If you’ve been wanting to make a donation to a great cause and you’ve also got a car that isn’t working out for you, there’s a good chance that you can create a win-win scenario for everyone. Donating your car to charity will often come with some convenient tax deductions. But you’ll just want to check the tax code first. Otherwise, you might make a wrong turn and miss out on some great tax benefits!
While regular tax planning is crucial for any taxpayer, there are certain scenarios that can really put you at financial risk. Looking ahead to what the tax season might bring can give you a leg up. To keep your tax liability low, be sure to review this list. The sooner you know what to watch for, the better off you’ll be!
The rush of our day-to-day lives can often mean we forget one detail or another. Then there’s also the chance of getting surprised with an entirely new dilemma. When it comes to the IRS reaching out to you, though, be sure to stay on guard. An IRS agent will only contact you in certain, predictable ways.
October is arguably the busiest month for weddings, and it’s always fun to celebrate with friends and family. And obviously, there are endless benefits that come with tying the knot. Unfortunately, in terms of the tax code, married couples aren’t exactly better off than single taxpayers. Knowing what you’re up against can help you get prepared once tax season officially rolls around.
We all know that raising children is expensive. And although it’s definitely rewarding in its own ways, it’s not uncommon to run into some financial bumps over the years. Claiming the tax credits for your family can help offset some of those costs. But are you prepared for what’s coming down the line?
Watching your 401(k) account grow can give you a lot of confidence and peace of mind about the road ahead. You’ve worked hard to save that money. And maybe you’ve received some extra funds with an employer 50% contribution match too. But what about taking care of some debts in your life? Does it make sense to take money out of your 401(k)?
Getting answers to these questions can be terribly complicated. So it’s a good idea to schedule a consultation with a trusted financial advisor. Of course, it doesn’t hurt to arm yourself with a little background knowledge before making that call.
Summertime schedules can fill up fast, so it makes sense that many of us decide to hire some extra help to keep certain details of our lives running smoothly. You might have a summer nanny to take care of the kids. Or maybe you hire a professional to come over and clean the house. (It can be a lot better than running around and doing everything yourself!)
Either way, when you have household workers, you should note that their services may require a little extra tax planning on your part. You’ll want to make sure you’re in the clear.
We should all be so lucky to make a living doing something we love. That’s why a lot of people decide to convert the time and money they spend on their hobby into a new business!
The idea of being able to deduct qualified business expenses certainly has its appeal. But it’s important to understand how each type of activity functions. The IRS has specific criteria for the definition of what a business actually is—and how it’s different than a hobby. Because if you don’t understand those basics, there might be major tax errors and headaches down the line.
In theory, pushing back the individual filing date for 2020 tax returns is pretty straightforward. You simply get another month to put your records together for the new May 17, 2021 due date. But there’s a specific tax code update that many individuals and families will want to keep an eye on. If you received unemployment income in the year 2020, that money might end up being tax-free!
