Tax articles
395 plain-English guides to U.S. federal taxes, newest first.
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Is Social Security Disability Income Taxable by the IRS?
Social Security Disability Income (SSDI) provides crucial financial support to people unable to work due to a disability. While the benefits can be a much needed lifeline for many Americans, many new…
1099 Deductions: The Ultimate Guide for Independent Contractors and Freelancers
Being your own boss comes with many perks, sure, but it can also make you feel like a lone ship adrift at sea, especially when it comes to taxes. As an independent contractor, you don’t have the conve…
Car Registration Tax Deduction: A Complete Guide for U.S. Taxpayers
Nothing like a visit to the DMV to really shake up your routine, right? Add paying fees on top of that and you have a recipe for a fantastic day. But there’s always a silver lining, and for this situa…
Treasury Bonds and Taxes: The Ultimate Guide
In general, income from any type of bond issued by the federal government (including its many agencies), is considered taxable income and therefore subject to federal income tax. There are, of course…
Paying Taxes When You Sell a House
Technically, yes. However, the profit on home sale can be tax free if certain conditions are met. In fact, many home sellers will not even be required to report the sale of their home to the IRS, but…
What Taxes Are Progressive? A Guide on the Progressive Tax System
What taxes are progressive? Well, all of them! At least at the federal level for income tax. The US federal government utilizes a progressive tax system, meaning that tax rates increase (or progress…
About Paying Taxes on Your Winnings From Gambling
Gambling winnings are fully taxable and must be reported on your tax return. However, there are a few key differences on how you might have to report and pay taxes on winnings than from other forms of…
How to Know If You Owe Taxes: The Complete Guide
How will you know if you owe taxes? Well, the IRS makes it no secret, truth be told. In fact, they’re supposed to inform you by mail if you owe them anything; through that initial letter, they will te…
Taxes and Military Funding: Your Tax Dollars at Work
Whether you want to be better informed in order to engage in public discourse about the US’ fiscal policy, or are simply curious about how your hard-earned tax dollars are spent, this guide is for you…
Claiming Parents as Dependents: How it Works
Who doesn’t want to help their parents? Claiming an elderly parent as a tax dependent is not only caring for them as they enter the final stage of their lives, but it can also bring you substantial ta…
The Consequences of Filing Taxes Late
Filing your tax return late is not going to put you on the IRS’s good side, and they could penalize you with both late-filing penalties and, if you also let the payment deadline slip by, a late-paymen…
Babies And Tax Returns: A Real (If Unlikely) Pair
The IRS doesn’t discriminate on the basis of age, not even babies. It’s one of those things that sound funny but it’s actually true; a baby (technically, a dependent child of any age) must file a tax…
How Much Does a Dependent Reduce Your Taxes?
Dependents can bring significant tax savings for you, but you have to make sure they qualify for it, so don’t go claiming every child around you just yet!
How Do I Prove Gambling Losses On My Taxes?
Gambling is full of thrills and excitement, at least for those who enjoy it. What it also comes with is tons of financial implications, and that includes your taxes. If you’ve incurred in any gambling…
Car Donation Tax Deduction: A Comprehensive Guide for U.S. Taxpayers
No matter how committed you are to a cause, if someone told you “hey, donate your car!” you’d probably have some choice words for them. Well, what if we told you that you can get a pretty substantial…
What Are Dividends Now Taxed At? A Comprehensive Guide for 2025
As we’ve explained before, dividends are a form of income distribution given to a corporation’s shareholders, and are a popular choice for investors seeking passive income. So, are dividends taxed? Wh…
Understanding Estimated Taxes
It’s safe to say that tax season is unnecessarily stressful, but at least it only comes around once a year, right? Think again. For millions of Americans, especially freelancers, small business owners…
Understanding S Corp Taxes
S Corps taxes have some of the most unique tax advantages available to small businesses and their shareholders. In short, an S Corp is a designation that the IRS provides to small businesses under Sub…
Your Tax Return Is Still Being Processed: What Does It Mean?
Your tax return is still being processed, so does the online tool reads. It’s the stuff of nightmares for many. You check the IRS’s "Where’s My Refund?" tool only to find the ominous message: "Your re…
If You Have No Income Can You Get a Tax Refund?
Believe it or not, you can qualify for a tax refund and actually receive it even if you have no income to speak of (at least not taxable income, but more on that later). Here’s the catch, however: To…
Do Minors Have To Pay Taxes?
This should come as no surprise to anyone, but the IRS sees little difference between minors and adults when it comes to filing and paying taxes. But, do minors have to pay taxes?
Where Is My Tax Refund?
Are you counting down the minutes until you get that notification that your tax refund has been deposited? Why isn’t it here now? Maybe this is the first year you actually applied for a refundable cre…
What Is Taxable Income?
As you know, U.S. citizens are subject to taxes based on their annual income. There are, however, distinct definitions of what “income” is under federal law.
How Do I File Back Tax Returns?
Let’s say you didn’t file your tax return for a year (or a couple of years, maybe even three). The reason doesn’t really matter, maybe you forgot or didn’t have enough to think you’d have to pay taxes…