If you’re looking to sell your home this year, then it may be time to take a closer look at the exclusion rules and cost basis of your home to reduce your taxable gain on the sale of a home.The IRS home sale exclusion rule allows an exclusion of gain up to $250,000 for a […]
Thanks to the advance payments of the Child Tax Credit, approximately 60 million children received $15 billion in July, according to the Department of Treasury and the IRS. While many of these families will benefit from the extra money deposited into their bank accounts, some families may want to opt-out and instead take the credit […]
Key tax provisions in the American Rescue Plan Act of 2021 could affect your tax situation. Here’s what you need to know:Child and Dependent Care Credit Increased for 2021 OnlyThe new tax law affected taxpayers in several ways. First, it increased the dollar amount of the credit and the amount of eligible expenses for child […]
QuickBooks has a feature that can both save time by reducing duplicate data entry and minimize errors. Once you’ve created a transaction, but before you save it, you can memorize it. Then when it comes up again, the software will have created a template that you can either send as is or make any changes […]
With hurricane season in full swing, now is a good time to create or review emergency preparedness plans for surviving natural disasters, which include more than just hurricanes. For example, in the last year, the Federal Emergency Management Agency (FEMA) declared major disasters following hurricanes, tropical storms, tornadoes, severe storms, flooding, wildfires, and an earthquake. […]
Hobby activities are a source of income for many taxpayers. For instance, during the pandemic many people may have started making handmade items and selling them for a profit. As a reminder, this income must be reported on tax returns.What is considered a hobby?A hobby is any activity that a person pursues because they enjoy […]
Tax-related identity theft occurs when someone uses a taxpayer’s stolen personal information, such as a Social Security number, to file a tax return claiming a false refund. Thieves are actively working to steal taxpayer information and identities, and everyone should do everything they can to prevent identity theft.Here are six ways to help taxpayers protect […]
Backup withholding is a federal tax on income that otherwise typically doesn’t require tax withholding, such as 1099 and W2-G income. Taxpayers who receive this type of income may have backup withholding deducted from their payments. Here is what you should know about backup withholding:1. Backup withholding is required on certain nonpayroll amounts when certain […]
It’s never too late to start, but the sooner you begin saving, the more time your money has to grow. Gains each year build on the prior year’s gains – that’s the power of compounding – and the best way to accumulate wealth. These ten tips will help you get started:Set Realistic Goals. Project your […]
What is the Net Investment Income Tax? The Net Investment Income Tax (NIIT) is a 3.8 percent tax on certain net investment income of individuals, estates, and trusts with income above statutory threshold amounts referred to as modified adjusted gross income or MAGI. What is Included in Net Investment Income? In general, investment income includes, […]