specific contribution.

If you have many years ahead of you until you start making withdrawals from your IRA, consider converting it into a Roth IRA, which will enable you to make tax-free withdrawals ( Roth IRAs). However, you must take into account that contributions are not tax-deductible. Conversions also work if you want to pass on money to your heirs, since there are no mandatory withdrawals and your heirs will not have to pay taxes ( IRAs).

Take last-minute deductions ( Tax Deductions).

If you received a big refund the previous year, you might want to adjust your withholding. While you might like getting a refund, it actually hurts you, because it means that too much tax was withheld throughout the year. If that's the case, you were giving the government an interest-free loan. If you received a large refund, talk to your employer about reducing your withholding amount.

If your company provides flexible spending accounts, sign up before the end of the year. The money is deducted from your paycheck on a pre-tax basis to cover expenses such as healthcare not covered by your insurance.

If you have control of your salary pay date, you can ask your employer to defer your payment until January, in effect deferring the tax impact for a year. However, this only makes sense if your tax bracket for the following year will be lower or will stay the same.
Estate Planning The level at which estate taxes begin is set to increase over the next several years: $1 million in 2003, $1.5 million in 2004-5, $2 million in 2006-8, $3.5 million in 2009, and a full repeal of the estate tax is currently planned in 2010. (Of course, this is subject to change, as any tax law is.) Estate taxes become very expensive at about $2 million, and can reach as high as 55% for very wealthy individuals. You might be able to reduce the taxes on your estate when you die. There is an unlimited marriage deduction that allows you to leave anything in your will to your spouse without federal estate tax as long as the spouse is a U.S. citizen, which enables you to give tax-free spousal bequea - thments ( Estate Planning).

Taxes and Health Plan

Tax Info - Learn About Taxes

Health Coverage Tax Credit (HCTC) and Health Insurance Plan.

ATAA - Alternative Trade Adjustment Assistance () - ATAA recipients are:
- at least 50 years old,
- have lost a job at a trade-affected company,
- have another job where they make less money, and
- get a wage supplement from their state to make up for their lower income.
The ATAA benefit is a wage subsidy designed for workers with hard-to-transfer skills. To be eligible for this Department of Labor program, workers must meet certain eligibility criteria.
Note: if you register for the tax credit when you’re only receiving TAA benefits and then you start receiving ATAA benefits, you must re-register and requalify for the HCTC at that time. All ATAA participants must call the HCTC Customer Contact Center to register for the HCTC.

Break In Coverage - a period of time when an individual has no creditable health coverage. A qualified health plan may require a HCTC candidate to have three months of creditable coverage before enrolling in the health plan. However, a HCTC candidate may have a possible break in coverage of up to 62 days. If the break in coverage is more than 62 days, then the plan can impose preexisting condition exclusions. A health plan administrator can, however, waive these exclusions.

COBRA - Consolidated Omnibus Budget Reconciliation Act of 1985. COBRA is federal legislation that lets you extend your job based health coverage if you lose your job or run into other qualifying events that cause you to lose your health insurance. The HCTC can pay for COBRA health insurance expenses if the eligible person pays for more than 50% of the cost of coverage.

Creditable Coverage - for the purposes of the HCTC, creditable coverage includes:

A group health plan (including COBRA, Temporary Continuation of Coverage (TCC), or State continuation coverage)

Health insurance coverage (including individual coverage, college or school insurance, or short-term limited duration insurance)

A qualified health plan may require a HCTC candidate to have three months of creditable coverage before enrolling in the health plan. However, a HCTC candidate may have a possible break in coverage of up to 62 days. If the break in coverage is more than 62 days, then the plan can impose preexisting condition exclusions. A health plan administrator can, however, waive these exclusions.

E -
Eligible Individual (for the HCTC) - in general, the following individuals are potentially eligible for the HCTC: eligible TAA benefit recipients, eligible ATAA benefit recipients or eligible PBGC pension benefit payment recipients who are at least 55 years old and not covered by Medicare. Eligible individuals must meet all HCTC eligibility requirements, such as having qualified health coverage, not having disqualifying coverage, not being imprisoned, and not being able to be claimed as a dependent on anyone’s tax return.

Group Plan - health coverage sponsored by an employer or employee organization (such as a union) for employees and their eligible dependents. Group plans are generally not qualified plans for the HCTC.

Guaranteed Issue - guaranteed enrollment for qualifying individuals to an HCTC state-qualified health plan regardless of their medical status. Qualifying individuals must be permitted to remain enrolled so long as they pay the premium. In order to be considered a qualifying individual, the individual must:

Have had at least 3 months of continuous creditable coverage prior to becoming eligible for the HCTC.

Not have had a break in coverage of over 62 days immediately preceding the time that the individual applies for enrollment with the health plan.

