May - 2022

May 27

Still Haven't Received Your Tax Refund? Look Forward To A 5% Interest Rate.

Taxpayers are fidgety, consistently tracking their tax refund status through the IRS’ Where’s My Refund tool for their awaited tax returns. Although most people will receive their tax returns within 21 days of filing electronically, the IRS advises that there may be delays due to pandemic-related backlogs. There's A Silver Lining For Taxpayers Who Are Still Waiting! The IRS typically has 45 days to process all the tax returns and send the refunds after the filing deadlines. A

May 26

Gross & Net Income Simply Explained

Anyone who's a new taxpayer will eventually hear the terms gross and net income but have no idea how to tell the difference from each other. One thing new taxpayers and small business owners should know is that you'll hear the terms gross and net income a lot when it comes to your personal finances, business finances, and even your taxes. It’s important to know how gross and net income are different from each other. Gross income is usually the higher number because in most ca

May 25

What Is Backup Withholding? Can I Avoid It?

Unless you’re a tax professional, mistakes are bound to happen when preparing documents and filing returns, such as inputting inaccurate information with the SSN or TIN that you provided to the IRS. Unfortunately, these issues could be costly and take some time to resolve. You should not be subject to backup withholding if you provide your correct TIN/SSN, make the proper certifications, and report all your taxable interest and dividends on your tax return to the IRS. Busines

May 24

What Are The Chances of Getting a Mortgage If I Owe Back Taxes to the IRS?

Owing back taxes to the IRS can complicate your life in several ways. If you’re looking to buy a house while you have a federal tax debt, you may have a more difficult time getting a mortgage. It’s still possible, but you’ll be seen as a risky borrower. The easiest option is to pay off your tax debt before you apply for a mortgage. IRS Fresh Start Initiative may be the program for you and help you resolve your unpaid tax liabilities. This Is How Lenders Know You Owe Taxes Whe

May 23

Summer Is Approaching! Tax Planning Is Year-Round.

Most individuals are already switching to a summer mindset of delicious piña coladas and summer vacations automatically push taxes to the back of their minds. Tax planning isn’t a once-a-year activity. In fact, thoughtful planning year-round can help you reduce your tax liabilities come April. Additionally, summer is a great time to review withholdings and see if summer plans would affect next year's tax return. Life events like marriage, divorce, having a child, or a change

May 20

Avoid Payroll Tax Penalties By Doing This!

Many business owners are unaware that the IRS places a higher priority on collecting payroll taxes than on collecting unpaid income taxes. As a result, there's a lot on the line if payroll taxes have been overlooked or mishandled. If you fail to properly address payroll taxes, both the IRS and state-level agencies will notice. What Are Payroll Taxes? Employers pay payroll taxes as a contribution and employees as a percentage deduction from their salaries. These taxes are usua

May 19

What Are Self-Employment Taxes?

There are no avoiding taxes and if you want to avoid a tax audit, it’s important to file your self-employed taxes right the first time. Unlike W-2 employees, self-employed taxpayers, contrary to traditional taxpayers, do not have taxes automatically deducted from their paychecks. It’s up to them to keep track of what they owe and pay it on time. Some small business owners don’t know they need to make estimated tax payments – which can mean a tax bill in April. If you deal wit

May 18

Got A Tax Bill From Unemployment Benefits?

Unemployment is taxed for recipients at the federal level. How much you pay will depend on your unique tax bracket and how much taxable income you have. When it comes to state taxes, it depends. If you’re in one of the states with no income tax, you won’t need to worry about paying state taxes on your unemployment income. For states with income tax, the treatment of unemployment income varies from state to state. For example, unemployment is taxed in Michigan, but in Californ

May 17

3 Tips That Can Maximize Your Tax Refund That You May Not Know

No taxpayer wants more tax liability. As a matter of fact, taxpayers would much rather receive a tax return that could stuff their pockets with more money than the tax return from the previous years. With a little bit of tax planning and forethought, financial abundance is coming sooner than you thought. The IRS Fresh Start Initiative has tax professionals who can aid you in deciding which tax credits can potentially get you the biggest refund. Filing Status, Is Yours Updated

May 16

I Just Moved To A Different State. Do I Pay Double State Taxes?

If you moved last year from one state to another, you probably had even more work to do because you had to register to vote and get a new driver's license in the new state you reside in. Taxes, unfortunately, follows you everywhere. But don’t worry about knowing the tax implications of moving to a new state — Our tax professionals at IRS Fresh Start Initiative will give you the tax deductions and credits you’re eligible for based on your entries. Here's how to file your state

May 13

How Much Do Stock Taxes Add To My Bill?

