<body><script type="text/javascript"> function setAttributeOnload(object, attribute, val) { if(window.addEventListener) { window.addEventListener('load', function(){ object[attribute] = val; }, false); } else { window.attachEvent('onload', function(){ object[attribute] = val; }); } } </script> <div id="navbar-iframe-container"></div> <script type="text/javascript" src="https://apis.google.com/js/platform.js"></script> <script type="text/javascript"> gapi.load("gapi.iframes:gapi.iframes.style.bubble", function() { if (gapi.iframes && gapi.iframes.getContext) { gapi.iframes.getContext().openChild({ url: 'https://www.blogger.com/navbar.g?targetBlogID\x3d38054977\x26blogName\x3dFile+Federal+Taxes+Online\x26publishMode\x3dPUBLISH_MODE_BLOGSPOT\x26navbarType\x3dBLUE\x26layoutType\x3dCLASSIC\x26searchRoot\x3dhttps://federal-taxes.blogspot.com/search\x26blogLocale\x3den_US\x26v\x3d2\x26homepageUrl\x3dhttp://federal-taxes.blogspot.com/\x26vt\x3d323681596133508066', where: document.getElementById("navbar-iframe-container"), id: "navbar-iframe" }); } }); </script>

File Federal Taxes Online

Federal Income Tax Deduction

Sunday, December 17, 2006

The American laws are great fun to play with if you know how to handle them, but better be sure you know the rules, or else you fall into trouble.

The federal income tax deduction is a statutory requirement under the American laws. All American citizens who fall under this category have to pay this. Taxable income is calculated by removing (a) excluded income, (b) exemptions, and (c) permissible deductions from the individual's gross income.

The following are the heads under which you can avail the tax deduction:

1. Exemptions: Some common exclusion from gross incomes is:
I) Earnings made from life insurance contracts
ii) Earnings made from gifts and inheritances
iii) Proceeds granted for personal injuries
iv) Interest received from state and municipal bonds

certain conditions have to be kept in mind before availing these deductions.

2. Deductions: In addition to the standard deduction, some common "above-the-line" deductions include:
i) Trade/ Business expenses
ii) Alimony
iii) IRA contributions
iv) Net capital losses
v) Expenses incurred due to property used for income generation

income tax laws are not everybody's cup of tea and so should be handled with care.

3. The Standard Deduction: When individuals have minimal "below-the-line" deductions, they are directly granted a standard deduction. The standard deduction under different heads in 2004 was as follows:
i) Single $4,850
ii) Head of household $7,150
iii) Married filing a joint return $9,700
iv) Qualifying widow(er) with dependent child $9,500
v) Married filing a separate return $4,850

More from Federal Income Tax Deduction

Tags: , , ,

Don't Just Worry About Federal Estate Taxes

Thursday, December 14, 2006

Tip! Taxes are deducted in the same manner as federal taxes, each pay period and filed with the applicable state on a monthly basis. Most states will also require a quarterly information report comparable to the 941 federal forms.

Many states have their own estate tax laws that you need to worry about. With the current law phasing out the estate tax over the next few years, the state's are beginning to feel the pinch of having less federal estate-tax revenue coming in.

Several states, especially those with budget issues, are levying some forms of estate and inheritance tax on their own.

Twenty-four states and Washington, D.C. now have an estate or inheritance tax. Some of these laws are new, some are not.

Although the current federal law exempts the first $2 million of an estate's worth, the threshold in some states is much lower. With a home, a retirement account and other investments, many estates easily become taxed by the state.

For example, in New Jersey, estates worth over $675,000 are subject to some form of state inheritance or estate tax.

The threshold is $1 million in D.C., Kansas, Main, Maryland, Massachusetts, Minnesota, Nebraska, New York, Oklahoma and Oregon.

The maximum rate varies, but is usually around 16%. Federally, you can recieve a deduction on your federal estate-tax liability based on the amount of estate tax paid to the state.


Don't just assume that since the federal estate tax is phasing out for a few years that you are out of the way. Estate taxes vary from state to state.

This leaves many people needing to think over where they choose to retire. Many states are starting to feel the pain of this as well, with several repealing their estate-tax laws to discourage high-income residents from leaving. For example, Oklahoma will be eliminating its estate tax over a three-year period.

Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!



Tags: , , , ,