Taxes Will Rise in 2013
Although the fiscal cliff has been averted, there was a consequence to it that will make many unhappy: Americans are projected to pay higher taxes in 2013.
From the information and facts taken from the Tax Policy Center, about 77% of American households will be paying higher federal income taxes for this year. The hike will mostly be in payroll tax.
According to Roberton Williams, an economist at the Tax Policy Center, only less than 2% of all tax units will see an increase in taxes in the year 2013.
If you are making over $400,000 in a single year, on your own, or if you’re part of a family that rakes in over $450,000 than the tax rate on your last dollars of income will go up about 5 percentage points.
All workers across the nation will definitely see an increase in taxes this year. Congress had let the payroll tax cut expire right before the calendar rolled into 2013, meaning that for every $100 you make this year, $2 will be taken away by taxes, compared to last year.
There was quite a debate over taxes, as it played a critical part in this past year’s presidential election. President Obama stayed true to what he said in raising taxes for the wealthy. President Obama’s decision is still more or less controversial because there are some that believe the wealthy shouldn’t bear the responsibility of paying more taxes because they have more money. Regardless of whether it’s fair or not, workers will still have to pay more taxes this year.
Categories: Federal Tax, Income Tax Tags: corporate tax, federal income tax, federal tax, income tax, tax law, tax the rich
Man in Marietta Caught for Filing False Income Tax Refunds
A man named Arnold Tobias Gervais, 34, had pleaded guilty this past Wednesday for an attempted scheme to defraud the IRS for over $3.4 million in federal income tax refunds.
The United States Attorney’s Office and the IRS are always on an aggressive search to sift out those that are cheating on taxes, as they take away from those who have to pay their fair share of taxes, as they did with Gervais.
As stated by United States Attorney Yates, Gervais was convicted for his crime in May 2008 and was given 5 years in prison by the Superior Court of Cobby Country. He was caught for submitting a fraudulent tax return, attempting to get a tax refund of over $600,000. For that charge, Gervais was incarcerated until February 26, 2010.
During his custody, Gervais worked through his wife at the time being to file a phony income tax return with the IRS for 2008, containing a claim for a payment of income tax refund of $811,073. Gervais fully knew that these claims were completely fraudulent. In addition to these false claims, he has been caught for six more false claims, dating back all the way to 2004.
All of his false tax returns claimed that there were a significant amount of wages earned from a fictitious business called “Safety Shoes and More, Inc.” that was recorded to be located in Rome, Georgia. Altogether, the total potential tax loss for the IRS was tallied up to $3,488,135.
Categories: Federal Tax, Income Tax, Tax Evasion, Tax Law Tags: avoiding taxes, federal income tax, federal tax fraud, income tax, tax crime, tax ecasion, tax fraud
Trained Volunteers Can Help You Prepare Taxes
It’s almost always a good thing to start filing your income taxes at the start of each year. It’s even better if you get lucky and give your bank account a nice little push by getting a refund from the federal or state government.
Let’s face it; tax time is always a stressful time of the year, not to mention frustrating. It seems like the methods of how to go about it are always changing. It’s always a hassle to find out if you have filed everything correctly, and if you have fully maximized your return. We all want to save a few bucks by doing taxes ourselves; however, dealing with your taxes on your own may cost you in the big picture.
During this tax season, know that you have the option of having your taxes prepared for no charge at all by trained volunteers. This will save you time, money and the stress of having to deal with your taxes on your own. This is the 5th consecutive year that volunteers have offered this very convenient option, so take advantage of it.
There are some rules set for the volunteers. They may assist senior citizens with homestead credit and any individual with an annual gross income of less than $58,000 in filing their state and/or federal income taxes. These volunteers are only able to help in filing personal income taxes only. There are not able to assist in preparing any other type of taxes for you, as it’s part of their policy.
Categories: Federal Tax, Income Tax, State Tax, Tax Law Tags: federal income tax, federal tax, free tax, free tax prep, income tax, IRS, tax preperation