Tag Archives: tax return

Opt out of Child Tax Credit

Opting Out of the Monthly Child Tax Credit Payment

Child Tax Credit for 2021Thanks to the advance payments of the Child Tax Credit, approximately 60 million children received $15 billion in July, according to the Department of Treasury and the IRS. While many of these families will benefit from the extra money deposited into their bank accounts, some families may want to opt-out and instead take the credit when they file their tax return next spring.

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child care tax credit

Key Tax Changes Could Affect Your Tax Situation in 2021

8.2 Lahrmer BlogKey tax provisions in the American Rescue Plan Act (ARPA) could affect your tax situation. Here’s what you need to know:

The new tax law affected taxpayers in several ways. First, it increased the dollar amount of the credit and the amount of eligible expenses for child and dependent care.

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IRS meeting

Settling Tax Debt With an IRS Offer in Compromise

Settling Tax Debt With an IRS Offer in Compromise

An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles a taxpayer’s tax liabilities for less than the full amount owed. That’s the good news. The bad news is that not everyone can use this option to settle tax debt; the IRS rejected nearly 60 percent of taxpayer-requested offers in compromise. If you owe money to the IRS and wonder if an IRS offer in compromise is the answer, here’s what you need to know. Continue reading

make a tax payment

What are Estimated Tax Payments?

Estimated tax is the method used to pay tax on income that is not subject to withholding. This includes income from self-employment, interest, dividends, alimony, and rent and gains from the sale of assets, prizes, and awards. You also may have to pay an estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough. Here’s what you should know about estimated tax payments: Continue reading

401k rollover

Changing Jobs? Don’t Forget About Your 401(K)

401kOne of the most important questions you face when changing job is what to do with the money in your 401(k) because making the wrong move could cost you thousands of dollars or more in taxes and lower returns. Continue reading

preparation to sell business

Tax Considerations When Selling Your Small Business

selling businessSelling a small to medium-sized business is a complex venture, and many business owners are not aware of the tax consequences. Continue reading

tax return deadline

Tax Return Tips for Last-Minute Filers

tax return timeEarlier is better when it comes to working on your taxes, but many people find preparing their tax return to be stressful and frustrating and wait until the last minute. Complicating matters this year is tax reform and the newly-redesigned Form 1040. If you’ve been procrastinating on filing your tax return this year, here are eight tips that might help. Continue reading

unemployment tax break

Q & A: The $10,200 Unemployment Tax Break

Generally, unemployment compensation received under the unemployment compensation laws of the United States or a state is considered taxable income and must be reported on your federal tax return. However, a new tax break–in effect only for the 2020 tax year–lets you exclude the first $10,200 from taxable income. Here’s what you should know: Continue reading

economic impact payment stimulus check

Economic Impact Payments: Rounds Three

On March 12, following the American Rescue Plan Act’s approval and signing, the IRS began sending out the third round of Economic Impact Payments. Most payments were sent out via direct deposit, but approximately 150,000 checks were mailed by the Treasury Department as well. Taxpayers who received EIP1 or EIP2 but didn’t receive a third payment (EIP3) via direct deposit will generally receive a check or, in some instances, a prepaid debit card (EIP Card). Continue reading

reviewing tax credits

Highlights of the American Rescue Plan Act

review tax documentsSigned into law on March 11, 2021, the American Rescue Plan Act (ARPA) contains several tax provisions affecting individuals and families. Let’s take a look: Continue reading