Health Coverage Tax Credit (HCTC) - created by the Trade Act of 2002 and administered by the Internal Revenue Service (IRS), the HCTC is an important benefit that pays 65% of a qualified health plan premium for eligible individuals. The HCTC is a unique tax credit that individuals can receive either monthly as their premiums become due, or yearly on their federal tax return. The HCTC is not a government health insurance program; it is a federal tax credit. You may be eligible to claim the credit even if you do not owe any federal income tax.

Health Plan Administrator (HPA) - an entity that provides or pays the cost of medical care. A HPA can include an insurance company, insurance service, or insurance organization (including an HMO) that is licensed to engage in the business of insurance in a state and is subject to state law that regulates insurance.

Health Plan Policyholder - a health plan policyholder is typically the individual who subscribes to the health insurance benefit. The other individuals covered under the policy are the policyholder's dependents. The HCTC-eligible individual does not have to be the policyholder of a qualified plan.

High Risk Pool - subsidized health insurance pools that are organized by some states. High risk pools offer health insurance to individuals who have been denied health insurance because of a medical condition or to individuals whose premiums are rated significantly higher than average due to health status or claims experience. High risk pools can be a form of qualified health coverage for the HCTC if they are deemed state-qualified. To be considered qualified, the high risk pool must provide coverage to all individuals guaranteed coverage through HIPAA, not impose any preexisting condition exclusions, meet certain requirements for premium rates and covered benefits, and be officially qualified by the state.

HIPAA - the Health Insurance Portability and Accountability Act. This is a federal health benefits law passed in 1996, effective July 1, 1997, which among other things, restricts pre-existing condition exclusion periods to ensure portability of health care coverage between plans, group and individual; requires guaranteed issue and renewal of insurance coverage; and prohibits plans from charging individuals higher premiums, co-payments, and/or deductibles based on health status. The legislation includes a privacy rule creating national standards to protect personal health information.

IRS Form 8885 - Health Coverage Tax Credit; individuals eligible for the tax credit must complete and submit IRS Form 8885 with their federal tax return in order to claim the yearly HCTC for months they were eligible but did not receive the monthly HCTC. The instructions for IRS Form 8885 provide guidance as to who may claim the HCTC.

IRS Form 1099-H - Health Coverage Tax Credit (HCTC) Advance Payments; IRS Form 1099-H provides the amount of monthly HCTC, and the months to which, the HCTC Program paid a health plan on an individual's behalf during the calendar year.

Monthly HCTC Program - a payment plan through which the HCTC Program pays the 65% portion of an individual's eligible monthly health plan premium as it becomes due. Eligible individuals must register to receive the monthly credit by completing the HCTC Registration Form.

National Emergency Grant (NEG) Bridge/Gap-filler Funds - also called temporary state-level assistance for the HCTC, these are federal grants available to states to assist eligible TAA/ATAA and PBGC recipients by paying 65% of their eligible health plan premiums while individuals are registering for the monthly HCTC. Once individuals receive their first invoice for the HCTC, they should no longer receive NEG funds from the state. States apply to the Department of Labor for these grants and then individuals apply to the state to receive the available funds.

Non-discriminatory premium - this term means that your health plan may not charge you, as a HCTC participant, a higher premium than a customer who is not a HCTC participant. Complaints about how premiums are set should be referred to your state's Department of Insurance.

Non-group/Individual Health Plan - non-group/individual health insurance is an individual policy for a single person or family. This coverage is usually provided under a contract purchased through an insurance company, agent or broker. In order to have the HCTC cover this type of coverage, the non-group/individual plan must have started at least 30 days before the person left the job that made him or her eligible for TAA, ATAA, or PBGC benefits.

Pension Benefit Guaranty Corporation (PBGC) - PBGC recipients:
- are retired, and
- are receiving PBGC pension payments.
The PBGC insures the pension benefits of workers in some private sector industries. When an employer faces severe financial difficulty, such as bankruptcy, and can’t continue paying pensions to their retirees, the employer may request the PBGC to take over the responsibility for paying pension benefits to their retirees. The PBGC decides if it will assume responsibility for the pension plan, which is also known as the PBGC becoming the “trustee” of the pension plan. If the PBGC becomes the trustee of the pension plan, then the PBGC will pay pension benefits under the terms of the plan, subject to legal limits, to plan participants and beneficiaries. PBGC pension benefit recipients can receive their pension benefit as a monthly payment or as a one-time lump sum.
Note: PBGC pension benefit recipients become potentially eligible for the HCTC on the day the PBGC becomes the trustee of their pension plan, even if they do not receive this Program Kit for a few months after that. This means that if the PBGC became the trustee of your pension plan on January 31, and you were enrolled in a qualified health plan, then you could file for the HCTC on your federal tax return starting in January.

PBGC Alternate Payees - PBGC Alternate Payees can be spouses, former spouses, custodial parents of eligible children or other dependents. They are required to submit proof, such as a marriage license, a birth certificate, a baptismal certificate, a death certificate (for a surviving spouse), a divorce decree, a qualified domestic relations order, etc., to the PBGC before the PBGC will start paying benefits.

