Contrary to popular belief, there is no age limit for paying taxes. Individuals continue to be responsible for fulfilling their tax obligations regardless of their age. However, certain factors, such as income level and sources of income, can impact whether or not a senior citizen is required to file a tax return. Filing Requirements for … Read more
Protecting your assets from government seizure is a crucial consideration for individuals facing financial challenges, tax disputes, or legal liabilities. The government has the authority to seize property to satisfy debts, fines, or criminal penalties. However, there are legal strategies available to safeguard your assets and minimize the risk of government confiscation. Common Methods of … Read more
Yes, tax offsets were temporarily suspended until July 31, 2021. This suspension applied to all federal and state debts, including tax debts. What is a Tax Offset? A tax offset is a legal procedure that allows the government to collect unpaid taxes by taking money from your tax refund or other federal payments. Why Were … Read more
The likelihood of being audited by the IRS is relatively low, with only 0.63% of individual tax returns selected for audit in 2020, or fewer than one out of every 100 returns. This represents a significant decrease from the spike in audit rates observed in 2010. Factors that Increase the Risk of an Audit While … Read more
Cost-of-Living Adjustment (COLA) Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 1.3% COLA for 2021. This increase is based on the rise in the Consumer Price Index (CPI-W) from the third quarter of 2019 to the third quarter of 2020. Tax Rates The Social Security tax rate remains unchanged at 6.20% for … Read more
Understanding the distinction between taxable and nontaxable income is crucial for optimizing your tax strategy and minimizing your tax liability. This comprehensive guide will delve into the various types of income that are exempt from taxation, empowering you to make informed financial decisions. Nontaxable Income: A Detailed Overview Nontaxable income, as defined by the Internal … Read more
For senior citizens in India, understanding the intricacies of tax deductions can be crucial for optimizing their financial well-being. One such deduction is Section 80TTB, which offers tax relief on interest income earned by senior citizens. This article delves into the details of Section 80TTB, specifically addressing whether it encompasses interest earned from the Senior … Read more
Adjusted gross income (AGI) is a crucial concept in the world of taxation, serving as the foundation for calculating your taxable income. Understanding how AGI is calculated is essential for accurate tax preparation and maximizing your tax savings. This article delves into the intricacies of AGI calculation, providing a comprehensive guide to help you navigate … Read more
The Internal Revenue Service (IRS) is responsible for enforcing tax laws and collecting taxes in the United States. While the IRS is often portrayed as a ruthless and intimidating agency, the reality is more nuanced. IRS agents are individuals with a wide range of personalities and approaches, and their behavior can vary depending on the … Read more
TurboTax, a widely recognized tax preparation software, offers a range of services to cater to diverse tax situations. While some of these services come with a price tag, TurboTax also provides a free option known as TurboTax Free Edition. This free version is designed for taxpayers with straightforward tax situations, allowing them to file their … Read more