Common Family Tax Mistakes
Article Highlights Family Member Transactions Renting to a Relative Below-Market Loans Transferring Home Titles Gifts Basis Life Estate Incorrect Withholding Child Files Incorrect Return When it comes to transactions between family members, the tax laws are frequently overlooked, if not outright trampled upon. The following are some commonly encountered situations and the tax ramifications associated […]
Wonder What a Tax Deduction Is Worth?
Article Highlights: Non-business deductions Tax bracket Above-the-line deductions Itemized deductions Business deductions Tax credits Individuals are always looking for tax deductions that can reduce their tax liability. But what is the actual tax benefit derived from a tax deduction? There is no straightforward answer because some deductions are “above the line”, others must be itemized, […]
IRS Accepts Installment Agreement in Harrisburg, NC
IRS Accepts Installment Agreement in Harrisburg, NC IRS Installment Agreement – 03-13-2005 Taxpayer Situation: Taxpayer owed the IRS for tax years 1999-2004. The taxpayer was current with the filing of all her tax returns. Resolution Outcome: Legacy Tax & Resolution Services successfully negotiated an Internal Revenue Service Installment Agreement for a client in Harrisburg, NC. Legacy Tax […]
Choosing Tax Resident Status for a Non-Resident Alien Spouse
Choosing Tax Resident Status for a Non-Resident Alien Spouse The Internal Revenue Code allows a U.S. citizen or a resident alien to treat their spouse as a tax resident of the U.S. This option provides some advantages and some taxing consequences for the husband and wife. So, one must carefully understand the full implications […]
Start Off on the Right Foot for the 2023 Tax Year
Article Highlights: W-4 Updates W-9 Collection Estimated Tax Payments Charitable Contributions Required Minimum Distributions Gifting Retirement-Plan Contributions Beneficiaries Reasonable Compensation Business-Vehicle Mileage College-Tuition Plans Individuals and small businesses should consider various ways of starting off on the right foot for the 2023 tax year. W-4 Updates – If you are employed, then your employer takes […]
February 2023 Individual Due Dates
February 3 – Tax Appointment If you don’t already have an appointment scheduled with this office, you should call to make an appointment that is convenient for you. February 10 – Report Tips to Employer If you are an employee who works for tips and received more than $20 in tips during January, you are […]
Consequences of Filing Married Filing Separate
Article Highlights Reasons to File Separate Filing Threshold Community Property State Income Joint & Several Liability Social Security Benefits Taxation Threshold Capital Loss Limitation Sec 179 Limitation Rental Loss Limitation Traditional IRA Roth IRA Savings Bond Interest Exclusion Higher Education Interest Standard Deduction Standard Deduction vs Itemized Deductions Medicare Premiums Home Mortgage Interest SALT Limitation […]
Planning On Buying a New Electric Vehicle and Claiming a Tax Credit? Better Read This First
Article Highlights: Background Qualifications Income Limit 4-wheel vehicle Street Vehicle Minimum Battery Capacity Acquired for Original Use Final Assembly MSRP Critical Mineral and Battery Components Seller Provided Report List of Qualifying Vehicles Transfer of Credit to the Dealer Although the credit for purchasing a new electric vehicle can still be as much as $7,500, Congress […]
Who Claims the Children’s Tax Benefits You or Your Ex-Spouse?
Article Highlights: Custodial Parent Dependency Release Joint Custody Tiebreaker Rules Child’s Exemption Head of Household Filing Status Tuition Credit Child Care Credit Child Tax Credit Earned Income Tax Credit If you are a divorced or separated parent, a commonly encountered but often misunderstood issue is who claims the child or children for tax purposes. This […]
Be On the Outlook for Tax Reporting Forms
Article Highlights: Form W-2 Form W-2G Form 1099-G Form 1099-MISC Form 1099-DIV Form 1099-INT Form 1099-B Form 1099-S Form SSA-1099 Form RRB-1099 Form 1099-R Form 1098-T Form 1095-A Form 1099-NEC Form 1099-K Schedule K-1 With tax season upon us, documents reporting income, sales and other items needed for your 2022 tax return should have arrived […]