Category: Blog

5 Must-Know Facts about Unemployment Benefits

Must-Know






Unemployment benefits were first introduced in the U.K. in the year 1911. Two decades later, in the year 1932, the unemployment benefit scheme was introduced in the US, in Wisconsin. The federal government of the U.S, then, through its Social Security Act of 1935, encouraged states to adopt and implement unemployment insurance schemes for the welfare of people. Since then, though there have been countless debates on whether the government should be paying these benefits, the U.S. government has continued to set-off a significant sum from its treasury as unemployment benefits for its citizens. However, without getting into that debate,

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Answering 6 FAQs on Form 1095-B

1095-B






1. What is Form 1095-B? Every year, taxpayers who enroll in health care coverage receive Form 1095-B from their health Insurance provider. The form reports: The type of coverage the taxpayers and their families have The number of dependents covered The period of coverage 2. Who is a health insurance provider? The term “health insurance providers” refers to insurance companies, self-insured employers and government agencies that provide Medicaid, CHIP or Medicare plans. 3. Why did I receive more than one Form-1095 B? You may have received more than one Form 1095-B for one or more of the following reasons: Your

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Itemize or Standard Deduction: Tips to Make the Right Decision

Itemize






Though standard deduction is an easy choice, there are many taxpayers who are leveraging the benefits of itemizing their tax deductions in form of reduced tax bills. If you are confused about whether to itemize the deduction or stick to a no-question-asked standard deduction, this brief read is for you. Here are some handy tips to avoid paying more taxes than you owe. Evaluate Itemized Deductions Identify and add all deductible expenses you paid during the year, keeping in mind that there are specific rules and regulations that may apply to specific expenses. The list includes: Home mortgage interest State

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Answering 6 FAQs on Medical and Dental Expense Related Tax Deductions

Answering






Most taxpayers are aware that they are eligible for a tax exemption if they spend a part of their income in medical and dental treatments. They, however, are unsure about the exact rules of tax deductions and how they apply in their case. As a result, we receive several enquiries from taxpayers across the country, seeking clarification on different doubts. To help clear the smokescreen, here is a list of some of the most common questions we come across, along with the answers. Take a look. 1. Can I claim a tax deduction for medical and dental expenses? Yes, you

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Individual Shared Responsibility Provision and Income Tax Return: An Overview

Health insurance policy






The Individual Shared Responsibility Provision is an individual mandate designed with an aim to improve the quality and affordability of health insurance coverage in the US. One of the many Affordable Care Act tax provisions,  requires individuals to have a certain amount of health care coverage or minimum essential coverage (barring few exemptions), when filing the annual federal income tax return. People who do not have a minimum essential coverage or who do not qualify for the coverage exemption are required to pay a fine in the name of the individual shared responsibility payment. In this blog post, we take

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A Brief Guide to Choosing the Right Tax Form

Brief






Almost every American with a certain amount of salary is required to fill one of the many IRS tax forms to report their income, expenses, and other financial data. Therefore, learning about some of the most commonly used tax forms can help you choose the correct tax form from the ocean of options available and claim the tax deductions, tax credits, and other financial benefits available to you. Let’s take a look E-filing the Return Though many people prefer filing returns through paper forms, doing it online is one of the easiest ways to file a complete and an error-free

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5 Reasons to File Tax Return, No Matter the Income

Tax return 2015






Not everyone files a tax return, nor they are required to do so. Filing a tax return, however, has its perks, even if you are not required to based on your income. Filing a return may qualify you to receive certain credits such as additional child tax credit, first-time homebuyer credit, and other benefits, which you will otherwise miss out on. Through this brief post, we’ll look at five reasons you should file your tax return. 1. Tax Paid or Withheld There are various situations when you should file a tax return and claim a refund. Firstly, you paid an

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Stay Alert : 4 Common Tax Scams

scam concept on the computer keyboard






The US government has lost almost $3 trillion to tax evasion, during the last decade alone. This is a serious and persistent issue that results in accumulated national debt and budget deficits. To make up for the losses, US taxpayers are required to pay extra tax dollars out of their pocket every year. A study by Demos.org shows that in 2010, on an average, every taxpayer, paid an extra $2,200 to offset the losses attributable to tax scams. These losses occurred not only due to tax evasion, but also due to the ill-tactics of tax planning agencies that resorted to

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A Brief Guide to Taxable and Nontaxable Incomes: Part 2 of 2

Businessman pressing a TAX PLANNING concept button. Can be used in advertising.






In the first of our two-part series we discussed the various types of taxable income. To take the conversation further, we will explore some of the most common nontaxable income types. It is  important to remember that all income is taxable, unless the law categorically specifies it as an exception. Let’s take a look at what  income types qualify for exemption. Nontaxable Income Types S Corporation Income An S Corporation is a closely held entity that is exempt from income tax deductions. The income or losses that S Corporations get are passed on to the shareholders, who in turn report

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A Brief Guide to Taxable and Nontaxable Incomes: Part 1 of 2

Businessman pressing a TAX PLANNING concept button. Can be used in advertising.






Taxpayers often cite a lack of awareness as the main reason for not paying taxes. When the time arrives, many taxpayers find themselves at a loss about their taxable incomes. While it’s best to leave it to the courts to decide whether the person claiming negligence is telling the truth or not, our focus should be on avoiding being under the radar. Therefore, in this two-part series, “What’s Your Income Type – Taxable or Nontaxable?”, we will cover some of the most common taxable and nontaxable income types. Let’s take a look. Taxable Income Types Employee Compensation Everything that you

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