What Is the Substantial Understatement Penalty?
Paying taxes can be a stressful experience. It’s sometimes hard to understand how much you owe, and it’s easy to lose track of deadlines. But if you don’t pay enough tax, there’s a risk the IRS could fine you for a “substantial understatement”. These fines can have serious consequences for you, your business, and your […]
Read MoreIf My Husband Owes Back Taxes, Am I Liable?
Income tax is a part of life, and this doesn’t change when you get married. Whether you file joint tax returns or file separately, there are considerations that should be made. And of course, these considerations come with questions. One main question we receive on a regular basis is, “If my spouse owes back taxes, […]
Read MoreGambling Winnings: Should You Report Them?
One of the biggest issues I come across with my clients is unreported income. A major form of income that is left off tax filings is gambling winnings. Be it purposefully or just sometimes people forget and do not receive the form from the casino reporting this income. It can turn into major tax liabilities. […]
Read MoreStates without Income Tax
The deadline for the federal income tax may have already been pushed back until May 17, but some taxpayers might be luckier than others. In nine U.S. states, individuals do not have to file a state tax return, as they (the states) don’t oblige taxpayers to pay tax on personal income. This means that each […]
Read MoreFAQs: Paying Taxes
Here, you will find the most commonly asked questions about paying taxes. Do You Pay Taxes on Unemployment? In the years before the Covid-19 pandemic, almost all types of unemployment compensation were taxable. In general, the IRS considers unemployment compensation as income, so it taxes it accordingly. Passed in March 2021, the ARP (American Rescue […]
Read MoreFiling Taxes: Is It Necessary?
Filing taxes can be burdensome, especially considering the complexity of filing a tax return. With tax laws changing almost overnight sometimes, it goes without saying that taxpayers often find themselves midst a tax storm that they do not know how to handle. Questions like ‘Do I need to file taxes if I collect Social Security?” […]
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