Schedule K-1 is a crucial tax form for anyone involved in partnerships, S corporations, or certain trusts and estates. Traditional tax forms, like the W-2 or 1099, report income directly to individual taxpayers. However, Schedule K-1 reports a taxpayer’s share of income, deductions, and credits from pass-through entities. Understanding how this form works and the […]
Zelle and Taxes: Does Zelle Report to the IRS?
Zelle has become one of the most popular ways to send and receive money instantly, with millions of users transferring funds directly between bank accounts each day. But as tax season approaches, one common question arises: Does Zelle report your transactions to the IRS? While other peer-to-peer payment apps like PayPal and Venmo are subject […]
What is IRS Penalty Abatement?
The IRS imposes penalties on taxpayers for various reasons, including failing to file a tax return on time, failing to pay taxes owed, or providing inaccurate information. However, the IRS also offers penalty abatement—a process that allows taxpayers to request a reduction or removal of certain penalties under specific circumstances. Understanding how penalty abatement works […]
How to Prepare for the New 1099-K Thresholds in 2025
The IRS will enforce new reporting thresholds for 1099-K forms starting in 2025 under the One Big Beautiful Bill Act (OBBBA). The changes will impact gig workers, freelancers, and small business owners, particularly those operating in the gig economy or e-commerce. Understanding these updates and planning accordingly can help avoid surprises come tax season. Let’s […]
How Do Newlyweds File Taxes?
Getting married is a joyous occasion, but it also brings important financial and tax considerations. As a newlywed, understanding how to navigate the tax implications of your new marital status is crucial for optimizing your finances and avoiding potential pitfalls. This comprehensive guide will walk you through the essential steps and decisions you need to […]