Are you unfairly burdened by a spouse’s tax errors? You may qualify for “innocent spouse relief”.

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Are you unfairly burdened by a spouse’s tax errors? You may qualify for “innocent spouse relief”.

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August 13, 2024 , ,

innocent spouse relief

Navigating the complexities of tax law can be difficult, especially when faced with an unexpected tax bill due to the errors of a spouse or ex-spouse. The reason for such a bill has to do with the concept of “joint and several” liability. When a married couple files a joint tax return, each spouse is liable for the full amount of tax on the couple’s combined income. Therefore, the IRS can come after either spouse to collect the entire tax — not just the part that’s attributed to one spouse or the other. This includes any tax deficiency that the IRS assesses after an audit, as well as any penalties and interest.

Continue Reading: Are you unfairly burdened by a spouse’s tax errors? You may qualify for “innocent spouse relief”.

Do you owe estimated taxes? If so, when is the next one due?

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August 6, 2024 , , ,

estimated tax payments

Federal estimated tax payments are designed to ensure that certain individuals pay their fair share of taxes throughout the year. If you don’t have enough federal tax withheld from your paychecks and other payments, you may have to make estimated tax payments. This is the case if you receive interest, dividends, self-employment income, capital gains, a pension or other income that’s not covered by withholding.

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The tax implications of disability income benefits

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July 30, 2024

disability income tax

Many Americans receive disability income. Are you one of them, or will you soon be? If so, you may ask: Is the income taxed and if it is, how? It depends on the type of disability benefit and your overall income.

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How are Series EE savings bonds taxed?

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July 23, 2024 , , ,

Series EE saving bond tax

Savings bonds are purchased by many Americans, often as a way to help fund college or show their patriotism. Series EE bonds, which replaced Series E bonds, were first issued in 1980. From 2001 to 2011, they were designated as “Patriot Bonds” as a way for Americans “to express support for our nation’s anti-terrorism efforts,” according to the U.S. Treasury Department.
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Six tax issues to consider if you’re getting divorced

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July 16, 2024

divorce & taxes

Divorce entails difficult personal issues, and taxes are probably the farthest thing from your mind. However, several tax concerns may need to be addressed to ensure that taxes are kept to a minimum and that important tax-related decisions are properly made. Here are six issues to be aware of if you’re in the process of getting a divorce.

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Planning your estate? Don’t overlook income taxes

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July 10, 2024 ,

estate income tax

The current estate tax exemption amount ($13.61 million in 2024) has led many people to feel they no longer need to be concerned about federal estate tax. Before 2011, a much smaller exemption resulted in many people with more modest estates attempting to avoid it. But since many estates won’t currently be subject to estate tax, it’s a good time to devote more planning to income tax saving for your heirs.
Continue Reading: Planning your estate? Don’t overlook income taxes

Certain charitable donations allow you to avoid taxable IRA withdrawals

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July 2, 2024 , , , ,

Charitable Required Minimum Distribution

If you’re a philanthropic individual who is also obligated to take required minimum distributions (RMDs) from a traditional IRA, you may want to consider a tax-saving strategy. It involves making a qualified charitable distribution (QCD).

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What might be ahead as many tax provisions are scheduled to expire?

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June 25, 2024 , ,

future tax changes

Buckle up, America: Major tax changes are on the horizon. The reason has to do with tax law and the upcoming elections.

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Social Security tax update: How high can it go?

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June 18, 2024

social security tax

Employees, self-employed individuals and employers all pay Social Security tax, and the amounts can get bigger every year. And yet, many people don’t fully understand the Social Security tax they pay.

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The tax consequences of selling mutual funds

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June 16, 2024 ,

sell mutual funds

Do you invest in mutual funds or are you interested in putting some money into them? If so, you’re part of a large group. According to the Investment Company Institute, 116 million individual U.S. investors owned mutual funds in 2023. But despite their widespread use, the tax rules involved in selling mutual fund shares can be complex.

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