If you’re encountering incorrect information when using the IRS’s “Where’s My Refund” tool for the 2020 tax year, there are several potential reasons and solutions to consider: Incorrect Input: Double-check your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN): Ensure that you have entered your SSN or ITIN accurately, without any errors or … Read more
Understanding the IRS Backlog The Internal Revenue Service (IRS) is responsible for processing tax returns and issuing refunds to eligible taxpayers. However, due to various factors, including the COVID-19 pandemic and staffing shortages, the IRS has been experiencing significant delays in processing tax returns. As a result, many taxpayers have not yet received their refunds … Read more
Self-employment tax is a combination of Social Security and Medicare taxes that self-employed individuals are responsible for paying. It is similar to the FICA taxes that employers withhold from employees’ paychecks, but self-employed individuals are responsible for paying both the employee and employer portions. Who is Self-Employed? The IRS considers you self-employed if you meet … Read more
Electronic filing, or e-filing, offers a convenient and efficient way to submit tax returns to the Internal Revenue Service (IRS) and state tax agencies. By utilizing e-filing, taxpayers can save time, reduce errors, and expedite the processing of their returns. However, it is essential to be aware of the specific years that are eligible for … Read more
The passing of a loved one brings forth a multitude of legal and financial responsibilities, including the management of their tax affairs. One question that often arises is whether the Internal Revenue Service (IRS) can audit a deceased person. This comprehensive guide will delve into the intricacies of post-mortem tax audits, exploring the circumstances under … Read more
Tax season can be a stressful time, especially if you find yourself owing a significant amount to the IRS. If you owe $40,000 or less, there are several options available to help you manage your tax debt. This guide will provide a comprehensive overview of these options, including payment plans, penalty relief, and other strategies. … Read more
Navigating the Complexities of Tax-Deductible Medical Costs In the realm of personal finance, understanding the intricacies of tax deductions can be a daunting task. Among the various deductible expenses, medical costs often raise questions and require careful consideration. This comprehensive guide will delve into the specifics of medical expenses that qualify for tax deductions in … Read more
Tax preparation can be a daunting task, especially for individuals with complex financial situations. Choosing the right tax software can simplify the process and ensure accurate tax filing. TurboTax, a leading tax software provider, offers various versions tailored to different tax scenarios. This article delves into the key differences between TurboTax Basic and TurboTax Deluxe, … Read more
Retirement is a significant milestone in life, marking a transition from active work to a new chapter of leisure and financial security. Determining the ideal time to retire is a multifaceted decision influenced by various factors. This article delves into the intricacies of retirement planning, providing a comprehensive guide to help you identify the optimal … Read more
Overpaying taxes is a common occurrence, with many individuals receiving substantial tax refunds each year. While getting a refund may seem like a positive outcome, it actually indicates that you have been providing the government with an interest-free loan throughout the year. This article delves into the reasons why most people overpay their taxes and … Read more