Category Archives: Income

The Form 1099 Explained

There are a variety of Form 1099 one may receive when collecting their tax documents. If you’re a worker, you won’t fill out the form yourself, but will receive it from the party who paid you or holds your investment account. Its one of the few tax forms that simply report information and you aren’t […]

Don’t forget that alimony and child support have an impact on your taxes. You have to report the amounts when you file. Here’s the breakdown. Alimony Alimony payments are deducted from your taxable income, which lowers the amount you are taxed on as long as you meet the following requirements: You pay by cash, check, […]

Are Scholarships Taxable?

The answer is possibly. Scholarships can be partially tax-free, while some of the funding is considered taxable. It depends on how the funds are allocated. If you are a full or part-time student working toward a degree at an eligible educational institution, including primary, secondary or post-secondary schools, then your scholarship is likely tax-free. There […]

When to Pay Self-Employment Taxes

Individuals who are considered self-employed must still pay taxes. Self-employment taxes are contributions made to Social Security and Medicare, generally through quarterly payments known as estimated tax payments. Self-employment tax applies to anyone who makes $400.00 or more. In these cases, the taxpayer must file a Schedule SE (Form 1040) to pay self-employment taxes, since […]

Cryptocurrency and Taxes

Are you investing in the cryptocurrency market? Last tax year, did you sell some Bitcoin or other type of cryptocurrency? If so, you treat the investment the same as capital assets, similar to a stock or bond. Any gains or losses are taken against the market value of the cryptocurrency when you first acquired it. […]

Real Estate Sales

At tax time, you have to be cognizant of any sales of houses or other real estate that you made during the past year, as they can have tax implications. You’ll need to report the sale of your home or other structures, including land (with added improvements or not) and interest in condos and cooperative […]

What is a Form 1099-A?

A homeowner who has a home in foreclosure can expect to receive a Form 1099-A from the lender. This form reports all the necessary information you’ll need to file your tax return in relation to your home foreclosure. Capital Gains In the eyes of the IRS, a foreclosure is the same as if you sold […]

Form 1099-B: Investment Securities

You’ll receive a Form 1099-B from your broker whenever you sell investment securities. Form 1099-B lists the pertinent information about your sales, including date, description and proceeds, and if known, your cost basis. Investment gains and losses affect your taxes, so you’ll have to report all the required information about your investments when you file. […]

Different Types of 1099 Forms

There are many different Form-1099s that you may encounter when tax season rolls around. Some of the most common include: 1099-A: If your mortgage lender cancels some or all your mortgage, or your home was sold in a short sale, you’ll likely receive a 1099-A. Because the IRS considers canceled debt to be equivalent to […]

Is This Payment Tax-Free? It Depends

Certain payments, depending on the circumstances, may be tax-free, despite other similar payments resulting in being taxed. The following three situations require special care to determine if the payment is tax-free. Legal Settlements: To determine if your court settlement should be taxed, you need to consider the reason the settlement was granted, and if it […]