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
As a sole proprietor, navigating the complexities of tax filing can be a daunting task. Among the crucial forms you need to file is Schedule C, which reports your business income and expenses. Failing to file this form can trigger a series of consequences, ranging from financial penalties to potential legal repercussions. This comprehensive guide … Read more
The passing of a loved one is a deeply emotional and challenging time, and dealing with their financial affairs can add an additional layer of complexity. One crucial aspect that requires attention is understanding the tax implications and responsibilities associated with a deceased individual’s estate. This guide will delve into the intricacies of taxes for … Read more
Claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) can significantly impact your tax refund. Understanding the refund timeline for these credits is crucial to effectively plan your finances. This guide will provide a detailed overview of when you can expect to receive your refund if you claimed the EITC … Read more
Filing your taxes accurately and efficiently is crucial to avoid potential scrutiny from the Internal Revenue Service (IRS). Understanding common tax mistakes that can trigger an audit is essential for safeguarding your financial well-being. This guide will provide a detailed overview of six prevalent errors that can attract the IRS’s attention, along with practical strategies … 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 first stimulus check, also known as the Economic Impact Payment, was a one-time payment issued by the U.S. government in 2020 as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The purpose of the stimulus check was to provide financial relief to individuals and families during the COVID-19 pandemic. Eligibility To … Read more
The American Rescue Plan Act of 2021 expanded the Child Tax Credit (CTC) for 2021, providing eligible families with a significant financial boost. Key Points: The maximum CTC amount increased to $3,600 per qualifying child under age 6 and $3,000 per qualifying child aged 6-17. Eligible families could receive up to $3,600 per child under … Read more