Navigating the intricacies of tax season can be daunting, even for the most financially savvy among us. The complexity of tax laws and the desire to maximize returns can make the prospect of hiring a tax preparer an attractive option. However, this decision comes with risks – namely tax preparer fraud. This form of deceit not only jeopardizes your financial security but also places you at odds with tax authorities. To avoid becoming a victim, be sure you know what to look for in a tax preparer and how to spot potential warning signs. What is Tax Preparer Fraud? Tax preparer fraud is a broad te ..read more

When it comes to managing your finances, especially during tax season, understanding your adjusted gross income (AGI) is crucial. It’s the starting point for determining how much of your income is taxable and what potential deductions and credits you’re eligible to take. But what exactly is AGI? How do you calculate it? In this post, we’re going to break down the concept of AGI step by step, so you can not only comprehend its significance but also learn how to manage it effectively to optimize your tax situation. What is Adjusted Gross Income (AGI)? Adjusted gross income, or AGI, is a term you ..read more

Facing an IRS tax levy can be an intimidating and stressful experience. It’s a serious matter that demands immediate attention, as it can significantly impact your financial well-being. Understanding what a tax levy entails, the consequences it brings, and the steps to counteract it are crucial to protecting your assets and regaining financial stability. If you need to stop an IRS tax levy, here’s what you need to know. Understanding IRS Tax Levies When you owe taxes to the IRS and fail to pay them, the agency has the authority to enact a tax levy. This is not merely a threat; it’s the legal s ..read more

When it comes to dealing with taxes, there’s always a sense of anxiety and uncertainty. One particular area that often confuses taxpayers is IRS tax settlement. Many people wonder if it’s a real option or just a myth. In this article, we will delve into the world of tax debt settlement, explore its intricacies, and uncover the truth behind its existence. The Basics of IRS Tax Settlement Before we determine whether IRS tax settlement is real or not, let’s first understand what it entails. Tax debt settlement, also known as an Offer in Compromise (OIC), is a program offered by the Internal Reven ..read more

As a homeowner, it is crucial to understand the importance of paying property taxes on time. Property taxes are a significant source of revenue for local governments, providing funding for essential services such as schools, infrastructure, and public safety. These taxes are typically based on the assessed value of your property and are due annually. If you have unpaid property taxes, however, there can be severe consequences.  The Importance of Paying Property Taxes on Time Paying property taxes on time is not just a legal obligation, but it also ensures the well-being of your community ..read more

As a homeowner, it is crucial to understand the importance of paying property taxes on time. Property taxes are a significant source of revenue for local governments, providing funding for essential services such as schools, infrastructure, and public safety. These taxes are typically based on the assessed value of your property and are due annually. If you have unpaid property taxes, however, there can be severe consequences.  The Importance of Paying Property Taxes on Time Paying property taxes on time is not just a legal obligation, but it also ensures the well-being of your community ..read more

A federal tax lien is a legal claim the government places on your property when you fail to pay your taxes. The Internal Revenue Service (IRS) has the authority to enforce tax collection. A federal tax lien is one of the tools they use to ensure payment. When a tax lien is filed against you, it becomes public record and can impact your financial well-being. The Tax Lien Process If you owe back taxes, the IRS will send you a bill (Notice and Demand for Payment) that explains how much you owe. It will also include a payment due date. If you fail to pay your tax bill, a federal tax lien will auto ..read more

The IRS doesn’t age-discriminate when it comes to collecting taxes. If you earn income, they’ll want their piece of the pie. This includes your children who may be making some cash by pet sitting for the neighbors, providing lawn services, or even saving up for college with a summer job. As a parent, it’s important to understand not only when your child is required to pay taxes, but also how to file them. Here’s what you need to know. Does My Child Need to File Taxes? Although many children earn money, not all will be required to file taxes. If your child meets any of the following conditions ..read more

When a married couple goes their separate ways, it’s not uncommon for alimony payments to be included as part of the divorce settlement. Decades ago, the husband was responsible for providing the spousal support. However, a Supreme Court ruling in 1979 (Orr v. Orr) determined that alimony should be gender-neutral. Regardless of who pays and receives the support, one common question always arises: “Who pays taxes on alimony payments?” Alimony Rules 2018 and Earlier If you were legally divorced by December 31, 2018, the rules for taxes on spousal support differ from the current tax laws. For all ..read more

As an engaged citizen, you may feel compelled to support political causes and candidates through financial contributions or volunteer work. However, it’s important to understand the tax implications of your political support. If you’ve ever wondered, “Are political donations tax deductible?” – here’s what you need to know. Are Political Donations Tax Deductible? The tax deductibility of political donations (cash or in-kind) is a common question among taxpayers. In general, the answer is “no,” political donations are not tax deductible. The Internal Revenue Service (IRS) prohibits the deduction ..read more