- SALT Write-Offs: Trump Tax Changes and Requirements
The state and local tax (SALT) deduction lets taxpayers write off certain state and local taxes from their federal taxable income. Under the One Big Beautiful Bill Act, signed into law by President Trump on July 4, 2025, the annual SALT write-off cap was raised from $10,000 to $40,000 for tax years 2025 through 2029.… read more…
- Who’s Entitled to the Tax Refund of a Deceased Person?
If the deceased was due to receive a tax refund, determining who is entitled to the money is a key issue for the surviving spouse, family members and estate representatives. In most cases, the IRS allows those legally responsible for the estate to claim the refund. The process depends on several factors, including the deceased’s… read more…
- How to File a Tax Extension in California: Eligibility Rules
California grants an automatic tax filing extension until October 15 for individual taxpayers, with no need to submit a formal extension request. However, this extension only applies to filing, not to payment. Taxpayers remain responsible for paying any owed taxes by the April deadline to avoid added penalties and interest. A financial advisor with tax… read more…
- Is There a Penalty for Filing a Tax Extension?
Filing an extension gives you an additional six months to submit your tax return, but not to pay your taxes. There is no penalty for filing for the extension itself. However, if you owe money and don’t pay it by the original due date you may face fees and penalties. If you anticipate a balance… read more…
- How to File for a Tax Extension in All 50 States
Filing a state tax extension can provide extra time to prepare and submit your state tax return if you miss the original deadline. While the IRS offers a fairly uniform process for federal tax extensions, the rules for state tax extensions vary widely. Some states automatically grant an extension if you file a federal extension.… read more…
- What Happens If You File an Extension But Owe Money?
Filing an extension can give you extra time to complete your tax return, typically pushing the deadline from April to October. But what happens if you file an extension but owe money? Filing an extension does not give you extra time to pay any taxes owed. If you may owe taxes but need more time… read more…
- Can You File Another Tax Extension After October 15?
For most individual taxpayers, the October 15 tax extension deadline is final. Unlike the automatic six-month extension granted in April, the IRS typically does not offer further extensions beyond October 15 for personal tax returns. This deadline represents the absolute cutoff for most filers. Missing it can result in late-filing penalties and interest charges that… read more…
- The IRS Isn’t Answering. Now What?
What should you do if you need help with your taxes? After a busy filing season, many households are trying to manage a difficult question. What happens if April 15 comes and goes, and you still have unanswered questions about your taxes? It’s a relevant question. About one-third of all taxpayers wait until the last… read more…
- Self-Employed vs. Business Owner: Tax Differences
While the terms “self-employed” and “business owner” are often used interchangeably, the IRS views them differently. Self-employed individuals typically work alone and report earnings on their personal tax returns. Business owners may operate a more structured entity, possibly with employees, and may file separate business tax returns. Each structure comes with unique tax implications, including… read more…
- Standard Mileage Deduction: Requirements, Rate and Examples
If you use your personal vehicle for business or other specific needs, you may be eligible to claim the standard mileage deduction on your federal tax return. This deduction allows taxpayers to write off vehicle-related expenses based on the number of miles driven, using IRS-approved rates. The standard mileage deduction can significantly reduce your taxable… read more…
- Section 83(b) Election for Stock Options: Deadline, Examples
An 83(b) election lets individuals who receive restricted stock or stock options pay taxes on the value at the time of grant, rather than when the shares vest. This election is only available within 30 days of receiving the stock and can affect the amount and timing of taxes owed. Understanding how the 83(b) election… read more…
- Form 6252: How to Report Installment Sale Income
Taxpayers use Form 6252 to report installment sales when at least one payment arrives after the tax year of the sale. Rather than recognizing the full gain upfront, sellers have the option to spread their tax liability over several years as they receive payments. Form 6252 helps calculate the gain portion of each payment and… read more…
- Form 2439: What Is It, Who Files It and Who Gets It?
