Posts Tagged ‘Tax Tips’
How the CARES Act changes deducting charitable contributions
Whether taxpayers are supporting natural disaster recovery, COVID-19 pandemic aid or another cause that’s personally meaningful to them, their charitable donations may be tax deductible. These deductions basically reduce the amount of their taxable income. The IRS provides the following information on how the CARES Act changes deducting charitable contributions made in 2020: Previously, charitable…
Read MoreSecurity Summit partners warn taxpayers of new COVID-related text scam
The Internal Revenue Service, state tax agencies and the tax industry continue to warn taxpayers of a new text scam created by thieves that trick people into disclosing bank account information under the guise of receiving the $1,200 Economic Impact Payment. The IRS, states and industry, working together as the Security Summit, remind taxpayers that…
Read MoreSix tips for people starting a new business
Understanding the tax responsibilities that come with starting a business venture can save taxpayers money and help set them up for success. IRS.gov has compiled a list of six tips to help people through the process of starting a new business. Choose a business structure. The form of business determines which income tax return a…
Read MoreHave tax withheld from unemployment now to avoid a tax-time surprise later
2020 has been a unique year that has brought many taxpayers unprecedented challenges. Due to the Coronavirus pandemic, millions of American’s have received or are currently receiving unemployment compensation, many for the first time. The IRS reminds taxpayers that unemployment compensation is taxable. People can have taxes withheld from this compensation now to help avoid…
Read MoreTerms to help taxpayers better understand Individual Retirement Arrangements
IRA, Roth IRA, Simple IRA, Contribution, Distribution – when considering Individual Retirement Arrangements (IRA’s) things can get a little confusing. The IRS has published some helpful guidelines to break things down. Many taxpayers may have heard of Individual Retirement Arrangements, or IRAs, but some don’t know how IRAs help them save for retirement. People can set…
Read MoreEarning a side income: Is it a hobby or a business?
Whether it’s something you’ve been doing for years or something that you have just started recently to make extra month, the IRS reminds taxpayers that all income earned from hobbies in 2020 must be reported on next year’s tax return. It is important to understand the difference between a hobby and a business. A business…
Read MoreHome Office deduction: What taxpayers need to know
The home office deduction allows qualifying taxpayers to deduct certain home expenses on their tax return. With more people working from home than ever before, some taxpayers may be wondering if they can claim a home office deduction when they file their 2020 tax return next year. Here are some things from the IRS to help taxpayers understand the…
Read MoreA letter from the IRS? What taxpayers need to know if they receive a notice from the IRS
According to the Internal Revenue Service (IRS), they mail letter or notices to taxpayers every year for many different reasons. Here are some DO’s and DON’Ts for taxpayers who receive a letter or notice from the IRS: Don’t ignore it. Most IRS letters and notices are about federal tax returns or tax accounts. Each notice…
Read MoreDon’t Forget, Social Security benefits may be taxable
The IRS reminds taxpayers receiving Social Security benefits that they may have to pay federal income tax on a portion of those benefits. Social Security benefits include: monthly retirement, survivor and disability benefits. They don’t include: supplemental security income payments which are not taxable. The portion of benefits that are taxable depends on the taxpayer’s…
Read MoreWhere’s My Refund?
The IRS reminds taxpayers that one of the best ways to check on their refund is the “Where’s My Refund?†tool on the IRS website and the IRS2Go app. Updated once a day, usually overnight, this useful tool gives taxpayers a projected refund issuance date as soon as it is approved. The IRS issues nine…
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