Taxes are an essential part of a functioning society, providing the government with the necessary funds to provide public services. However, when it comes to paying taxes, many individuals and businesses may find themselves making mistakes or underestimating their obligations. This can lead to tax underpayment, a situation that often incurs penalties. In this article, […]
How to Lower Your Taxable Income in Retirement
For many retirees, tax planning doesn’t end when the paychecks stop; it becomes even more critical. Even if you’ve saved diligently, how and when you withdraw money from your retirement accounts can significantly impact how much you owe the IRS. Understanding how to lower your taxable income in retirement can help stretch your savings, preserve […]
How to Fill Out a W-4
Key Takeaways: When taxpayers notice smaller-than-expected refunds, it’s often due to an outdated Form W-4. Many people don’t realize that a W-4 needs to be updated whenever certain life changes occur, and failing to do so may leave you with too little tax withheld throughout the year. This can result in a smaller refund, or […]
Filing Taxes During a Marriage Separation
Filing Taxes During a Marriage Separation Marriage separation can create significant tax complexities, particularly when determining filing status, dependent claims, and the treatment of shared income or assets. For tax purposes, the IRS generally considers individuals married until a final divorce decree or separate maintenance decree is issued. Understanding how this distinction affects tax obligations […]
Filing Guide for First-Time Taxpayers
Filing your taxes for the first time can feel overwhelming. Between gathering documents, understanding forms, and figuring out which credits or deductions you qualify for, it’s easy to feel lost. The good news is that once you learn the process, it becomes much easier every year. This comprehensive guide to tax filing tips for first-time […]
Tax Tips for New Parents: Child Tax Credit, Dependent Claims & More
Becoming a parent brings joy and new responsibilities, including changes to your tax situation. Whether you recently welcomed a baby through birth or adoption, the IRS offers several credits and deductions that can lower your tax bill or increase your refund. Understanding how to claim these benefits correctly can help new parents make the most of […]
GoFundMe: How are Donations Taxed?
Crowdfunding is the act of funding a project by collecting small donations from a large number of individuals, often online. GoFundMe has become a powerful platform for individuals and organizations to raise funds for various causes. These range from medical expenses and emergency relief to community projects and personal aspirations. However, many users of the […]
What Happens If You Ignore IRS Collection Letters? The Worst Case Scenario
If you’ve ever asked yourself, “can I ignore the IRS?”, you’re not alone. Many taxpayers feel overwhelmed by notices from the IRS and hope that ignoring them will make the problem disappear. Unfortunately, the reality is far more serious. Ignoring IRS collection letters can trigger a series of escalating actions, from mounting penalties to wage […]
IRS Warns of New ‘Notification of IRS Audit & Investigation’ Phishing Scam Targeting Taxpayers
Tax scams are evolving fast, and cybercriminals have found new ways to exploit fear, urgency, and trust. One of the latest threats making the rounds involves fake IRS emails with the subject line “Notification of IRS Audit & Investigation.” These emails look authentic, reference IRS procedures, and often include official-sounding language designed to make you […]
The Difference Between a Tax Levy and a Tax Lien
Falling behind on your taxes can lead to serious consequences, but few IRS collection actions create more confusion, or fear, than tax liens and tax levies. Although the two terms sound similar, they represent very different stages in the IRS collection process. A tax lien is the government’s legal claim to your property as security […]