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Archive for the ‘Tax Tips’ Category

Are You Earning Unusual Income This Year?

This year might be like any other, as you bring in the usual wages from your employer(s), without any additional income to speak of. However, there is a chance that before the year is out, you’ll enjoy an unexpected windfall. If this is the case, it’s critical to understand how this can affect your tax return next year – and, ultimately, how much you may have to pay in. Extra Work

IRS Determines Winners in Website Revamp Competition

Last week, the IRS announced a handful of winners in a recent public competition to reimagine the collection agency’s website. Participants submitted a series of proposed changes to enhance various aspects of the IRS’ online platform. Tax-News.com shares the details: “The US Internal Revenue Service (IRS) has announced the winners of the ‘Tax Design Challenge,’ its first crowdsourcing competition to construct a future web page design for ...

Are You Currently Not Collectible?

Although you should plan on resolving any delinquent tax bill, you may not necessarily have to pay the entire amount at once. In fact, you may not be required to pay anything, depending on your circumstances. There are several items to consider when you receive notice of an IRS debt, beginning with what your letter actually means. Notice of Assessment In the event that you pay too ...

IRS Failed to Help All Taxpayers Affected by ‘Get Transcript’ Breach

‘Get Transcript’ is an online service by the IRS that allows taxpayers access to the transcripts of their tax returns. A security breach of ‘Get Transcript’ in May, 2015 enabled cyber thieves to steal the sensitive information of close to four hundred thousand taxpayers. Following this, the IRS re-launched the service this July with additional security. To add to the IRS’ woes, shortly after the re-launch, the Treasury Inspector General for the Tax Administration released ...

Deducting Business Expenses

A business can deduct a variety of ordinary and necessary expenses to bring down its tax liability. An ordinary expense is a common expense in your type of business. For example, expenses on files and papers are ordinary expenses in a publishing business. A necessary expense is one that is helpful and appropriate based on the work being completed. Generally, you can deduct the full amount ...

IRS Warns Taxpayers about ‘Federal Student Tax’ Scam

The newest tax scam that people may encounter is about a fictitious tax: the federal student tax. No such tax exists. However, scammers are deceiving taxpayers into paying it. The Internal Revenue Service has issued a warning about the ‘federal student tax’ scam where scammers pretend to be the IRS and make bogus phone calls to taxpayers, demanding payment of this fake tax. Forbes shares: “The ...

Rental Income and Taxes

If you receive rental income, you are required to report it to the IRS. Any income received from the use or occupation of your property is considered rental income. There are two methods of accounting: the cash method and the accrual method. If you use the cash method, you report your gross rental income on your return for the year in which you receive it (not when it was earned). If you use the accrual ...

What is FBAR and Do I Have to File One?

You might be required to file the Report of Foreign Bank and Financial Accounts (FBAR) if you have funds in a foreign financial institution. Any U.S. person (explained below) having a bank account, brokerage account, mutual fund, trust, or any other kind of foreign financial account is required to file an FBAR, if the funds exceed a certain threshold. The FBAR can be filed electronically with the Department of Treasury every year. Do You Need to ...

Manage Your Quarterly Tax Payments Using These Methods

For many, tax season is not the only time to make tax payments. Those making estimated tax payments, such as freelancers and the self-employed, may be required to pay taxes each quarter of the year. The first quarter for 2016 fell on April 18, and the following quarters fall on June 15, September 15, and January 17, 2017. Not making tax payments on time can lead to penalties and interest. To manage your estimated tax ...

Costs Businesses Can Deduct to Lower Taxes

Businesses tend to have more tax responsibilities than individual taxpayers. They are required to withhold taxes from the paychecks of their employees, and also pay Social Security and Medicare tax. However, there are certain costs that businesses can deduct to lower their tax liabilities. About Money shares the different kinds of taxes businesses must pay and how they can benefit from deductions: “How and Where to Deduct Business Taxes