As a self-employed individual, managing your finances and ensuring you set aside enough money for taxes is crucial. This comprehensive guide will provide you with a detailed understanding of the tax obligations you face and offer practical strategies to help you plan and save effectively. Understanding Self-Employment Taxes Self-employment taxes encompass two primary components: Social … Read more
TurboTax, a leading tax preparation software, boasts a reputation for accuracy and reliability. However, like any software, it is not immune to errors. This article delves into the accuracy of TurboTax, examining its strengths, limitations, and user experiences to provide a comprehensive assessment. TurboTax Guarantees TurboTax offers several guarantees to assure users of its accuracy: … Read more
Estate planning is a crucial aspect of financial management, ensuring the smooth distribution of assets after an individual’s passing. One key consideration in estate planning is the potential impact of inheritance tax, which can significantly reduce the value of an estate. In this article, we will explore the concept of inheritance tax, identify states that … Read more
Navigating the complexities of tax obligations can be a daunting task, and failing to comply can lead to severe consequences. The Internal Revenue Service (IRS) is responsible for enforcing tax laws and collecting taxes, and its audits can be a formidable force for those who fall behind on their financial responsibilities. This article delves into … Read more
The standard deduction is a specific amount that you can deduct from your taxable income before you calculate your taxes. It reduces your taxable income, potentially lowering your tax liability. Standard Deduction for Senior Citizens in 2021 Single: $13,850 Married filing jointly: $27,700 Married filing separately: $13,850 Head of household: $20,800 Additional Standard Deduction for … Read more
A write-off is an accounting action that reduces the value of an asset while simultaneously debiting an expense account. It is primarily used in its most literal sense by businesses seeking to account for unpaid loan obligations, unpaid receivables, or losses on stored inventory. Generally, it can also be referred to broadly as something that … Read more
Yes, the IRS can pursue a deceased person’s estate for unpaid taxes. When an individual passes away with outstanding tax obligations, the responsibility to settle those debts falls upon their estate. The estate is the sum of all the deceased person’s assets and liabilities, and it is typically administered by an executor or personal representative. … Read more
Yes, non-filers can get the Child Tax Credit (CTC) through the IRS Non-filer tool. Eligibility for Non-Filers To be eligible for the CTC as a non-filer, you must meet the following criteria: You have a qualifying child who is under 18 years old and has a Social Security number. You are not required to file … Read more
Understanding IRS Information Requests During an audit, the Internal Revenue Service (IRS) may request various types of information from taxpayers, including credit card statements. These requests aim to verify the accuracy of reported income and expenses on tax returns. Reasons for IRS Credit Card Statement Requests The IRS may request credit card statements for several … Read more
The Internal Revenue Service (IRS) engages in information sharing programs with federal, state, and local government agencies. These programs aim to enhance tax administration, improve compliance, and strengthen collaboration among various government entities. IRS Information Sharing Programs The IRS has established several information sharing programs to facilitate the exchange of taxpayer data and leverage resources … Read more