The Tax Cuts and Jobs Act (TCJA) modified several of the tax breaks offered to homeowners. Some taxpayers may now get less tax benefits from owning their homes, but that doesn’t necessarily mean they’ll end up paying more in income taxes. If you’re considering buying...
Tax Help
Tax Consequences of Failing to Report Tips
Tips are taxable income, and a failure to properly report your tip income could lead to the following issues: IRS audit of your return. Back taxes owed. Interest and penalties added to your tax debt. Tipped employees should be aware of these consequences and properly...
Why Do People Forget to File Tax Returns?
Every year, people who are required to file tax returns or who could benefit from filing a return fail to do so. Some of them miss their chance to receive a tax refund, while others could run into tax penalties, interest and other problems caused by unpaid IRS tax...
Is A Tax Extension Really Free?
It’s free to request an automatic six-month tax filing extension, but you may be charged late payment penalties and interest until you pay your full tax liability for the year. However, you will avoid the failure-to-file penalty if you request an extension and file...
How to Avoid Tax Underpayments
Underpaying taxes throughout the year results in two problems once tax time comes around: Instead of getting a nice tax refund check, you owe the IRS money. You may be hit with underpayment penalties. Many people end up being charged underpayment penalties out of...