Attention Employers: Stay Compliant with State-Specific W-2 Filing Requirements! As the federal Form W-2 filing deadline approaches, don’t forget to check state-specific filing requirements. Some states require additional W-2 submissions, while others have no such mandates. Here’s a detailed breakdown to guide you: W-2 Filing Requirements by StateStates Requiring W-2 Filing Alabama (AL): W-2 required;…
What Are Tax Deductions?A tax deduction reduces your taxable income, which in turn lowers the amount of tax you owe. Think of it as a way to shrink the portion of your income that is subject to taxation. For example: If you earn $50,000 a year and claim a $5,000 deduction, your taxable income becomes…
A client recently shared a heartwarming story: she gifted her son $25,000 this Christmas to help him buy his first car. It was her way of spreading holiday cheer, but this generous gesture came with a filling requirement of form 709. 𝗧𝗵𝗲 𝗕𝗮𝘀𝗶𝗰𝘀 The IRS allows you to give up to $18,000 per recipient annually…
Statement of Specified Foreign Financial AssetsWith the increasing globalization of financial markets, IRS Form 8938 has become a crucial requirement for U.S. taxpayers holding foreign financial assets. Here’s everything you need to know: What is Form 8938?Form 8938 is a reporting requirement under FATCA (Foreign Account Tax Compliance Act). It ensures that taxpayers disclose certain…
Let’s break down a big tax concept, gross income, in simple words. If you earn money, you need to know what gross income is because it’s the starting point for figuring out your taxes. What Does Gross Income Mean? Gross income is all the money you make from any source. Think of it like…
For tax professionals and taxpayers alike, Schedule 3 of Form 1040 is a critical component of the U.S. individual income tax return. It covers nonrefundable credits, refundable credits, and additional payments, which can significantly affect a taxpayer’s final tax liability or refund. 📋 What is Form 1040 Schedule 3?Schedule 3 is an attachment to…
Schedule 2 is an additional form used when filing IRS Form 1040 or 1040-SR. It covers specific taxes that cannot be directly reported on the main Form 1040. Understanding its sections can help ensure accurate filing and compliance with tax laws. When to Use Schedule 2?You’ll need to file Schedule 2 if you owe: 1….
Income tax season can be complex, especially when trying to determine who must file, when to file, and what filing status applies. Let’s break it down with key points and examples to make this easier to navigate. 1. Who Must File?The IRS requires individuals to file a tax return if they meet certain conditions based…
