However, husband sees accountant, who prepares joint Federal and State income tax returns for husband and wife.
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If she had gross income in 2010, she should have fined 2010 Federal and State income tax returns as married filing separate.
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The combined U.S. federal and state corporate income tax rate is approximately 40%.
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This will give you an opportunity to convert money from your regular IRA to a Roth IRA while in a lower-than-normal federal and state income-tax bracket, says Mr. Baldwin.
Whether you contribute via salary deferral during the year or in a lump sum now, the end tax result is the same every dollar you put in reduces your federal income tax bite and usually your state income tax bite too.
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Unlike corporate bonds or U.S. Treasuries, muni bond interest is often federal tax-free and exempt from state income tax of the state they are issued.
The Vice President and Dr. Jill Biden also released their 2012 federal income tax returns, as well as state income tax returns for both Delaware and Virginia.
The judge did not err in allowing the husband to claim the children as dependents on his State and Federal income tax returns.
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The interest on municipal bonds is exempt from income tax on the federal and sometimes state levels, giving them a higher after-tax yield than a corporate or Treasury with the same coupon and maturity.
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More than a quarter of taxpayers used do-it-yourself type software products to file their federal and state income taxes during the most recent tax season.
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They attack income that state and federal tax collectors do not (like pay you contribute to retirement and health savings accounts).
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Now for conversions: You declare all or part of a traditional IRA as taxable income now, pay federal and state tax on that amount and then convert the money into a Roth.
That adds up to 57.9%, but state income taxes and 1.45% of the payroll tax are deductible from federal income tax, so that reduces their net cost by 5.8% (39.6% of 14.75%).
To avoid double taxation, companies operating in states and paying state income taxes can reduce their federal tax obligation by the amount paid to the state (just as individuals can reduce their federal income tax obligation by subtracting their state income tax payment from their income).
In all cases the actual expense is lower. (By the way that is total income tax expense all in federal, state and foreign).
And any excessive state tax withholding, when deducted on federal income tax returns, could easily throw them into the wacko federal alternative minimum tax.
Wait until January to pay some bills that aren't allowable federal tax deductions in the AMT, most notably state and local income taxes and property taxes.
Everything you make over that number is still reduced for federal and state income taxes as well as Medicare, but the 4.2% Social Security tax is avoided.
End-of-life tax-ducking techniques can cut income taxes as well as federal estate and state estate and inheritance taxes.
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The federal tax code also allows taxpayers who itemize to deduct the cost of paying state and local income taxes.
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He said he and his son calculated how much they pay in taxes -- federal income tax, federal payroll tax, state income tax, state sales tax, state property tax, gasoline tax.
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