TaxAudit Blog

Tag: income

House with downward arrow above it with coins surrounding it.

Rentals are considered to be special passive activities and the amount of loss you can use in any year is limited to $25,000, if your AGI is under $100,000.

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Second home on a cobblestone street

Whether you use your second home for personal or business purposes, the interest you pay on the mortgage may very well be deductible on your tax return.

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Dentist with patient examining x-rays

Dental expenses (if qualifying) can be included on Schedule A, Itemized Deductions - Medical and Dental Expenses, subject to a 7.5% Adjusted Gross Income.

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Piggy bank and stethoscope on blue background

Medical expenses are deductible, but whether or not you can claim this deduction depends entirely on the amount you spent and the amount you earned.

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Earned Income Credit

Not all IRS letters are bad news, and the CP09 is one of them. The IRS noticed you did not claim the Earned Income Credit and believe you might qualify for it.

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Sailboat Racing

The qualified business income deduction is calculated by taking the income and losses from all your business activities and netting them into one amount.

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Nurse walking with elderly woman

Insurance policies may cover part of nursing home costs and the unreimbursed expenses can often be deducted on a Form 1040 individual tax return.

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QBI Deduction

For many taxpayers who operate small businesses, the qualified business income deduction can be an excellent way to reduce your income taxes.

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Gold Bullion

You are responsible for paying the taxes on the amount realized in the sale. The buyer is generally not required to withhold income taxes on the proceeds.

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Woman reading a letter

There are hundreds of different types of letters and notices you can receive from the IRS. Let's focus on a few of the more common IRS notice types we see.

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Economic Impact Payment Check from IRS surrounded by money

If you didn't receive an Economic Impact Payment and meet the requirements, you can still receive the payment when you file your 2020 federal income tax return.

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Tax Professional going over audit letter with couple

When you purchase Audit Defense from TaxAudit, you’re purchasing more than just assistance with your IRS or state notice. You are choosing peace of mind.

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Baby with bottle

The cost of baby formula for your own infant is generally not considered something you can write off on your taxes. However, there are exceptions.

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Hand with pen writing Tax Deduction

The answer for most states is no. However, 6 states allow some form of this tax break (AL, IA, LA, MO, MT, OR), but only AL, IA, and LA allow a full deduction.

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student loans

Yes, you can deduct student loan interest on your tax return if you meet the specific requirements to claim this deduction. The amount you can claim will vary.

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Boy standing in front of chalkboard with a finger on his chin

The first thing to do is to check every name and Social Security number listed on the return with what is listed on their Social Security cards.

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Tax Filing

Not all taxpayers are required to file a federal income tax return. Determining if you have a filing requirement starts by evaluating your gross income.

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Internal Revenue Service sign next to traffic light

Returns are being processed, and refunds are being issued. Things seem back to normal.

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Tax Credits written on a Sticky Note

This may seem like a strange question, but with over 1.1 billion dollars of unclaimed money at stake, it's a question worth asking.

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Driver pointing to a smart-phone attached to the windshield

With the increasing popularity of ridesharing services such as Lyft and Uber, you may be asking yourself, “Can I make extra money doing this?”

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hat

What do “Scarface” Capone and a tax audit have to do with each other? Scarface went to prison for - of all things - tax evasion!

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house on top of a green hill

My boyfriend and I are buying a house together, and the property includes a rental apartment above the garage. How should we report our rental income?

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keyboard that says Crowd Funding

Crowdfunding is a popular way to raise funds for businesses, charities and individuals. It occurs when someone asks others to contribute to their idea or cause.

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Earned Income Credit

The Earned Income Tax Credit is available to workers who earn $52,427 or less from wages or self–employment.

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city

In a recent case of tax evasion, Ty Warner, the creator of “Beanie Babies” was hit with $53.6 million in penalties for hiding money offshore.

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Tips

Here are some simple tips to help you reduce your audit risk: Proofread your tax return A mistake on just one figure or item can present IRS audit flags…

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1040EZ

Taxes! Usually, this word creates a strong emotive reaction. We older people tend to not remember the days back when we first filed our very first 1040 EZ.

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