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Nov 16, 2020Retirement Income
When retired, you may receive social security benefits or pension income. Social security benefits are received on Form SSA-1099. Form 1099-R is used for pension income. All statements must be reported on your federal tax return. Whether or not it’s taxable, is dependent on how the money was put into the pension plan. It would […]
adminNov 16, 2020Alimony
Spousal support (alimony) is fully taxable in the hands of the former spouse or common-law partner. Beginning in 2019, if a divorce or separation agreement was executed after Dec. 31, 2018, the alimony is no longer included in a spouse’s income or deductible. It also applies to separation agreements that were modified after Dec. 31, […]
adminNov 16, 2020Reporting Cancelled Debts
If you have debt is forgiven or discharged for less than the full amount you owe, the debt is considered canceled in the amount that you don’t have to pay. Additionally, if the creditor cannot collect, or gives up on collecting, you will have a cancellation of debt for the amount you’re obligated to pay. […]
adminNov 13, 2020Gambling Winnings
Gambling winnings are fully taxable and must reported on your taxes. Gambling income includes but isn’t limited to the following: winnings from lotteries raffles horse races casinos cash winnings and the fair market value of prizes, such as cars and trips The payer must issue you a Form W-2G, Certain Gambling Winnings if you receive […]
adminNov 13, 2020Reporting Capital Gains
If you own something and use it for personal or investment purposes, it is a capital asset. If you sell a capital asset, the difference of the adjusted basis of the asset and the sale will lead to either a capital gain or loss. This is reported on Schedule D of your federal tax return. […]
adminNov 12, 2020Rental & Real Estate Income
Most individuals operate on a cash basis, which means they count their rental income as income when they actually or constructively receive it, and deduct their expenses when they pay them. Rental income is any you receive for the use or occupation of property. This is reported on a form Schedule E. You must report […]
adminNov 11, 2020How to Determine a Business vs Hobby
If you’re earning money conducting an activity, you may need to report this on your tax return. In order to determine if you should report this on your tax return, you will first need to find out if you are conducting a business or if you simply have a hobby. The IRS defines a hobby […]
adminNov 11, 2020Taxable vs Non-Taxable Income
You can receive income in the form of money, property, or services. Whether it’s taxable or not, is dependent on the type of income. All income must be reported on your tax return even if it is non-taxable. Additionally, your income is subject to tax unless it is exempted by law. The following is non-taxable […]
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