Article Highlights: When You Are Required to File Self-Employed Taxpayers Filing Thresholds Benefits of Filing Even When Not Required to File Refundable Tax Credits This is a question many taxpayers ask during this time of year, and the question is far more complicated than people believe. To fully understand, we need to consider that there are times when individuals … [Read more...] about Do I Have to File a Tax Return?
Is Your Hobby a For-Profit Endeavor?
Article Highlights: Hobby Versus For-Profit Endeavor Factors Used To Determine For-Profit Three out of Five Rule Hobby Deductions Whether an activity is a hobby or a business may not be apparent to the customers of the endeavor, but distinguishing the difference is necessary for tax purposes because the tax treatments are substantially different. The IRS provides … [Read more...] about Is Your Hobby a For-Profit Endeavor?
Should You Keep Home Improvement Records?
Article Highlights: Keeping home improvement records Home gain exclusion amounts Records may be required to avoid tax Many taxpayers don’t feel the need to keep home improvement records, thinking the potential gain will never exceed the amount of the exclusion for home gains ($250,000 or $500,000 if both filer and spouse qualify) if they meet the 2-out-of-5-year use and … [Read more...] about Should You Keep Home Improvement Records?
Is Your Refund Too High or Do You Owe Taxes? You Probably Need to Adjust Your W-4
Article Highlights: Large Refund or Tax Due Employers Withhold Based on W-4 IRS Online Withholding Calculator Self-employed Taxpayers If your income is primarily from wages and you received a very large refund—or worse, if you owed money—then your employer is not withholding the correct amount of tax (but it probably isn’t your employer’s fault). Sure, you like a big … [Read more...] about Is Your Refund Too High or Do You Owe Taxes? You Probably Need to Adjust Your W-4
Tax Penalty For Not Having Insurance Ratchets Up In 2015
Article Highlights: Flat dollar amount penalty Percentage of income penalty Household income Modified adjusted gross income Tax filing threshold The penalty for not having minimum essential health insurance for yourself and other members of your tax family takes a substantial jump in 2015. For 2014, the penalty was the greater of the flat dollar amount ($95 for each … [Read more...] about Tax Penalty For Not Having Insurance Ratchets Up In 2015