In IRS Tax Tip 2022-38 the IRS does an excellent job at explaining and advising on the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC). Higher education is important to many people and it’s often expensive. Whether it’s specialized job training or an advanced degree, there are a lot of costs associated […]
IRS reminds us that we have until April 18, 2022 of this 2021 tax year to make a $6,000 (with catchup for age 50 to $7,000) IRA contributions- Traditional or ROTH IRA for the 2020 tax year, don’t be late! The Internal Revenue Service reminds taxpayers they may be able to claim a deduction on […]
The Child and Dependent Care Credit may come into play for tax year 2021, the maximum eligible expense for this credit is $8,000 for one child and $16,000 for two or more for qualifying persons! Taxpayers who are paying someone to take care of their children or another member of household while they work, may […]
The IRS reminds us using IR-2022-45 That Gig income of any kind from part-time, temporary or side work is reportable. Also that that once again there is a question at the top of Form 1040 asking about virtual currency transactions. Finally the IRS reminds us that A U.S. citizen or resident alien’s worldwide income is […]
The IRS reminds us using Tax Tip 2022-22 that taxpayers receiving Social Security benefits may have to pay federal income tax on a portion of those benefits. Social Security benefits include monthly retirement, survivor and disability benefits. They don’t include supplemental security income payments, which aren’t taxable. Further the portion of benefits that are taxable […]
The IRS reminds us using Tax Tip 2022-13 that our filing status is determinate on December 31 of each tax year, and a description of each filing status! A taxpayer’s filing status tells the IRS about them and their tax situation. This is just one reason taxpayers should familiarize themselves with each option and know […]
Traditional IRAs and Roth IRAs have been around for decades and the rules surrounding them have changed many times. What hasn’t changed is that they can help you save for retirement on a tax-favored basis. Here’s an overview. Traditional IRAs You can make an annual deductible contribution to a traditional IRA if: You (and your […]
The IRS began accepting 2021 individual tax returns on January 24. If you haven’t prepared yet for tax season, here are three quick tips to help speed processing and avoid hassles. Tip 1. Contact us soon for an appointment to prepare your tax return. Tip 2. Gather all documents needed to prepare an accurate return. […]
The IRS announced it is opening the 2021 individual income tax return filing season on January 24. (Business returns are already being accepted.) Even if you typically don’t file until much closer to the April deadline (or you file for an extension until October), consider filing earlier this year. Why? You can potentially protect yourself […]
While Congress didn’t pass the Build Back Better Act in 2021, there are still tax changes that may affect your tax situation for this year. That’s because some tax figures are adjusted annually for inflation. If you’re like most people, you’re probably more concerned about your 2021 tax bill right now than you are […]
