Many people received unemployment compensation in 2021. Unemployment compensation is taxable and must be reported on the recipient’s tax return. Taxpayers who receive an incorrect Form 1099-G for unemployment benefits they did not get should contact the issuing state agency to request a revised Form 1099-G showing their correct benefits. Taxpayers who are unable to…
Make sure that you have all their documents before filing a tax return. Taxpayers who haven’t received a W-2 or Form 1099 should contact the employer, payer or issuing agency and request the missing documents. This also applies for those who received an incorrect W-2 or Form 1099. If they can’t get the forms, they…
Taxpayers who owe but cannot pay in full by April 18 don’t have to wait for a tax bill to set up a payment plan. You can apply for a payment plan on IRS.gov. You can also submit a payment plan request using Form 9465, Installment Agreement Request. Note that interest is based on the amount of…
You should file your tax return by the deadline, April 18, 2022, even if you cannot pay your full tax bill. Taxpayers who owe tax and don’t file on time, may be charged a failure-to-file penalty. This penalty is usually five percent of the tax owed for each month, or part of a month that…
Some parents who have a legal agreement with their child’s other parent about who claims the child on their taxes may have some questions this tax season about the child tax credit and the 2021 recovery rebate credit. Here’s what people in this situation need to know before filing their 2021 federal tax return. Economic…
Taxpayers have the right to know what they need to do to comply with the tax laws. Not just during filing season but, all year. When something happens to a taxpayer’s account, that taxpayer has the right to be informed about the activity. In fact, this right is one of ten outlined in the Taxpayer…
Rent is any amount paid for the use of property that a small business doesn’t own. Typically, rent can be deducted as a business expense when the rent is for property the taxpayer uses for the business. Here are some things small business owners should keep in mind when it comes to deducting rental expenses:…
Higher education is important to many people and it’s often expensive. Whether it’s specialized job training or an advanced degree, there are a lot of costs associated with higher education. There are two education tax credits designed to help offset these costs – the American opportunity tax credit and the lifetime learning credit. Taxpayers who…
You may be able to claim a deduction on your 2021 tax return for contributions to your Individual Retirement Arrangement (IRA) made through April 18, 2022. An IRA is a personal savings plan that lets employees and the self-employed set money aside for retirement and can have tax advantages. Contributions for 2021 can be made…
The Internal Revenue Service has issued frequently asked questions (FAQs) for the 2021 Earned Income Tax Credit to educate eligible taxpayers on how to properly claim the credit when they prepare and file their 2021 tax return. The Earned Income Tax Credit (EITC) helps low- to moderate-income workers and families in the form of a…
