At a Glance: A student loan tax credit lowers taxpayers’ tax liability due to higher education expenses. There are two primary credits: the American Opportunity Credit (for the first four years, max $2,500/student) and the Lifetime Learning Credit (for any post-secondary education, max $2,000/…
At a Glance: A tax levy is the process used by a tax authority, such as the IRS in the United States, to forcibly collect tax debts. It involves seizing a taxpayer’s assets, such as bank accounts or wages, to recover the money owed. The IRS prefers voluntary arrangements but can levy assets if…
At a Glance: Understanding your tax obligations in the U.S. depends on determining whether you are a tax resident, either as a nonresident alien or a resident alien. Resident aliens pay taxes like U.S. citizens, while nonresident aliens have different tax obligations. Green card holders must file ta…
At a Glance: When it comes to filing taxes with a non-U.S. citizen spouse, the options depend on their tax residency status. If your spouse is a U.S. resident alien, they must file federal income tax returns. The residency can be determined through the Green Card Test or the Substantial Presence Tes…
At a Glance: To be a U.S. resident for tax purposes means you must file an annual federal tax return. There are two tests to determine tax residency: the Green Card Test (holding a green card) and the Substantial Presence Test (spending a significant amount of time in the U.S.). U.S. residents have …
At a Glance: To contact an IRS agent directly, follow these steps: 1) Call the IRS at 1-800-829-1040 between 7 AM and 7 PM, Monday to Friday; 2) Choose your preferred language; 3) Select options 2, 1, 3, 2, and 4 in the automated menu; 4) Provide your Social Security number when prompted; 5) Choose …
At a Glance: To track your amended tax return, you can use two methods. The first is to track it online by visiting the IRS website and using the “Where’s My Amended Return” tool. The second method is to call 866-464-2050 and inquire about the status of your amended return. It may …
At a Glance: Married couples have the choice to file taxes jointly or separately. Filing separately means calculating taxes individually, while filing jointly involves combining incomes and deductions. Pros of separate filing include simplicity, separation during divorce, and individual deductions. …
At a Glance: Proof of income is crucial in various financial transactions to demonstrate your ability to pay. It can be shown through pay stubs, proof of income letters, tax documents (W2 or tax return), and unearned income documents like workers’ compensation letters, unemployment benefits, c…
At a Glance: Proof of income for self-employed individuals can be shown through a 1099 form from clients, profit and loss statements, bank statements with regular deposits, previous year’s federal tax return, or self-created pay stubs. Proof of income is essential for loans, rentals, and vario…