If you itemize deductions on your tax return, you may be able to include any charitable contributions made during that filing year. Itemizing donations entitles taxpayers to charitable contribution deductions.
Qualifying organizations, typically 501(c)(3), serve the public, providing a valuable service to the community and do not operate for profit. In general, these organizations are either charitable, religious, educational, scientific or literary.
If you receive a letter from the IRS, it’s more than likely regarding your federal tax return.
Your notice will explain the reason for receiving it as well as necessary actions to take. You could have a balance due, or the IRS determined you are due a larger or smaller refund than anticipated. They may also need additional information, have questions or are making a change to your return. The IRS may also need to verify your identity.
Similar to getting a real estate appraisal or checking the value of your stock, you can determine what your business is worth by having a valuation prepared by an accounting professional. A business valuation is the analytical process of determining the current or projected worth of a company. It can help determine where a company stands in the market.
There are a number of reasons why one would be interested in getting their business valuated…
Tax identity theft occurs when an identity thief files a fraudulent return using a stolen taxpayer’s social security number to claim the victims tax refund. The thief would use the victims personal and consumer information to file the forged tax return, usually early in the filing season before the victim files themselves. This way, the scammer would likely receive the victims refund before the IRS processes the real filing. They might invent fake wages to submit the information electronically.
Married taxpayers, who were married on the last day of the tax year, have two filing status options when it’s time to file their annual tax return. The best choice varies depending on each couple’s individual needs.
Married filing jointly offers lower tax rates, but filing separately may be more beneficial depending on the couple’s individual situations.
So, which filing status is best for you?
Did you accrue foreign taxes to a country outside of the US but are subject to US tax on the same income? Did you know that you may be able to qualify for either a credit or a deduction on those taxes? If you meet the following, you might qualify for a Foreign Tax Credit.
-The taxes must be imposed on you
-You must have paid or accrued the tax
-The tax must be the legal and actual foreign tax liability
-The tax must be an income tax
There are two tax types on the money you earn, ordinary tax rates and capital gains tax rates. Capital gains taxes are taxes on the money you’ve earned in your investments, including stocks, bonds, and real estate held for investment. You must report all earnings, but there are ways to minimize the taxes you owe.
What are Capital Gains Taxes?
Capital gains are the profits or the difference between the asset’s price when you bought and sold the investment.
There’s been an update to the original SECURE Act passed in 2019. The original SECURE Act governed how to contribute and withdraw from your IRAs and employer-sponsored retirement accounts.
The SECURE Act 2.0 passed at the end of 2022 and created many changes, especially those that affect employer-sponsored 401K accounts.
Of utmost importance are the requirements for new plans that…
Your CPA is your number one resource for filing your taxes, but there are some things they cannot do (we know, hard to believe!). The IRS protects your privacy and limits what CPAs can do after they’ve filed your taxes.
CPAs are different than accountants. While CPAs are always accountants, it’s not always the other way around. CPAs go through continuing education, are licensed by a governing body, and monitored to ensure they follow all codes of conduct.
Everyone always wants ways to lower their tax liability. It keeps more money in your pocket, making it easier to reach your financial goals.
But you might feel like you’ve minimized your taxes as much as possible with a 401K or IRA, charitable contributions, and itemized deductions, but there’s one more way – a Health Savings Account.