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The Tax Consequences of Crowdfunding

The Tax Consequences of Crowdfunding

Crowdfunding websites such as Kickstarter and GoFundMe have become an increasingly popular way for small business owners to stay afloat. The upside is that it's often possible to raise the cash you need; the downside is that the IRS considers that money taxable income. Let's take a closer look at how crowdfunding works and how it could affect your tax situation. What is Crowdfunding? Crowdfunding is the practice of funding a project by gathering online contributions from a large group of...

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Working Remotely Could Affect Your Taxes

Working Remotely Could Affect Your Taxes

When COVID-19 struck, many employers quickly switched to a work-from-home model for their employees. Many of them began working in a state other than where their office was located. While some workers have returned to their offices, as the pandemic drags on, more offices continue to work remotely with no back-to-office dates insight. If you're working remotely from a location in a different state (or country) from that of your office, then you may be wondering if you will have to pay income...

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Q & A: The $10,200 Unemployment Tax Break

Q & A: The $10,200 Unemployment Tax Break

Generally, unemployment compensation received under the unemployment compensation laws of the United States or a state is considered taxable income and must be reported on your federal tax return. However, a new tax break - in effect only for the 2020 tax year - lets you exclude the first $10,200 from taxable income. Here's what you should know: What do I need to do to get the tax break? The tax break, which is part of the American Rescue Plan Act of 2021 (ARPA is available to all taxpayers...

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Economic Impact Payments: Round Three

Economic Impact Payments: Round Three

On March 12, following the American Rescue Plan Act's approval and signing, the IRS began sending out the third round of Economic Impact Payments. Most payments were sent out via direct deposit, but approximately 150,000 checks were mailed by the Treasury Department as well. Taxpayers who received EIP1 or EIP2 but didn't receive a third payment (EIP3) via direct deposit will generally receive a check or, in some instances, a prepaid debit card (EIP Card).   Highlights: The third stimulus...

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Capital Gains Tax on Sale of Stocks

Capital Gains Tax on Sale of Stocks

Apps like Robinhood make it easy for everyone to play the stock market. If you're a retail investor who made money last year buying and selling stocks, you may owe capital gains tax when you file your tax return this year. If you lost money, you may be able to deduct that loss and reduce your income. Here's what you need to know about capital gains tax: Capital Gains and Losses Defined A capital gain or loss is the difference between your basis - the amount you paid for the asset - and the...

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