Navigating the Complex Landscape of Homebuyer Tax Credits The prospect of purchasing a home can be both exciting and daunting, especially when it comes to navigating the complexities of tax credits. In 2020, the tax landscape for homebuyers underwent significant changes, leaving many wondering if there are any tax credits available to ease the financial … Read more
The Internal Revenue Service (IRS) has issued a stern warning to taxpayers about a recent surge in IRS-themed text message scams designed to pilfer personal and financial information. These scams, known as “smishing,” have proliferated in recent months, prompting the IRS to urge vigilance and caution. Modus Operandi of Smishing Scams Smishing scams typically involve … Read more
The Canada Revenue Agency (CRA) is responsible for administering tax laws and ensuring compliance among Canadian taxpayers. A common question that arises is: “Does the CRA know how much money I make?” This guide will delve into the various methods the CRA employs to obtain information about your income and how this knowledge impacts your … Read more
Understanding your tax bracket is crucial for effective financial planning and budgeting. This guide will delve into the tax implications of an $85,000 salary in Colorado, using data from reputable sources like TaxAct and Talent.com. Tax Brackets and Calculations Tax brackets are income ranges that determine the percentage of your income subject to taxation. In … Read more
As a self-employed individual, you’re responsible for paying both the employee and employer portions of Social Security and Medicare taxes, known as self-employment taxes. These taxes are calculated at a rate of 15.3% on your net income, which is your total income minus any allowable business deductions. To ensure you have sufficient funds to cover … Read more
What is an Offset? An offset is a debt collection method where the federal government intercepts a taxpayer’s federal income tax refund to satisfy an outstanding debt owed to a federal or state agency. This process is administered by the Bureau of Fiscal Services (BFS), a division of the U.S. Department of the Treasury. How … Read more
Understanding Trust Beneficiary Tax Implications Inheriting assets through a trust can be a complex financial matter, particularly regarding tax implications. Whether or not you have to pay taxes on money inherited from a trust depends on several factors, including the type of trust, the nature of the distribution, and your own tax situation. Types of … Read more
Navigating Complex Tax Laws: Innocent Spouse Relief The complexities of tax laws can sometimes lead to situations where one spouse is held liable for taxes they may not have been aware of or responsible for. In such cases, the innocent spouse rule provides a mechanism for relief, allowing the affected spouse to seek exemption from … Read more
800-830-5084 is the toll-free IRS Identity Verification telephone number. The IRS may send you a letter asking you to call this number to verify your identity if they suspect that your tax return may be fraudulent. Why Would the IRS Ask Me to Verify My Identity? The IRS may ask you to verify your identity … Read more
Yes, seniors get several tax breaks in 2023. The IRS offers a number of deductions and credits that can help seniors reduce their tax liability. Increased Standard Deduction The standard deduction is a specific amount of income that you can deduct from your taxable income before you calculate your taxes. The standard deduction for seniors … Read more