Taxes

When I first heard the words “tax haven,” like many Canadians my immediate reaction was, “aren’t those illegal?” Certainly, the connotation seems to be that tax havens are places that enable you to hide money from the government and therefore from taxation, so they must be shady operations. Actual laws and rules surrounding tax havens aren’t always common knowledge, and the unknown can be worrisome.

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Our US Tax author Scott M. Estill celebrates Americans finding their life partner with ten ways to maximize your financial union at tax time. This is part 2, to find his first five tips, see Part 1.

6. Conscious Coupling

It may be easier for you and your spouse to itemize tax deductions after marriage given that you both can combine your deductions if you file a joint tax return. These deductions include charitable donations, state and local taxes, mortgage...

Our US Tax author Scott Estill celebrates Americans finding their life partner with ten ways to maximize your financial union at tax time.

1. When to do your I do’s

For tax purposes, your marital status is determined as of December 31, 2014. As such, it is possible to time the marriage to produce the lowest possible tax results (i.e. should we marry in 2014 or 2015).

2. What’s in a name change?

If either spo...

Our US Tax author Scott M. Estill walks Americans through five ways that being divorced will improve your tax outlook in 2014. If your conscious uncoupling is getting closer to finalizing, you can take these tips all the way to the bank this year.

Timing is everything

You can wait until December 31, 2014, to determine your tax filing status for 2014. As such, a divorce finalized on New Year's Eve will have the same effect as one filed on New Year's Day (for tax purposes). You may thus be able to determine the approximate tax liabilities late in 2014 to consider what...

A number of Canadians have problems with their income taxes, or corporate or other business returns, whether they haven’t paid them; haven’t filed; unknowingly (or knowingly) filed incorrect information; or have been notified of an audit.

These problems are common, and most can be avoided; if it’s too late for avoidance, they can usually be fixed or at least handled a bit easier with a bit of knowledge.

Note: If unsure of any aspect of your taxes, it is wise to consult professionals such as accountants and tax lawyers.

Unfiled or Unpaid Taxes...

Last year, more Canadians moved to Arizona than any other year in recent history. A bit ironic given the state is going through one of its worst economic crises since the Great Depression. But it is, in fact, one of the biggest reasons there is such a Canadian boom.

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Congress is making some major tax law changes now that will impact American taxes for many years in the future. One of the biggest changes will occur after 2012 and will involve a 3.8 percent Medicare tax on investment income. First, this new tax will apply only to those single taxpayers who earn at least $200,000 and any married couple earning at least $250,000 ($125,000 if filing separately– just another example of a marriage penalty in our tax code). The tax also applies to estates and trusts (but not to any charitable trusts that are otherwise exempt from paying taxes).

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Due to the inherent complications of tax legislation, it’s extremely difficult for Americans to fully comprehend how the Internal Revenue Service (IRS) operates and, ultimately, how to deal with tax issues.

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