The Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted in March 2020, provided for the distribution of stimulus checks to eligible individuals and families. However, certain groups of people were deemed ineligible for these payments. Income Thresholds One of the primary factors determining eligibility for stimulus checks was income. Individuals with an adjusted gross … Read more
Understanding the Impact of Tax Debt on Creditworthiness Navigating the complexities of tax obligations can be daunting, and understanding the potential repercussions of unpaid taxes is crucial. One common concern is the impact of tax debt on credit scores. This article delves into the relationship between owing the Internal Revenue Service (IRS) and its implications … Read more
Form 8606, officially titled “Nondeductible IRAs,” is a crucial tax form used to report specific transactions related to Individual Retirement Arrangements (IRAs). This form is particularly relevant for individuals who have made nondeductible contributions to traditional IRAs or have taken distributions from IRAs that include nondeductible contributions. Understanding Nondeductible IRA Contributions Typically, contributions to traditional … Read more
Navigating tax debt can be a daunting task, especially when you’re struggling to make ends meet. If you find yourself in this situation, understanding the IRS Currently Not Collectible (CNC) status can provide much-needed relief. This comprehensive guide will delve into the intricacies of CNC status, its eligibility criteria, application process, and potential advantages and … Read more
An IRS audit can be a daunting experience, but understanding the process and your rights can help alleviate anxiety and ensure a smooth resolution. This comprehensive guide will provide detailed insights into the IRS audit process, including common triggers, notification methods, documentation requirements, and your options for responding to audit findings. Triggers for an IRS … Read more
Absolutely! Senior citizens and disabled individuals may qualify for the Credit for the Elderly or the Disabled, a valuable tax credit that can significantly reduce your tax liability. Who Qualifies for the Credit? To be eligible for this credit, you must meet one of the following criteria: You are age 65 or older by the … Read more
The IRS has sent you an LT11 Notice or Letter 1058 because you have unpaid taxes. This notice is your final warning before the IRS takes action to collect the debt, which may include seizing your property or levying your wages. What to Do When You Receive an LT11 Notice or Letter 1058 Act immediately. … Read more
Chime, a popular banking app, has come under fire in recent months for allegedly closing accounts and withholding funds from customers without正当理由. Numerous complaints have been filed with the Consumer Financial Protection Bureau (CFPB) and the Better Business Bureau (BBB), and several Facebook groups have been created by disgruntled customers. This article will delve into … Read more
The cash method of accounting is a simplified accounting method that allows businesses to record income when it is received and expenses when they are paid. This method is often used by small businesses and individuals because it is easy to implement and maintain. However, there are certain types of businesses that are not eligible … Read more
PS 58 costs are the premiums paid by an employer for group term life insurance coverage for an employee under a qualified retirement plan. These costs are included in the employee’s gross income for the taxable year in which the plan pays the premium. Reporting PS 58 Costs The plan administrator is responsible for reporting … Read more