The Recovery Rebate Credit is a tax credit created to provide financial relief to individuals and families who were impacted by the economic downturn caused by the COVID-19 pandemic. This credit is available to taxpayers who did not receive the full amount of the three stimulus payments issued by the government in 2020 and 2021. … Read more
The year 2022 brought about significant changes to the tax code, impacting individuals and businesses alike. These changes ranged from the expiration of COVID-related tax breaks to adjustments in tax brackets and contribution limits. This guide provides a comprehensive overview of the major tax changes for 2022, helping you understand how they may affect your … Read more
In the realm of taxation, honesty and transparency are paramount. Failing to report income, including cash tips, can lead to severe repercussions. This comprehensive guide delves into the consequences of unreported cash tips, empowering you with the knowledge to make informed decisions and avoid potential penalties. Understanding the Employer’s Role As an employer, you are … Read more
The standard deduction is a specific amount that you can deduct from your taxable income before calculating your taxes. It is a dollar-for-dollar reduction, meaning that a higher standard deduction will result in lower taxable income. For the 2020 tax year, the standard deduction amounts have increased for all filing statuses. This article will focus … Read more
Navigating the Complexities of Real Estate Gift Tax Transferring property to loved ones can be a thoughtful gesture, but it’s crucial to understand the potential tax implications, particularly when it comes to real estate. This comprehensive guide will delve into the intricacies of the real estate gift tax, exploring strategies to minimize tax liability and … Read more
As of December 9, 2023, the IRS had 686,000 unprocessed 1040 forms, 844,000 unprocessed 1040-X forms, 44,000 unprocessed 941 forms, and 1,057,000 unprocessed 941-X forms. Individual Tax Returns (Form 1040) The IRS is currently processing individual tax returns for which refunds are due first. Tax returns reflecting tax owed are processed last, but if a … Read more
Navigating the complexities of tax filing can be daunting, especially if you’re unsure whether you’re obligated to file a tax return. This guide will delve into the essential factors that determine your filing requirement, providing clarity on who needs to file and who can opt out. Factors Influencing Filing Requirements Several key factors play a … Read more
The Internal Revenue Service (IRS) is responsible for enforcing the nation’s tax laws and collecting taxes. As part of this role, the IRS conducts audits to ensure that taxpayers are accurately reporting their income and paying the correct amount of taxes. While the IRS does not monitor every taxpayer’s every move, there are certain red … Read more
The Internal Revenue Service (IRS) is a crucial government agency responsible for tax collection and administration in the United States. However, the IRS name has been frequently exploited by scammers who use deceptive tactics to trick unsuspecting individuals into divulging sensitive information or making fraudulent payments. One common method employed by these scammers is phone … Read more
The obligation to pay taxes is a fundamental civic responsibility that contributes to the functioning of a modern society. However, there are individuals who assert various reasons for refusing to fulfill this obligation. This article delves into the legal implications of refusing to pay federal income taxes, examining the arguments commonly cited by tax protesters … Read more