Robby Understanding the IRS Backlog The Internal Revenue Service (IRS) is responsible for processing tax returns and issuing refunds to eligible taxpayers. However, due to various factors, including the COVID-19 pandemic and staffing shortages, the IRS has been experiencing significant delays in processing tax returns. As a result, many taxpayers have not yet received their refunds … Read more
Understanding Section 80TTA and 80TTB Deductions Section 80TTA and 80TTB are provisions under the Income Tax Act that allow individuals to claim deductions for interest earned on savings accounts and certain other deposits. Section 80TTA: Deduction up to ₹10,000 for interest earned on savings accounts. Section 80TTB: Deduction up to ₹50,000 for interest earned on … Read more
Identity theft is a serious issue that can have a significant impact on your finances and your peace of mind. If you suspect that someone has fraudulently filed your taxes, it’s important to take action immediately. Here are the steps you should take if you believe you’re a victim of tax-related identity theft: Contact the … Read more
Possession certificates are crucial documents in real estate transactions, particularly when it comes to claiming income tax rebates on home loans. This guide will provide a comprehensive overview of possession certificates, their types, and their significance in the context of income tax rebates. What is a Possession Certificate? A possession certificate is a legal document … Read more
Understanding Tax Return Errors Mistakes on tax returns can happen for various reasons, such as miscalculations, omissions, or incorrect information. While it is important to file accurate tax returns, errors can be rectified by filing an amended tax return. Filing an Amended Tax Return If you discover an error on your tax return after it … Read more
Overpaying taxes means you’ve paid more than you owe the government. This can happen for various reasons, such as incorrect withholding calculations or life events that affect your tax liability. Determining whether you’ve overpaid requires understanding how taxes are calculated and examining your tax return. Signs of Overpayment The most evident sign of overpayment is … Read more
When you retire, the money you withdraw from your 401(k) will be taxed as ordinary income. This means that the amount of tax you pay will depend on your tax bracket in the year you withdraw the money. Traditional 401(k)s With a traditional 401(k), you contribute pre-tax dollars, which means that you don’t pay taxes … Read more
The concept of primary residence holds significant importance in the realm of mortgage lending and taxation. Typically, a primary residence refers to the property where an individual spends the majority of their time. However, certain circumstances may arise where an individual may question the possibility of having multiple primary residences. This article delves into the … Read more
Understanding the Implications of Under-the-Table Payments Receiving payments under the table, also known as “off-the-books” or “cash payments,” refers to income earned without official records or reporting to tax authorities. While it may seem appealing to avoid taxes, this practice is illegal and can lead to severe consequences, including audits, penalties, and even criminal charges. … Read more
Understanding the Child Employment Tax Deduction Hiring your child to work in your family business can offer both financial and educational benefits. However, it’s crucial to understand the tax implications and limitations associated with child employment. One important aspect to consider is the child employment tax deduction, which allows you to deduct a portion of … Read more