As the housing market improves, some taxpayers may incur a gain on the sale of their personal residence. Part if not all of that gain may not be subject to income or capital gain tax.
Most charities realize that individuals are more apt to make a donation towards the end of the tax year than ealier in the year. Factor in the holidays and even more reason to think that Americans will be generous at year end.
If you have a balance due with the IRS, your retirement accounts can be seized. Usually a retirement asset is not the first asset to be garnished but the IRS has the authority to levy upon your retirement account.
Divorce changes everything. Not only will your living situation change, assets you own, but the tax treatment of monies you pay or receive from your ex-spouse. Don't wait till tax time to find out about your Agreement with your ex. Surprises are rarely good.
If you receive a notice from the Internal Revenue Service, you must answer the notice within a specific time. Failure to respond could result in an assessment and more expensive to unwind.
Many taxpayers will have gambling winnings. Be advised that these winnings cannot be ignored and there are specific ways to report the winnings and the dreaded losses. Winnings that are not reported may come back as a surprise when the IRS issues a matching report.
Summer time rolls around and students start working their summer jobs. For some students, this may be their first time job or may be something different from their previous employment. This is a good time to review some basics about tax issues that may arise now and be an unpleasant surprise on April 15.
Being self employed requires keeping track of one's business expenses as well as tracking and paying Federal and State taxes due. Here are a few simple tips to keep in mind when preparing your income taxes.
A Bank might be forgiving but the IRS is not. When a debt is forgiven or lowered, there might be a reportable income event with such forgiveness. Our US tax system treats this as income required to be reported in the year the debt was forgiven or modified. There are a few narrow exceptions but failure to report this type of income could cause major havoc a few years later.
Your unemployment benefits may not be much but you can be assured that they are subject to income tax. Many elect to have no withholding on the unemployment benefits. Don't be surprised if your refund is small or there is a balance due. Here are a few tips regarding the taxability of the unemployment benefits.