The average refund is nearly $3,000 and takes about three weeks to arrive if you e-filed. Track its progress to your bank account by visiting http://www.irs.gov/refunds. If you’re getting a refund, here are four useful tips to know.1. The average refund is more than $3,500. Through February 18, the IRS reports the average refund is $3,536, …
Category: Income
Rent Your Property Tax-Free
Did you know you can rent your home or cabin tax-free for up to 14 days per year? Most income you receive is taxable income that is reported to the federal and state tax authorities. However, renting out your home or vacation property on a short-term basis can be done tax-free if you follow the …
What? This Form 1099 is Wrong!
What to do to fix this thorny problem It is late February and you realize the Form 1099 you received is in error. In fact, it overstates your income by several thousand dollars. What should you do? Gather your facts. Put yourself in the shoes of the vendor, bank or investment company representative. Gather evidence …
Five Tax-Loss Harvesting Tips
Actively managing your investments throughout the year can lower your taxes, especially if you can offset losses with gains. Though the markets have been up strongly this year, your investment portfolio could have a few lemons in it. Using the tax strategy of tax-loss harvesting, you may be able to turn those lemons into lemonade. …
File That Tax Return! – October extension deadline fast approaching
Time to file your tax return for 2020 if you have not already done so. There is no reason to leave a possible refund on the table, and the IRS is not going to beg to send you back your money. Friday, October 15 marks the extension deadline for filing your 2020 Form 1040 Tax …
Continue reading File That Tax Return! – October extension deadline fast approaching
Avoid Tax Traps with Loans to Friends and Family
The IRS assumes you'll charge interest if you make personal loans, even to friends and family. Even if you don't charge interest, you'll owe tax on an assumed rate of interest. Lending to friends and relatives can be tricky, and not only because of the stress it can place on your relationships. There are tax …
Continue reading Avoid Tax Traps with Loans to Friends and Family
Time for a Checkup – Are you withholding enough for your taxes?
With all the changes last year, now is a great time to conduct a tax checkup, especially since their is still time to make adjustments. As we enter mid-year, it's a good time to check your tax withholdings to ensure you haven't been paying too much or too little. This is especially true if your …
Continue reading Time for a Checkup – Are you withholding enough for your taxes?
Thinking of Selling Your Home?
Hot housing market requires tax knowledge With housing prices skyrocketing, more homeowners are considering cashing out to multiples over list price! Especially since one of the largest tax breaks available to most individuals is the ability to exclude up to $250,000 ($500,000 married) in capital gains on the sale of your personal residence. Making the …
Income the IRS Can’t Touch
Looking for tax-free income? Here is a list of the more common types. Wouldn't it be nice to have a source of nontaxable income? You may be more fortunate than you realize. Here are several types of income that the IRS does not tax. 1. Tax-free interest. The federal government does not tax municipal bond interest. …
Understanding Tax Terms: AFRs
The IRS often sees the transfer of funds as a loan, whether there is a loan agreement or not. This also means there is an implied term and interest payment. When the IRS says a transaction is a loan, what interest rate do they use? Enter AFRs. Here is what you need to know. Your …
Velisa Bookkeeping Services LLC 