Many people assume tax planning is the same as tax preparation, but the two are quite different. Let’s take a closer look: WHAT IS TAX PREPARATION? Tax preparation is the process of preparing and filing a tax return. Generally, it is a one-time event that culminates in signing your return and finding out whether you owe the IRS money … Read More
Taxable vs. Nontaxable Income
Tax season front and center. Some people have gotten their taxes done, good for you. This article is for the other part of the population that is still putting together the information they need to file, and those who haven’t moved a muscle to get started. Unless you are an accountant it might be hard to tell what is taxable … Read More
Social Security Benefits & Taxes: The Facts
Social Security Benefits & Taxes: The Facts Social Security benefits include monthly retirement, survivor, and disability benefits; they do not include Supplemental Security Income (SSI) payments, which are not taxable. Generally, you pay federal income taxes on your Social Security benefits only if you have other substantial income in addition to your benefits.Examples include wages, self-employment, interest, dividends, and other … Read More
Relief for Taxpayers Struggling with Tax Debt
RELIEF FOR TAXPAYERS STRUGGLING WITH TAX DEBTS While there have always been payment options available from the IRS to help taxpayers struggling to pay tax debts, the new IRS Taxpayer Relief Initiative was put into place to expand these options and offer relief during the pandemic. These revised COVID-related collection procedures will help taxpayers, especially those who have a record … Read More
Identity Protection PIN Available to All Taxpayers
Fraudulent Federal Tax Returns are on the rise!Starting in January 2021, In order to help combat this, the IRS Identity Protection PIN Opt-In Program will be expanded to all taxpayers who can properly verify their identity. Previously, IP PINs were only available to identity theft victims.WHAT IS AN IDENTITY PROTECTION PIN?An identity protection personal identification number (IP PIN) is a … Read More
Retirement Contribution Limits for 2021
Retirement Contribution Limits for 2021 Cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for 2021 are as follows:401(k), 403(b), 457 plans, and Thrift Savings Plan Contribution limits for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan remain unchanged at $19,500. The catch-up contribution limit for employees … Read More