At a Glance: Reporting self-employment income requires understanding the tax forms involved. Freelancers receive Form 1099-NEC for payments over $600, which must be reported using Form 1040 and Schedule C. Cash income should also be reported, even without a 1099 form. Keeping track of cash earnings …
At a Glance: Generally, a teenager is considered a dependent on their parents’ tax return and is not required to file separate taxes until the age of 19 if they have stopped their education. If they continue their education, they can still be claimed as dependents until they reach 24. However,…
At a Glance: An explanation letter, also known as a letter of explanation, is used to clarify discrepancies or provide a plausible explanation for unusual activity in records, such as financial or tax records. It is important for creating a positive impression when applying for benefits or addressin…
At a Glance: When it comes to tax filing options, individuals have five statuses to choose from, including single and married filing jointly. Getting married changes your filing status, and you must file as married if legally married by the last day of the tax year. Filing as single is for the unmar…
At a Glance: Yes, you can still file your taxes without a W-2. If you lost the form or didn’t receive it from your employer, ask them for a copy. If that’s not possible, you can use Form 4852, the “Substitute for Form W-2,” to request information about your withheld wages and…
At a Glance: Credit Karma Tax no longer exists as it was acquired by Square Inc., the parent company of Cash App. The acquisition was initially intended to be made by Intuit Inc., the maker of TurboTax, but it faced opposition from the U.S. Justice Department due to concerns of reduced competition a…
At a Glance: If you didn’t have any income last year, you are not required to file a tax return. However, filing can still be beneficial. It allows you to claim refundable tax credits such as the Additional Child Tax Credit or the Earned Income Tax Credit. You can also recover taxes withheld i…
At a Glance: Property taxes are charges based on the value of your property, including land, structures, and valuable personal items. Homeowners and landowners are typically responsible for paying property taxes, while renters are not. To determine the amount owed, multiply the assessed value of the…
At a Glance: Employers need to send W2 forms to their employees and the IRS by January 31st each year. If you haven’t received your W2, double-check the calendar and review your emails for electronic access. Inquire with your employer and check online databases. If unsuccessful, contact the IR…
At a Glance: The Federal Income Tax is a tax withheld by the IRS from your paycheck, applying to various forms of income such as employment and capital gains. It helps fund government programs and infrastructure. Reasons for not paying federal income tax include earning below the threshold, being ex…