Tax Credits for those that qualify can reduce the amount consumers may owe the IRS each year. One of the main benefits of Tax Credits is that it can really boost your tax refund. Unlike tax deduction, which reduces your taxable income, Tax Credits could directly put money in filers pockets at tax time
IRS Will Suspend 2017 Tax Returns That Lack Health Insurance Disclosures. The latest advice from the IRS states any taxes filed without a complete disclosure of the health insurance status of an individual will result in the taxes being blocked or suspended without additional information being supplied
Many Americans dread the thought of a tax audit. If you receive a letter requesting a tax audit, take a deep breath. In most cases, there’s no cause for alarm. Please go to article on guidelines on how to handle a tax audit.
A OIC is a consideration that is only allowable under certain circumstances where the government doesn't believe it would receive payment of the tax burden otherwise.
When you file your taxes, you will need to report the deduction value on line 17 of the Schedule A form. You will probably want to itemize your deductions, because you can only claim a car deduction if you do so. Even though you are no longer able to take the standard deduction if you itemize, the value of a car deduction will usually supersede the value of the standard deduction.
Taxpayer identity theft happens when another person steals your Social Security number (SSN) and files a federal or state tax return to claim an illegal refund. You might not know that another person claimed a fraudulent return with your SSN until you attempt to electronically file your tax return through efile
Understanding self-employment taxes and the IRS requirements that come with self-employment can be confusing. Tax preparers and self-employed persons should take a moment to consider the specifics of self-employment taxes before filing a tax return.
Make sure that the lines of communication are open between you and your tax preparer on matters concerning the tax refund. Errors and mistakes happen on tax forms frequently. This raises a red flag with the IRS.
Social Security benefits may include disability, survivor, or monthly retirement income. Supplemental Security Income (SSI) is not taxable. Add the total amount of income and benefits for the tax year to determine any income tax liability.
Many commonplace retirement plans, such as the 401(k), offer significant incentives for people to save for retirement. Such incentives include tax deferrals and contribution matches. Howeve, a 10 percent penalty applies to most early withdrawals.