Monthly Archives: March 2016

You are allowed to deduct state taxes on your Federal income tax return. Additionally, many states allow you to deduct any taxes you paid to other states. So it only seems logical that you should be able to deduct Federal income tax when filing your state return. However, only six of the 41 states with […]

Taxes as a Homeowner

So you finally purchased your home, and are excited to have something to call your own. In addition to wonderful new living space, you also get some pretty great tax breaks as well. In some cases, certain tax incentives can even be applicable to your second home. And if you’ve been in your home for […]

Part-Year Vs. Nonresident

At tax time, determining your resident status might be confusing. Aside from being a four year resident of the state in which you live, there are two other statuses that you may fall under: Part-Year resident and nonresident. A part-year resident has only spent a portion of the tax year within the state, while a […]

Capital Gain From Home Sale

So you finally sold your home, and now it’s time to rejoice in having a large burden removed from your shoulders. It’s even better when you’ve made a profit from the sale. Capital Gain When you sell your house for more than what you originally paid, the end result is a capital gain. In most […]

Flat Tax System in the States

There are seven states within the United States which employ a flat rate income tax. All taxpayers receive the same rate independent of the total amount of their earned income. Support of this type of tax system is fairly split between those who agree and those who oppose. Some suggest it is a fair system […]

Nonresident State Tax Return

If you pay taxes to another state for income earned within that state, but it is not the state in which you reside, you will be filing a nonresident tax return. Usually you have to file these returns in addition to returns four income earned in your home state. Here’s what you need to know […]

If you earn income in a state that you don’t live in, or if you receive any of type of income in another state, when tax times rolls around, you’ll likely have to file a nonresident tax return. The process doesn’t have to be complicated. To start out, you have to determine the exact amount […]

Taxing Your Tips

As a service professional, sometimes there can be nothing more rewarding than a generous tip from a customer. While those tips may feel great in the moment, come tax time, you can’t forget to include them in your income. The IRS offers these tips for taxing your hard earned tips: They’re taxed. Tips are considered […]

Newly Wedded at Tax Time

The wedding bells have rung, the rings exchanged, and now its tax season. So what exactly does that mean for you, a recently married taxpayer? First, you need to know how to file your return. You can use either married filing separately or married filing jointly, the latter which generally provides the lowest tax rate. […]

Self-Employed Tax Breaks Equal Savings

Any amount of savings at tax time is beneficial for the self-employed, and new tax breaks make it even easier to accrue said savings. Legislation was enacted to allow workers to deduct costs related to paying their own health insurance before payroll taxes are calculated. As a self-employed taxpayer, this legislation can reap great benefits […]