Busting Myths: How Buying a House REALLY Impacts Your Taxes Owning a house is a huge milestone, but it can also come with some tax confusion. Many people believe buying a house means a giant tax refund, but that’s not quite the whole story. Let’s clear up some common misconceptions: Myth #1: Buying a House …
Maximizing Work Clothes as Tax Deductions: Introduction: Navigating the intricacies of tax deductions can be challenging, especially when it comes to work-related expenses like clothing. In this guide, TurboTax experts provide insights into using work clothes as tax deductions, highlighting key steps and considerations for individuals looking to optimize their tax returns. Overview: Let’s address …
Navigating Tax Season: Understanding Dependents and Your Federal Tax Return Introduction As tax season approaches, many individuals find themselves navigating the intricate web of tax laws, deductions, and exemptions. One key aspect of filing a federal tax return is determining who qualifies as a dependent. Understanding the criteria for claiming dependents is crucial, …
Are you filing all your tax returns? As a sole proprietor or the owner of an LLC, you may think that the only tax return that you need to file is a schedule C on your personal tax return (1040). But is this actually correct? The IRS provides that the categories of tax returns …
The IRS imposes an underpayment penalty if you do not pay enough estimated taxes on your income or if you are late making the payment. Keep in mind that this penalty can still apply even if you the IRS owes you a refund. The IRS also charges interest on penalties. How to avoid an …
What are estimated tax payments? The IRS defines estimated tax “as the method used to pay tax on income that is not subject to withholding(for example, earnings from self-employment, interest, dividends, rents, alimony, etc.). You can still pay estimated taxes on other income that is subject to withholdings if you neglect to adjust those …
