“Innocent spouses” may get relief from tax liability

“Innocent spouses” may get relief from tax liability

0 Comments

injured spouse effect on taxes

When a married couple files a joint tax return, each spouse is “jointly and severally” 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. (However, the civil fraud penalty can be imposed only on spouses who’ve actually committed fraud.)
Continue Reading: “Innocent spouses” may get relief from tax liability

The tax implications of being a winner

0 Comments

Gambling or Lottery Winning Tax Consequences

If you’re lucky enough to be a winner at gambling or the lottery, congratulations! After you celebrate, be ready to deal with the tax consequences of your good fortune.
Continue Reading: The tax implications of being a winner

The “kiddie tax” hurts families more than ever

0 Comments

kiddie tax

Years ago, Congress enacted the “kiddie tax” rules to prevent parents and grandparents in high tax brackets from shifting income (especially from investments) to children in lower tax brackets. And while the tax caused some families pain in the past, it has gotten worse today. That’s because the Tax Cuts and Jobs Act (TCJA) made changes to the kiddie tax by revising the tax rate structure.
Continue Reading: The “kiddie tax” hurts families more than ever

The “nanny tax” must be paid for more than just nannies

0 Comments

Nanny Tax

You may have heard of the “nanny tax.” But even if you don’t employ a nanny, it may apply to you. Hiring a housekeeper, gardener or other household employee (who isn’t an independent contractor) may make you liable for federal income and other taxes. You may also have state tax obligations.
Continue Reading: The “nanny tax” must be paid for more than just nannies

Summer: A good time to review your investments

0 Comments

A good time to review your investments
You may have heard about a proposal in Washington to cut the taxes paid on investments by indexing capital gains to inflation. Under the proposal, the purchase price of assets would be adjusted so that no tax is paid on the appreciation due to inflation.
Continue Reading: Summer: A good time to review your investments

Thinking About Moving to Another State in Retirement? Don’t Forget About Taxes

0 Comments

New State Taxes after Retirement

When you retire, you may consider moving to another state — say, for the weather or to be closer to your loved ones. Don’t forget to factor state and local taxes into the equation. Establishing residency for state tax purposes may be more complicated than it initially appears to be.
Continue Reading: Thinking About Moving to Another State in Retirement? Don’t Forget About Taxes

Donating Your Vehicle to Charity May Not Be a Taxwise Decision

0 Comments

charitable vehicle donation

You’ve probably seen or heard ads urging you to donate your car to charity. “Make a difference and receive tax savings,” one organization states. But donating a vehicle may not result in a big tax deduction — or any deduction at all.
Continue Reading: Donating Your Vehicle to Charity May Not Be a Taxwise Decision

The Chances of IRS Audit Are Down But You Should Still Be Prepared

0 Comments

IRS Audit

The IRS just released its audit statistics for the 2018 fiscal year, and fewer taxpayers had their returns examined as compared with prior years. However, even though a small percentage of tax returns are being chosen for audit these days, that will be little consolation if yours is one of them.
Continue Reading: The Chances of IRS Audit Are Down But You Should Still Be Prepared

Check On Your Refund — And Find Out Why the IRS Might Not Send It!

0 Comments

tax refund

It’s that time of year when many people who filed their tax returns in April are checking their mail or bank accounts to see if their refunds have landed. According to the IRS, most refunds are issued in less than 21 calendar days. However, it may take longer — and in rare cases, refunds might not come at all.
Continue Reading: Check On Your Refund — And Find Out Why the IRS Might Not Send It!