When you buy or sell stocks, you must pay capital gains taxes. The amount you'll owe is determined by the number of your earnings and how long you've held onto the stocks. One of the best ways to minimize your stock tax bills is to hold onto your stocks for a longer period of time. What's A Capital Gain? A capital gain essentially is any profit earned when an investment is sold. An investor can calculate the capital gain earned by a sale by subtracting the asset's original pu

May 12

10 Medical Expenses You Can Deduct

If your eligible medical expenses exceed 7.5% of your AGI, you are allowed to deduct medical expenses. If you or your dependents have been in the hospital or had other costly medical or dental expenses, keep those receipts, they could help cut your tax bill. The IRS Fresh Start Initiative can help you sort out your tax deductions if you have any further questions, comments, or concerns. How Do I Deduct My Medical Expenses? Your medical expenses may be tax-deductible under cer

May 11

No Sign Of Your Tax Refund?

Did you make any mistakes when you were filing your taxes this year? You may owe the IRS money, or have unfiled years or back taxes. Any of these reasons could prohibit you from receiving your tax return. The IRS Fresh Start Program offers real relief to taxpayers who owe thousands in back taxes. In some cases, the IRS has forgiven 95% of back taxes owed. Let our tax professionals attempt to help you alleviate your tax-related issues if they occur. Listing A Wrong Bank Accoun

May 10

Need To Pay The IRS? Here Are Some Options To Send Your Payments

When you've completed your tax return and discover that you owe money, it's never good news. You do, however, have a few options for paying down your debt, even if it exceeds your cash reserves. Electronic Federal Tax Payment System (EFTPS) The US Treasury Department's Electronic Federal Tax Payment System (EFTPS) is a web service for processing federal tax payments. Your bank account information must be entered into a profile account. However, you can then pay for a variety

May 10

Tips On How To Prevent & Remove Tax Liens

A tax lien is a claim against your assets and property. A tax levy is the result of an unpaid tax lien. You will receive an official letter from the IRS asking you to pay the taxes outstanding before the lien is put in place. A tax lien serves as a notice that if you do not pay, you will face a tax levy. When the government seizes your property and assets to settle a tax lien, this is known as a tax levy. Speak to our IRS Fresh Start Program tax professionals if you have any

May 9

Can I Claim My Parent As A Dependent?

When a person begins to care for their parents, the IRS permits them to claim their parents as dependents on their tax return. Find out what requirements qualify you to claim your parent as dependents. Over 50% of Support There's something called a support test, which is one of the requirements in order to claim your parent as a dependent. You must cover more than half of your parent's support costs like food, housing expenses, medical services, or anything in between. You ca

May 6

How Do Want Your LLC Taxed On Your Tax Return?

Taxes are the most important factor to consider when forming and choosing a corporate entity. Your business entity structure has a direct impact on the amount of taxes you'll owe the government. A limited liability corporation (LLC) is a type of business that is registered with the state and protects its owners from personal liability. How To File Taxes As A Single-Member LLC (Sole Proprietorship) If you run an LLC on your own and haven't chosen to file as a corporation, you

May 5

What Would Inflation Do To Your 2022 Taxes?

The IRS updates key tax regulations every year to keep up with inflation. The IRS also modified and updated the Earned Income Tax Credit, Medical Savings Account deductibles, and the annual exclusions for gifts. Considering that, take a moment to review crucial tax-related changes before you file your 2022 taxes, however, if you have already filed, see how much they've affected your return. Inflation At Its Peak According to the Labor Department's consumer price index, inflat

May 4

What Is A Luxury Tax?

A luxury tax is often seen as a progressive tax because it targets a certain demographic of wealthy taxpayers and only applies to purchases made by high-income individuals who can afford them. Luxury Taxes A luxury tax is a tax that's levied on some items that exceed a certain price that isn't considered to be necessities in life. These things are considered luxury items, as the name implies. You may never be required to pay this tax because you can always choose not to purch

May 3

Should Every State Adopt The Flat Tax System?

Iowa, Mississippi, and Georgia passed legislation to make the switch this year to flat income taxes. Arizona cleared the way with a recent court decision, and Oklahoma is considering joining the nine other flat tax states. Flat Income Tax System Every taxpayer, regardless of their income bracket, pays the same tax rate under a flat tax system. A flat tax, in most cases, applies the same tax rate to all taxpayers and allows no deductions or exemptions. Dividends, payouts, capi

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