Part 2 of 2. Understanding the Taxation of 529 College Savings Accounts
The big advantage of 529 plans is that qualified withdrawals are always federal-income-tax-free, and usually state-income-tax-free too. Taxpayers should know that not all 529 withdrawals are tax-free qualified withdrawals, even in years when you have heavy college...
Part 1 of 2. Understanding the Taxation of 529 College Savings Accounts
A 529 plan provides a tax saving advantaged to encourage saving for future education costs. 529 plans, also known as “qualified tuition plans” are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal...
Part 3 of 3. Understanding the Principal Home Sale Gain Exclusion
Taxpayers Could Claim a Reduced Gain Exclusion on the Sale of their Primary Home Used Partly for Business or Rental. Gain Exclusion for Home Used Partly for Business or Rental. When you use a room or the basement of your principal residence as a deductible home...
Part 2. Understanding the Principal Home Sale Gain Exclusion.
Taxpayers Could Claim a Reduced Gain Exclusion on the Sale of their Primary Home. IRS regulations allow taxpayers to claim a prorated (reduced) gain exclusion, a percentage of the $250,000 or $500,000 exclusion in specified circumstances. The prorated gain exclusion...
Understanding the Home Sale Gain Exclusion. Part 1
Taxpayers could plan on how to apply the principal residence tax break of $250,000 for single taxpayers and $500,000 for married ones when getting married or divorced, or when converting another property into your home. In both marriage and divorce situations, a home...
Did You Request an Extension to File Your Tax Return?
The deadline for taxpayers to file their tax return, if an extension was requested, 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. As a result, every tax year million of taxpayers leave...
Have You Defaulted on an Agreement with the IRS?
Taxpayers should not ignore their past due tax debts. Many taxpayers have either entered into an agreement with the Internal Revenue Service to pay their tax debts and have failed to honor the agreement or have completely disregarded IRS notices for payments. Taxpayer...
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. Many taxpayers who illegally claimed the earned income tax credit are receiving letters from the Internal...
Are You Taking Good Care of Your Business?
Many small business owners are unknowingly filing the wrong tax return form for their business, do not file their business tax return, incorrectly file their business return by themselves, do not properly keep records, and do not have a spreadsheet or do not use any...