Taxpayers should generally keep copies of their tax returns and any documentation for at least three years after they file. If taxpayers didn’t keep these records, they have a few options to get the information from prior year returns.
The tax deadline to file and pay taxes has been extended to July 15th.
IR-2020-61, March 30, 2020
The Treasury Department and the Internal Revenue Service today announced that distribution of economic impact payments will begin in the next three weeks and will be distributed automatically, with no action required for most people. However, some seniors and others who typically do not file returns will need to submit a simple tax return to receive the stimulus payment.
According to the US Department of Health & Human Services, adoptive parents may spend more than $20,000 to adopt a child. However, they may qualify for a tax credit of up to $14,080 per eligible child in 2019. The tax credits include both federal adoption tax credit for qualified adoption expenses and an exclusion from income for employer-provided adoption benefits.
Last year, many taxpayers experienced paying unexpected tax bill due to having too little tax withheld. It was because the old W-4 form was no long applicable to compute the correct withholding after the Tax Cuts and Jobs Act (TCJA) was enacted in late December 2017.
The form of business determines which income tax return a business taxpayer needs to file.
As a small business owner, there can be various obligations at the federal, state, and local level.
Don’t worry if you receive a letters the IRS sends to taxpayers every year, but don’t ignore it either! IRS letters typically are about a specific issue on your federal tax return or tax account and include specific instructions on what you need to do to respond.
Generally, the IRS sends a letter if:
• you owe additional tax
• you are due a larger refund
• the IRS is requesting payment or needs additional information about your return.
The Homeowners's exemption is a small discount in property taxes given to homeowners. Are you missing out?
There are various tax credits for post-secondary education expenses. The American Opportunity Credit is available to taxpayers who incur tuition expenses for the first 4 years of qualified post-secondary education for themselves, their spouse, or their dependents.
Over the last few years individuals who have had debt forgiven, have been receiving 1099’s for the amount of debt canceled, which is generally considered to be taxable income.