IRS Form 1099 is a crucial tax document used to report various types of income received outside of traditional employment. Now that we know the basics of IRS Form 1099, we can take a closer look at the different types of 1099s you can receive. Remember, if you received any income outside your employer, you might […]
1099s Explained: The Basics
Receiving a 1099 is becoming more and more common with the rise in small businesses, side hustles, and the desire for a second stream of income. With the additional income comes a different tax filing process. If you receive a 1099, it’s because you earned a certain amount of income from a non-employer. Like most […]
Unfiled Tax Returns: What You Need to Know
Filing tax returns is a fundamental responsibility of every taxpayer, yet many individuals find themselves with unfiled tax returns. This issue is not just a financial inconvenience—it carries significant legal implications. The IRS has robust mechanisms to address unfiled returns, and ignoring this obligation can lead to consequences. This article aims to provide a comprehensive […]
How to File Past-Due Tax Returns
Life can sometimes throw us curveballs, and as a result, important tasks like filing tax returns can fall through the cracks. If you find yourself in a situation where you have past-due tax returns, it’s essential to address the issue promptly to avoid penalties and legal complications. In this article, we’ll walk you through a […]
How to Report Passive Income
Passive income includes earnings from sources such as rental properties, limited partnerships, or other enterprises in which you’re not actively involved. Reporting passive income properly is crucial because failing to do so can result in IRS penalties, audits, or other legal issues. This guide will help you understand the basics of passive income, how to […]
I Overstated My Tax Deductions. Now What?
It’s easy to make mistakes when filing taxes, especially when it comes to deductions. You might accidentally overstate your tax deductions, either due to a misunderstanding of tax laws, incorrect records, or an inadvertent miscalculation. The IRS takes incorrect tax returns seriously, so it’s essential to understand what happens when you overstate your deductions and […]