Estate Tax. What EVERYONE Should Know. Most taxpayers ignore the federal estate tax, thinking they will never be touched by it. Unfortunately, you do this at your own peril. Why? Because states often have this tax AND politicians have a habit of frequently changing the rules. The best approach for all taxpayers is to understand the basics of the estate tax. Here is a quick summary of common questions you should be able to answer.
Understanding Tax Terms: Innocent Spouse Relief. Your ex filed a tax return, didn’t pay the tax, and left you holding the bag. Unfair! There may be relief, but only if you know the innocent spouse rules. What happens when an ex-spouse files a joint tax return with errors in it that you did not know about? You learn the tax obligation on a jointly filed tax return can be collected in its entirety from either
What should you do if your W2 is wrong? You want to file your income tax return but you have not received a W-2 or the form you received is wrong. Don’t fret, here are some workable solutions to those problems. Question: The social security number reported on my Form W-2 is incorrect. What should I do? Answer: Immediately contact your employer and correct your Social Security number. Ask your employer for a corrected W-2
Will Your Tax Return be Audited? Few things are more unnerving than having your tax return audited by the IRS. The IRS uses that “audit anxiety” to help keep taxpayers honest on their tax returns. DIF scores count The IRS evaluates tax returns based on their “DIF” scores, a set of IRS formulas known as the “Discriminate Function System.” About three-quarters of all returns audited are selected by the DIF computer, which compares deductions, credits,