Consultants are likely to have deductible business expenses that can help you save big on your taxes. A checklist can help you account for every deduction you’re entitled to use. See the full TurboTax article for the top tax deductions for consultants.
If you work as an employee, the amount of tax withheld from your paycheck is based upon the information you provided on Form W-4. However, if you receive any form of supplemental wages during the year, your employer may be required to withhold tax using a different method. To learn more how supplemental wages affect your tax return, see the full TurboTax article.
The IRS treats a Pell grant as a scholarship, which means it’s possible that you’ll have to report the grant money on your tax return and maybe even pay income tax on the money. For details, see the complete TurboTax article.
The chance to be creative—and the opportunity to be your own boss—makes working as a musician exciting. Launching and maintaining your music business usually involves paying some basic business expenses, and you can deduct these on your tax return. See the full TurboTax article for some of the top business deductions and expenses for self-employed musicians, as well as some tips to guide you through filing your tax return.
Deferred compensation refers to money received in one year for work performed in a previous year—often many years earlier. Typically, you receive deferred compensation after retiring or leaving employment. If you’re receiving deferred compensation, or considering an offer than includes a deferred compensation plan, it’s important to understand what you can do to reduce your tax bill. To find out more, see the full TurboTax article.
Cellphones have become just as vital to business as a land line, which makes cellphone use a legitimate, deductible business expense. But for most of us, cellphones are also inextricably linked to our personal lives, so it’s a deduction that the IRS scrutinizes very carefully to make sure personal electronics use isn’t being claimed as a business expense. To find out more about deducting cellphone use on your tax return, see the full TurboTax article.
Who couldn’t use a little extra income on the side? Short-term vacation rental companies like Airbnb and FlipKey help you find guests to rent that spare bedroom and earn some cash. But, as in any business venture, it’s best to figure out the tax implications before you jump in. See the full TurboTax article for details.
If you paid a daycare center, babysitter, summer camp, or other care provider to care for a qualifying child under age 13 or a disabled dependent of any age, you may qualify for a tax credit of up to 35 percent of qualifying expenses of $3,000 for one child or dependent, or up to $6,000 for two or more children or dependents. To find out more, see the full TurboTax article.
In order for your donation to be deductible, it must go to a nonprofit group that is approved by the IRS. Most often, these are charitable, religious or educational organizations. See the full TurboTax article to learn how to get the biggest tax savings when making charitable contributions of cash or checks, household goods, cars or appreciated property.
Now is a good time to review your financial situation and do a rough estimate of your income tax bill for the year. This will give you an incentive to consider these short and long-term strategies to minimize your tax bill. See the full TurboTax article for steps you can take before year-end to reduce your taxes on your next tax return.
The IRS doesn’t automatically keep tax refunds simply because you didn’t file a tax return in a previous year. However, in some cases the IRS may keep your refund if you have not filed a prior-year return and it appears that you’ll owe money when you do. If you’re concerned about your refund being held because of unfiled returns, see the full TurboTax article for a couple of options to reduce or eliminate any extra wait for your current-year refund.
If you served jury duty, you may have received pay from the court for your time. If so, that income is taxable and you must report it at tax time. You may also have incurred expenses to perform your civic duty, which the court may have reimbursed you for. This also counts as income. How you handle jury duty pay and expenses can depend on your employment and the expenses you incurred to attend jury duty. For details, see the full TurboTax article.
Taking the wrong tax deductions can cost you time and money. If you’re depending on a tax refund, a tax return that is improperly filed can keep you waiting for a long time. You may also get back less than you expected. To find out more, see the full TurboTax article.
Don’t be alarmed if you’ve received a letter from the IRS regarding your tax return. Not every letter means an audit. Most are routine and can be resolved in a few simple steps. See the full TurboTax article to learn what to do if one shows up in your mailbox.
It’s a happy day when your federal tax refund arrives. Most taxpayers receive their refund within 21 days of filing, but sometimes the check is not in the mail or deposited to your bank account as quickly as you would like. Often, delays in receiving tax refunds are caused by matters within your control. Once you become aware of the issues that cause delays, you can take steps to avoid them. For the top 5 reasons your refund may be delayed, see the full TurboTax article.