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10 Times When Only a Tax Professional Will Save You

10 Times When Only a Tax Professional Will Save You

10 Times When Only a Tax Professional Will Save You The Limitations of DIY Tax Preparation and How They Can Get You Into Tax Trouble The widespread availability of tax preparation software has made Do-It-Yourself tax prep easier than ever. These software packages are simple to use, with step-by-step instructions and built-in checklists that make mistakes less likely. But mistakes do happen, and when they do, the IRS will be out to collect any back taxes you might owe plus penalties [...]

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2019 “Dirty Dozen” List of Tax Scams

2019 “Dirty Dozen” List of Tax Scams The Internal Revenue Service wrapped up its annual “Dirty Dozen” list of tax scams. Pay attention to these often aggressive and evolving schemes throughout the year. These scams will cost you and can often be dangerous. 2019’s “Dirty Dozen” list highlights a wide variety of schemes that you may encounter at any time, although many may peak during tax-filing season. These schemes range from simple refund inflation scams to complex tax shelter deals. A [...]

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Bitcoin Property You May Have Forgotten is Taxed

Bitcoin: Property You May Have Forgotten is Taxed

Even though Cryptocurrency was originally proclaimed anonymous, transactions today are transparent. Governments have observed surges of black-market trading using Crypto in the past. Exchanges now impose anti-money laundering requirements on Crypto traders to avoid drawing the ire of regulators. The biggest change for Crypto traders, though, has been taxes. Regulators, central bankers, and federal judges all have different opinions on how to categorize cryptocurrency. However, they all seem to agree it should be taxed. Most major countries tax cryptocurrencies similarly, too. So, what does [...]

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5 Tax Tips for the Self-Employed

Freelancers and independent contractors face unique challenges during tax season. Here are some quick tips to better manage the process and maximize your deductions. Ever feel a little lost during tax season as a self-employed taxpayer? Whether you did a few extra freelance gigs on the side or manage your own business, income tax filing can be overwhelming, especially if you haven’t done it before. Here are some quick tips to help you understand and better manage the process. The more [...]

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What is the Earned Income Tax Credit? Do I Qualify?

What is the Earned Income Tax Credit? Do I Qualify? The Earned Income Tax Credit (EIC or EITC) is a refundable credit for workers who earn low or moderate incomes. This credit is meant to supplement the income you have earned through working, whether for yourself or for someone else. As a result, if you qualify for the Earned Income Tax Credit, you can reduce your taxes and increase your tax refund. The EITC allows more working people and their families [...]

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Tax Breaks for the Military Family

Tax Breaks for the Military Family There are certain tax breaks available to members of the U.S. military and their dependents: Sale of principal residence A taxpayer on qualified official extended duty in the U.S. Armed Services or the Foreign Service may suspend for up to 10 years of such duty time the running of the 5-year ownership-and-use period before the sale of a residence. This election applies to one property at a time. To qualify, a taxpayer must meet the following criteria [...]

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Are you an Employee or Independent Contractor? Here’s Why You Need to Know

Oftentimes, businesses are hiring employees and handing them 1099 Forms to save themselves money. They don’t have to pay their share of the taxpayer’s social security, nor do they have to pay their Medicare (7.65% of the gross pay) or federal unemployment tax ($42 per person). They also get to skip out on the state “re-employment” tax (as much as $189 per person). The independent contractor then has to get their own liability insurance and the employer does not [...]

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Homeowner Alert! Review Your Tax Forms

Homeowner Alert! Review Your Tax Forms New Tax Rules are Creating Confusion Tax laws are constantly changing. Many home-related tax rules have changed and now require you to prove how funds are used to qualify for a deduction. This is catching many taxpayers by surprise. So when your mortgage company reports tax-related information to you and the IRS using Form 1098, it no longer means all the interest and points reported on these statements are tax-deductible. Mortgage interest deductions have new [...]

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How to Organize Your Business Documents

How to Organize Your Business Documents For even the smallest of businesses, getting organized involves a lot more than just tidying up papers and the clutter you have on your desk. You have to have structure for all the different parts of your business. Taking care of your business documents will help you become more productive and profitable. The ideas below are some of the best ways you can become more organized in your small business. Use this to help you make [...]

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Reasons Why You Should Hire an EA

Reasons Why You Should Hire an EA Every year, millions of taxpayers decide to perform complex tax preparation by themselves and, while it is possible, it is a perilous task. For taxpayers with the simplest income tax returns, do-it-yourself online tax systems will likely suffice. These people often have only one source of income coming from a traditional employer, may have a home mortgage with interest (and even this can become complicated under the new law), student loan debt and perhaps [...]

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