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Joint or Separate Return

Every married couple has to make the yearly financial decision of whether to file a joint or separate federal income tax return. Filing a joint return is most beneficial when there is a substantial difference in the incomes of the spouses. Because the incomes of both spouses are combined in a joint return, it allows some of the income of higher earning spouse to be taxed at the lower marginal rate available to the joint filers, resulting in tax savings.

Health Savings Accounts

In an attempt to deal with the high cost of medical care in the United States, Congress has passed a tax law allowing certain taxpayers to set up a health savings account (HSA), a tax-exempt trust or custodial account for the payment or reimbursement of medical expenses.

Tax-Exempt Status of Labor, Agricultural, and Horticultural Organizations

Labor, agricultural, and horticultural organizations meeting certain requirements may be eligible for tax-exempt status under Internal Revenue Code Section 501(c)(5). However, even if a group of this type is entitled to exempt status, contributions made to it are not deductible as charitable donations on the donor's federal income tax return unless the payments are ordinary and necessary expenses in the conduct of the donor's trade or business.

Rent as a Business Expense

Many businesses pay rent for the use of property. In general, a taxpayer can deduct rent paid as an expense only if the property rented is used in the business and the taxpayer does not have nor will he receive equity in or title to the property.

Federal Payment Levy Program

If you have not paid all of your federal income taxes, beware. The Internal Revenue Service has partnered up with the Department of the Treasury, Financial Management Service (FMS), to create a program that is authorized to collect overdue taxes through a continuous levy on certain federal payments owed to you.