For divorce agreements executed after 2018, alimony is not deductible by the payer and not reportable as income by the recipient; child support has never been deductible or taxable. How...
Wondering which closing costs are deductible right after buying your first home? For most homeowners, the only closing costs you can deduct immediately are mortgage points (prepaid interest) and property...
Immediately submit a new Form W-4 to your employer to adjust your withholding, and if you changed your name, update it with the Social Security Administration so it matches your...
Yes, you typically must file a part-year resident return in both your old state and your new state, reporting only the income earned while living in each. The key is...
Use the simplified square footage method ($5 per sq ft, max 300 sq ft) and ensure the space is used exclusively and regularly for business, because the IRS automated system...
To avoid a penalty, pay 100% of last year's tax liability (or 110% if your AGI exceeds $150,000) in four equal installments by the quarterly deadlines. If you don't hit...
You can't erase the penalty entirely, but you can often reduce or remove it by filing IRS Form 2210 and requesting a waiver if you qualify for safe harbor exceptions,...
To avoid underpayment penalties on investment gains, you must use the IRS safe harbor rule by prepaying at least 100% of last year’s tax liability (110% for high earners) or...
To report stock sales on your tax return, transfer every transaction from your broker’s 1099-B onto Form 8949, then calculate the gain or loss by subtracting your cost basis from...
Yes, you pay taxes on the sale, but only on the gain since the original owner’s date of death - not the gain from when they originally bought it. This...
The net investment income tax (NIIT) is a 3.8% surtax on certain passive investment income that you pay only if your modified adjusted gross income exceeds the filing-status limits set...
The difference is the holding period: short-term capital gains tax applies to assets held for one year or less and is taxed as ordinary income, while long-term capital gains tax...
