Generally, a taxpayer can deduct all ordinary and necessary expenses paid or incurred to carry on a valid trade or business, even if this would create an overall loss on the income tax return. However, if the taxpayer’s activity is considered a hobby, rather than a business, deductions are limited to the gross income earned …
Congratulations! You sold your house! And in this market, no doubt made a mint. So now you’re probably wondering how does selling my house impact my taxes? A gain on the sale of a home is the result of when the home sells for more than what was paid for it. When it comes to …
It’s no secret identity theft is a major problem. And if you fall victim, a major headache. It would be great if identity thieves steal your tax information to pay your tax bill, but no. They’re stealing your refunds. Here are some steps to protect against identity theft the IRS suggests to keep your identity …
Did you know you don’t have to call the IRS to see when your tax refund will be in your bank account? In fact, the IRS recently updates their FAQs on the status of non-amended and amended returns and say you should refer to those rather than calling them. Due to COVID-19, there are still …
Going back in its long history, state community property laws were justified by the pragmatic recognition that such joint ownership recognizes the theoretically equal contributions of both spouses to the creation and operation of the family unit, as a basic component of a civil society. Currently there are only nine states which are considered “community …
When the Tax Cuts and Jobs Act (TCJA) was put into place at the end of 2017, one of the biggest disadvantages to taxpayers was the removal of miscellaneous itemized deductions for employee expenses. Employees used to receive a deduction on their schedule A for unreimbursed expenses incurred as an employee, but that is no …
If you have children in their teenage years, you may have found yourself wondering how long they can be claimed as a dependent on your tax return. While the benefit for claiming dependents on your tax return pales in comparison to the cost of supporting a child, most parents will gladly take the help when …
The Child and Dependent Care credit might not be getting as much attention as the monthly child tax credit payments that recently started hitting parent’s back accounts, but its’ expansion could greatly impact millions of Americans and their 2021 tax returns. The enhancement of the Child and Dependent Care credit, included as a provision of …
Every year, the Charter Board publishes changes and updates to the legal compliance questionnaire. In the hopes to help our Charter schools minimize comments and “No” responses, here is a summary of changes to the current LCQ for FY21. Don’t miss: The end of the Comprehensive Annual Financial Report acronym Question #11 – Tuition question …
As we begin to see an end in sight for the pandemic in the United States, some states have started eliminating their temporary pandemic remote working tax relief programs related to employees working remotely. This could lead to your business being subject to additional state taxes, which may require you to file state tax returns …