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Take care when choosing a tax return professional

Carefully choosing a tax professional to prepare a tax return is vital to ensuring your personal and   financial information is safe and secure and treated with care. Another reason to choose a tax preparer carefully is because taxpayers are ultimately legally responsible for all the information on their income tax return, regardless of who prepares […]

Trouble Anticipated on Tax Returns Due to Advanced Child Tax Credit

To combat anticipated complications and questions on how to report the ACTC on tax returns, the IRS announced on December 21, 2021, that a letter would be sent to ACTC recipients starting in December and to recipients of the third round of the Economic Impact Payments at the end of January.  It is the IRS’s […]

People should be on the lookout for identity theft involving unemployment benefits

Taxpayers whose identities may have been used by thieves to steal unemployment benefits to file a tax return claiming only the income they actually received. Some taxpayers applied for and received unemployment compensation from their state. By law, unemployment benefits are taxable. Scammers also took advantage of the pandemic by filing fraudulent claims for unemployment […]

Is the NC Extra Credit Grant payment ($335-) taxable?

Many of us have had some reasons to believe that it is taxable. And perhaps some are also swayed to think that it is taxable since NC DOR has a subtraction for it on D-440 Sch. S line 33. However, please consider the following information. A “qualified disaster relief payment” is defined by section 139(b) […]

Taxpayers should beware of ghost preparers

As people begin to file their 2020 tax returns, taxpayers are reminded to avoid unethical ghost tax return preparers. A ghost preparer is someone who doesn’t sign tax returns they prepare. Unscrupulous ghost preparers often print the return and have the taxpayer to sign and mail it to the IRS. For e-filed returns, the ghost […]

As required by law, all first and second Economic Impact Payments issued; eligible people can claim Recovery Rebate Credit

The IRS announced today that, as required by law, all legally permitted first and second round of Economic Impact Payments have been issued and the IRS now turns its full attention to the 2021 filing season. Most people who are eligible for the Recovery Rebate Credit have already received it, in advance, in these two […]

What taxpayers need to know about claiming the credit for other dependents

Taxpayers with dependents who don’t qualify for the child tax credit may be able to claim the credit for other dependents. The maximum credit amount is $500 for each dependent who meets certain conditions. These include: Dependents who are age 17 or older. Dependents who have individual taxpayer identification numbers. Dependent parents or other qualifying […]

Some popular tax benefits renewed for 2019

Certain individual tax provisions extended: Deduction for above the line qualified tuition and related expenses, Tuition and Fees deduction Deduction for mortgage insurance premiums treated as qualified residence interest Deduction for unreimbursed medical and dental expenses as the floor was lowered to 7.5% of adjusted gross income Credit for nonbusiness energy property , Residential Energy […]

Things taxpayers should remember when searching for a tax preparer

The tax filing season is upon us, and many people will be looking for someone to help them file a tax return. These taxpayers should choose their tax return preparer wisely. This is because it’s ultimately the taxpayer who is responsible for all the information on their tax return. It’s important for people to remember […]

IRS increases visits to high-income taxpayers who haven’t filed tax returns

IRS increases visits to high-income taxpayers who haven’t filed tax returns As a part of a larger effort to ensure compliance and fairness, the Internal Revenue Service announced it will step up efforts to visit high-income taxpayers who in prior years have failed to file one or more of their tax returns. Following recent hiring […]