Yes, the IRS can seize inherited property for unpaid taxes. However, they must follow specific procedures before doing so. What is the IRS Seizure Process? Notice of Intent to Levy: The IRS will send a “Notice of Intent to Levy” to the taxpayer, informing them of their tax debt and the potential seizure of assets. … Read more
Purchasing a property is a significant financial undertaking, and many first-time buyers rely on financial assistance from family or friends to secure a mortgage. One common form of assistance is a gifted deposit, where a relative or friend provides a sum of money to contribute towards the purchase price. However, it is important to understand … Read more
Form W-2 is a crucial tax document that reports an employee’s annual earnings and withholdings to the Internal Revenue Service (IRS) and the employee. It is essential for filing accurate tax returns and claiming applicable deductions and credits. One common question that arises when reviewing a W-2 form is why the amount in Box 1 … Read more
Claiming dependents on your tax return can provide significant tax savings, but the rules can be complex, especially when the dependent is working. This guide will provide a comprehensive overview of the rules and requirements for claiming a dependent who works, with a focus on the specific scenario of claiming a daughter as a dependent. … Read more
Can a person legally refuse to pay their federal income tax? No, a person cannot legally refuse to pay their federal income tax. The Internal Revenue Code (IRC) requires all U.S. citizens and resident aliens to file an income tax return and pay any taxes that are due. What are the consequences of refusing to … Read more
Navigating the Complexities of Tax Filing The United States tax code is a labyrinth of intricate rules and regulations, making it a daunting task to file taxes independently. However, with the advent of user-friendly tax preparation software, individuals can simplify the process and potentially save hundreds of dollars in professional fees. Benefits of Self-Filing Convenience: … Read more
Self-employment tax is a combination of Social Security and Medicare taxes that self-employed individuals are responsible for paying. The self-employment tax rate is 15.3%, which is higher than the 7.65% payroll tax that employees pay. This is because self-employed individuals are responsible for paying both the employee and employer portions of Social Security and Medicare … Read more
Understanding Tax Refund Offsets The Bureau of the Fiscal Service (BFS) has the authority to reduce or withhold tax refunds to settle outstanding debts owed to federal agencies. This process is known as a tax refund offset. Debts eligible for offset include: Past-due child support Federal agency nontax debts State income tax obligations Unemployment compensation … Read more
Navigating the Tax Landscape for Self-Employed Individuals Self-employment offers a unique blend of flexibility and financial independence, but it also comes with distinct tax implications. Unlike traditional employees who have taxes withheld from their paychecks, self-employed individuals are responsible for managing their own tax payments. This includes not only paying taxes but also navigating the … Read more
Understanding how to calculate take-home pay is crucial for both employees and employers. Take-home pay represents the actual amount of money an employee receives after all taxes, deductions, and other withholdings have been subtracted from their gross pay. This guide will delve into the intricacies of take-home pay calculation, providing a step-by-step approach to determine … Read more