In general real estate activity is considered a passive activity which means that any loss is not deductible in the current year and must be carried forward. There are two exceptions to this rule: 1. Taxpayers can deduct up to a $25,000 special loss allowance if they actively participated the the rental activity and their … Read more
It’s tax time and if you’re missing your Form W-2, here are some things you can try. 0.1 Contact your employer first0.2 Contact the IRS1 What if I need a previous year W-2 or I lost my Form W-2?1.1 Contact your employer1.2 Contact the Social Security Administration1.3 Get a wage and income transcript from the … Read more
Child tax credits are typically claimed when taxpayers file their income tax returns. However, as part of the American Rescue Plan package, millions of parents received monthly advances of their child tax credits from July through December of 2021. In addition, the total child tax credit amount and eligibility were expanded. The IRS calculated the … Read more
Have you received a letter from the IRS stating that you owe taxes even though you paid it? Or that you have an unfiled return even though you’ve filed it? You’re not alone. The IRS says it is aware of the problem and is assisting taxpayers by suspending certain automated notices. The IRS is entering … Read more
The IRS recently issued 430,000 refunds totaling more than $510 million to taxpayers who paid taxes on unemployment compensation excluded from income for tax year 2020. 1 Is unemployment income excluded from tax?2 How many taxpayers are impacted?3 How will you be notified? Is unemployment income excluded from tax? Per the American Rescue Plan, up … Read more
You may have received a letter from the IRS asking you to verify your identity after filing a tax return. These letters are sent by the IRS to prevent identity thieves from getting your refund. 1 When do you need to verify your identity?2 First, gather your supporting documents3 Second, verify your identification3.1 Online ID … Read more
An Audit Reconsideration is a process used by the Internal Revenue Service to help you when you disagree with the results of an IRS audit of your tax return, or a return created for you by the IRS because you did not file a tax return. 1 Reasons why you may want to request an … Read more
It’s hard to think of anything more stressful than dealing with IRS collections. If a taxpayer is unable to pay or make arrangements, what follows is a series of enforcement actions by the computerized notice system, automated collections system, and sometimes an IRS Revenue Officer knocking at their door. 1 Computerized notices and automated collections … Read more
Per IR-2021-59, the 2020 tax return deadline for individuals has been automatically extended from April 15, 2021 to May 17, 2021. This also extends the time to pay outstanding income taxes for the 2020 tax period to May 17, 2021. To extend the deadline from May 17 to October 15, 2021, taxpayers must file Form … Read more
On March 11, 2021 the $1.9 trillion American Rescue Plan was signed into law. Among other things, the Plan provides for additional Economic Impact Payment (aka stimulus payments). 1 When will you receive the 3nd stimulus check?2 How much stimulus will you get?3 Who will qualify for stimulus check #3?4 Which tax return will the … Read more