Along with the lazy, hazy days of summer come some extra expenses, including summer day camp, nursery school and preschool. The IRS has some good news for parents: those added expenses may help you qualify for a tax credit. Sorry, overnight camp...
Congratulations if you recently updated your status from single to married, but you should be aware that marriage also brings about some changes with your income taxes. Here are several tips for newlyweds from the IRS: • Notify the Social...
The IRS receives thousands of reports each year from taxpayers who receive suspicious emails, phone calls, faxes or notices claiming to be from the Internal Revenue Service. Many of these scams fraudulently use the Internal Revenue Service name...
Each year, the Internal Revenue Service sends millions of letters and notices to taxpayers for a variety of reasons. Although some people may feel anxious when they receive one, many are easy to resolve. Here are items to know about IRS notices,...
Many taxpayers fear an IRS audit. Although the IRS audit targets change with the times, below you’ll find some of the high-risk tax- audit areas that the IRS has examined in recent years: • Earned Income Tax Credit (EITC). The EITC is a tax...
You may need copies of your filed tax returns for many reasons. For example, they can help you prepare future returns. You’ll need them if you have to amend a prior year tax return. You often need them when you apply for a loan to buy a home or to...
Are you paying more tax than you need to? When it comes to filing taxes, getting the best returns is not about skill — it’s about what you know. Here are some tax strategies you may have overlooked. • Earned Income Tax Credit (EITC). Millions of...
Mistakes on tax returns mean they take longer to process, which in turn could cause your refund to arrive later. The IRS cautions against these common errors so your refund is timely: 1. Incorrect and missing Social Security numbers. When...
The Social Security benefits you received in 2024 may be taxable. Each January, you should receive a Form SSA-1099 (Social Security Benefit Statement) which will show the total amount of your benefits. The information provided on this statement...
Before you file your 2024 tax return, you should make sure you have all the needed documents including all your Form W-2s. You should receive a Form W-2, Wage and Tax Statement, from each of your employers. Employers have until January 31, 2025...
Generally, you must decide whether to itemize or to use the standard deduction on your income tax return. You should itemize if your allowable itemized deductions are greater than your standard deduction. The taxpayer must maintain the records and...
As most individuals and tax professionals know by now, the standard deduction almost doubled under the Tax Cuts and Jobs Act (TCJA) for the single, married filing jointly (MFJ), married filing separately (MFS), head of household (HOH) and...
When filing your federal income-tax return, taxpayers can choose to either take the standard deduction or to itemize their deductions. It is anticipated that the number of filers who will itemize for 2024 will drop to less than 20 million due to...
The first step to filing your federal income-tax return is to determine which filing status to use. In other words, two people making exactly the same amount of income could have different income-tax calculations due solely to a difference in...
The Internal Revenue Service has stated that electronic filing is the safest, fastest and easiest way for taxpayers to file their tax returns. Furthermore, e-filing is good for the tax system, good for taxpayers and good for the tax-preparation...
If you pay someone to prepare your tax return, choose that preparer wisely. Taxpayers are legally responsible for what’s on their tax return even if it is prepared by someone else. Currently, New York State has no licensing laws for tax preparers...
The IRS has made a variety of other changes that may affect your tax liability for tax year 2024. Here’s a detailed look at these adjustments: • New capital gain tax threshold. Capital gains taxes are levied on the sale of capital assets, such...
In response to inflation, The IRS has adjusted marginal tax brackets and the standard deduction for 2024. As a result of the changes, many Americans will be able to keep more of their 2024 income. Other big changes include increases to the...
First and foremost, I want to wish all my readers a happy and peaceful New Year. Your emails and calls are appreciated. It’s that time of year again. The income-tax-filing season has begun and important documents should be arriving in the mail....
A smart way to approach tax planning would be to look ahead, not back. Run through this list of tax-saving ideas to make sure you’re taking advantage of all the available opportunities to reduce your tax bite. Good tax planning will return...
As the end of the year approaches, the IRS encourages taxpayers to consider a tax-withholding check-up. When taxpayers take a close look to make sure that the right tax amount is withheld now, they can avoid unexpected tax bills next year. Here...
Buying a home is the single-most-valuable investment most families make, and home ownership offers income-tax breaks that make it the foundation for overall tax planning. The tax law provides numerous incentives to home ownership, including the...
Whether you roll the dice, bet on the ponies, play cards or enjoy the slot machines, you should know that as a casual gambler, your gambling winnings are fully taxable and must be reported on your income-tax return. You can also deduct your...
Taxes are complicated, so it’s no wonder that everyone makes mistakes from time to time. But some actions go beyond incorrect arithmetic or thinking something is deductible when it’s not. Some actions can cost you tax breaks you might otherwise...
Capital assets include a home, household furnishings and stocks and bonds held in a personal account. When a capital asset is sold, the difference between the amount you paid for the asset and the …
