Understanding the Legal Protections of the Fair Credit Reporting Act (FCRA) Your credit report is a confidential document that provides a detailed overview of your financial history, including your credit accounts, payment patterns, and any outstanding debts. Due to the sensitive nature of this information, the Fair Credit Reporting Act (FCRA) was enacted to safeguard … Read more
Tax audits are an unpleasant reality that many taxpayers face. While the chances of being audited are relatively low, it’s crucial to take proactive steps to minimize the risk. This guide will provide you with a comprehensive overview of effective strategies to avoid a tax audit. Understanding the Audit Process Before delving into avoidance strategies, … Read more
As a self-employed individual, you are responsible for paying both self-employment (SE) tax and income tax. Self-employment tax covers Social Security (12.4%) and Medicare (2.9%) taxes, while income tax is the tax you pay on your business profits. If you fail to pay your self-employment taxes on time, you may face penalties and interest charges. … Read more
The Internal Revenue Service (IRS) has issued three rounds of Economic Impact Payments (EIP) to eligible individuals and families as part of the government’s response to the COVID-19 pandemic. While many have received their payments, some individuals are still waiting for their checks or have encountered issues with the payments they received. This article aims … Read more
Yes, you can claim 3 allowances if you are single and meet certain criteria. Who is eligible to claim 3 allowances? Single taxpayers with one or more dependents Married taxpayers filing separately with one or more dependents Head of household filers with one or more dependents How many allowances should I claim? The number of … Read more
Self-employment offers flexibility and control over your work, but it also comes with the responsibility of managing your own taxes. Understanding which expenses qualify as tax deductions can significantly reduce your tax burden. Among the many deductible expenses, gas mileage is a common concern for self-employed individuals. This guide will explore whether you can write … Read more
Navigating the complexities of tax deductions can be a daunting task, especially when it comes to claiming expenses without receipts. However, understanding the rules and regulations can empower you to maximize your deductions and minimize your tax liability. This comprehensive guide will delve into the intricacies of claiming expenses without receipts, providing you with the … Read more
Understanding the IRS’s Authority The Internal Revenue Service (IRS) possesses the legal authority to seize retirement accounts, including 401(k)s and IRAs, to collect unpaid tax debts. This measure is typically employed as a last resort after other collection efforts have been unsuccessful. Types of Retirement Accounts Subject to Seizure The IRS has the power to … Read more
Understanding the Responsibilities of Filing a Final Tax Return When an individual passes away, their final tax return must be filed by a designated representative. This responsibility typically falls upon the executor or administrator of the estate, or anyone legally authorized to manage the deceased person’s property. Understanding who is responsible for signing and filing … Read more
When it comes to planning for your financial future, there are a plethora of investment options available. Two popular choices are certificates of deposit (CDs) and annuities. Both offer unique advantages and drawbacks, making it crucial to understand their key differences before making a decision. This comprehensive guide will delve into the intricacies of CDs … Read more