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Divorce may complicate filing tax returns

Getting divorced affects all areas of your life, including your finances. Now that it is tax season, you may need to focus on ensuring that you file your taxes correctly. If you make mistakes, you could face serious consequences from the Internal Revenue Service.

You may already feel that filing your taxes is complicated enough, but your change in marital status could make things more difficult. Fortunately, with help and the right information, you can set yourself on the path of filing your taxes with the correct information in a timely manner, so that you avoid unnecessary penalties and mistakes.

It's almost tax time for partnerships and some LLCs

When you considered your options when it came to forming an entity structure for your business, you more than likely took the tax implications of each. Perhaps you either settled on a partnership or chose to have your limited liability company taxed as a partnership. You may have a rudimentary understanding of what that means, but as you approach your first income tax filing, you may need a reminder and/or further information about filing your company's taxes.

Numerous changes occurred regarding taxing partnerships with the passage of the Tax Cuts and Jobs Act of 2017. The first thing you need to know is that your filing date is March 15 or the following Monday if that date lands on a Saturday or Sunday. This is a full month prior to the April date most people see.

Taxes and your trusts

You may have joined other Oregon residents during 2018 and created an estate plan that included a trust. Depending on your needs, you created either a revocable or an irrevocable trust. A revocable trust allows you to make modifications and changes to it during your lifetime. For this reason, the IRS considers you the legal owner of the assets transferred into the trust.

If you created an irrevocable trust, you surrendered all ownership of the assets transferred into it. As an aside, your revocable trust may become irrevocable after your death. In any case, the tax treatment of each type of trust is different. Knowing the rules could help you stay out of trouble with the IRS.

Now is the time to start gathering tax-related information

Though the holiday season is a time of year many Oregon residents enjoy, it is quickly followed by a season that many people dread: tax season. Thinking about your taxes can understandably cause you to feel stressed, but you may also look forward to the possibility of obtaining a tax refund that could give you some extra cash for expenses or enjoyable activities.

Whether you are someone who likes to file your taxes early or who tends to wait until the last minute, it is wise to prepare ahead of time. Having several documents on hand in advance could help you have all the needed information to correctly file your taxes when you choose to do so.

Your retirement accounts are not protected from an IRS levy

No one wants to fall on hard financial times, but this type of situation affects a considerable number of individuals and can happen suddenly. You may find yourself having to contend with any number of financial difficulties that result in an inability to meet certain monetary obligations. In particular, you may not have the ability to pay your taxes.

In a last-ditch effort to avoid having to pay money to the Internal Revenue Service, you may not have filed your tax return at all, or you may have simply not made payments on any taxes that you owe. Unfortunately, ignoring such a problem will not make it go away. In fact, it could make matter worse as the IRS could seize money from your retirement account.

Avoiding mistakes that can cost you on Tax Day

Most people don't like to think about their taxes until April, and that can result in making many costly mistakes. Your taxes affect you every day, so being mindful of how the government claims its share of your money is a good way to ensure you are getting the most from your earnings.

With only a short time before the end of the 2018 tax year, you may want to take a closer look at some of the mistakes you may be falling into that could cost you dearly on your tax returns. In fact, you may decide that having a professional review your taxes helps you find more ways to minimize your tax ramifications.

Do you need to pay taxes on rental property income?

Having rental property is a common way for many people to generate additional income. You may find yourself interested in this type of venture due to recently inheriting property or due to purchasing property specifically as a rental. While excited about your new income avenue, you likely also know that acting as a rental property owner and landlord will involve a considerable amount of work.

In addition to making sure your tenants stay happy with the property, you also have financial obligations relating to your rental income. While it may seem like more of a passive way to earn extra money as opposed to another full-time job you may have, you still need to take care of paying taxes on the rent payments you receive.

Are you ready to work for yourself and pay estimated taxes?

Until recently, you may not have considered the idea of being self-employed as a viable possibility. You could have had many reasons that you put off acting as your own boss, and having to handle various financial aspects on your own may have been one of those reasons. True, as a self-employed person, you will need to take different considerations for your taxes into account than if you worked for someone else.

In particular, as a self-employed person, you do not have an employer to withhold your taxes every paycheck. While this may seem ideal at first because you receive payment in full rather than having taxes deducted, you could hurt yourself financially if you do not pay your estimated taxes.

How will the IRS consider your LLC come tax time?

When you started your own company, you undoubtedly conducted a thorough review of the possible business entities you could have created. In the end, you chose a limited liability company for many reasons. Of course, you may still have concerns over doing your taxes in association with your company.

Just as with any other job you held, taxes play a major role in the running of your business and any profits you make. If you recently started your business, you may have not had to file your taxes in relation to the business as of yet. Still, you do not want to find yourself scrambling when tax time rolls around, and having the information ahead of time could prove immensely useful.

Here's a look at some of the upcoming tax changes

You may have heard that the Tax Cuts and Jobs Act takes effect on Jan. 1, 2019. One of the most talked about portions of the new tax law has been regarding the elimination of the alimony tax deduction. However, there is much more happening than just that.

Since this is the first major tax revision in decades, many people could find themselves confused about what they face at tax time. If you are one of those people, then it may help to have some general information about some of the upcoming changes.

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