Form W-2G Basics Form W-2G, is the form gambling establishments use to report your winnings as income to the IRS. In this article, we will go over the basics of what is involved if you receive Form W-2G. Form Contents First, you must get familiar with what is on Form W-2G. In boxes 1 and [...]
International Tax Treaties International tax treaties are agreements between two countries. The purpose of these treaties is to prevent issues such as double taxation and tax evasion. These treaties can also be known as Double Tax Agreements or DTAs. In this article, we will go over the basics of how international tax treaties work. [...]
Foreign Tax Credit The foreign tax credit is a type of tax credit the IRS provides to some taxpayers. It helps to prevent double taxation. In this article, we will explain how the foreign tax credit works and how to properly claim it. Tax Credit vs. Tax Deduction First, it is important to understand [...]
Payroll for the Self-Employed Payroll for the self-employed can be complex. It is important to understand how it works. It can greatly reduce your tax burden. In this article, you will learn how payroll for the self-employed works and how you can implement it. Self-Employment Tax If you make more than $400 through your [...]
Foreign Earned Income Exclusion The foreign earned income exclusion is a tax exclusion to help prevent US citizens and resident aliens from being subject to double taxation. In this article, we will go over the basics of what the foreign earned income exclusion covers. Foreign Earned Income First, it is important to understand what foreign [...]
Taxation for Resident and Nonresident Aliens Taxation for resident and nonresident aliens differs from that of U.S. citizens. In this article, we will go over the basics of taxation for resident and nonresident aliens. Resident vs. Nonresident A resident alien is someone who is not a U.S. citizen but has a green card that [...]
5 Investment Strategies That Can Lower Your Taxable Income If you consistently owe taxes each year, you may want to try using investments to lower your taxable income. These investments allow you to set aside funds in a way that will reduce the total amount of your income that the IRS can tax. In [...]
Taxation of Unemployment Benefits With so many people receiving unemployment benefits during the past two years, many are concerned about the taxation of unemployment benefits. In this article, we will go over the basics regarding the taxation of unemployment benefits. What Is Taxable All the unemployment benefits you receive are includable in your gross [...]
FICA Tax Basics FICA tax is short for Federal Insurance Contributions Act tax. It makes up part of your W-2 employee withholdings on your paystubs. But what is this withholding for? In this article, we will go over the basics of FICA tax. The Use The use of your FICA tax withholdings is twofold. [...]
2020 Taxes With COVID-19 still widespread in most communities, it has had some effects on 2020 taxes. In this article, we will go over some of these changes. This way you can be ready to file your return. Start Date Due to issues within the IRS, the start date for filing taxes will be [...]
