Filing taxes can be a daunting task, but it doesn’t have to be. If you have a simple tax situation, you may be able to file your own taxes without the help of a professional. Here are a few things to consider when deciding whether to file your own taxes: Benefits of Filing Your Own … Read more
The Rule of 55 is an IRS regulation that allows individuals to withdraw funds from their employer-sponsored retirement plans, such as 401(k)s and 403(b)s, without incurring the typical 10% early withdrawal penalty. This rule applies to individuals who leave their job in or after the year they turn 55. Key Points About the Rule of … Read more
Yes, the IRS can levy funds from a joint bank account if: The taxpayer has the right to withdraw funds from the account, even if they did not deposit the funds. The IRS has followed the proper procedures for issuing a bank levy. Joint Bank Account Levies The IRS can seize funds in a joint … Read more
Accurate and timely recording of daily sales and expenses is crucial for effective business management. It provides a clear understanding of the financial health of the company, aids in decision-making, and ensures compliance with tax regulations. This comprehensive guide will delve into the essential steps and best practices for recording daily sales and expenses, empowering … Read more
Understanding Tax Filing Deadlines The due date for filing your federal individual income tax return is generally April 15th of each year if you’re a calendar year filer and your tax year ends on December 31st. However, if April 15th falls on a weekend or legal holiday, the due date is extended to the next … Read more
Tax allowances play a crucial role in determining the amount of federal income tax withheld from your paychecks. Understanding how allowances work and how to claim the right number can help you optimize your tax strategy and avoid overpaying or underpaying taxes. This comprehensive guide will provide you with all the information you need to … Read more
Yes, you can gift $100,000 to your daughter without incurring a gift tax. Gift Tax Basics The gift tax is a tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return. The gift tax is designed to prevent wealthy individuals from avoiding estate taxes … Read more
Can I Claim Both 80CCD 1B and 80CCD 2? Yes, you can claim both 80CCD 1B and 80CCD 2. Overview of Section 80CCD Section 80CCD of the Income Tax Act, 1961 provides tax deductions for contributions made towards certain pension schemes notified by the Indian government. These schemes include the National Pension System (NPS) and … Read more
TurboTax offers a range of online tax preparation products tailored to meet the diverse needs of taxpayers. Choosing the optimal version depends on your specific tax situation and preferences. To assist you in making an informed decision, we will delve into the key features and target audience of each TurboTax online product. TurboTax Free Edition … Read more
Yes, the IRS will send you a letter if you owe money. The letter will explain the amount you owe, the due date, and the options for making a payment. You should take action as soon as possible to avoid further penalties and interest. What to Do When You Receive an IRS Letter When you … Read more