Taxes

/ Taxes (Page 22)

What happens if an individual can’t pay taxes

0 Comments
August 18, 2020 , , , ,

tax liability

While you probably don’t have any problems paying your tax bills, you may wonder: What happens in the event you (or someone you know) can’t pay taxes on time? Here’s a look at the options.

Most importantly, don’t let the inability to pay your tax liability in full keep you from filing a tax return properly and on time. In addition, taking certain steps can keep the IRS from instituting punitive collection processes.

Continue Reading: What happens if an individual can’t pay taxes

More parents may owe “nanny tax” this year, due to COVID-19

0 Comments
August 11, 2020 , , , , ,

nanny tax

In the COVID-19 era, many parents are hiring nannies and babysitters because their daycare centers and summer camps have closed. This may result in federal “nanny tax” obligations.

Keep in mind that the nanny tax may apply to all household workers, including housekeepers, babysitters, gardeners or others who aren’t independent contractors.
Continue Reading: More parents may owe “nanny tax” this year, due to COVID-19

The tax implications of employer-provided life insurance

0 Comments
August 4, 2020 , ,

life insurance tax implications

Does your employer provide you with group term life insurance? If so, and if the coverage is higher than $50,000, this employee benefit may create undesirable income tax consequences for you.

Continue Reading: The tax implications of employer-provided life insurance

Are scholarships tax-free or taxable?

0 Comments
July 28, 2020 , ,

taxable scholarships

COVID-19 is changing the landscape for many schools this fall. But many children and young adults are going back, even if it’s just for online learning, and some parents will be facing tuition bills. If your child has been awarded a scholarship, that’s cause for celebration! But be aware that there may be tax implications.

Continue Reading: Are scholarships tax-free or taxable?

Conduct a “paycheck checkup” to make sure your withholding is adequate

0 Comments
July 14, 2020 , ,

paycheck withholding

Did you recently file your federal tax return and were surprised to find you owed money? You might want to change your withholding so that this doesn’t happen next year. You might even want to do that if you got a big refund. Receiving a tax refund essentially means you’re giving the government an interest-free loan.
Withholding changes

Continue Reading: Conduct a “paycheck checkup” to make sure your withholding is adequate

After you file your tax return: 3 issues to consider

0 Comments
July 7, 2020 , , ,

after tax return filing

The tax filing deadline for 2019 tax returns has been extended until July 15 this year, due to the COVID-19 pandemic. After your 2019 tax return has been successfully filed with the IRS, there may still be some issues to bear in mind. Here are three considerations.

Continue Reading: After you file your tax return: 3 issues to consider

Some people are required to return Economic Impact Payments that were sent erroneously

0 Comments
June 30, 2020 , , ,

return Economic Impact Payment

The IRS and the U.S. Treasury had disbursed 160.4 million Economic Impact Payments (EIPs) as of May 31, 2020, according to a new report. These are the payments being sent to eligible individuals in response to the economic threats caused by COVID-19. The U.S. Government Accountability Office (GAO) reports that $269.3 billion of EIPs have already been sent through a combination of electronic transfers to bank accounts, paper checks and prepaid debit cards.

Continue Reading: Some people are required to return Economic Impact Payments that were sent erroneously

What qualifies as a “coronavirus-related distribution” from a retirement plan?

0 Comments
June 23, 2020 , , , , , ,

coronavirus-related distribution

As you may have heard, the Coronavirus Aid, Relief and Economic Security (CARES) Act allows “qualified” people to take certain “coronavirus-related distributions” from their retirement plans without paying tax.

Continue Reading: What qualifies as a “coronavirus-related distribution” from a retirement plan?

If you’re selling your home, don’t forget about taxes

0 Comments
June 16, 2020 , ,

Home Sale Taxes

Traditionally, spring and summer are popular times for selling a home. Unfortunately, the COVID-19 crisis has resulted in a slowdown in sales. The National Association of Realtors (NAR) reports that existing home sales in April decreased year-over-year, 17.2% from a year ago. One bit of good news is that home prices are up. The median existing-home price in April was $286,800, up 7.4% from April 2019, according to the NAR.

If you’re planning to sell your home this year, it’s a good time to review the tax considerations.

Continue Reading: If you’re selling your home, don’t forget about taxes

Seniors: Can you deduct Medicare premiums?

0 Comments
June 9, 2020

Medicare premium deduction'

If you’re age 65 and older, and you have basic Medicare insurance, you may need to pay additional premiums to get the level of coverage you want. The premiums can be costly, especially if you’re married and both you and your spouse are paying them. But there may be a silver lining: You may qualify for a tax break for paying the premiums.

Continue Reading: Seniors: Can you deduct Medicare premiums?