The sharing economy is providing taxpayers with new ways to earn income. It’s also making their tax returns more complex. If you participate in the sharing economy, you need to understand the tax consequences to avoid potential IRS tax problems. Income and Estimated...
IRS Tax Help
Do You Need to Pay Taxes on a Gain From Selling Your Home?
In a rising real estate market, taxpayers may end up selling their homes for much more than they paid just a few years ago. This would normally be a taxable gain, but the tax code provides an important exclusion for gains from the sale of a home. There are a few...
What is a CP2000 Notice?
The IRS CP2000 notice is used when the information on your tax return doesn’t match a W-2, 1099, or other informational tax form received by the IRS. There could be several reasons you’re receiving a CP2000 notice: You may have made an error on your tax return. Your...
What is Cancellation of Debt Income?
Cancellation of debt income is the “gain” you receive when a debt you are responsible for is forgiven. The amount you don’t have to pay back may be considered cancellation of debt income, which could be taxable income in some cases. Form 1099-C You may receive a Form...
Does Back Child Support Affect Your Tax Refund?
The IRS can offset your tax refund for delinquent child support as part of the Treasury Offset Program (TOP). Your entire refund may be levied or it may be reduced to pay the past-due child support. Treasury Offset Program The TOP allows tax refunds to be seized to...
Tax Tips: Applying Your Tax Refund to Next Year’s Estimated Taxes
Applying your tax refund to next year’s estimated taxes might not sound exciting, but it could be a smart financial choice. Your first quarterly estimated tax payment is due April 15, and applying your tax refund to this payment could offer several benefits. Avoid...
What to Do If You Missed the Tax Return Filing Deadline
You should file your return as soon as possible if you missed the tax return filing deadline. There are two scenarios you may find yourself in: You missed the deadline and are owed a tax refund. You missed the deadline and owe the IRS money. In either case, you will...
Tax Issues When You Start a New Business
It’s exciting to start a new business venture, but it also causes new tax issues. Business taxpayers have more deduction opportunities, but also need to do more work to make sure they avoid tax problems. Look out for the following tax issues when starting a new...
Life Changes That Affect Your Taxes
As your life changes, your tax return will often change along with it. Any of the following major life events will impact your tax return and how much you owe each year in taxes. Marriage Getting married will cause several changes to your tax return: Your filing...
What Happens If You File Your Tax Return Late?
The consequences of filing a late tax return depend on whether you owe taxes or are due a refund. It also matters if you file your return just a few days late or several years after the return’s deadline. Late Returns When Owed a Tax Refund The IRS doesn’t charge any...