Thinking that a donation will always be tax deductible is one of the biggest wrong assumptions made by most people. This assumption arises from the fact that most people do not understand how charity and taxes are related. It is a complicated process but can be managed with some basic knowledge and an understanding of tax in your state.

According to the Internal Revenue Service (IRS), every year, billions of tax refunds are kept unclaimed from the state. While some people are still wondering why you can increase your chances of getting a tax refund with these 7 simple tips. Claim all tax benefits that you qualify for If you want to win this race, you need to grab the opportunity as it comes.

Making mistakes with tax returns is not uncommon since the process of filing is complicated and sorting out taxes for one financial year takes a lot of calculations. It comes as no surprise that most people take the help of tax experts to file their taxes to avoid any issues with the IRS.

Tax havens are countries where taxes are levied at lower rates compared to the home country. Most rich people transfer their money to tax havens to conceal their actual incomes while saving heavily on taxes. There are close to 80 countries that have incredibly low to almost no taxes. American billionaires go to these countries in order to open offshore bank accounts and shell corporations.

Filing tax returns and paying taxes on time is essential to avoid any action from the IRS. Although most of the taxes levied by the federal government or any state government are used for development expenditure, there are certain types of taxes that seem very ludicrous. Here are some of the 11 oddest things that have been taxed through the years.

After filing their tax return, many wait for their refund check. Tax refund checks are usually received within three weeks of filing the returns. The average amount received by most people is about $3000. This is a substantial amount of money that can be put to good use. Here are 13 different ways to use tax refund money smartly.

Often, mistakes and errors made while filing tax returns are associated with missed deductions. The Internal Revenue Service (IRS) concedes that people generally overpay their taxes and it is important to get the write-offs you deserve. Here are 22 of the most-often overlooked tax deductions. State sales taxes: Everyone can avail of this write-off but it is especially useful to those who live in the states that do not impose state income taxes.

While most people regularly meet their tax obligations, there are always a few who may discreetly evade their taxes. Non-payment of taxes falls under tax non-compliance; activities such as tax avoidance, tax reduction through legal means, and tax evasion (also called as the criminal non-payment of tax liabilities) come under tax non-compliance.

The latest corporate tax reforms is a meticulously curated idea to ensure that the money that many stash away across the globe comes back home. There has been a drastic tax deduction of the corporate-tax rate; it has fallen from 35% to 21%. Not only does this move bring corporate tax below the rich-country average but also ensures that the money earned by the country’s corporate remain in the country.

Kiddie tax was first heard of when it was a part of the massive 1986 Tax Reform Act. It basically suggested that for the next 20 years, any income that was not earned by the child above a certain limit and who is below the age of 14, would be taxed at the same rate as his or her parents.

When you have a family, there is a certain expectation that your children will be your biggest source of strength that will never leave you and go. However, they might not due to education or work abroad or for family reasons. As a result, the burden of paying tax comes on the parents itself who are called as “empty nesters.” Here are many of those options for empty nesters to save tax.

Several countries with a federalist government structure divide the power between the federal government and the states. However, not all countries allow both to impose an income tax on the citizens. This case is unique to the United States. The United States, being a federal system that it is, collects tax at the federal level while also allowing the fifty states to collect tax as well.

As it is widely understood, getting tax refunds has a negative impression on your financial management as it shows that you overpaid on your taxes during that particular year. Despite this, most individuals look forward to tax refunds, as evident from the statistics; over 80% of taxpayers receive a refund with a massive amount of $2,872 per filer.

Marriage as it turns out changes not only you but how you pay your taxes too. If you choose to change your name as well as your place of residence after marriage, this is one of the first changes your income tax return form will see. Make sure that the information you put in this form and the records at the Social Security Administration (SSA) is the same.