Form 2439 is a tax document that a regulated investment company (RIC) or real estate investment trust (REIT) issues when it retains capital gains and pays taxes on behalf of its shareholders. Instead of distributing the gains, the fund provides Form 2439 to shareholders, allowing them to report the income and claim a tax credit.… read more…
- Form 8379: How to File an Injured Spouse Allocation
When a married couple files a joint tax return, both spouses typically share responsibility for any tax liabilities. However, if one spouse has past-due debts — such as unpaid federal taxes, state taxes, child support or student loans — the IRS may seize the entire tax refund to satisfy those obligations. Form 8379, also known… read more…
- Form 4684: How to Claim a Casualty and Theft Loss Deduction
Form 4684 allows individuals, businesses and estates to claim deductions against any unexpected losses due to theft or disasters. These deductions can help reduce taxable income, but they come with specific eligibility requirements and limitations. In most cases, only losses caused by federally declared disasters or qualified thefts can be deducted. A financial advisor can… read more…
- How Does the AMT Affect Your Standard Deduction?
The alternative minimum tax (AMT) can reduce or eliminate the benefit of the standard deduction for certain taxpayers, particularly those with higher incomes or specific types of tax-preference items. Unlike the regular tax system, which allows a standard deduction to lower taxable income, the AMT calculation follows a separate set of rules that disallows this… read more…
- What Triggers the Alternative Minimum Tax (AMT)?
The alternative minimum tax (AMT) is designed to ensure that certain taxpayers who benefit from various deductions and tax preferences still pay a minimum level of tax. Several factors can trigger AMT liability, including high income, large deductions and financial activities that create differences between regular taxable income and the income calculated under the AMT… read more…
- How to Calculate the Alternative Minimum Tax (AMT)
The alternative minimum tax (AMT) calculation determines whether a taxpayer must pay an additional amount beyond their regular income tax liability. To calculate AMT, taxable income is adjusted by adding back certain deductions to determine alternative minimum taxable income (AMTI). An exemption is then applied, though it phases out at higher income levels. After subtracting… read more…
- NJ Mansion Tax: Who Pays It, How to Avoid It
New Jersey imposes a mansion tax on real estate transactions that exceed $1 million. This 1% levy applies to residential and certain commercial properties, adding a significant cost for high-value buyers. The tax is typically paid by the purchaser at closing, though exemptions and legal strategies may help reduce or eliminate the obligation. Buyers looking… read more…
- What Are Back Taxes? Meaning and Consequences
Back taxes refer to unpaid taxes that remain outstanding from previous years, either due to missed payments, underreporting of income or adjustments in tax filings after an audit. These unpaid balances can accrue penalties and interest over time, which may significantly increase the amount owed. Individuals or businesses with back taxes may face consequences from… read more…
- Tax Forms W-8 vs. W-9: Differences and When to Use
IRS forms W-8 and W-9 serve distinct purposes in the tax system and are used by different groups to fulfill their tax obligations. A W-8 form is typically required from non-U.S. individuals or businesses to certify their foreign status and can enable filers to claim full or partial exemption from certain U.S. withholding taxes. In… read more…
- What Is Form W-8BEN for Individuals?
The W-8BEN form is an IRS document required for non-U.S. individuals who receive interest, dividends or other income from U.S. sources. The form, also known as the Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting, enables nonresident aliens to confirm their foreign status to the tax collecting agency. It… read more…
- Itemized Deductions vs. Standard Deduction
Itemized deductions and the standard deduction are two options that taxpayers can choose when filing their tax returns. The choice affects how much taxable income is reduced, potentially influencing the amount of taxes owed. The standard deduction is a fixed dollar amount that varies based on factors like filing status, while itemized deductions allow for… read more…
- The Kiddie Tax: Rates, Limits and Rules for 2025
The kiddie tax is a set of tax rules designed to prevent parents from reducing their tax burden by shifting investment income to their children. It applies to children under the age of 18, or dependent full-time students under 24, who have unearned income from investments.The tax rate for the kiddie tax follows the parents’… read more…
- How to Fill Out Form W-8 BEN for Individuals
Foreign individuals use IRS Form W-8BEN to certify their non-U.S. status and claim benefits such as reduced withholding rates that may be available because of an income tax treaty. The form helps determine how much tax will be withheld on income from U.S. sources. To fill out a W-8BEN form, you’ll need basic information like… read more…