Category Archives: General Filing

Millions of taxpayers who owe $5 or more in back taxes have already received CP14 warnings from the IRS politely reminding them that the IRS needs their money. Immediately following tax season, the IRS is not very active in collecting. They have a lot of work to do, after all. But by the end of […]

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Use Form 9465 to request a monthly installment plan if you cannot pay the full amount you owe shown on your tax return, or if the IRS determines that you cannot pay any of your tax debt, they may report your account as currently not collectible and temporarily delay collection until your financial condition improves. […]

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An estimated 1.5 million taxpayers who did not file a 2018 Form 1040 federal income tax return may be owed about $1.5 billion in unclaimed income tax refunds, but they must act by the April tax deadline, according to the Internal Revenue Service. There’s just a three-year window to seek these returns under the law, […]

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Second Stimulus Payment

second-stimulus

Millions of second-round Economic Impact (Stimulus) Payments are being made via direct deposits, paper checks, and prepaid debit cards. The IRS is supposed to distribute all payments by Friday, Jan. 15, 2021. Eligible taxpayers who didn’t receive their payment will need to claim it on their 2020 tax returns.

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Retirement Income CARES Act

The Internal Revenue Service has announced that anyone who already took a required minimum distribution (RMD) in 2020 from certain retirement accounts now has the opportunity to roll those funds back into a retirement account following the CARES Act RMD waiver for 2020. The 60-day rollover period for any RMDs already taken this year has […]

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New AMT

New AMT

The overhaul almost abolished the alternative minimum tax, or AMT, a complex and unpredictable parallel tax system. The purpose of the AMT is to limit tax breaks that are permitted under the regular tax system and to ensure that high earners can not avoid all taxes legally. Legislators ultimately retained the AMT, but with significant […]

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New Kiddie Tax

Kiddies Tax

Significant changes were made to the “Kiddie Tax,” a special levy on the “unearned” income of a child above $2,100 in 2018 and $2,200 in 2019. It typically applies to investment income such as dividends, interest, and capital gains, and is not applicable to the earned income of a young person from newspaper delivery or […]

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New Personal Exemption

personal exemption

The abolition of the personal exemption is also a significant shift. This provision was a subtraction from income before the overhaul for each person included in a tax return-typically family members. The amount for 2018 was set to be $4,150 per person, and for higher earners it was phased out. Personal exemption was also essential […]

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Estimated Tax Payments

Estimated Tax Payments

If you choose not to have taxes withheld from your wages, or if you have not paid enough for each paycheck, you may have to make estimated tax payments. Similarly, self-employed people typically pay income tax by estimated payments. Four Important facts about estimated taxes If you think you need to pay estimated taxes, or […]

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Gambling Win and Loss

Gambling Win and Loss

If you enjoy trying your luck at the tables, watching the slots spin, or hoping to win your horse, any money you have earned from these activities is taxable, the IRS must be advertised. Every once in a while you can enjoy a game of chance, but you should never play your taxes. Follow these […]

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