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IRS Tax Tip 2021-23, February 23, 2021 When taxpayers complete their tax returns, they may discover they will owe taxes. By law, they have the right to pay no more than the correct amount of tax. This is one of ten Taxpayer Bill of Rights. These are fundamental rights taxpayers have when dealing with the IRS. …
All taxpayers have the right to pay no more than the correct amount of tax Read More »
COVID Tax Tip 2021-22, February 22, 2021 Deductions reduce the amount of taxable income when filing a federal income tax return. In other words, they can reduce the amount of tax someone owes. Most taxpayers have a choice of either taking the standard deduction or itemizing their deductions. The standard deduction may be quicker and …
Things taxpayers should know when choosing between standard and itemized deductions Read More »
COVID Tax Tip 2021-21, February 18, 2021 In 2020, many people joined the gig economy to help make ends meet during the pandemic. Whether it’s a side business or a primary source of income, all taxpayers need to understand how their gig work affects their taxes. The bottom line is taxpayers must report gig economy …
Taxpayers must report gig economy income on their tax return Read More »
IRS Tax Tip 2021-20, February 17, 2021 As people begin to file their 2020 tax returns, taxpayers are reminded to avoid unethical ghost tax return preparers. A ghost preparer is someone who doesn’t sign tax returns they prepare. Unscrupulous ghost preparers often print the return and have the taxpayer to sign and mail it to …
COVID Tax Tip 2021-19, February 16, 2021 In times like these, every penny counts. This is especially true for taxpayers on a fixed income. Many of these are seniors and retirees who can file their taxes for free. Free File offers online tax preparation, direct deposit of refunds and electronic filing. Here are some facts about Free File programs …
Free File can make taxes easier for seniors and retirees Read More »
Tax Tip 2021-18, February 11, 2021 Taxpayers with dependents who don’t qualify for the child tax credit may be able to claim the credit for other dependents. The maximum credit amount is $500 for each dependent who meets certain conditions. These include: Dependents who are age 17 or older. Dependents who have individual taxpayer identification …
What taxpayers need to know about claiming the credit for other dependents Read More »
COVID Tax Tip 2020-17, February 10, 2021 Electronically filing a tax return reduces errors because the tax software does the math, flags common errors and prompts taxpayers for missing information. It can also help taxpayers claim valuable credits and deductions. Using a reputable tax preparer – including certified public accountants, enrolled agents or other knowledgeable tax professionals – can …
Common and costly errors taxpayers should avoid when preparing a tax return Read More »
COVID Tax Tip 2021-16, February 9, 2021 As taxpayers get ready to file their 2020 tax return, they should start by gathering their records. Taxpayers should gather all year-end income documents to help ensure they file a complete and accurate 2020 tax return and avoid refund delays. Taxpayers should have all necessary records handy, such …
The first step of tax preparation is gathering records Read More »
COVID Tax Tip 2021-15, February 8, 2021 Families are often looking for ways to save money. One way they can do this is by using IRS Free File to do their taxes. Free File offers online tax preparation, direct deposit of refunds and electronic filing, at no cost. Not only can IRS Free File save families money, the software …
Tax Tip 2021-14, February 5, 2021 Whether taxpayers regularly use a tax professional to help them file a tax return or they have decided to work with one for the first time, it is important to choose a tax return preparer wisely. Taxpayers are responsible for all the information on their income tax return. This is true …
Tips to help people choose a reputable tax preparer Read More »