For the most part, when we think of income, it falls into one of two categories: earned and passive. Understanding the differences between earned income and passive income can provide you with the knowledge needed to improve the way money moves through your personal economy, as well as build up the income diversity that will … Read more How the IRS Views Earned and Passive Income
In the current housing market, being a seller can be a tough proposition. As my husband finishes his Ph.D., and we start to consider what might happen in the next 12 months, it is becoming apparent that the housing market may not recover by the time we are in a position where selling our home … Read more Do I Get a Tax Deduction on Home Sale Loss?
Like buying a home, selling one could be one of the biggest decision in your life. It is important to understand all the rules and factors to consider when selling your home, because knowing what to do and doing them right could save you thousands of dollars. When the time comes to sell your home … Read more Capital Gains Tax Rules on the Sale of Your Home
Tax Day is rapidly approaching. It’s true that you still have until April 18 this year, but you might be surprised at how fast time flies. Especially when you don’t want it to. One of the reasons you might not want time to fly is that you know you owe money on your taxes. This … Read more IRS Payment Plan: Help for Those Who Can’t Pay Their Taxes
What can you do if you can’t pay the taxes you owe come April? Should you borrow from your 401(k) or is there an IRS tax payment plan option? This is especially important for many Americans that collected unemployment for the first time this year, and didn’t realize that unemployment benefits are taxable. Many of … Read more What to Do if You Cannot Afford to Pay Taxes
The U.S. unemployment rate continues to remain high at 9.1%. This means that many Americans are collecting their unemployment insurance payments, and many are doing so for the first time ever. Now that the tax season is here, some people are left wondering if unemployment payments are taxable or not. I had the same question … Read more Do You Have to Pay Taxes On Unemployment Income?
What happen if you’ve sent in your income tax return and then discover you made a mistake? If you’ve made an error on your tax return after sending it in, you do have the ability to correct it using an amended tax form. For the IRS, this is the Form 1040X (and your locality also … Read more How to File an Amended Income Tax Return (Form 1040X)
April 15 looms on the horizon. There may be any number of reasons that you are not prepared to file a tax return, from not having your dividend statements back, to waiting to get a home buyer tax credit, to straightforward procrastination. No matter your reasons, you can actually file for an extension. Any taxpayer … Read more How to File a Federal Tax Extension
As April 15 inches closer, many are beginning to get their tax documents together and prepare to file their tax returns. However, there are many who don’t have all their tax documents by the requisite time, or who want a little extra time to make some savvy tax moves for their 2009 returns. In such … Read more File a Tax Extension Instead of an Amended Return
Filing an unfiled tax return or even multiple years of unfiled tax returns isn’t as big of a deal as you may believe. Even if you cannot pay the taxes that are owed with the return it isn’t that big of a deal. It is a big deal if you keep waiting longer and longer … Read more Unfiled Tax Returns: What Happens If You Don’t File A Tax Return?