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Nov 20, 2020First-Time Homebuyer Credit Repayment
If you claimed the First-Time Homebuyer Credit in 2008-2010, you may have to make an annual repayment installment. This is located on your tax returns for those years, form 5405. Use your IRS online account to check your repayment obligation, or contact the IRS directly at 1-800-829-1040, Monday – Friday, 7am-7pm. You will need your […]
adminNov 20, 2020Residential Energy Property Credit
You can claim the residential energy property credit if you made energy-saving improvements to your main home located in the United States that were not part of its original construction. You cannot claim the credit if you are a landlord or other property owner who does not live in the home. The credit is nonrefundable, […]
adminNov 16, 2020Alimony
Spousal support (alimony) payments are considered taxable income for spouse or common-law partner prior to 2019. If divorced before 2019 and paying alimony, these payments are considered an above-the-line deduction. Beginning in 2019, if a divorce or separation agreement was executed after Dec. 31, 2018, the alimony is no longer included in a spouse’s (recipient) […]
adminNov 13, 2020Reporting Capital Gains
If you own something and use it for personal or investment purposes, it is a capital asset. If you sell a capital asset, the difference of the adjusted basis of the asset and the sale will lead to either a capital gain or loss. This is reported on Schedule D of your federal tax return. […]
adminNov 12, 2020Rental & Real Estate Income
Rental income is any income you receive for the use or occupation of property. This is reported on a form Schedule E. Most individuals operate on a cash basis, which means they count their rental income as income when they actually or constructively receive it, and deduct their expenses when they pay them. You must […]
adminNov 11, 2020How to Determine a Business vs Hobby
If you are earning money conducting an activity, you may need to report this on your tax return. In order to determine if you should report this on your tax return, you will first need to find out if you are conducting a business or if you simply have a hobby. The IRS defines a […]
adminNov 11, 2020Taxable vs Non-Taxable Income
You can receive income in the form of money, property, or services. Whether it is taxable or not depends on the type of income. All income must be reported on your tax return even if it is non-taxable. Additionally, your income is subject to tax unless it is exempted by law. The following is non-taxable […]
adminNov 2, 2020What do I need to claim a dependent?
For tax years 2018 to 2025, there are no personal exemptions for dependents as well as the individuals filing. Prior to 2018, you qualify for $4,050 for your dependent’s personal exemption. Here are the requirements to claim a qualifying dependent: Claiming a qualifying child There are specific requirements to claim a qualifying child: Claiming a […]
adminNov 2, 2020Can I still claim my prior-year tax refund?
Many taxpayers are unaware that even if they missed a certain tax deadline, they can still claim their tax refund. However, there is a time limit to claim a prior-year federal tax refund. The latest date that you can claim a credit or federal refund for a specific tax year is generally the later of […]
adminNov 2, 2020How do I pay my taxes to the IRS?
If you have an outstanding tax due to the IRS, here’s how to pay. You can pay your taxes online to the IRS going back to tax year 2000 for your Form 1040, 1040A, or 1040EZ. There may be fees to using your debit or credit card. You can also make a payment to the […]
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