Tax Treatment of Property in Divorce
Generally, no gain or loss is recognized by either party on a transfer of property from an individual to a spouse, or a former spouse if the transfer is incident to divorce. When nonrecognition treatment applies under this rule, the spouse who receives the property in...
Understanding the Taxation of your Lawsuit Settlement Award
Not all lawsuit settlements are taxed the same way A taxpayer may receive a substantial amount of money. There are certain tax consequences of which you should be aware. The money you receive may be taxable and, in many cases, the attorney fees that you pay relating...
Are You Claiming Your Eligible Foreign Tax Credits?
Taxpayers Save in Taxes by Claiming the Foreign Tax Credits. Your tax filing obligations follow you worldwide. However, there are several tax rules to avoid double taxation and to lower your tax liabilities. Taxpayers should keep track of their worldwide financial...
Do You Understand the IRS Audit Procedure?
Taxpayers, in general, are in a partnership with the Internal Revenue Service. However, unlike the case of traditional partnerships in which two or more taxpayers mutually agree on the terms of the partnership, in this partnership, the IRS sets the rules to share the...
Do You Review Your Tax Return?
Tax returns could be very complicated for taxpayers. Regardless of the level of complication, all taxpayers could tremendously benefit by reviewing their tax return, knowing their tax return, and by asking questions. Hiring a tax preparer to prepare a tax return does...
Are You Qualified for the Education Credits?
There are two (2) types of education related tax credit that taxpayers may claim for qualified tuition and related expenses paid or incurred during the tax year: the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC). The Protecting...
Do You Use the Correct Tax Filing Status?
Taxpayers tax filing status is extremely important. They are 1) Single, 2) Married Filing Jointly, 3) Married Filing Separately, 4) Head of Household, and 5) Qualifying Widow/er with dependent child. Your filing status determines your filing requirements, your tax...
Are You Qualified for the Earned Income Tax Credit?
The earned income tax credit (EITC) is not for every taxpayer. As your income increases, the credit is reduced and it is phased out at an income threshold. Be more alert by looking for any schedule A or schedule C on your tax return if you are not self employed and...
Taxpayers Be Aware!
Taxpayers could alleviate the challenges that will continue during this tax season because of the Covid-19 pandemic that tremendously affects tax processing at the Internal Revenue Service. This advice is shared by the IRS, the National Taxpayer Advocate office and...