14Feb/16

Unclaimed Tax Refunds – How To Claim Yours

Every year the Internal Revenue Service (IRS) places a huge number of dollars worth of unclaimed tax refunds into a record. There those assets stay until a citizen files a tax return to claim them. The central government does not give a general list of citizens liable for one of these unclaimed refunds.

What is Unclaimed Tax Refund

An unclaimed elected tax refund is a measure of cash owed by the government to a citizen, yet which has not yet been paid to the citizen. The reason this cash has not been paid is on the grounds that the citizen did not file a refund showing their privilege to it. The main way a citizen can get a discount of any size is to file a refund; their yearly tax refund goes about as their formal solicitation for any credit they are owed.

Late Tax Returns

Unclaimed discounts owed for earlier years are claimable. The citizen must file a refund to get it. Late government forms, which means those recorded after the IRS due date, are liable for penalties. These penalties will not be exactly the measure of the refund, making it beneficial to file.

Overpayments

Ordinarily, discounts stay unclaimed in light of the fact that a citizen did not trust that he or she profited enough to file a refund. Despite the fact that they might have made next to nothing throughout the year,  they may still qualify for a refund in if overpayments show up in individual cases. Refunds might likewise go unclaimed on the grounds that they were undeliverable to the location on file. Read more here.

Refunds on unfiled returns

Filing a complete tax refund is the best way to make a liable refund claim. The refund identifies with a taxing year when you don’t file a record, so you need to file an original tax return inside of two years of paying the taxes. The IRS begins the two-year period on the April 15 that instantly starts after the relevant taxing year.

Get a Little Help

To see whether you are owed a refund, you ought to contact your nearby IRS office or even the national organization office. Subsequent to assembling your own data, an agent will advise you if there are any unclaimed refunds in your name. You may, on the other hand, need to file a refund for the year in which you are sure  you are eligible for a refund to figure out if you are owed any credit.  Review thoroughly your records to figure out whether you didn’t file a refund in the previous three years. Assuming this is the case, file one. Sadly, in the wake of filing a return you are required to sit and wait until you get a refund, if any.

Health issue Exceptions

IRS can suspend the period during times when a physical or mental restrictions render you are unable to deal with your own money related issues. To be eligible, the hindrance needs to last or be required to keep going for no less than 12 back-to-back months or conceivably bring about death. You need to provide the IRS with a proclamation from your doctor validating the your debilitation. The IRS will then develop the standard restriction period by the measure of time you experience the ill effects of the hindrance.

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14Feb/16

What Are the Benefits of Using an Online Tax Refund Estimator?

The most repetitive and tedious approach to assess the measure of your tax refund is by utilizing IRS Form 1040. The structure of the Form 1040 is like an equalization scale. IF the tax you ought to pay in light of your salary after deductions, and non-refundable credits is higher than what you did pay in addition to any refundable credits you might be liable for, then you get a refund. Online software’s and application use the same formula; the main distinction with the 1040 is that you are finishing the structure yourself by hand.

Evaluating your refunds

If you were qualified for a huge refund a year ago, or you think you might be qualified for an extensive tax return check this year, you can begin evaluating your refund sum at this moment. Obviously, there are no insurances until the cash is really in the bank; however, you can get a really precise estimate of your refund by utilizing pay stubs from the month of December. Read more here: https://www.irs.gov/uac/Newsroom/Six-Tips-on-Making-Estimated-Tax-Payments

Online Calculators

If you need to estimate your refund before you get your W2, online calculators can create this data for you within just a couple of minutes. To start with, you just need to enter in your demographic data — like your age, the state you live in, regardless of whether you’re married, your recording status, regardless of whether you’re claiming wards, regardless of whether you can be asserted as a ward, and your number of exclusions.

Taxable Income

After that, you can utilize your last paycheck stub to enter in your taxable income for the year. You can decide your year-end taxable income by adding your year-to-date taxable income to one side over taxable income you have coming in for the year.

Withholding Tax

The same thought applies for government withholding and standardized savings. Use the year-to-date sum, in addition to any extra figures that you will pay all through whatever is left of the year to decide the suitable number to go into the online calculator.

Deduction Estimations

The calculator will ask that you need to decide on the standard conclusion, or in the case that you need to itemize your other deductions. You can pick the standard conclusion as an alternate way and later figure out whether separating your reasoning’s is more useful for your individual circumstance.

Miscellaneous Applicable Tax

The calculator will then get some information about educational cost credits and other appropriate tax return. You can apply the same sums from your previous year’s tax refunds if nothing has changed or left the boxes blank for the time and decide the liable tax figure come time for payment.

