Robby Checks remain a widely used payment method, despite the rise of digital transactions. However, banks have a responsibility to safeguard their customers and the financial system from fraud. To ensure the legitimacy of checks, banks employ a rigorous verification process before cashing or depositing them. Verification Procedures Banks typically verify checks through a combination of … Read more
When applying for a mortgage, lenders will typically consider both your gross and net income to determine your eligibility and loan amount. Gross Income Gross income refers to your total earnings before any deductions, such as taxes, insurance, or retirement contributions. Lenders use gross income as a starting point to assess your ability to repay … Read more
No, there will not be an unemployment tax break for 2022. The American Rescue Plan Act of 2021 provided a temporary exclusion of up to $10,200 of unemployment compensation from taxable income for individuals with modified adjusted gross incomes (MAGIs) below $150,000. This exclusion applied to unemployment compensation received in 2020. However, this exclusion expired … Read more
In today’s economic climate, determining how much money is needed to live comfortably in major U.S. cities has become increasingly challenging. This comprehensive guide will delve into the latest research and data to provide a detailed analysis of the financial requirements for living comfortably in different parts of the country. Income Thresholds for Comfortable Living … Read more
Retirement marks a significant transition in life, often accompanied by a desire for a more relaxed lifestyle and financial security. One crucial factor that can greatly impact your retirement experience is the tax burden you’ll face. Strategic relocation to a tax-friendly state can significantly reduce your tax liability, allowing you to maximize your retirement savings … Read more
The Internal Revenue Service (IRS) offers installment agreements as a flexible payment option for taxpayers who are unable to pay their tax debts in full. However, the IRS may reject an installment agreement request for various reasons. This comprehensive guide will delve into the reasons for IRS installment agreement rejection and provide a detailed overview … Read more
Understanding 1099 Forms and Their Significance A 1099 form is an informational document issued by businesses or financial institutions to report payments made to individuals or entities during a specific tax year. These forms serve as crucial documentation for tax purposes, as they provide details of income earned from non-employment sources. The IRS utilizes this … Read more
As a business owner, understanding the nuances of owner’s draws is crucial for effective financial management and tax planning. This comprehensive guide will delve into the concept of owner’s draws, their tax implications, and the key differences between owner’s draws and salaries. By gaining a thorough understanding of these aspects, business owners can make informed … Read more
Understanding the Taxpayer Bill of Rights and IRS Communication The Internal Revenue Service (IRS) is responsible for enforcing tax laws and collecting taxes in the United States. As part of this responsibility, the IRS may need to contact taxpayers to gather information or collect unpaid taxes. However, the IRS is also bound by certain rules … Read more
The Canada Revenue Agency (CRA) conducts audits to ensure that taxpayers are fulfilling their tax obligations accurately and receiving the benefits and refunds they are entitled to. While most taxpayers comply with tax laws, audits play a crucial role in maintaining the fairness and integrity of Canada’s tax system. How does the CRA choose a … Read more