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 …
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 …
The 2020 Recovery Rebate Credit (RRC) was implemented during the 2020 tax year on form 1040 as part of the CARES Act which became law in March of that year. The first and second round of stimulus checks were advance payments of the 2020 Recovery Rebate Credit. The RRC ensures that everyone who should have received …
On June 29, 2021, the IRS released draft instructions of forms K-2 and K-3, after receiving feedback on the initial instructions that were released in July 2020. These new draft instructions may be found here https://www.irs.gov/pub/irs-dft/i1065s23–dft.pdf. The new forms will be effective for the 2021 tax year. Don’t miss: What are duty free zones? Forms …
If you’ve caught a flight in an international airport, you’ve likely seen shops in the airport marketing that they are “Duty Free Zones”. While most people may assume this means that goods purchased there are free from some type of tax, have you ever stopped to wonder what a duty is, and why these shops …
In pre-COVID world, clients often came to our office to sign important paper tax filings. After signing, we mailed the forms certified mail/return receipt, so the taxpayer had proof of timely filing. After the pandemic started, clients struggled with getting forms signed and safely mailed. Last August, the IRS began allowing electronic signatures on certain paper …
Last week I was visiting with a friend of mine who runs a family-owned business in Colorado. I have historically removed myself from any financial or tax discussions with him as they have used the same local advisor for many years. However, as we were visiting the new local brewery the topic of taxation came …
In an effort to tamp down on fraud, the Internal Revenue Service has repeatedly reminded Americans it will never contact taxpayers by telephone. When the IRS needs to talk to you, it will send you a letter, directing you to call a telephone number or log in online. Now, the agency has gone a step …
The last few years have brought cryptocurrencies far more into the mainstream, thanks in large part to the meteoric rise in asset value for many of the coins. Such mainstream attention has already brought additional cryptocurrency regulation and IRS scrutiny – in 2014 the IRS began asking taxpayers directly on their Form 1040 whether or …