Yes, the IRS looks at credit card statements. During an audit, the IRS may request to see your credit card statements to verify your income and expenses. This is because credit card statements can provide a detailed record of your financial transactions. What information can the IRS see on my credit card statements? The IRS … Read more
The Internal Revenue Service (IRS) is responsible for collecting taxes to fund government programs and services. When taxpayers fail to pay their taxes on time, the IRS has several methods to collect the outstanding balance. One of these methods is passive collection, which involves actions taken by the IRS without direct contact with the taxpayer. … Read more
Filing taxes can be a daunting task, and it’s natural to want to ensure that the IRS has received your documents. This guide will provide you with a comprehensive overview of the various methods available to check the status of your tax return and confirm its receipt by the IRS. Whether you filed your taxes … Read more
The Internal Revenue Service (IRS) has the authority to seize assets to collect unpaid taxes. However, there are certain assets that the IRS cannot seize, as outlined by law. Understanding these exemptions can help protect your property from seizure. Assets Exempt from IRS Seizure The IRS cannot seize the following assets: Tools of the trade … Read more
Key Considerations: Tax implications: Selling a stock at a loss can generate a capital loss, which can be used to offset capital gains and reduce your tax liability. However, if you sell a stock within 30 days of purchasing it, the loss will be considered a “wash sale” and will not be tax-deductible. Investment strategy: … Read more
Inheriting assets can be a significant financial event, but it’s crucial to understand the tax implications associated with these assets. This comprehensive guide explores the tax treatment of inheritances, clarifying whether they are considered income and how they impact financial aid applications. Inheritances and Income Tax In general, inheritances are not considered taxable income for … Read more
Understanding the Statute of Limitations for State Income Taxes The statute of limitations for state income taxes defines the time frame within which a state can assess and collect unpaid taxes from individuals or businesses. This period varies from state to state, ranging from three to four years from the later of the income tax … Read more
The IRS 3-Year Rule: Understanding the Time Limit for Tax Refunds and Credits The Internal Revenue Service (IRS) has established a specific time frame within which taxpayers can claim a credit or refund for federal income taxes. This time frame is known as the Refund Statute Expiration Date (RSED). Understanding the IRS 3-year rule is … Read more
The Child Tax Credit (CTC) is a significant tax credit that provides financial assistance to families with qualifying children. For the 2021 tax year, the CTC was expanded, resulting in increased credit amounts and a higher income limit. This article explores the income limit for the 2021 CTC, helping you determine your eligibility and maximize … Read more
As a parent, understanding your child’s tax obligations is crucial to ensure compliance and avoid potential penalties. This guide delves into the intricacies of tax filing for minors, specifically addressing the question: does my 14-year-old need to file taxes? By examining the relevant income thresholds, types of income, and exceptions, we aim to provide clarity … Read more