Tax season is a stressful time for many people, but it doesn’t have to be. Filing your taxes early can save you time, money, and stress. Here are five reasons why you should consider filing your taxes early: 1. Get Your Refund Sooner If you’re expecting a refund, filing your taxes early is the best … Read more
Self-employment offers individuals the freedom and flexibility to pursue their entrepreneurial aspirations. However, it also comes with unique tax considerations and an increased likelihood of being audited by the Internal Revenue Service (IRS). Understanding the reasons behind this heightened scrutiny can help self-employed individuals minimize their audit risk and ensure compliance with tax regulations. Reasons … Read more
Escrow, a crucial stage in the real estate transaction process, marks the culmination of the homebuying journey. It involves a neutral third party, typically an escrow company, holding funds and documents on behalf of both the buyer and seller until all agreed-upon conditions are met. Understanding the steps that follow escrow closing is essential for … Read more
Estimated taxes are payments made throughout the year to cover the income tax liability that an individual expects to owe when they file their annual tax return. These payments are essential for avoiding penalties and ensuring that taxes are paid on time. The 110% rule is a specific provision that can help taxpayers meet their … Read more
Understanding Modified Adjusted Gross Income (MAGI) for IRMAA Medicare, the U.S. government’s health insurance program for individuals aged 65 and older, is a critical safety net for millions of Americans. To ensure that Medicare remains sustainable, the government adjusts premiums based on beneficiaries’ income levels through a surcharge known as the Income-Related Monthly Adjustment Amount … Read more
As tax season approaches, many taxpayers are wondering if the IRS will be auditing more returns this year. The answer is yes, but the increase in audits will be focused on high-income earners, partnerships, and corporations. The IRS is also planning to increase its scrutiny of tax preparers who help clients claim the Earned Income … Read more
Financial setbacks can arise unexpectedly, leaving individuals struggling to meet their financial obligations. In such situations, writing a hardship letter to creditors can be a crucial step towards seeking relief and regaining financial stability. This guide will provide a comprehensive understanding of what constitutes a financial hardship, how to write an effective hardship letter, and … Read more
After submitting your tax return, you may encounter the message “Your Tax Return Is Still Being Processed.” This message indicates that the Internal Revenue Service (IRS) has received your return but is still reviewing it. While this can be a nerve-wracking experience, it’s important to understand the reasons behind this message and the potential implications … Read more
No, you cannot go to jail from an audit alone. What Happens If You Are Audited? An audit is a review of your tax return by the Internal Revenue Service (IRS). The IRS may audit your return for a variety of reasons, including: To verify the accuracy of your return To ensure that you are … Read more
Yes, independent contractors can write off car expenses. Who Qualifies as an Independent Contractor? An independent contractor is a self-employed individual who provides services to a company or organization without being an employee. Independent contractors are not subject to the same tax withholding and payroll deductions as employees. Car Expense Deductions for Independent Contractors Independent … Read more