Social Security benefits are generally subject to federal income tax, but the amount of tax you owe depends on your income level. If you have other sources of retirement income, such as a 401(k) or a part-time job, you should expect to pay some income taxes on your Social Security benefits. However, if you rely … Read more
Navigating the complexities of the tax code can be a daunting task, especially when it comes to determining which types of income are subject to taxation. The Internal Revenue Service (IRS) provides clear guidelines on what constitutes taxable and nontaxable income, empowering taxpayers to accurately report their earnings and minimize their tax liability. This comprehensive … Read more
Understanding the tax implications of stock sales is crucial for investors seeking to optimize their financial returns. This comprehensive guide will delve into the nuances of stock taxation, exploring the factors that determine tax liability, available tax-saving strategies, and practical guidance for navigating the tax complexities associated with stock sales. Taxability of Stock Sales Generally, … Read more
Many parents consider adding their child’s name to their bank account as a way to save for their child’s future or to make it easier for their child to manage their finances. However, there are a number of potential consequences to consider before doing so. Potential Consequences of Adding a Child’s Name to Your Bank … Read more
Understanding the intricacies of capital gains tax can be a daunting task, especially for those with no income. However, by delving into the complexities of the tax code, individuals can optimize their financial strategies and potentially minimize their tax burden. This comprehensive guide will provide a thorough analysis of the relevant regulations, addressing the pivotal … Read more
The Earned Income Tax Credit (EITC) is a tax credit for low- and moderate-income working individuals and families. The EITC reduces the amount of tax you owe, and may also result in a refund. To qualify for the EITC, you must meet certain requirements, including: You must have earned income from working. Your investment income … Read more
As a self-employed individual or 1099 contractor, understanding your tax obligations is crucial. One common question that arises is what to do if you have income but no 1099 form. This guide will provide a comprehensive overview of the steps you need to take to report your income accurately and avoid potential tax penalties. Understanding … Read more
The standard deduction is a specific amount that you can deduct from your taxable income before calculating your taxes. The amount of the standard deduction varies depending on your filing status and is adjusted annually for inflation. Itemizing deductions means that you can deduct certain expenses from your taxable income, such as mortgage interest, state … Read more
If you’ve earned income from self-employment but haven’t received a 1099-NEC or 1099-MISC, you’re still responsible for reporting that income to the IRS. Fortunately, TurboTax makes it easy to do so. Here’s a step-by-step guide on how to report cash income without a 1099 using TurboTax: Step 1: Gather Your Records Before you begin, gather … Read more
An IRS audit can be a daunting experience, but it doesn’t have to be. By understanding the common triggers for audits and taking steps to minimize your risk, you can significantly reduce your chances of being selected for an audit. This comprehensive guide will provide you with proven strategies and best practices to help you … Read more