Day trading, the practice of buying and selling financial assets within a single trading day, has gained significant popularity in recent years. However, understanding the tax implications of day trading is crucial to avoid potential financial pitfalls. This guide delves into the tax obligations of day traders, including the intricacies of Social Security tax, estimated … Read more
Receiving a letter from the IRS indicating a delay in your tax refund can be concerning. This guide explains the IRS’s 60-day review process, common reasons for delays, and steps you can take to expedite your refund. 60-Day Review Process When the IRS reviews your tax return, it may take up to 60 days to … Read more
Depreciation is a crucial tax concept that allows businesses to spread the cost of certain assets, such as vehicles, over their useful life. This strategy reduces the taxable income in the year of purchase and provides tax savings. This guide delves into the intricacies of car depreciation, exploring the methods, limitations, and strategies to maximize … Read more
The COVID-19 pandemic has brought about unprecedented economic challenges, prompting the government to issue stimulus checks to provide financial relief to American citizens. However, individuals who have not filed taxes in several years may be wondering if they are eligible to receive these payments. This guide will provide a comprehensive overview of the eligibility criteria, … Read more
Tax season can be a daunting time, but it’s also an opportunity to get a significant financial boost in the form of a tax refund. By understanding the tax code and implementing smart strategies, you can increase your refund and reduce your tax liability. This guide will provide you with a comprehensive overview of the … Read more
In today’s economic climate, determining how much money is needed to live comfortably in major U.S. cities has become increasingly challenging. This comprehensive guide will delve into the latest research and data to provide a detailed analysis of the financial requirements for living comfortably in different parts of the country. Income Thresholds for Comfortable Living … Read more
The 2021 Recovery Rebate Credit, a part of the American Rescue Plan Act, was a crucial financial relief measure implemented to alleviate the economic hardships faced by individuals and families during the COVID-19 pandemic. This credit, claimed on the 2021 tax return, provided eligible individuals with a direct payment to help offset the financial burden … Read more
The passing of a loved one is a difficult time, and dealing with their estate can be overwhelming. One of the many questions you may have is how long you should keep their records for the Internal Revenue Service (IRS). General Rule: Keep Records for 3 Years According to the IRS, taxpayers should generally keep … Read more
The standard deduction is a crucial element of the U.S. tax system, allowing taxpayers to reduce their taxable income by a set amount. This deduction plays a significant role in determining the amount of income subject to taxation, directly impacting the tax liability of individuals and families. In this comprehensive guide, we will delve into … Read more
The Child Tax Credit (CTC) is a valuable tax break that helps families offset the costs of raising children. For the 2021 tax year, the CTC was significantly expanded, providing increased financial assistance to eligible families. This comprehensive guide will delve into the income limits for the 2021 CTC, explaining how they impact the amount … Read more