When preparing a federal tax return, you can choose between a standard deduction or several itemized deductions. In either case, a tax deduction is designed to reduce a taxpayer’s tax liability. This is primarily to reimburse losses, incentivize investment, and reduce the tax liability for low-income households. Your standard deduction depends on your filing status, while …
When it comes to state tax garnishment rules, they are effectively non-negotiable. If you have an eligible income, you have a tax liability, and if you are self-employed, you will have to report and file your taxes diligently and single-handedly. But certain circumstances – from an ineligible deduction on a return to a penalty for …
Failure to file taxes can lead you to hot water with the IRS, but what happens if you don’t file taxes for 5 years? If you’ve ever failed to file your taxes, you’re sure to have received a notice from the IRS detailing the penalty you have to pay as a result of your late …
When preparing your taxes, you likely look towards deductions, but when it comes to itemized vs. standard deductions, which one is right for you? Out of the few ways you can reduce your income taxes each year, the only two you can rely on year after year are the standard deduction and itemized deduction. While …
As the October 2021 tax deadline approaches, it is essential that you be prepared, but what is the penalty for paying taxes late? The IRS extended the deadline for filing 2020 tax returns to October 15, 2021, rather than the usual national Tax Day of April 15. Taxpayers who have not yet filed can still …
There are many common errors that taxpayers may not know about that will lead to your tax return being rejected. Here’s what to know. If you are one of the millions of Americans required to file taxes this year, then knowing why your tax return might have been rejected in the past – and learning …