Category Archives: Income

Explaining the 1099-MISC Form

The amount of payments you receive through a year either from a single person or a entity are reported on the 1099-MISC for the year your provided them with service The IRS requires that any company or person who makes payments to report them on a Form 1099-MISC to both the IRS and the payee. […]

Cancelled Debt Can Be Considered Income

Sometimes, those you owe money to may consider the debt forgiven, and cancel the remaining balance. In these situations, you’ll likely still have to pay tax on the amount forgiven, as the IRS considers the balance to be a form of income. You’ll be responsible for paying income tax on the cancelled debt. Debt is […]

Capital Gain From Home Sale

So you finally sold your home, and now it’s time to rejoice in having a large burden removed from your shoulders. It’s even better when you’ve made a profit from the sale. Capital Gain When you sell your house for more than what you originally paid, the end result is a capital gain. In most […]

Taxing Your Tips

As a service professional, sometimes there can be nothing more rewarding than a generous tip from a customer. While those tips may feel great in the moment, come tax time, you can’t forget to include them in your income. The IRS offers these tips for taxing your hard earned tips: They’re taxed. Tips are considered […]

Your Investments at Tax Time

Did you use some of your extra cash to invest in the stock market? If so, you may have received a large tax bill that you weren’t expecting. When investing your hard earned cash, remember two things: Securities in which you receive dividends or earned interest, for example a CD, are subject to taxation as […]

Selling Items on an Online Auction Site

So you’ve done some spring cleaning and found some extra items that made you some cash on one of the popular auction sites online, such as eBay. If you’ve sold anything on one of these sites, you may be curious to know how it will affect you at tax time. Let’s say you sold roughly […]

IRA Payouts for Major Expenses

Using funds form your IRA, whether a traditional plan or a Roth, can be a great way to cover some major expenses that you may incur through your lifetime. Just be aware of certain terms and conditions that apply when withdrawing. Home Purchase If you chose to withdraw funds from your traditional IRA before you’ve […]

Having an IRA savings in place is a great way to prepare for retirement. However, sometimes situations may arise in which you will need to withdraw your funds before you’ve reached retirement age. Typically, if you take money from your individual retirement account prior to age 59 ½, you’ll be subject to a 10% early […]

Three T’s to Know at Tax Time

Taxable Income Taxable income is any earnings such as wages, interest and dividends that are subject to taxation. When filling out a tax return, taxable income refers to the amount of earnings after subtracting adjustments, deductions and exemptions. This amount will be used to calculate your taxes owed. Tax Bracket There are seven different tax […]