Category: Tax
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Will Taxpayers Pay for Student Loan Forgiveness
In August, President Joe Biden made an important announcement that grabbed the attention of many Americans dealing with student loan debt. He suggested eliminating a maximum of $20,000 in federal student loans for persons from lower- and middle-class backgrounds. This announcement provided optimism to individuals who had long aspired for alleviation from their student loan…
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What are the 3 Types of LLCs?
LLCs are one of the easiest structures for conducting business in the United States, offering flexible ownership and management structures. Furthermore, unlike corporations, an LLC is considered a pass-through entity, which means its profits are taxed at the member level rather than the corporate level – meaning owners pay taxes on any distributions received. LLCs…
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Sales Tax on Digital Goods by State in the US
Sales tax laws relating to digital goods often lag behind technological advances. Examples of digital products include ebooks and ringtones, online games, fonts, font downloads, and subscriptions to streaming media services. States that participate in the Streamlined Sales Tax Agreement adhere to standardized definitions for these products; however, taxability varies by state. Definitions As more…
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What Happens If You Miss the Tax Deadline?
In case of tax deadline extensions, Uncle Sam will charge both an administrative penalty and interest on April 18 or, in instances where April 18 falls on a weekend or holiday, on the next business day. Failure-to-file penalties amount to 0.5% of your tax debt per month, which takes you longer than 60 days to…
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Is the Interest on a HELOC Tax Deductible?
Based on the amount of mortgage debt you have and the timing of your loan, the interest on your home equity loan may be eligible for tax deduction. Per IRS regulations, in order to qualify for the tax deduction, you must have utilized the equity to purchase, expand upon, or make significant enhancements to your…
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What Will the Estate Tax Exemption Be in 2025?
If your estate exceeds current exemption limits, proper financial and estate planning can save substantial taxes. Unfortunately, only two tax years remain to take advantage of an increased exemption limit before its benefits “sunset.” Now is an opportune moment for retirees and others to explore various lifetime gifting strategies. The TCJA Expiration Date As we…
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The IRS Has Relaxed Its Signature Requirements For Paper Filed Returns
Due to numerous requests from taxpayers and tax professionals alike, the IRS has begun accepting more forms that can be electronically signed. However, certain vital forms still require wet signatures. The COVID-19 pandemic caused temporary exemptions of specific filing rules; Form 8879 The IRS has long required ink (or “wet”) signatures on paper tax returns…