Extra Tax benefits

The calculator will let you know your tax refund credit. Despite the fact that this is just a rough estimate, it is for the most part a strong ballpark figure. You can attempt and find extra tax benefits and investment funds with the goal that you can possibly expand this sum from now until tax time.

14Feb/16

Will the Trustee Take My Tax Refund?

If you are considering petitioning for Chapter 7 bankruptcy and you are hoping to get or have gotten a tax refund, you most likely need to realize what happens to that refund.  Whether you lose the refund or not relies on upon the timing of your bankruptcy and the receipt of your refund. Be that as it may, there are things you can do to ensure you keep your duty refund.

Bankruptcy Estate

At the point when an indebted person documents for Chapter 7 bankruptcy, the majority of the individual’s benefits turn out to be a part of the bankruptcy estate, which is directed (controlled) by the Chapter 7 bankruptcy trustee. The Bankruptcy Code characterizes resources comprehensively. It incorporates more than cash in the bank or property. A tax return is a benefit that the trustee can use to pay unsecured lease. It is likely that the trustee will get some information about a tax refund at the meeting of banks. Find out more information here.

 Chapter 7 bankruptcy

In the Chapter 7 bankruptcy, it is mentioned that the trustee can utilize the advantages you have when you petition for bankruptcy to pay off your lenders. You can keep any benefits you get in the result of petitioning for bankruptcy. A tax refund can be precarious on the grounds that it frequently includes a procedure that starts before the bankruptcy recording date and proceeds thereafter.

Chapter 11 bankruptcy

Whether you can keep your tax refunds from wage earned before you record chapter 11 relies on upon how you deal with the timing of your bankruptcy and receipt of your tax refund. As a rule, If you arrange ahead you’ll have the capacity to keep your tax refund, or utilize the cash for different expenses. Read more here: http://www.businessnewsdaily.com/3973-bankruptcy.html

Timing of Your Bankruptcy

Depending upon how far ahead of time you know you will be petitioning for chapter 11, following are three points you could do to keep your tax refund from loan creditors:

  • Modify your withholding to decrease your refund to a minimum credit
  • Spend the refund on important expenses; or
  • Incorporate the refund in your bankruptcy exemptions.

File for Bankruptcy Within a Year

If you believe that you are going to petition for chapter 11 in the following year, you can stay away from the refund issue by changing your expense withholding so that you just pay the tax you owe. You will get more cash in every paycheck and your refund that will be too little to give any important installment to your loan creditors. The trustee might desert the refund, implying that you will have the capacity to keep the cash. It is imperative to ensure that you keep on withholding an adequate adds up to cover the charges you owe. In the event that you have gotten your tax returns and have not yet petitioned for chapter 11, you can keep the cash out of your bankruptcy home by spending it. The trustee can’t utilize cash to pay your banks that you no longer have.

14Feb/16

Corporate Tax In The United States

Corporate taxes are imposed in the US at the local, state and federal levels, on the income of people and entities that are treated as corporations. The tax rate on corporate income can vary from 15-35%, and taxes and rules are different in every jurisdiction. A corporation’s taxable income may be different from its book income, and corporations are also assessed a federal AMT or alternative minimum tax. Just as is the case with individuals, American corporations must file tax returns every year. There are some corporate transactions that are not taxable, such as acquisitions, mergers and liquidations. Shareholder dividends are taxed, and some corporations are subject to a foreign income tax, but may be allowed a credit for them.

Most shareholders aren’t directly taxed for corporate income, but they must pay taxes on all dividends. However, shareholders in an “S” corporation or a mutual fund are taxed on corporate money but do not pay dividend taxes. Corporate income taxes are based on the federal or state definition of taxable income (usually business receipts, minus the cost of goods and services sold). A federal corporate tax is imposed at different levels, and all taxable income above $335,000 is subject to a 34% or 35% tax rate. Local and state taxes are deductible in the calculation of federal corporate taxable income.

At the federal level, consolidated returns are permissible, and some states even require them. Members of a group are permitted to file just one return that reports their combined income, and to calculate a combined tax. When related entities don’t file a consolidated return, they fall under transfer pricing stipulations, and in these situations, the tax board may adjust the prices charged in between these entities. Corporate shareholders are taxed upon the distribution of earnings, and dividends. The tax rate on dividends is now lower than the rate for regular income for shareholders. To make sure that shareholders pay dividend taxes, there are two provisions: backup withholding on domestic shareholders, and withholding tax on shareholders who are foreign. Foreign corporations that operate in the US may fall under the branch profit tax, at the same rate as the dividend withholding. A corporation must file a tax return in any US jurisdiction that has an income tax, and it is payable through estimated payments at both the state and federal levels. More explained here.

