Education

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  • January 23, 2012

    Tax deductions lower your taxable income and they are equal to the percentage of your marginal tax bracket. For instance, if you are in the 25% tax bracket, a $1,000 deduction saves you $250 in tax (0.25 x $1,000 = $250). There are three main...

  • January 23, 2012

    Tax credits can help reduce your liability dollar-for-dollar. That being said, they cannot reduce your income tax liability to less than zero. Simply put, your gross tax liability is the amount you are responsible for paying before any credits...

  • January 23, 2012

    There are a number of different types of income tax returns. You must use the tax form that corresponds with your particular situation and allows you to claim the income, deductions, credits, etc. that apply to you. The most common types of...

  • January 23, 2012

    Individuals have many different options for paying their federal income taxes. You can pay electronically (online) with a credit card, debit card, or e-check (electronic check). Or you can pay your taxes by paper mail with a check, money order,...

  • January 23, 2012

    Each year, millions of U.S. taxpayers file for a tax extension with the IRS. Filing for a tax extension doesn’t mean you have more time to pay your taxes, it simply means you are given more time to get your paperwork together and file your actual...

  • January 23, 2012

    The U.S. income tax system can be especially confusing for international students. If you are a foreign student working in the United States (at your campus bookstore or local coffee shop, for example), you may be required to file an income tax...