Understanding marginal and effective tax rates is important for tax planning purposes; however, many taxpayers don’t fully understand the differences.
Marginal vs. Effective Tax Rates
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Archived Posts: Taxes
Tax Tips for September 2021
Click on the links below to jump to each section in this article: Extension Deadline Looming for 2020 Tax Returns Reminder: Protect Yourself From Scammers Gross Receipts Safe Harbor for Employers Claiming ERC How To Get an Identity Protection Pin Tax Planning: Facts About Credits and Deductions Extension Deadline Looming for 2020 Tax Returns Time is running short for taxpayers who requested an extra six months to file their 2020 tax return. As a reminder, Friday, October 15, 2021, is the...
Verifying Your Identity When Calling the IRS
Sometimes, taxpayers need to call the IRS about a tax matter. If this is the case, they should know that IRS phone assistors take great care to only discuss personal information with the taxpayer or someone the taxpayer authorizes to speak on their behalf. As such, the IRS will ask taxpayers and tax professionals to verify their identity when they call.
Tax Relief for Those Affected by Natural Disasters
Recovery efforts after natural disasters can be costly. With floods, tornadoes, hurricanes, earthquakes, and other natural disasters affecting so many people throughout the U.S. this year, many have been left wondering how they’re going to pay for the cleanup or when their businesses will be able to reopen. The good news is that there is relief for taxpayers – but only if you meet certain conditions.
Tax Tips for August 2021
Click on the links below to jump to each section in this article: Start Planning Now for Next Year's Tax Return A Tax Checklist for Newly Married Couples Choosing a Payroll Services Provider Repaying Deferred Social Security Tax Keeping Good Tax Records Is Essential Start Planning Now for Next Year's Tax Return This year's tax deadline may have come and gone, but it's never too early to start planning for next year. With that in mind, here are five things you can do now to make next April 15...
Which Educator Expenses Are Tax Deductible?
Teachers and other educators should remember that they can deduct certain unreimbursed expenses such as classroom supplies, training, and travel – even when schools switched to hybrid or remote learning models during the pandemic last spring. Deducting these expenses helps reduce the amount of tax owed when filing a tax return.
Minimizing Capital Gains Tax on Sale of a Home
If you're looking to sell your home this year, then it may be time to take a closer look at the exclusion rules and cost basis of your home to reduce your taxable gain on the sale of a home. The IRS home sale exclusion rule allows an exclusion of gain up to $250,000 for a single taxpayer or $500,000 for a married couple filing jointly. This exclusion can be used over and over during your lifetime (but not more frequently than every 24 months), as long as you meet certain ownership and use...
Opting Out of the Monthly Child Tax Credit Payment
Thanks to the advance payments of the Child Tax Credit, approximately 60 million children received $15 billion in July, according to the Department of Treasury and the IRS. While many of these families will benefit from the extra money deposited into their bank accounts, some families may want to opt-out and instead take the credit when they file their tax return next spring.
Key Tax Changes Could Affect Your Tax Situation in 2021
Key tax provisions in the American Rescue Plan Act of 2021 could affect your tax situation.
What Is the Net Investment Income Tax?
While the Net Investment Income Tax (NIIT) tends to affect wealthier individuals most often, in certain circumstances, it can also affect moderate-income taxpayers whose income increases significantly in a given tax year. Here’s what you need to know.