Like any other entity, a corporation might be subject to withholding taxes upon making a payment to another entity, such as dividends or wages. These are generally not considered as part of the corporate tax, but the tax system might assess a penalty upon the corporation for not paying the tax. American corporations are subject to many other taxes, such as those on stock or capital, excise taxes, sales/use taxes, and property taxes.

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14Feb/16

Income Tax Rates By State

There are many states in the US that impose a state income tax, and there are seven that do not: Wyoming, Washington, Texas, South Dakota, Nevada, Florida, and Alaska. Tennessee and New Hampshire only tax interest income and stock dividends, and these states raise most of their revenue through other methods of taxation, such as increased sales tax. In May 2009, both Hawaii and Oregon had the highest state income taxes, at 11%. Of all the states that levy an income tax, the lowest rate is had by Illinois, with a flat 3% tax. Most states that have income taxes have them of a progressive nature, where the rates rise commensurate with income. For instance, taxation on a single Californian begins at 1% if they make $6,622, and rises up to over nine percent if they make over $44,800. Back in 2005, California added a 1% surcharge on incomes exceeding $1 million, equaling a marginal tax rate of 10.3%.

The state income taxes are assessed on top of the federal government’s income tax, with a maximum of 35% in Washington, Texas and Florida. Vermont has a tax of up to 44.5% of income, and California has the dubious distinction of a 45.3% maximum tax. These two taxation levels are accompanied by payroll taxes, such as contributions to Medicare and Social Security. However, those high figures don’t reflect that some local and state taxes (including the state income tax) are a federal tax deduction. An AMT (alternative minimum tax) itemization won’t offer much in savings, and those not affected by the AMT are effectively subsidized for a portion of the state income tax. However, the subsidy only affects those whose deductions exceed the standard, meaning that mostly middle-class taxpayers are eligible. Check this site for more help.

In addition to federal and state income taxes, plus payroll deductions, some states in America allow their counties and cities to assess additional income taxes. For instance, New York City has a city tax of a maximum of 3.648%, in addition to a state tax of 6.85% and the federal income tax. The maximum tax rate in New York City, with all income taxes, accounted for, is 45.498%, or roughly one and a third times the amount of federal-tax-only cities like Dallas, Miami, Houston and Seattle. Income tax rates vary widely by state, and if you are at all unsure, it’s best to consult a tax professional or an accountant.

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13Feb/16

What are the Fees for a Tax Lawyer

Tax lawyers are very useful in solving tax issues, and bringing tax relief to millions. The costs incurred with the hiring of a tax lawyer can vary widely from one place to another, and can also rise and fall depending on the chosen lawyer’s expertise and experience. If a particular lawyer has been in practice for years and has a long list of satisfied clients, their fees will almost certainly be higher than a newer attorney. If you have a tax attorney on retainer, the fee may be a couple of hundred to a few thousand dollars per month, depending on what the lawyer does for you. A typical tax lawyer charges a consultation fee of between $75 and $250, but there are some others too who work following the ‘No Win, No Free’ agreement. The preliminary consultation determines the customer’s needs and the amount of retainer needed. After the taxpayer reads over the retainer agreement, payment is made. Tax lawyers can charge hourly, on retainer, or on a contingency basis, where the attorney gets between 25% and 40% of the settlement amount.

An hourly fee is best for both lawyer and client because the other fee schedules often result in the lawyer ending up with more money than the client. However, hourly fees rack up fast- most cases average out at about $30,000-$50,000 in costs. The time an attorney spend isn’t just spent in the courtroom- there are countless hours spent in preparation for a case. Hourly fees can depend on factors such as the reputation of the client, the case’s complexity, the lawyer’s experience, and the area in which the client needs assistance. Hourly fees are often negotiable, and can be decided by the client having a frank discussion with the attorney regarding their requirements.

Some law firms and some independently practicing tax lawyers will charge a retainer fee, otherwise known as a flat fee. The retainer fee is not refundable under any circumstances. In a situation where a flat fee is charged, a single larger payment is made, and repeating payments are no longer necessary. Contingency fees can be applied in some situations, and the contingency fee is a payment made to the attorney for services rendered. The contingency fee is usually expressed as a portion of the recovery amount, and can range from one-quarter to almost half of the total, but averages about 33%. If the tax lawyer wins the case for their client, the IRS most often pays the attorney fees, and the client owes nothing out of pocket.

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