Are You Age 50 or Older? Here Are Some Tax Tips Just For You!

Everyone wants to save money on their taxes, and older Americans are no exception. If you’re age 50 or older, here are five tax tips that could help you do just that. Continue reading “Are You Age 50 or Older? Here Are Some Tax Tips Just For You!”

Can A Cancelled Debt Be Taxable Income?

If a lender cancels part or all of a debt, a taxpayer must generally consider this as income. However, the law allows an exclusion that may apply to homeowners who had their mortgage debt canceled in 2017. Here are seven things you should know about debt cancellation: Continue reading “Can A Cancelled Debt Be Taxable Income?”

What’s the Difference Between a Refundable vs. Non-Refundable Tax Credits?

Tax credits can reduce your tax bill or give you a bigger refund but not all tax credits are created equal. While most tax credits are refundable, some credits are nonrefundable but before we take a look at the difference between refundable and nonrefundable tax credits, it’s important to understand the difference between a tax credit and a tax deduction. Continue reading “What’s the Difference Between a Refundable vs. Non-Refundable Tax Credits?”

What Are Estimated Tax Payments?

Estimated tax is the method used to pay tax on income that is not subject to withholding. This includes income from self-employment, interest, dividends, and rent, as well as gains from the sale of assets, prizes and awards. You also may have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough. Continue reading “What Are Estimated Tax Payments?”

Virtual Currency, Bitcoin And Taxes…

With the price of Bitcoin hitting record highs (just shy of $20,000) in 2017, many Bitcoin holders cashed out not realizing the impact it could have on their tax bill. Many people, for example, did not understand that it was a reportable transaction and found themselves with a hefty tax bill–money they may have been hard-pressed to come up with at tax time. Others may have been unaware that they needed to report their transactions at all or failed to do so because it seemed too complicated. Continue reading “Virtual Currency, Bitcoin And Taxes…”

Late Filing And Late Payment Penalties

April 17 was the deadline for most people to file their federal income tax return and pay any taxes they owe. The bad news is that if you miss the deadline (for whatever reason) you may be assessed penalties for both failing to file a tax return and for failing to pay taxes they owe by the deadline. The good news is that there is no penalty if you file a late tax return but are due a refund. Continue reading “Late Filing And Late Payment Penalties”

Correct Filing Status and Reporting Name Changes

If you haven’t filed your taxes yet, it’s time to stop procrastinating. If you’re not sure what to do first, the fastest way to get started is to figure out which filing status applies to you. In addition, if your name or that of a dependent changed during the tax year for which you are filing, then you will also need to report the name changes to the Social Security Administration. Continue reading “Correct Filing Status and Reporting Name Changes”

What Are My Rights If I Am Audited?

An IRS audit is a review/examination of an organization’s or individual’s accounts and financial information to ensure information is reported correctly according to the tax laws and to verify the reported amount of tax is correct. IRS audits are conducted either by mail (e.g., you receive a letter in the mail that you must respond to) or through an in-person interview. Continue reading “What Are My Rights If I Am Audited?”