Another way to avoid paying taxes is to get credit for education enrollment. The US government offers credits and deductions to return to school online or in your community. You can take advantage of the education tax credits through the American Opportunity Tax Credit, which offers up to $2,...
It’s possible – and perfectly legal – to avoid paying taxes on yourSocial Security check. But here’s the caveat: To receive tax-free Social Security, your annual combined, or provisional, income must be under certain thresholds:
If your forgiven debt is subject to taxation, you will usually receive a form 1099-C, Cancellation of Debt, from the lender, showing the amount of canceled debt. You’ll file the 1099-C with your federal tax return, and the amount of canceled debt is added to your gross income...
Form 1099-NEC is used to report non-employee compensation, which includes any payments you receive for your work as an independent contractor. Not sure how to file 1099-NEC? We've got you covered. Check out this guide to learn more about Form 1099-NEC, w
1099-NEC: a newer form for freelance/gig-worker income. NEC = “non-employee” compensation. 1099-SA: if you took distributions from an HSA, this form documents how much. 1098-T: higher education expenses paid. If you have not yet received forms you are expecting in the mail, I would...
Here’s how you can (legally) avoid paying taxes on your capital gains and what to watch out for. The not-so-secret 0 percent capital gains tax rate While it can be easy to overlook, the IRS has clearly laid out how you can qualify for a 0 percent capital gains tax rate, and it...
How to Avoid Paying More Taxes Than You Should
What else do you need to comply with when paying independent contractors? According to the IRS, there aretwo formsthat business owners need to prepare: Form W-9 and Form 1099-NEC. Here’s what these forms are: What is a Form W-9 (Request for Taxpayer Identification Number and Certificatio...
Get the Timing Right on Your First Distribution Forgetting to take your first RMD by April 1 in the year after you turn 73 can result in a significant tax penalty. To avoid unnecessary penalties and ensure compliance with tax regulations, you must stick to the Internal Revenue Service’s wi...
Make sure you have sufficient funds to cover a check for your tax bill to avoid a dishonored check penalty. Saving on penalties Things don't always go as planned when it comes to filing your tax returns and paying your taxes on time. Even if you have the best intentions...