The third round of Economic Impact Payments, authorized by the American Rescue Plan Act of March 2021, provided financial relief to eligible individuals and families impacted by the COVID-19 pandemic. These payments were issued by the Internal Revenue Service (IRS) and varied in amount depending on factors such as income and family size. Payment Amounts … Read more

Day trading, the practice of buying and selling financial assets within a single trading day, has gained significant popularity in recent years. However, understanding the tax implications of day trading is crucial to avoid potential financial pitfalls. This guide delves into the tax obligations of day traders, including the intricacies of Social Security tax, estimated … Read more

The Internal Revenue Service (IRS) has issued Letter 6475, Economic Impact Payment (EIP) 3 End of Year, to help EIP recipients determine their eligibility for the Recovery Rebate Credit on their 2021 tax year returns. This letter provides the total amount of the third Economic Impact Payment and any plus-up payments received for tax year … Read more

Filing for a tax refund can be a daunting task for any business owner, but it’s especially important for small businesses. Every dollar you can get back from the government can help you reinvest in your business and grow your profits. In this guide, we’ll walk you through everything you need to know about getting … Read more

An IRS installment agreement is a formal arrangement between a taxpayer and the Internal Revenue Service (IRS) that allows the taxpayer to pay off their tax debt in monthly installments. While installment agreements can provide taxpayers with much-needed relief from the burden of tax debt, it’s crucial to understand the consequences of defaulting on the … Read more

What is a Federal Tax Lien? A federal tax lien is a legal claim by the Internal Revenue Service (IRS) against your property when you fail to pay your tax debts. This lien secures the government’s interest in your property, including your home, until the debt is satisfied. How Does a Tax Lien Affect Your … Read more

As a sole proprietor, understanding the intricacies of tax deductions and write-offs is crucial for optimizing your tax savings and maximizing your business’s profitability. This comprehensive guide will delve into the various expenses and assets that qualify for deductions, empowering you to navigate the tax landscape with confidence. Understanding Deductions and Write-Offs Deductions: Deductions directly … Read more

The Internal Revenue Service (IRS) pays interest on overpayments, including late refunds, at a rate that varies quarterly. The current interest rate for overpayments made after March 31, 2023, is 8%. This rate applies to both individuals and corporations. The IRS begins accruing interest on overpayments 45 days after the later of the following dates: … Read more

British Columbia residents earning an annual income of $100,000 can expect to pay a significant portion of their earnings in taxes. This article will delve into the specific tax deductions and rates applicable to individuals in this income bracket, providing a comprehensive understanding of the tax implications. Tax Deductions Before calculating the tax liability, several … Read more

Navigating the Complexities of Gift Tax Laws The concept of gifting substantial sums of money can be both generous and complex, especially when it comes to understanding the implications of gift tax laws. In this comprehensive guide, we will delve into the intricacies of gift tax regulations, providing you with a clear understanding of the … Read more