The Pass-Through Tax Deduction Explained With Calculation Examples
The 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
In 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 […]
How to Avoid Paying the Health Insurance Penalty on Your Tax Return
Under 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 […]
How to Respond If the IRS Is at Your Door
Identity 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
The 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 […]