Robby The Internal Revenue Service (IRS) draws a clear distinction between hobbies and businesses for tax purposes. This distinction is crucial because it determines whether an individual’s activities are considered a profit-generating enterprise or a recreational pursuit. Understanding the IRS’s criteria for classifying an activity as a hobby or a business is essential for accurate tax … Read more
Navigating the complexities of tax filing can be daunting, leading many to wonder if they can handle the task themselves. The answer is a resounding yes! With the right tools and resources, you can confidently prepare and file your taxes without professional assistance. Benefits of DIY Tax Filing Cost savings: Professional tax preparation services can … Read more
The standard deduction is a specific amount that you can deduct from your taxable income before calculating your taxes. It is a dollar-for-dollar reduction, meaning that a higher standard deduction will result in lower taxable income. For the 2020 tax year, the standard deduction amounts have increased for all filing statuses. This article will focus … Read more
The Internal Revenue Service (IRS) understands that taxpayers may face financial hardships that make it difficult to meet their tax obligations. To provide relief in such situations, the IRS offers the Currently Not Collectible (CNC) status, commonly known as the IRS hardship program. This program allows eligible taxpayers to temporarily suspend collection actions while they … Read more
Navigating an IRS investigation can be a daunting experience, but understanding the signs and taking proactive steps can significantly improve your chances of a favorable outcome. This comprehensive guide will delve into the telltale indicators that the IRS may be investigating you, empowering you with the knowledge to protect your rights and interests. Signs of … Read more
Individuals residing in the United States are subject to two distinct income tax systems: federal income tax and state income tax. While both systems share the common goal of generating revenue to fund government operations, they differ significantly in their specific rules, rates, and regulations. Understanding these differences is crucial for accurate tax preparation and … Read more
The IRS has been issuing stimulus payments to eligible individuals as part of the government’s response to the COVID-19 pandemic. However, in some cases, the IRS may request that individuals return some or all of the stimulus money they received. This guide will explore the reasons why the IRS may ask for stimulus money back … Read more
Navigating the complexities of gift taxes can be a daunting task, especially when it comes to understanding the lifetime gift tax amount. This comprehensive guide will delve into the intricacies of gift tax laws, providing a clear explanation of the lifetime gift tax exemption, annual exclusion limits, and other crucial aspects. By understanding these concepts, … Read more
Tax filing is an essential civic responsibility, and the Internal Revenue Service (IRS) sets specific deadlines for individuals to submit their tax returns. Understanding the filing timeframe and available options is crucial to ensure timely and accurate tax submissions. Filing Deadline: A Crucial Date The IRS establishes an annual filing deadline, typically falling on April … Read more
Navigating the complexities of tax season can be daunting, especially when dealing with investment-related income. If you’re a Robinhood user, understanding the types of tax documents you’ll receive and how to use them is crucial for accurate tax filing. This comprehensive guide will delve into the world of Robinhood tax documents, answering the question “Does … Read more