Tax articles
395 plain-English guides to U.S. federal taxes, newest first.
24 results in Income Taxes
ClearWhat Is Tax Form 4835: What It Is And How To Use It
If you own farmland that someone else operates, you might be wondering how to report your income from that arrangement come tax time. That’s where IRS Form 4835 comes into play.
Section 179: How It Helps Your Business Save on Taxes
If you’ve ever wondered whether buying new equipment, software, or even a vehicle for your business could actually lower your tax bill, then you’re already halfway to discovering what Section 179 is a…
Form 940 For Small Businesses: Who Files It and Why
If you run a business with employees, you've probably dealt with more than your fair share of tax forms. One that often flies under the radar (until it’s due, at least) of most small business owners i…
Backup Withholding: What It Is and Who Has to Pay It
Backup withholding is one of those tax mechanisms that can seem deceptively simple: Normally, it’s used by the IRS to ensure that individuals and businesses report and pay the appropriate taxes on cer…
State Income Tax Rates in the U.S.
State income tax rates vary widely across the U.S., from states with no income tax at all to those with steep progressive rates. This article breaks down how state income taxes work, compares flat vs.
Understanding Back Taxes: What They Are and How to Handle Them
Back taxes are unpaid taxes that were not paid by their due date. They can accumulate over time due to various reasons, such as financial difficulties, misunderstandings about tax obligations, or simp…
Defining the Qualified Business Income Deduction (QBI)
For many, the QBI deduction is a crucial tool in managing tax costs, but it can also be complex to understand. Knowing how the deduction works, who qualifies, and what limitations exist can help busin…
CPA Tax: What It Is and How It Can Help You
When tax season rolls around, many people find themselves overwhelmed by the complexity of the U.S. tax code. Whether you’re an individual taxpayer with a straightforward return or a business owner de…
Tax for Self-Employed Individuals: A Comprehensive Guide for 2025
If you work for yourself, whether as a freelancer, independent contractor, or small business owner, you’re responsible for handling your own taxes. Unlike traditional employees, whose employers withho…
The Wash Sale Rule in 2025
If you’ve been investing in stocks or other securities, you may have heard of the wash sale rule. This is an IRS regulation designed to prevent investors from claiming a tax deduction for a loss on a…
Cómo calcular los taxes en USA: Guía completa para latinos en 2025
Calcular correctamente los taxes en Estados Unidos es una parte esencial de la vida financiera, especialmente para los latinos que residen en el país. Ya sea que trabajes por cuenta propia, como emple…
Why Is My Federal Withholding So High?
If you’ve recently taken a look at your paycheck and wondered, "Why is my federal withholding so high?"—you’re not alone. Withholding can sometimes seem unexpectedly large, leaving you with less take…
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…
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…
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…
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…
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.
Powerball After Taxes: How Much Will The IRS Take?
You know how it goes, one person becomes a millionaire overnight, and the rest of America turns into financial analysts. The Powerball jackpots have been nothing short of epic in the last decade, so b…
How Are Bonuses Taxed? A Quick Explanation
How are bonuses taxed? It's a valid question since, after a year’s worth of hard work helping your company meet its goals, getting a bonus feels like a well-deserved reward for any red-blooded America…
Do You Have to Pay Taxes? Yes, You Do. And Not Just Because the Law Says So.
Sure, paying taxes doesn't feel patriotic. But it is.
Combat Pay: When It's Tax-free, When It's Not and What the IRS Needs to Know for Your Tax Returns
The irony of tax-free pay is how much paperwork is involved.
How to Find Your Marginal Tax Rate in 2025
The marginal tax rate is what you pay on your highest dollar of taxable income. You’ve probably heard (and used) the term many times in the past, but what does it mean?
How To Find AGI on Your Tax Return to E-File
Year after year, you collect a great amount of data and report it to the IRS, but what happens when you need to find one specific detail? It can be like finding a needle in a haystack! Well, if you wa…
How Do Taxes Work?
How do taxes work? Well, if you're paying them, the question surely pops into your head from time to time. The truth is taxes (as hard as it is to believe sometimes) do play a big role in the day to d…