Plan - a person’s specific health benefits package or the organization that provides such a package. It may be a HMO, a PPO, a commercial insurance carrier or a company that self-insures.

Preexisting Condition Exclusion - any physical or mental condition that an individual has before health coverage begins. The cause of the condition does not matter and could be the result of an accident or illness. During a preexisting condition exclusion period, a group health plan will not pay for treatment related to a preexisting condition. However, the health plan must pay for any unrelated treatments or conditions that the plan covers. Once the exclusion period is over, the health plan must pay for all covered services, including the ones for the preexisting condition.

Premium - the amount an individual pays in exchange for health coverage. An individual’s employer sometimes pays a portion of this amount.

Qualified Domestic Relations Order - relates only to pensions. The PBGC reviews a submitted domestic relations order to determine whether the order is qualified before paying benefits to an alternate payee. The benefits of a pension plan participant generally may not be assigned to another person. The law provides an exception for QDROs that relate to child support, alimony payments, or marital property rights of an alternate payee (spouse, former spouse, child, or other dependent of a plan participant). The exception applies only if the domestic relations order meets specific legal requirements that make it qualified.

Qualified Family Member - qualified family members are a HCTC-eligible individual’s spouse and dependent(s) that can be claimed on the individual’s federal tax return. Children of divorced or separated parents are treated as dependents of the custodial parent for the purposes of the HCTC. The non-custodial parent may not claim the credit even if she or he is entitled to claim the tax exemption for the child or carries the child’s health insurance. Family members are not eligible for the HCTC if they are:
1. Not enrolled in a qualified plan, either the same plan as the HCTC-eligible individual or on a separate qualified plan.
2. Entitled to Medicare Part A or enrolled in Medicare Part B.
3. Enrolled in the Federal Employees Health Benefits Program (FEHBP), Medicaid, or State Children’s Health Insurance Program (SCHIP).
4. Entitled to health coverage through the military health system (TRICARE/CHAMPUS). This does not include health coverage received as a Veterans Affairs (VA) benefit.

Qualified Health Plan - eligible individuals must be enrolled in qualified health coverage in order to claim the HCTC. The following types of health plans are qualified for purposes of the HCTC Program:
1. COBRA
2. State-qualified health plan
3. Spousal coverage
4. Non-group/individual health plan

Rapid Response Teams - administered by the U.S. Department of Labor, Rapid Response Teams provide information to workers who are being laid off in large groups (more than 50 workers) or to workers who work at a facility where the employer has announced that a plant or facility is closing. Rapid Response programs exist in every state. It may be a team, a unit or any other such division.

Spousal Coverage - if an eligible individual’s spouse has employer-sponsored coverage, and the spouse pays more than 50% of the cost with after-tax dollars, it is considered one of the qualified health plans for the HCTC. If the spouse’s coverage is COBRA, the individual has the option to enroll in the monthly HCTC; if it is not COBRA, the individual can only claim the yearly HCTC when filing his or her federal tax return.

State-Qualified Health Plan (SQHP) - state-qualified health plans are plans that a state’s Department of Insurance (DOI) approves as meeting the requirements of the Trade Act of 2002. For a state’s DOI to qualify a plan, the plan must have:
- No preexisting condition exclusion
- Guaranteed Issue
- Non-discriminatory premium
- Benefits must be the same (or substantially the same) under coverage provided to similarly situated individuals who are not eligible for the HCTC

State Workforce Agency (SWA) - this is an inclusive term the HCTC Program uses to describe various state agencies that handle unemployment benefits and TAA programs within their state. They may be referred to in the state as the state Workforce Commission, the Department of Unemployment Benefits, or a local SWA/State Employment Office.

Trade Adjustment Assistance (TAA) - TAA recipients:
- receive money from their state (either unemployment insurance or Trade Readjustment Allowance [TRA]), and
- meet training requirements.
TAA is a benefit for individuals who have lost their jobs because of trade with foreign countries. Employers and unions file a petition with the Department of Labor to have their employees TAA certified. TAA offers an income supplement (called TRA), assistance in skill assessment, job search workshops, job development or referral, and job placement. In addition, workers may be eligible for training, job search allowance, relocation allowance, and other reemployment services.

Trade Adjustment Assistance Reform Act of 2002 - or the Trade Act of 2002, the legislation that created the HCTC.

Trade Readjustment Allowance (TRA) - Trade Adjustment Assistance recipients receive TRA as income support while they participate in full-time training. TAA recipients can also receive TRA when they have a waiver from training because the training is either not appropriate or not available. Recipients start receiving TRA after they use up their initial 26 weeks of unemployment insurance. They can continue to receive TRA for up to 26 weeks, with an additional 26 weeks if they take remedial educational classes as part of their training plan.

Trusteed - when the PBGC has “trusteed” a plan, it means that the PBGC and the plan’s administrator have signed a legal document called a Trusteeship Agreement, which states the PBGC will assume responsibility for paying the pension benefits due to employees under the terms of the plan. The PBGC also takes possession of any assets owned by the plan.