Inheriting assets can be a significant financial event, but it’s crucial to understand the tax implications associated with these assets. This comprehensive guide explores the tax treatment of inheritances, clarifying whether they are considered income and how they impact financial aid applications. Inheritances and Income Tax In general, inheritances are not considered taxable income for … Read more
Filing taxes is an essential civic responsibility that every citizen must fulfill. However, there may be instances when individuals fail to file their taxes on time or skip a year of filing altogether. Understanding the consequences of such actions is crucial to avoid potential legal and financial complications. Penalties and Interest The Internal Revenue Service … Read more
As the 2021 tax filing season approaches, it’s crucial to stay informed about the latest tax laws and regulations to ensure an accurate and timely filing. This comprehensive guide will provide you with all the essential information you need to know about filing your 2021 taxes, including important deadlines, deductions, and credits. Key Considerations Before … Read more
Receiving a Form 1099-C from a lender can be a daunting experience, as it signifies the cancellation of a debt and the potential for tax liability. However, there are certain strategies you can employ to minimize or even eliminate the tax burden associated with debt settlement. This guide will delve into the intricacies of Form … Read more
Understanding the US Exit Tax The United States imposes an exit tax, also known as the expatriation tax, on individuals who renounce their US citizenship or terminate their green card status. This tax is governed by Internal Revenue Code (IRC) Section 877A and targets high-net-worth individuals to ensure that their global income and assets are … Read more
When it comes to planning for your financial future, there are a plethora of investment options available. Two popular choices are certificates of deposit (CDs) and annuities. Both offer unique advantages and drawbacks, making it crucial to understand their key differences before making a decision. This comprehensive guide will delve into the intricacies of CDs … Read more
An IRS audit can be a daunting experience, but it doesn’t have to be. By understanding the common triggers for audits and taking steps to minimize your risk, you can significantly reduce your chances of being selected for an audit. This comprehensive guide will provide you with proven strategies and best practices to help you … Read more
Business meals and entertainment expenses are common occurrences for many businesses. Understanding the nuances of their tax deductibility can significantly impact your tax liability. This guide will delve into the intricacies of these expenses, providing clarity on what is and is not deductible under the current tax laws. Business Meals Deductible Business Meals Meals provided … Read more
Wage garnishment, a severe consequence of unpaid taxes, occurs when the Internal Revenue Service (IRS) seizes a portion of an individual’s wages to settle outstanding tax debts. This measure is employed when taxpayers fail to fulfill their tax obligations despite receiving multiple notices and demands for payment. Understanding the intricacies of IRS wage garnishment is … Read more
The Internal Revenue Service (IRS) pays interest on overpayments, including late refunds, at a rate that varies quarterly. The current interest rate for overpayments made after March 31, 2023, is 8%. This rate applies to both individuals and corporations. The IRS begins accruing interest on overpayments 45 days after the later of the following dates: … Read more