Robby Capital gains tax is a tax on the profit you make when you sell an asset, such as a stock, that has increased in value. The rate of capital gains tax you pay depends on how long you held the asset before selling it. If you hold an asset for one year or less, you … Read more
The loss of a spouse is a profoundly transformative experience, often accompanied by a myriad of legal and social considerations. Among these is the question of how long an individual can identify as a widow or widower before reverting to the status of ‘single.’ This inquiry delves into the legal and societal norms surrounding widowhood … Read more
The Internal Revenue Service (IRS) has a variety of methods at its disposal to locate your bank accounts, including: Tax Returns: When you file your tax returns, you are required to provide your Social Security number and bank account information for direct deposit of any refunds. This information can be used by the IRS to … Read more
Navigating the complexities of filing taxes for deceased or incapacitated loved ones can be daunting. This guide provides a comprehensive overview of the processes involved, empowering you to fulfill your responsibilities and ensure accurate tax reporting. Filing for a Deceased Loved One 1. Determine Filing Requirements: File a final income tax return (Form 1040 or … Read more
The safe harbor rule is a provision in the tax code that allows taxpayers to avoid paying estimated tax penalties if they meet certain requirements. For 2021, the safe harbor rule states that taxpayers will not be penalized if they pay at least 90% of their current year’s tax liability or 100% of their prior … Read more
Are you tired of seeing a significant portion of your hard-earned income vanish into tax withholdings? If so, you’re not alone. Many individuals find themselves in this situation, wondering how they can keep more of their money while still fulfilling their tax obligations. This comprehensive guide will provide you with a detailed understanding of how … Read more
Understanding the IRS’s Authority The Internal Revenue Service (IRS) possesses significant authority when it comes to collecting unpaid taxes. This authority extends to the assets of deceased individuals, including any inheritance that may be passed on to their beneficiaries. IRS’s Priority Claim on Estate Assets Upon the death of a taxpayer, the IRS becomes a … Read more
Understanding Tax Evasion and Whistleblower Reporting Tax evasion, the deliberate underpayment or nonpayment of taxes, is a serious offense that can trigger IRS investigations and penalties. If you suspect someone is evading taxes, you can report them to the IRS through their whistleblower program. IRS Whistleblower Program The IRS Whistleblower Office encourages individuals to report … Read more
Filing taxes can be a daunting task, especially if you’re not familiar with the process. Bank statements can provide valuable information for completing your tax return accurately and efficiently. This guide will walk you through the steps involved in using bank statements for tax preparation, ensuring a smooth and stress-free tax season. Understanding Bank Statements … Read more
The Earned Income Credit (EIC) is a significant tax credit designed to supplement the earnings of low-to-moderate income working individuals and families. This credit can substantially reduce your tax liability or even result in a tax refund. Understanding the eligibility criteria and income limits for the EIC is crucial to determine if you qualify for … Read more