Homeownership in Canada offers various financial benefits, including tax credits and deductions that can significantly reduce your tax liability. This guide provides a comprehensive overview of nine homeowner tax credits available to Canadian homeowners. 1. First-Time Home Buyers’ Tax Credit (HBTC) Available to first-time homebuyers who have not owned a home in the past four … Read more
Understanding IRS Wage Garnishment Procedures The Internal Revenue Service (IRS) has the authority to garnish wages to collect unpaid taxes. However, before resorting to this measure, the IRS is required to follow specific procedures and provide taxpayers with ample notice. IRS Notice and Communication 1. Final Notice of Intent to Levy: Before garnishing wages, the … Read more
The third round of Economic Impact Payments (EIP3), authorized by the American Rescue Plan Act of 2021, provided eligible individuals and families with payments of up to $1,400 per person, including dependents. However, some recipients reported receiving only half of the expected amount. This discrepancy can be attributed to several factors: Income Eligibility Thresholds The … Read more
Credit Karma is a popular online platform that offers a variety of financial services, including free tax preparation and filing. While Credit Karma has gained a reputation for its ease of use and accessibility, some users may wonder about the safety and reliability of its tax services. This article will delve into the security measures … Read more
Understanding IRS Audits An IRS audit is a review of your tax return to verify its accuracy and compliance with tax laws. The IRS may initiate an audit for various reasons, including discrepancies or errors identified during the initial processing of your return. Impact of Receiving a Refund Receiving a tax refund does not guarantee … Read more
An IRS audit is a review of an individual’s or organization’s financial records to ensure that the reported tax information is accurate and that the correct amount of tax has been paid. Audits can be conducted through the mail or in person, and the process can vary depending on the complexity of the case. Why … Read more
After submitting your tax return, you may encounter the “pending” status, indicating that your return is in the process of being reviewed by the Internal Revenue Service (IRS). This comprehensive guide will delve into the meaning of the pending status, its duration, and what to do if your return remains in this status for an … Read more
Tax avoidance refers to legal strategies employed to reduce tax liability without violating tax laws. It differs from tax evasion, which involves illegal means to avoid paying taxes. This guide will delve into the concept of tax avoidance, exploring its various forms and providing real-world examples. Forms of Tax Avoidance Tax avoidance techniques can be … Read more
Self-employment tax can be a significant financial burden for small business owners. However, there are ways to reduce or even eliminate this tax liability. One option is to form a limited liability company (LLC) and elect to be taxed as an S corporation. What is Self-Employment Tax? Self-employment tax is a combination of Social Security … Read more
Filing taxes is a crucial obligation for individuals and businesses alike. However, there may be instances where individuals fail to meet the tax filing deadline, leading to potential penalties and consequences. This article delves into the implications of not filing taxes, exploring the penalties associated with late filing and non-filing, and providing guidance on how … Read more