If you have been following the news, you know the new COVID relief plan should be signed by President Biden today. It’s called The American Rescue Plan. This plan not only includes another $1400 in stimulus payments for tax payers and their dependents, but it also includes other tax benefits for certain individuals applicable for […]
IRS Hit A Self-Employed Individual for $7k in Back Taxes!
My sole proprietor clients think I’m hard on them. They wish I’d leave them alone about maintaining a separate bank account for their business. They don’t want to hear me go on and on about not co-mingling funds, depositing and reporting every dollar made in business, and not over-stating expenses. There are several reasons I […]
When the IRS says “Your Releative” Here’s What They Mean
Some taxpayers use the term “relative” quite loosely. Your best friend’s son may be your godson – and he may seem like a relative in your eyes – but Dr Sam and the IRS don’t see it that way. So, when the IRS says “your relative” here is who they are talking about: Your biological […]
Can You Claim The Big Earned Income Tax Credit?
EARNED INCOME TAX CREDIT-SCHMEDIT! In general, you most likely have received the Earned Income Tax Credit (EITC) in the past if you: (1) Earn money from working (2) Have an income amount that is considered “low income”, and (3) Usually receive a tax refund that is more than $2000. Sometimes the refund can be as […]