Are You a Head of Household For Tax Filing Purpose?
Many taxpayers have been audited by the IRS because they illegally claim either the earned income tax credit (EITC) and child tax credit (CTC) or other credits because they claimed their children on their tax return. In many cases, the credits were disallowed because...
Are You Using Your Home as A Home Office?
The COVID-19 pandemic is still impacting our lives. You may be spending more time working from home. It is likely that you may have taken some extra rooms or a corner of your home for your business use.IRC Section 280A(c) states that you may claim a home office based...
Have You Filed Your Tax Returns?
The deadline to file your tax return, if you requested an extension, is October 15. It is reported by the IRS that an estimated 11,000,000 taxpayers do not file their tax return each tax year period. As a result, every tax year million of taxpayers leave unclaimed...
Minimizing Your Tax Liability in Case of Divorce
All financial transactions have tax consequences, including divorce. The tax consequences that come with divorce have changed for tax years 2018 and later because of the new tax law (Tax Cuts and Jobs Act of 2017 (TCJA). As a general tax rule, in a divorce you can...
Avoid These Costly Mistakes When You File Your Tax Return by October 15.
Many taxpayers who did not receive income from self employment have a schedule C or A attached to their Form 1040 that causes in some cases an understatement of tax liability and in other cases an overstatement of refund. There are instances where the schedule C is...
Do You Know Proving Reasonable Cause Could Eliminate Tax Penalty?
The reasonable cause and in good faith exception are determined on a case-by-case basis, considering all pertinent facts and circumstances.
A Notice of Levy Should Not be Taken Lightly
A taxpayer should not ignore a tax debt whether it is owed to a state Department of Revenue or to the IRS. The Internal Revenue Service collection activities are in effect. Even during the pandemic, some taxpayers are finding out how some states are rigorously...
Are You Deferring Income to Reduce Your Tax Liability?
There are several ways to legally lower your tax liability. Many taxpayers and businesses have used them over years to minimize their taxable income and thus lower their tax due. Besides the most commonly used tax deduction or reduction items, some others are often...
Your Income is Not Equally Taxed
Income is not treated equally under the tax code.The source of your income determines your tax rates and tax liability. Taxpayers benefit from the lowest rates available when they have diverse sources of income, like real estate, stocks, bonds, mutual funds, and other...
Setting Up Your Business
Starting a business could be very exciting. Regardless of the type and size of your future business, you must conduct your research and get professional advice before you start your business. You could learn a lot from a successful business owner. Many professionals...