Tax refunds are a common occurrence for many taxpayers in the United States. The process of calculating a tax refund involves comparing the amount of income tax withheld from your paychecks throughout the year to the amount of income tax you actually owe based on your taxable income. This guide will delve into the intricacies … Read more
Section 115BAC of the Income Tax Act introduces a new tax regime for individuals and HUF taxpayers, providing an option to pay income tax at lower rates with fewer exemptions and deductions. This new regime became effective from FY 2020-21 (AY 2021-22) and is the default option for taxpayers starting from FY 2023-24 (AY 2024-25). … Read more
Understanding the Reasons for Paper Stimulus Checks The third round of stimulus checks, amounting to $1,400 per eligible individual, is currently being distributed. While many recipients have received their payments via direct deposit, others have been issued paper checks or EIP (Economic Impact Payment) debit cards. If you’re wondering why you’re receiving a paper stimulus … Read more
Understanding the Reasons for IRS Deposits Receiving an unexpected deposit from the IRS can be confusing and raise questions about its source and purpose. Here are some potential reasons why the IRS may have deposited money into your account: 1. Tax Refund: The most common reason for an IRS deposit is a tax refund. This … Read more
Understanding IRS Audit Frequency The Internal Revenue Service (IRS) plays a crucial role in ensuring compliance with tax laws and regulations. As part of its responsibilities, the IRS conducts audits to verify the accuracy of tax returns and assess potential discrepancies. While audits can be a daunting experience for taxpayers, it’s essential to understand the … Read more
Mileage deductions are a valuable tax break for individuals who use their vehicles for business purposes. By understanding the rules and requirements, you can maximize your deductions and reduce your tax liability. This guide will provide a comprehensive overview of how to write off mileage on your taxes, including the different methods, eligibility criteria, and … Read more
Closing costs are unavoidable expenses associated with purchasing a home. While these costs can be substantial, there are limited opportunities to deduct them on your tax return. This guide will provide a detailed overview of which closing costs are tax deductible and how to claim these deductions. Tax Deductible Closing Costs The only closing costs … Read more
The Paycheck Protection Program (PPP) was established as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide financial assistance to small businesses and non-profit organizations struggling amidst the economic fallout of the COVID-19 pandemic. The program offered forgivable loans to eligible entities, with the forgiven amount generally excluded from taxable income. … Read more
Wage garnishment is a serious matter that can have a significant impact on your financial stability. If you are facing wage garnishment, it is important to take action to stop it as soon as possible. There are several ways to stop wage garnishment, including: Paying off the debt in full. This is the most straightforward … Read more
Filing false tax returns is a serious offense that can lead to severe penalties, including fines and imprisonment. The Internal Revenue Service (IRS) actively pursues individuals and businesses that engage in tax fraud, and the consequences can be significant. Penalties for Filing Fake Taxes The penalties for filing fake taxes vary depending on the severity … Read more