Robby The Child Tax Credit (CTC) is a tax credit that helps families with the cost of raising children. The amount of the credit varies depending on the age of the child and the taxpayer’s income. For 2023, the CTC is worth up to $2,000 per qualifying child. To be eligible for the CTC, the child … Read more
Free Tax Preparation Assistance If you need help filing your taxes, there are a number of free resources available to you. Volunteer Income Tax Assistance (VITA): VITA is a program that provides free tax preparation assistance to low- and moderate-income taxpayers. VITA volunteers are IRS-certified and can help you prepare your federal and state tax … Read more
Understanding IRS Notices and Letters When you receive a notice or letter from the IRS, it’s important to understand why you’re being contacted. The IRS sends correspondence for various reasons, including: You have an outstanding balance due. You’re due a larger or smaller refund. The IRS has questions about your tax return. The IRS needs … Read more
The prospect of having your tax return rejected can be daunting, but it’s crucial to understand that it’s a common occurrence with simple solutions. This comprehensive guide will delve into the reasons why tax returns are rejected, providing practical steps to rectify the issues and ensure a smooth filing process. Common Causes of Tax Return … Read more
In the realm of personal finance, understanding the intricacies of gift taxes is crucial for individuals and couples alike. This guide delves into the specific question of whether a wife can gift money to her husband without incurring gift tax liabilities. By analyzing relevant tax regulations and providing practical insights, this article aims to empower … Read more
Form 8606, officially titled “Nondeductible IRAs,” is a crucial tax form used to report specific transactions related to Individual Retirement Arrangements (IRAs). This form is particularly relevant for individuals who have made nondeductible contributions to traditional IRAs or have taken distributions from IRAs that include nondeductible contributions. Understanding Nondeductible IRA Contributions Typically, contributions to traditional … Read more
No, you cannot ignore an IRS audit. If you receive an audit notice from the IRS, you are legally obligated to respond. Failure to respond can result in severe penalties, including: Automatic assessment of the proposed tax liability Loss of your appeal rights within the IRS Collection action, such as wage garnishment or bank account … Read more
Personal exemptions play a crucial role in determining an individual’s taxable income, thereby influencing their tax liability. This article provides a comprehensive overview of personal exemptions, exploring their definition, eligibility criteria, and implications. What are Personal Exemptions? Personal exemptions are specific dollar amounts that taxpayers can deduct from their total income before calculating their taxable … Read more
The financial closing process is a crucial step in the accounting cycle, ensuring the accuracy and integrity of financial reporting. It involves reviewing, adjusting, and summarizing financial data to produce reliable financial statements. This process typically involves four distinct steps: 1. Close Revenue Accounts to Income Summary The first step in the closing process is … Read more
The passing of a loved one is a difficult time, and dealing with their financial affairs can add to the burden. One of the concerns that may arise is whether you are responsible for your parents’ unpaid taxes. This article will explore the legal obligations and options available to you in such situations. Understanding Tax … Read more