To avoiddouble taxationin the U.S. and a foreign country, a taxpayer has the option of taking the amount of any qualified foreign taxes paid or accrued during the year as a foreign tax credit or as an itemized deduction. The foreign tax credit is applied to the amount of tax owed by ...
If you operate your home abroad as a rental property, you may owe taxes in the country where the property is located. To preventdouble taxation, you can take atax crediton your U.S. tax return for any taxes that you paid to the foreign country relating to the net rental income....
If you lived or worked outside the U.S., you almost certainly have to file a tax return with the IRS. But you may qualify for a foreign tax credit.
When filing taxes for your small business, only deduct a car’s business use. Do not claim 100% business deduction on a vehicle unless you use all 100% for business purposes, or you could end up with an IRS audit. Keep careful records of your vehicle expenses to claim the business milea...
There are numerous ways tofile your taxesfor free, especially if you meet certain income requirements or have asimple tax return. Some programs are directly offered by the IRS, while others are through partnerships withtop tax software companiesor offered by nonprofit organizations. ...
Tax payers with many deductions prefer to itemize rather than take the standard deduction when filing taxes. If you operate a business, a variety of deductions is possible. Someone who runs a home office may purchase a home safe to keep business items secure. You can also deduct fees associat...
Self-employed taxpayers likely need to pay quarterly tax payments and meet key IRS deadlines. Here’s a closer look at how quarterly taxes work and what you need to know when filing your tax returns.
Your employer will also deduct social security and Medicare payments. On January 31st, your employer will be required to give you a Form W-2, a wage and tax statement, showing how much they have deducted from your pay to go towards income taxes. ...
Tax-loss harvesting isn't useful in retirement accounts, such as a 401(k) or an IRA, because you can't deduct the losses generated in a tax-deferred account. Long-term losses are first applied to long-term gains, while short-term losses applied to short-term gains. If you have excess...
Can you contribute to an HSA outside of an employer plan if you are self-employed or your employer doesn’t offer health insurance? And can you still deduct your HSA contributions? I was confronted with that question by a reader, Melissa, in a post comment a while back: ...