5 Investment Strategies That Can Lower Your Taxable Income
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 this article, we will explain how to use these 5 investment strategies that can lower your taxable income. Save for [...]
Taxation of Unemployment Benefits
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 income. This means all benefits you receive are taxable as ordinary income. However, unemployment benefits are not subject to Social [...]
FICA Tax Basics
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. This tax funds both the Social Security and Medicare programs. Without paying this tax you will not qualify for any [...]
2020 Taxes
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 Friday, February 12th, 2021. However, the deadline will still be April 15th. Since tax season will be short, schedule with [...]
Tax Identification Numbers
Tax Identification Numbers Tax identification numbers, or TINs, are numbers the IRS uses for tracking purposes. In this article, we will go over the basics of tax identification numbers and the different types you may need to use. The Basics TINs are nine-digit identification numbers the IRS uses. They are a way for the IRS to numerically keep track of taxpayers, whether they are individuals or entities. A TIN is a requirement for filing [...]
Tax Audit-Common Questions Answered
Tax Audit-Common Questions Answered Tax audit-a phrase that strikes fear into most hearts. A tax audit is something we all want to avoid, but many are not prepared for what to expect. This article will answer some common questions about dealing with a tax audit. How Likely is a Tax Audit? This is one of the most common questions about tax audits. The good news is the probability is low. From 2010-2018, IRS data [...]