- Can You Still Get Your Tax Refund During an IRS Audit?
If the IRS notifies you of an audit, and you expected a tax return, you probably have a lot of questions. Will you ever get your tax refund? Does the audit automatically stop it? The answer depends on the IRS’s review and whether the items under audit affect the refund total. Some situations follow normal… read more…
- Can You Claim an Adult Child as a Dependent on Your Taxes?
Whether you can claim an adult child as a dependent on your taxes depends on their age, income and living situation, as well as the level of financial support you provide to them. The IRS allows parents to claim certain adult children if they meet the criteria for either a “qualifying child” or “qualifying relative.”… read more…
- When Do You Owe Taxes Instead of Getting a Refund?
Whether you owe taxes or receive a refund comes down to how much tax was withheld from your paychecks, how your income changed over the year, and whether you still qualify for the credits and deductions you may have relied on in the past. If too little tax is withheld or your tax situation shifts,… read more…
- Standard Deduction for Dependents: Rules and Strategies
When it comes to taxes, dependents can affect your return in ways many families don’t expect. Whether you’re claiming a young child, a college student or an aging parent, understanding how deductions and credits apply may change how much you owe or receive. From the standard deduction rules to tax credits like the child tax… read more…
- Standard Deduction for Married Filing Separately: Tax planning
Deciding how to file your taxes as a married couple can have a meaningful impact on your return. Depending on your situation, it may affect how much you owe or receive. Many couples assume married filing jointly is always the better choice, but that may not be true in every case. Some may choose to… read more…
- Standard Deduction for a Widow Over 65: Rules and Strategies
The standard deduction for a widow over 65 can be higher than that of the average taxpayer. This has the potential to lower your taxable income and reduce your federal tax bill. This is because widows may be able to file as a “qualifying surviving spouse.” They have two tax years following their spouse’s death… read more…
- Standard Deduction for Married Filing Jointly: Strategy and Examples
One of the biggest tax decisions that a couple can make is whether to take the standard deduction or itemize. The standard deduction offers a straightforward way to reduce your taxable income. In 2025 it’s more valuable than ever thanks to inflation adjustments and new provisions for older taxpayers. Understanding how it works, when to… read more…
- 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…