An innocent spouse seeks to be relieved from the liability of their spouse’s tax issues. Relief from Joint and Several Liability is Section 6015 of the Internal Revenue Code. Married taxpayers who file a joint return are liable for taxes, interests, and penalties according to the return, as well as any other taxes the IRS […]
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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 […]
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Taxpayers who file a joint return with their spouse and have part (or all) of their share of overpayment applied to a spouse’s past tax debts may be entitled to claim a refund as an injured spouse. A spouse’s past debts can include: Tax liability Child/spousal support Federal non-tax debt State income tax Situational Example: […]
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If a taxpayer has had an EITC claim denied for any year after 1996, or if the EITC claim was reduced, and not due to a mathematical or clerical error, the taxpayer is required to attach Form 8862 the next time he tries to claim the EITC. If not, the claim is automatically denied. This […]
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It’s tax time again. Be sure you’re prepared to file by gathering all the forms and documents you’ll need. Here are the most common things taxpayers use to complete their taxes, starting with the most basic: Last year’s tax return – federal and state. Not a requirement but used to compare what you filed last […]
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If you think you’ve been a victim of a tax identity theft, you should call the IRS immediately. The IRS Identity Protection Specialized Unit can be reached at 1-800-908-4490. The more paperwork you have to prove you are whom you claim to be, dating as far back as possible, will help your claim. You’ll also […]
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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. […]
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A 529 plan is maintained by the state to help residents save for college. You aren’t eligible to deduct contributions made to a 529 plan, but your contributions will increase tax-free for as long as it remains saved in the plan. Even if you use the money for qualified educational expenses, earnings continue to be […]
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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 […]
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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 […]
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