Category Archives: Income
Tax loss harvesting is a valuable tool in investment management, often overlooked by many investors. By strategically selling investments at a loss, investors can reduce their tax liabilities, offset gains, and, ultimately, improve their overall portfolio performance. This guide will explain what tax loss harvesting is, how it works, and strategies to make it an […]
— Read more
Not all income is taxable, according to the IRS. The taxability of income depends on specific rules, requirements, and regulations. Here are several categories of income that are generally not subject to tax: Life Insurance Proceeds When a beneficiary receives life insurance proceeds after the policyholder’s death, these funds are typically tax-free. However, any […]
— Read more
Your side business could result in a tax headache whether you rent out your home on Airbnb, provide guitar lessons and accept payment via Venmo, or sell shoes on eBay. A new law mandating users who earn more than $600 in revenue to receive tax forms from sites like eBay, Etsy, and Airbnb as well […]
— Read more
Regardless of whether it came from a business or a pastime, every income earned is taxable. Losses sustained while engaging in a hobby are not generally deductible, whereas commercial losses are. Where you disclose money on your tax return depends on how the gig is categorized. Schedule C, “Profit or Loss from Business (Sole Proprietorship),” […]
— Read more
The Social Security Administration (SSA) provides financial assistance to children whose parents are disabled, retired, or have passed away. Last year, the SSA distributed around $3 billion each month to roughly 4 million children to help cover their basic necessities and support them through high school. These benefits are crucial for families who have lost […]
— Read more
The Internal Revenue Service reminds taxpayers who receive income from the sale of goods and/or services that they might receive Form 1099-K, Payment Card and Third-Party Network Transactions, in the early part of 2023 if their total payment card and third-party network transactions for the 2022 year exceeded $600. Form 1099-K, has undergone modifications and […]
— Read more
Investors in cryptocurrency will possibly face higher taxes due to the Infrastructure Bill which will crack down on future IRS reporting. Investors will be required to disclose yearly cryptocurrency activities by checking a box on their tax returns. Due to the complicated and lengthy rules coming out of Washington, most filers haven’t a clue what […]
— Read more
Beware – if you are making more than $600 a year in transactions and using a cash app for business, the IRS wants to know. PayPal, Venmo, or CashApp are examples of various apps. Beginning as of January 1, 2022, the American Rescue Plan Act of 2021 has modified the IRS reporting requirements from $20,000 […]
— Read more
When you make a good investment know it will be followed by a tax. Taxes on capital gains are imposed on lucrative stock trades, real estate deals, and can be used for sales of businesses, art, collectible cars, gold, and other assets. At large, investors are taxed on the difference between what they paid for […]
— Read more
Taxpayers who earned less than $150,000 in modified adjusted gross income may exclude unemployment compensation up to $20,400 if married filing jointly and $10,200 for all other eligible taxpayers. For those taxpayers who already have filed and figured their tax based on the full amount of unemployment compensation, the IRS will determine the correct taxable […]
— Read more
