Did you miss out on the special COVID-19 tax-deductible donations credit in 2021? Thanks to the CARES Act, Americans could deduct a whopping $300 for cash contributions they made to qualifying public charities in 2020. The bad news is that that special credit won’t be available for 2022 and beyond unless Congress decides to extend …
Continue reading “How to Claim Charitable Donation Deductions”
Every year, about 17 million new cars are sold by dealerships and 6-7 million homes are sold by homeowners. If you’re hoping to join those statistics by buying a home or car soon, you’ll need to verify your income first, especially if you want a good loan or mortgage rate. One of the best ways to do this is …
Most of us don’t want to pay taxes—the good news is that most of us don’t have to on Tax Day. Recent statistics show that only about 39% of Americans owed federal income taxes in 2020 during the height of the pandemic. That means the majority (61%) owed nothing. How come? The answer is the …
Are you a notoriously late tax filer? Have you fallen behind on your taxes for more than a few years? If so, then you’re in good company. Experts suggest that about 7 million American taxpayers fail to file their income tax returns every year. If it’s been a while since you filed, then you might …
Over 11 million Americans currently owe a collective $125 billion in taxes to the IRS. That’s not good news, considering that the IRS has the legal authority to levy consequences against those individuals. One of those consequences is an IRS wage garnishment, which means the IRS can seize a portion of your paycheck before …
Continue reading “Did You Receive IRS Form 668-W? What Are the Next Steps?”
Almost half (47%) of Americans are bothered by the complexity of our nation’s tax system. While it remains challenging, things have improved since IRS tax returns went digital. Electronic filing helps taxpayers feel more confident about understanding confusing forms, and it can help reduce errors, too. But despite all those changes, tax return mistakes can still happen. …
Continue reading “Amended Return Status: Where’s My Amended Tax Return?”
Are you struggling to pay off your tax debt? If so, then you may have heard about the IRS offer in compromise (OIC) program. You’re likely considering applying for the program, but will you get approved for tax debt relief? Less than half (41%) of IRS offer in compromise applications are approved. One of the …
Continue reading “Updates to Offer in Compromise Policy in 2021 (that will affect 2022)”
For every 35 cents the IRS spends, the department collects $100 in revenue. One reason why the IRS has such a high collection rate is they don’t waste resources going after individuals who simply cannot pay the debt they owe. Individuals who can’t afford basic living expenses and their tax debt often apply for the …
In 2020, the IRS levied over $31.4 billion in civil penalties against individuals and businesses. Many failed to pay their taxes in time, while others committed fraud or made mistakes on their returns. If you’ve ever fallen behind on your taxes or even a regular debt, then you know just how quickly those penalties and …
Continue reading “How To Get the IRS to Waive Penalties and Interest”
