Legacy Tax & Resolution Services

IRS Reference Code 1521

You can check the status of your return and your refund check (for paper returns) or direct deposit (for electronic returns) at the IRS.gov website. The “Where’s My Refund?” portal provides an estimate of when you should expect your refund and any status using a reference code.   See a quick reference guide in plain language to […]

Is there a Tax Break for Tuition Paid to Special Schools?

Article Highlights: Medical Deduction  Tuition To Treat Learning Disabilities is Deductible  Special Teaching Techniques  Private Letter Rulings  A component of itemized deductions is the cost of medical care. The total of eligible medical expenses paid during the tax year is reduced by 7.5% of the taxpayer’s adjusted gross income (AGI). While you are undoubtedly familiar […]

IRS Reference Code 1502

You can check the status of your return and your refund check (for paper returns) or direct deposit (for electronic returns) at the IRS.gov website. The “Where’s My Refund?” portal provides an estimate of when you should expect your refund and any status using a reference code.   See a quick reference guide in plain language to […]

Is Interest Paid on Borrowed Money Tax Deductible?

Article Highlights: Interest Categories  Category Deductibility  Interest Tracing Rules  If you borrow money will the interest you pay be deductible for income tax purposes? The answer to that question can be complicated, and unfortunately, not all the interest an individual pays is tax-deductible. The rules for deducting interest vary, and essentially depend on what the […]

IRS Reference Code 1501

You can check the status of your return and your refund check (for paper returns) or direct deposit (for electronic returns) at the IRS.gov website. The “Where’s My Refund?” portal provides an estimate of when you should expect your refund and any status using a reference code.   See a quick reference guide in plain language to […]

Important Enhancements to the Earned Income Tax Credit For 2021

Article Highlights: Largest Antipoverty Program  Taxpayers Not Required to File  Earned Income  Filing Age Threshold  Investment Income  Childless Workers  Maximum Credit and Phase-out Ranges  Qualifying Children  2019 AGI  Separated Spouses  Child Does Not Have an SSN  Refunds Delayed  Active Military  Disabled Individuals The earned income tax credit (EITC) is regarded as one of the government’s […]

IRS Reference Code 1481

You can check the status of your return and your refund check (for paper returns) or direct deposit (for electronic returns) at the IRS.gov website. The “Where’s My Refund?” portal provides an estimate of when you should expect your refund and any status using a reference code.   See a quick reference guide in plain language to […]

IRS Stops Using Facial Authentication Software for Access to Online Accounts

Article Highlights: Prior Article  ID.me  Treasury Decision  IRS Third-Party Authentication  A prior blog article posting included an article about the IRS’ plans to use ID.me facial recognition software for taxpayers and others to authenticate access to their online accounts. Under pressure from privacy activists and several members of Congress, the Treasury Department has directed the […]

If You Have a Side Hustle, Be Advised: The IRS is Cracking Down

Article Highlights: Form 1099-K  Reporting Threshold  Marketplaces  Payment Processors (credit and debit cards)  Online Service Providers  Airbnb and VRBO  Delivery and Other Personal Services  Business Expenses  Record Keeping  For several years now, the IRS has required payments made to merchants through various marketplaces, payment processors (credit & debit cards), and third-party settlement organizations (TPSOs) to […]

IRS Reference Code 1461

You can check the status of your return and your refund check (for paper returns) or direct deposit (for electronic returns) at the IRS.gov website. The “Where’s My Refund?” portal provides an estimate of when you should expect your refund and any status using a reference code.   See a quick reference guide in plain language to […]