You probably know that claiming income tax deductions reduces your taxable income. But did you know that not all deductions are created equal? Maybe you’ve heard the term “above the line” thrown around in tax conversations. Above-the-line deductions are actually adjustments to your taxable income — they are subtracted from your income before your adjusted gross income (AGI) is calculated […]
The IRS will receive an extra $80 billion in funding over the next decade thanks to the Inflation Reduction Act. Understandably, this announcement has caused some apprehension among taxpayers. Does this new funding mean your risk of an audit will go up this tax season? Let’s look at the facts. We’ll also review how you can help protect yourself from […]
Updated tax brackets for the year 2022 Your tax bracket shows you the tax rate that you will pay for each portion of your income. Below, we go over some helpful examples and also address myths about how tax brackets work. The progressive tax system ensures that all taxpayers pay the same rates on the same levels of taxable income. The […]
Updated Sept. 12, 2022 At the end of August 2022, President Biden revealed that borrowers could get up to $10,000 of their federal student loans forgiven. If you received a Pell Grant, a federal grant designed to provide student aid to those from low-income households, you could have up to $20,000 of your federal student loans forgiven. Biden’s student loan […]
Whether you file early or wait until the tax deadline, there are simple things you can do today to help you cruise through tax season. Use the following five tips to start getting organized. Step 1: Know when your tax documents will arrive Your tax forms should arrive in the mail starting in January. When the forms start to arrive, […]
Establishing good business credit is one of the most important things you can do as a new small business owner. But how do you get the ball rolling? Here are some tips that can help you build a good credit rating for your business. What is business credit? Let’s start off with the basics. Just like your personal credit score, […]
Electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), and other clean-energy vehicles continue to gain popularity, especially as gas prices soar. Is it time for you to make the switch? If you’re new to the EV market, you no doubt have a lot of questions — topics like EV battery range, maintenance costs, and affordability among them. But have you […]
By now, you’ve probably heard about the Inflation Reduction Act President Biden signed into law in mid-August. On the surface, it sounds like a good thing. Who wouldn’t want to reduce the sky-high inflation we’ve all been dealing with this year? But, as always, there’s a little more to it. Let’s go over the goals of the Inflation Reduction Act […]
Whether you intended to be a landlord or you fell into it because you had vacant property you couldn’t or didn’t sell, owning rental property is a source of income and it affects your tax return. Knowing the rules can help you maximize the tax advantages of owning rental property and help you create a strategy to help lower your […]
Your small business is your baby and choosing the right name for it is a big deal. But what happens when you need to change your business name for whatever reason? Here’s how to prepare and what to expect when you decide your business name needs an upgrade. Can you change the name of an existing business? Yes, you can! […]
If your hobby earns you income, the IRS wants to know about it. But how do you report hobby income and how does it differ from small business income? Is one better than the other when it comes to filing taxes? Why is it important to know the difference? Knowing the differences between hobby income and business income is essential […]
In the past, NCAA rules prohibited college athletes from profiting from their name, image, and likeness (NIL). But in 2021, that changed. As a student-athlete, you now have the opportunity to earn NIL income, opening the door to exciting endorsement deals and profitable partnerships. Just remember — Uncle Sam wants his cut of these profits, too. Before you rush into […]
If you’re a college athlete profiting from your name, image, and likeness (NIL), your tax situation can be a complicated topic. Sometimes it’s hard to know where to start — that’s why we’ve put together a list of seven tips to help you prepare for your next tax season. 1. Get in touch with the experts. If you’re in the […]
Back-to-school shopping can put a serious dent in your bank account. In fact, parents plan to spend close to $700 on supplies this year according to a survey conducted by the National Retail Federation. Before you run to the store to start shopping, read these eight savings tricks to help you keep more of your hard-earned money. 1. Do a […]
You’ve heard about the new IRS reporting thresholds for Form 1099-K that went into effect this year, but you may have some follow-up questions about how it applies to you. Let’s look at some common concerns we see from online sellers and how to handle some unique situations, like pricing and selling inherited items. You only owe income tax on […]
If the new 1099-K reporting thresholds have you confused as an eBay seller, you’re not alone. But don’t worry — eBay and TaxAct have partnered up to help you separate fact from fiction. Below we’ll address some common misconceptions you might have heard about these changes and the truth about how your taxes could be affected. Misconception 1: This is […]
If the new 1099-K reporting thresholds have you confused as an eBay seller, you’re not alone. But don’t worry — eBay and TaxAct have partnered up to help you separate fact from fiction. Below we’ll address some common misconceptions you might have heard about these changes and the truth about how your taxes could be affected. Misconception 1: This is […]
If you sell items online, you’ve probably heard about new IRS reporting thresholds that went into effect this year. These new requirements have caused some confusion for sellers on eBay and other online marketplaces. To help keep sellers informed, TaxAct® and eBay have partnered to help you understand these tax changes and what they will mean for the tax returns you’ll […]
For many people, passive income sounds like the dream. After all, who doesn’t want to earn extra income on autopilot? Especially in 2022, as we are all dealing with the effects of high inflation rates. Let’s look at what society considers to be passive income, how to get started earning passive income, and how much work it actually takes to […]
High inflation got your stress levels up? Here are some savings and investment strategies you can use as an inflation hedge to protect your money’s value as prices soar. Inflation calculator Calculate the spending power of in Year Compared to Year It would be Calculate What is inflation? As many of us have experienced firsthand during the pandemic, the rate […]