When a donation is a gift, gift taxes may apply -- but the recipient does not have to pay them. Gift taxes are the responsibility of the person giving the gift; recipients do not report them on their taxes. In general, a person can give any individual a certain amount each year withou...
If your unpaid back taxes start to pile up – generally once you owe the IRS $10,000 or more – and if you own or are paying down a mortgage on property, the federal government could put a lien on your property. “A tax lien is a legal claim against your assets, includin...
It’s happened to many of us at some point—you may be walking along a street and look down. Lo and behold, there’s a $20 bill in your path. Or maybe it’s a silver bracelet. Either way, it’s found property. The tax ramifications of finding a $20 bill
Should that tax credit have been nonrefundable, your financial benefit would have been limited to zero taxes owed. You wouldn’t receive a refund for the remaining $500 of tax credit. Common Tax Credits Here are some details about several of the common tax credits mentioned earlier. ...
A tax deduction lowers your taxable income, which reduces your total amount of taxes owed. That can result in a refund if you overpaid taxes during the year. Should I Take the Standard Deduction? You should take the standard deduction or itemize deductions, depending on which results in a lo...
And one thing I would point out too, if you do have kids, discuss who is going to claim the child on their taxes. Because only one person is able to claim a dependent. So that's one important discussion I always say to have. TRACY BYRNES: The huge one, a lot of couples take ...
Tax Deductions for Charitable Giving These charitable-giving strategies may give you a bigger tax break than writing a check. Kimberly LankfordDec. 24, 2024 Gift Cards If you're thinking of giving someone a gift card, know that there are pros and cons involved. ...
A tax lien is a legal claim against property and financial assets you own or may have coming to you. It’s not a seizure of your assets, but it is a claim on them. If you sell the asset, the government could be entitled to some or all of the proceeds[0] Internal Revenue Service...
I should be getting some money from my husband's pension after our divorce is finalize. I understand I would have to pay taxes unless I roll it over to an IRA. I do need the money but don't want to pay that much in taxes. If I choose to annuitize the IRA do I still have to...
Knowing what to claim as taxable and nontaxable income can reduce your tax liability. Here's what you should know.