Taxes Attorneys

Are tax filing and procrastination two words that you can relate to all too well? Do you receive your W-2 forms from your employer, take them home, and watch as they collect dust sitting on your desk in your home office? To cut costs, you may have decided to file your taxes yourself and now you feel overwhelmed as you don’t even know where to begin.

Before you begin, make sure you have all the appropriate tax documents for the previous year. If you have more than one job, check to make sure you have W-2 forms from each employer. If you have a student loan, make sure you have the forms handy showing what the interest paid for the year was. If you have a mortgage, be sure the bank has sent you the appropriate forms so you can report the taxes paid for the year. If you don’t know what forms you need, don’t worry. Don’t be discouraged. Online tax software programs are designed to easily walk you through the process.

Once you’re ready to start, you’ll want to choose the online tax software program best suited for you. Compare prices online and read user reviews, when available. Don’t forget that you might be able to file for free if you’re yearly income falls into a certain bracket. Select a program from a reputable company that offers “live help” services if you can, so you can have the reassurance of knowing there’s someone available to answer any questions you may have. However, tax filing is a pretty simple process if you just follow the instructions and answer the questions correctly.

Tax filing does not and should not be a process you put off until the last minute. Depending on your personal financial situation, you may need to collect receipts for itemized deductions or submit other documents, along with your taxes for the year. Compiling this information requires time and you don’t want to rush yourself. Submitting your taxes incorrectly is not something you want to do. Additionally, if you’re expecting a tax refund for the year, visit a website like http://www.taxfiling.net/tax-refunds.php for more information. You’re only delaying your refund by putting off the process!

Don’t let yourself become one of those people desperately driving to the post office at the last minute so they can get the appropriate postmark on their tax returns. In fact, tax filing can be done online, eliminating the hassle of having to mail your returns at all. Websites like taxfiling.net serve as great resources for guiding you through this process. The sooner you file online, the better, as most companies offer discounted rates on software programs early in the tax season.

Jodie Stoughton, CPC is a freelance writer residing in Eau Claire, Wisconsin. She works as a certified professional coder for a health insurance company and specializes in articles focusing on medical coding, as well as health and wellness. For more interesting articles bookmark: www.TaxAttorneys.net

Tax attorneys may be well-versed on tax law, and here is an opportunity for you to know more about capital gains taxes.  Not that this information will make you feel any better about paying them (!), but knowledge is power and it is key to know what you are paying in taxes and why.

The History Of Capital Gains Taxes In The United States

What are Capital Gains Taxes:

The money you made from the time of acquisition or purchase to the time of sale of a valuable asset is known as your capital gains. This profit has a tax levied on it, which is called a capital gain tax. Some common examples of capital include large investments such as real estate, stocks, bonds, or mutual funds. The capital gains tax rates strongly affect the economy. Any increase could negatively affect millions, including middle class families with some stock or entrepreneurs trying to open their own small business.

The Beginning:

Capital gains always remained below 7% from 1913 to 1921. It was not until the Revenue Act of 1921 when the tax made its first upward climb to 12.5%. The tax then waxed and waned, hiking up with the 1969 and 1976 tax reform acts, only to be reduced in 1978 by congress. More recently, the Taxpayer Relief Act of 1997 again, lowered the capital gains rate. Currently, the rate for most taxpayers is 15% on long-term capital gains (i.e. property held for longer than 12 months) and ranging from 10% to 35% on short-term capital gains (i.e. property held for less than 12 months). Individuals in the 10% and 15% tax brackets pay 0% on long-term capital gains.

 The Rise and Fall:

The opposition to cutting capital gains taxes is usually rooted in the belief that the tax cuts benefit only the wealthy. However, this is only partly true. While most wealthy people own stocks and other capital, there are plenty of struggling businesses and middle class families depending on capital just as much. In reality, the cutting of capital gains taxes has proven to benefit the economy when tried in the past on multiple occasions. Historically, when capital gains taxes were raised it tended to harm the US economy more than help it.

Election ‘08 and Capital Gain Taxes:

Controversy looms over the 2008 Presidential election with capital gains taxes in the spotlight. Sen. Barack Obama revealed his plan to raise capital gains taxes in order to make the distribution of wealth fairer. He cited 50 individuals benefiting from the tax sharing a $29 billion income between them. However, many experts strongly oppose Obama’s plan saying an increase will hurt the economy possibly knocking off almost 2% of Gross Domestic Product.

Unfair Tax:

When it comes to the legitimacy of capital gains taxes and increases, there are solid arguments from both sides. Those who support low capital gains tax rates claim that any increase would discourage investing and hurt the economy. However, groups that support an increase are quick to deem low rates as unfair. They claim that by taxing capital gains at a lower rate then income taxes is essential a tax benefit for just the wealthy. ‘Some people who are richer than Croesus are paying 15 cents in federal income taxes on the marginal dollar, while you may be paying 25 or 35 cents,’ claims economist Alan Blinder says on his blog, EconomistsView.

By: roni deutch

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