When you file your taxes, you may end up paying more than you owe. This is known as an overpayment. The IRS will automatically refund the overpaid amount, but you can also choose to apply it to your next year’s taxes. What are the options for an overpayment? Taxpayers can choose to: Apply any portion … Read more

As an independent contractor or freelancer, you’re responsible for paying your own taxes. This can be a daunting task, especially if you’re not familiar with the tax code. However, there are a number of strategies you can use to reduce your tax liability and save money. In this guide, we’ll provide you with six tips … Read more

Understanding your tax obligations is crucial for responsible citizenship. Whether you’re a seasoned taxpayer or filing for the first time, determining if you need to pay taxes can be a daunting task. This comprehensive guide will provide you with the necessary information to navigate the complexities of the U.S. tax system and ascertain your filing … Read more

Receiving an IRS audit notice can be a daunting experience, but it’s important to remember that you have rights and options. If you disagree with the IRS’s findings, you can appeal the audit. This guide will provide you with a step-by-step process on how to file an appeal and increase your chances of a successful … Read more

The Internal Revenue Service (IRS) has issued multiple rounds of stimulus checks to eligible individuals and families as part of the government’s response to the economic impact of the COVID-19 pandemic. These checks have provided much-needed financial assistance to millions of Americans. However, some individuals may have encountered issues receiving their checks or may have … Read more

Individual Retirement Accounts (IRAs) offer tax-advantaged savings for retirement. However, when it comes to withdrawing funds from an IRA, it’s crucial to understand the reporting requirements to the Internal Revenue Service (IRS). This comprehensive guide will delve into the various aspects of IRA distribution reporting, ensuring compliance and avoiding potential tax implications. Form 1040 and … Read more

In the realm of taxation, honesty and transparency are paramount. Failing to report income, including cash tips, can lead to severe repercussions. This comprehensive guide delves into the consequences of unreported cash tips, empowering you with the knowledge to make informed decisions and avoid potential penalties. Understanding the Employer’s Role As an employer, you are … Read more

The Internal Revenue Service (IRS) uses various methods to determine the marital status of taxpayers for tax purposes. This information is crucial because it affects tax filing requirements, tax rates, and eligibility for certain tax benefits. Methods Used by the IRS 1. Tax Return Information The primary method the IRS uses to determine marital status … Read more

Engaging in hobbies can be a fulfilling and enjoyable way to spend time. However, if these hobbies generate income, it’s crucial to understand the tax implications. The Internal Revenue Service (IRS) classifies income from hobbies as “hobby income,” which is subject to taxation. This article will delve into the definition of hobby income, its tax … Read more

The Internal Revenue Service (IRS) may notify you of a mistake on your tax return through an audit or an examination. An audit is a review of your tax return to ensure that the information you provided is accurate and that you have paid the correct amount of taxes. An examination is a more in-depth … Read more