Choosing the right business structure is one of the most important decisions you’ll make when starting or growing your company. Your choice affects everything from taxes and liability to decision-making and growth potential. Let’s break down the most common types: 1. Sole Proprietorship What it is: A business owned and operated by one person. Pros: [...]
Owning a home costs money, but there are tax benefits available to help homeowners save on some of common costs of homeownership. Homeowners should review the tax deductions, programs and housing allowances to see if they are eligible. Deductible house-related expenses Most home buyers take out a mortgage to buy their home and make monthly [...]
Hobbies and businesses are treated differently when it comes to filing taxes. The biggest difference between the two is that businesses operate to make a profit while hobbies are for pleasure or recreation. Either way, if they are paid through payment apps for goods and services during the year, they may receive an IRS Form 1099-K for [...]
IRS sends notices and letters when it needs to ask a question about a taxpayer’s federal tax return, let them know about a change to their account or request a payment. Don’t panic if mail comes from the IRS – they’re here to help. When a taxpayer receives mail from the IRS, they should: Read [...]
There are two tax credits designed to help taxpayers reduce education costs: the American Opportunity Tax Credit and the Lifetime Learning Credit. Eligibility requirements For both tax credits, to be eligible: The taxpayer, their spouse or their dependents must have taken post-high school coursework in tax year 2024. The student must have a Form 1098-T, Tuition Statement, from an [...]
Taxpayers can avoid mistakes and receive a timely refund by preparing to file their tax return ahead of time. Here are a few things taxpayers can do to get ready: Gather records: Good recordkeeping makes preparing a tax return easier. Organized tax records can help taxpayers find overlooked deductions and credits. Start with IRS.gov: IRS.gov is available 24/7, and [...]
Taxpayers should start gathering and organizing records to get ready for filing their 2024 federal tax return. They need all year-end income documents to help ensure they file a complete and accurate 2024 federal tax return and avoid refund delays. The Get ready page on IRS.gov offers practical tips and resources to help taxpayers prepare. It highlights key [...]
Taxpayers should be aware of gift card scams and take steps to protect themselves. Scammers may target taxpayers by asking them to pay a fake tax bill with gift cards. People should remember that the IRS never asks for or accepts gift cards as payment for a tax bill. The IRS doesn't initiate contact with taxpayers by email, [...]
Alert: The FinCEN has learned of fraudulent attempts to solicit information from individuals and entities who may be subject to reporting requirements under the Corporate Transparency Act. These fraudulent scams may include: Correspondence that references a “Form 4022” or “Form 5102” is fraudulent. FinCEN does not have a “Form 4022” or a “Form 5102.” Do [...]
Here are some things to know about Beneficial Ownership Information (BOI) reporting: Purpose BOI reporting is part of the Corporate Transparency Act, which was passed in 2021 to prevent financial crimes like money laundering and tax fraud. BOI reporting helps authorities identify who has a significant stake in a business. Who must report New businesses must [...]
