Filing taxes can be a daunting task, and waiting for your refund can add to the stress. If you filed your 2020 tax return and haven’t received your refund yet, don’t panic. There are several reasons why your refund may be delayed. Common Reasons for Refund Delays Errors or incomplete returns: If the IRS detects … Read more
The answer to this question depends on a few factors, including your child’s income and filing status. General Rule Generally, you cannot claim your child as a dependent on your tax return if they are 18 years old or older at the end of the tax year. This is because once a child reaches the … Read more
Legality of Paying Employees in Cash Paying employees in cash is generally legal, but it is important to comply with all applicable employment laws. This includes withholding and paying payroll taxes, such as income taxes, Social Security taxes, and Medicare taxes. Cash Payments Over $20,000 There is no federal law that prohibits cash payments over … Read more
Understanding Bonus Depreciation Bonus depreciation is a tax incentive that allows businesses to deduct a larger portion of the cost of certain assets in the year they are placed in service, rather than depreciating them over their useful life. This strategy can significantly reduce a company’s tax liability, leading to increased cash flow and potential … 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
Understanding the New York Tax System New York’s tax system is a progressive one, meaning that higher earners pay a larger percentage of their income in taxes. The state’s income tax rates range from 4% to 10.9%, depending on your taxable income and filing status. In addition to state income tax, New York residents also … Read more
Warren Buffett, the renowned “Oracle of Omaha,” is widely considered one of the most successful investors of all time. His journey to becoming a millionaire is a testament to his unwavering dedication to value investing, patience, and financial discipline. Buffett’s Early Life and Investment Beginnings Buffett’s fascination with the world of finance began at a … Read more
Yes, you must include all W-2s on your tax return, regardless of how much you earned from each job. The W-2 form is a critical document used by the Internal Revenue Service (IRS) to determine your tax liability. It reports your wages, salaries, tips, and other compensation, as well as taxes withheld from your paycheck. … Read more
Does the IRS Know When You Buy a House with Cash? Purchasing a house is a significant financial undertaking that necessitates meticulous planning and consideration of tax implications. While many homebuyers opt for traditional mortgage financing, an increasing number are choosing to pay for their homes in cash. This method offers several advantages, including a … Read more
Understanding how to fill out your W-4 form is crucial for ensuring accurate tax withholding and minimizing the likelihood of overpaying or underpaying your taxes. By optimizing your W-4, you can effectively manage your tax liability and potentially increase your refund or reduce your tax bill. This comprehensive guide will delve into the intricacies of … Read more