What Happens If You Can’t Pay Your Taxes?

What happens if you complete your tax return and find that you can’t pay the amount you owe? This isn’t supposed to happen. You’re supposed to pay income taxes gradually throughout the year so that in April you won’t owe much or will even be entitled to a refund of overpaid taxes. Employees have income…

Read More

Expanded Credits for Families Highlight Tax Changes for 2021

Many People Who Don’t Normally File Should File This Year Expanded tax credits for families, a deduction for non-itemizers who give to charity and a higher limit for itemizers who give to charity are among the American Rescue Plan changes that taxpayers will see on their 2021 federal income tax return. This is a year…

Read More

Build Back Better’s Child Tax Credit Changes

President Biden’s American Rescue Plan made changes to the Child Tax Credit for 2021. It increased to as much as $3,000 per child ($3,600 for ages 5 and under). The age limit for qualifying children also rose to 17 (from 16).17 The maximum refundable portion of the child credit for each child under age 17 was limited to $1,400 per…

Read More

The 2022 IRS Interest Rate Hike Will Go Live April 1st

If you are required to pay quarterly estimated income tax, an upcoming change in interest rates being imposed by the IRS may have a direct impact on you. Effective April 1st, 2022, corporations and self-employed filers who submit quarterly estimated taxes will see a hike in the interest rates that the agency charges for both…

Read More

How to Get Your Child Tax Credit Payments

Under the American Rescue Plan Act (ARPA) of 2021, the child tax credit (CTC) was expanded to a fully refundable $3,000 per eligible child under 18 ($3,600 per child under 6). In addition, ARPA provided parents with advance child tax credit payments totaling 50% of the estimated amount of their 2021 child tax credit.1 The advance child tax credit…

Read More

IRS issues standard mileage rates for 2022

WASHINGTON — The Internal Revenue Service today issued the 2022 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on January 1, 2022, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 58.5…

Read More

Managing Your Finances During an Inflationary Period

It’s hard to ignore the real-life impacts inflation is having. While gas and grocery prices are having the most immediate effect, the price of almost everything is going up. People who are looking for ways to counter the impact and preserve financial stability can start with these solutions. They’re accessible options that can make a…

Read More

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…

Read More

Twists and Turns of the Education Tax Credits

Article Highlights: American Opportunity Tax Credit Lifetime Learning Credit Refundable Credit Which Credit to Take Post-secondary Education 3-month Rule Maximizing the Credit Qualified Expenses Who Claims the Credit Qualified Educational Institutions Gift Tax Issues If you have a child or children in college, or perhaps you or your spouse is a student, it can be…

Read More