The IRS requiring payers to report transactions totaling $600 and over isn’t a new tax law. It has been this way for certain information returns like Forms W-2, 1099-MISC, 1099-NEC, and more. This reporting mandate made an additional sound when the IRS introduced a new bill that requires third-party payment processors like PayPal and Venmo … Read more
In the United States, the Capital Gains Tax is a tax imposed on the profits made when an asset is sold. The most common capital gains are those from selling property, stocks, bonds, and precious metals. Long-term capital gains tax Long-term capital gains are realized when investors sell a capital asset they have owned for … Read more
Selling non-inventory assets like stocks are taxed at the capital gains tax rate, but this isn’t always the case. There are short and long-term capital gains – how the profit generated from the sale of a stock is going to be taxed depends on this. The short term capital gains are taxed as ordinary income, … Read more
California residents that are taxpayers must file Form 540, their state income tax return. Just like the federal income tax returns, this form can be filed electronically or on paper. Those who are looking for a free way to file their state income tax returns in an efficient and fast way can benefit from the … Read more
Being the state with the highest population and one of the highest state income tax rates, California taxpayers generally have more than one tax form to file. California residents need to use different tax forms for various purposes, but there is a single tax return like federal income taxes. There are two primary tax forms … Read more
It’s essential to understand the state income tax rate in Wisconsin. You need to know several things, including the state’s Earned Income Tax Credit, Sales tax rate, and Alternative minimum tax. All of these things can affect your taxes. If you’re not careful, you may owe more than you owe. Individual income tax rates Individual … Read more
Form 2441—Child and Dependent Care Expenses. There is a tax credit for the expenses of the child and other qualifying persons. Those who file taxes as married filing separately cannot claim this credit though. Your filing status must be other than married filing separately. Form 2441 is used for figuring out the child and dependent … Read more
Alabama is one of the few states with two free tax holidays, let alone one. While many states don’t have a sales tax holiday, Alabama has two – each covering different types of items. Each year’s first sales tax holiday begins on the last weekend of February for hurricane preparedness items and supplies. The second … Read more
You should know the precise day the tax season will start if you intend to file your taxes this year. You understand what will happen to your return if you apply for the EITC or Child Tax Credit is important. If you miss the deadline, you should also be ready to pay interest on whatever … Read more
In a world where advertisements are shown down our throats, impulse buying and other habits that ruin people’s finances are becoming more prevalent. If you’re struggling with impulse buying and want to put an end to it, here are a few simple tips that can help you avoid it. Think differently Before purchasing something, take … Read more