Yes, you need your closing statement for your taxes. The closing statement, also known as a settlement statement, is an essential document that outlines the financial details of your home purchase. It contains information that you will need when filing your taxes, including: The purchase price of your home The amount of your mortgage loan … Read more
Senior citizens in India are entitled to certain tax benefits, including an exemption from Tax Deducted at Source (TDS) on interest earned from fixed deposits. This exemption can be claimed under Section 80TTB of the Income Tax Act, 1961. However, there are certain conditions that must be met in order to qualify for this exemption. … Read more
Individual retirement accounts (IRAs) offer tax advantages to encourage retirement savings. However, the Internal Revenue Service (IRS) imposes income limits on direct contributions to Roth IRAs to ensure equitable distribution of these benefits. High earners who exceed these limits are restricted from making direct contributions. Income Limits for Roth IRA Contributions The IRS establishes annual … Read more
Failing to report a 1099 form can have severe consequences, including audits, penalties, and interest charges. The IRS is vigilant in tracking income and discrepancies, and they have systems in place to detect unreported income. IRS Tracking of 1099 Forms Businesses that issue 1099 forms are required to send copies to both the recipient and … Read more
The allure of tax-free retirement savings entices many, but high-income earners often find themselves exceeding the income limits set for Roth IRAs. However, a clever strategy known as the “backdoor Roth IRA” provides a solution, allowing individuals to reap the benefits of Roth IRAs despite their high earnings. Understanding the Backdoor Roth IRA The backdoor … Read more
Navigating an IRS audit can be a daunting experience, but understanding the different types of audits can help you prepare and mitigate any potential risks. The Internal Revenue Service (IRS) conducts three primary types of audits: mail audits, office audits, and field audits. Each type of audit has its own unique characteristics and procedures, and … Read more
Understanding Wage Garnishment Limits Wage garnishment is a legal procedure that allows creditors to collect debts by withholding a portion of an individual’s wages. Federal and state laws impose limits on the amount of income that can be garnished to protect debtors from financial hardship. Federal Wage Garnishment Limits The Consumer Credit Protection Act (CCPA) … Read more
Escrow, a crucial stage in the real estate transaction process, marks the culmination of the homebuying journey. It involves a neutral third party, typically an escrow company, holding funds and documents on behalf of both the buyer and seller until all agreed-upon conditions are met. Understanding the steps that follow escrow closing is essential for … Read more
Depositing large sums of cash into your bank account may trigger reporting requirements imposed by the federal government. This article delves into the regulations surrounding cash deposits, exploring the threshold amount, reporting obligations, and potential consequences of structuring transactions to avoid reporting. Currency Transaction Reporting Threshold The Bank Secrecy Act (BSA), enacted in 1970 and … Read more
Canceled checks serve as valuable records of financial transactions, providing proof of payments made and assisting in the reconciliation of bank statements. Understanding how long banks are required to retain canceled checks is crucial for proper financial management and record-keeping. This guide explores the regulations and best practices surrounding the retention of canceled checks by … Read more