The Pass-Through Tax Deduction Explained With Calculation Examples

pass-through tax deduction explainedThe new income tax plan brings in a generous pass-through tax deduction for many small businesses in IRC Section 199A. If you have pass-through income, you may qualify for a deduction worth 20% of qualified business income.

The change came into effect in 2018, but it doesn’t affect your 2017 tax […]

The IRS Is Losing Money With Its Private Debt Collection Efforts

3rd party tax debt collectorsIn 2017, the IRS hired and paid private debt collection agencies $20 million, but these firms only collected $6.7 million, meaning the IRS lost over $13 million in the process. Besides losing the government money, the program has arguably been a failure in countless other ways.

Expectations for […]

February 2nd, 2018|Uncategorized|0 Comments

How to Avoid Paying the Health Insurance Penalty on Your Tax Return

how to avoid paying the health insurance penaltyUnder the Affordable Healthcare Act, you are required to have health insurance. If you don’t, you face a hefty penalty at tax time. Although there has been a lot of news about changes to the healthcare act, you still have to pay this penalty for the tax year 2017.

Called […]

November 8th, 2017|Uncategorized|0 Comments

How to Respond If the IRS Is at Your Door

How to Respond If the IRS Is at Your DoorIdentity theft related to tax scams remain a serious issue. While the Internal Revenue Service notes that fraudulent emails and phone calls from imposters who claim to be representatives of the IRS rank highest on the list […]

Tax Breaks for Teachers: How to Reduce Your Taxes As a Teacher

tax breaks for teachersThe school year is in full swing, and if you’re a teacher, you’ve probably already spent money out of your own pocket. Luckily, the IRS allows you to claim a deduction for many of these expenses. If you want to reduce your tax bill, here are some tax breaks for […]

October 16th, 2017|Uncategorized|0 Comments