Can I reduce my taxable income by contributing to a self-employment retirement plan? Can I reduce my taxable income by contributing to a health care plan? How does the IRS define self-employed? Whether full-time or part-time, you are generally considered self-employed if any of the follow...
There is currently a loophole for crypto. Since digital currencies are not currently classified as securities by the IRS, the wash sale rule does not apply. This makes something like tax-loss harvesting reasonably easy to do for crypto investors. You can technically sell coins that have fallen ...
Income These are two concepts that help to define whether you’re rich or wealthy. Your net worth is the total of your household’s assets, minus the debts. It’s definitely possible to be rich because of your net worth and not due to your income. For instance, you might ...
How much money can you gift without the recipient paying taxes? With gift taxes, the recipient generally does not pay taxes on gifts received, regardless of the amount. The burden typically falls on the gift-giver. How does the IRS know if you give a gift? The IRS requires givers to rep...
Medical expenses, including mileage, can be deductible only if their total exceeds 7.5% of your adjusted gross income. Moving mileage deduction can be claimed only by active duty military members, following The Tax Cuts and Jobs Act. It’s also worth noting that IRS regulations regarding mileage...
A) What types of assistance and tax preparation services does the IRS provide? B) What are the advantages of using tax preparation software? C) Differentiate between tax evasion and tax avoidance. A) Define and differentiate between gross income and AGI. Name several types of tax-exempt income...
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To test your business idea while keeping your day job (and income), consider launching a minimal viable product (MVP) or service on weekends. You can also use a social media account for your business or a simple business website to gauge interest — on social media does your idea attract...
Income from Partnerships The IRS doesn't taxpartnershipentities but any income, deductions, and losses that stem from these entities are passed through to individual partners. As such, the partnership doesn't pay taxes. If you're a partner, you must declare any pass-throughs on your annual ...
The IRS requires that you have an EIN even if you don’t anticipate hiring employees. The number will act as a tax identification number (TIN) for your foundation just as a Social Security number (SSN) does for an individual.7 #4 File for Tax-Exempt Status The next step is to ...