๐ก Understanding Code G on Form 1099-R โ What It Really Means As a tax preparer, I often notice clients getting confused about Code G on their Form 1099-R.Many assume that if a dollar amount appears on the form, it automatically means tax is due. โThis is income โ so Iโll have to pay tax…
๐ฐ Understanding IRAs โ Your Retirement Moneyโs Best Friend A lot of people hear the term โIRAโ and immediately think โsome complicated tax thing my accountant handles.โBut really, itโs just a special account designed to help you save for retirement โ with tax benefits. Letโs break it down simply ๐ ๐น What Is an IRA?…
๐ก Form 8938 (FATCA) โ Specified Foreign Financial Assets :- If you are a U.S. taxpayer and your foreign financial assets exceed certain thresholds, you must report them on Form 8938 (attached to your Form 1040). ๐ Main Points :- โข Applies to U.S. citizens, residents & certain entities. โข Report bank accounts, stocks, bonds,…
FBAR vs Form 8938 โ Whatโs the Difference? ๐ FBAR (FinCEN Form 114):- โข Report foreign bank/financial accounts. โข File online with FinCEN (not IRS). โข Threshold: $10,000 total at any time in the year. โข Due: April 15 (auto extension to Oct 15). ๐ Form 8938 (FATCA):- โข Report specified foreign financial assets (bank…
๐ก Notable Changes for Tax Year 2025 (Income tax returns to be filed starting tax season 2026) Standard deductions AND Marginal Tax rates:- These updates apply to income tax returns filed in 2026 (for the 2025 tax year) ๐งพ Standard Deductions: *Single / Married Filing Separately: $15,000 (increase of $400 from 2024) *Married Filing Jointly:…
๐ก FBAR (FinCEN Form 114) โ Foreign Bank Account Report :- If you are a U.S. person and your total foreign bank/financial accounts exceed $10,000 at any time during the year, you must file an FBAR. ๐ Easy-to-understand points: *Applies to all U.S. citizens, residents, and entities (LLCs, Corps, Trusts). *Includes bank, brokerage, mutual…
๐งพ Got Hit With a Tax Penalty Even Though You Paid? Read This. ๐ฏ It happens more often than youโd think. You work hard, pay your taxes by year-end, and still get slapped with an IRS penalty.Why? Because the IRS wants you to pay as you earnโnot just at the end. But donโt worryโForm 2210…
1)ย ย ย ย WHAT IS TRADEMARK? A trademark serves as a means for individuals and businesses to distinguish their goods and services from others in the market. It can take the form of a brand name, logo, phrase, or word, and is a valuable asset that needs legal protection through intellectual property rights. In the United…
๐๐ฃ๐๐๐ง๐จ๐ฉ๐๐ฃ๐๐๐ฃ๐ ๐๐ค๐ช๐ง ๐๐๐ก๐๐ฃ๐ ๐๐ฉ๐๐ฉ๐ช๐จ ๐๐ค๐ง ๐๐ค๐ง๐ข ๐ญ๐ฌ๐ฐ๐ฌ: When it comes to filing your taxes, choosing the right filing status is crucial as it directly impacts your tax rate, deductions, and potential credits. The IRS offers five different filing statuses, each with its own requirements and benefits. In this post, Iโll break down each status in…
In my recent review of a tax return, I came across an input error that highlights the critical importance of precision in tax preparation. Here’s the scenario: A client received $๐,๐๐๐ in annuities, reported as Gross Distribution (๐๐จ๐ฑ ๐) on Form 1099-R. The distribution was a ๐๐จ๐ซ๐ฆ๐๐ฅ ๐๐ข๐ฌ๐ญ๐ซ๐ข๐๐ฎ๐ญ๐ข๐จ๐ง from their Pension account. However, the tax…
