If We Owe the IRS Money Will We Still Get a Stimulus Check?

Question: Dear Steve, My husband and I recently filed out 2018 taxes and owe/paying down a few thousand dollars. Our combined adjusted gross income in 2018 was around $97K. We didn’t receive our stimulus check, although I receive SS which is directly deposited into my bank account. Do you know if someone owes the IRS … Read more

What Do I Do With This IRS CP2000 Claim I Owe Tax On a Cancelled Debt?

Question: Dear Jim, I received a CP2000 concerning a bank cancellation of debt, this was due to insolvency. I did not know I had to file this on my 2018 tax return because I honestly do not remember receiving it. The total due is over $2000 in taxes after IRS computed calculated adjustments. I would … Read more

What’s the Deal With Coronavirus Stimulus Checks, and How Do I Get One?

At the end of March, the federal government passed a $2.2 trillion bipartisan emergency coronavirus relief package, offering some of the most hard hit a much needed stopgap. The legislation includes small business loans and coronavirus stimulus checks for low- and middle-income Americans. Will I get a coronavirus stimulus emergency check? You should receive a … Read more

Millions of Americans Might Not Get Stimulus Checks. Others Might be Misdirected to Get Them.

Congress has approved billions of dollars of checks for Americans hard hit by the biggest round of layoffs in U.S. history. But millions of Americans will have to wait months for that money — and millions more may never get the money at all. That’s because the rescue legislation left it to the IRS, an … Read more

Are You Making Installment Payments to the IRS? You Can Stop for Now.

The IRS has announced some important adjustments to current policies to assist debtors with financial difficulties. My CPA tax guru friend Jim Buttonow told me “If a taxpayer is in an installment agreement with the IRS, they can suspend payments through July 15th. For the over 1 million taxpayers who have their payment directly debited … Read more

How Many Tax Allowances Can I Take?

The Tax Cuts and Jobs Act of 2017 altered how many tax allowances you should take for every year since it became law and it certainly has for 2020. Tax allowances are approximate estimates of reductions in your taxable income for federal withholding tax purposes. When you get a new job, as well as at the beginning … Read more

These 10 Red Flags Could Lead to an IRS audit

The IRS audited close to a million tax returns in calendar year 2017. This was about .5% of the total returns filed. While this is a pretty small number of audits, being audited is no small matter for those who are subject to an IRS examination. If the very prospect of being audited fills you … Read more

9 Super Smart Ways to Use Your Tax Refund

We’ve all heard the standard advice — pay down debt, build an emergency fund and change your withholdings if you’re getting a big refund. Assuming you have those things covered (you do, right?), here are some smart next steps for your tax refund, according to tax and financial experts. Image Credit: fizkes/iStock. 1. Boost your … Read more

8 Things You Should Never Deduct From Your Taxes

The tax filing deadline is fast approaching, and taxpayers have limited time to reduce their 2019 tax bills. Thankfully, classic tax write-offs like contributing to your IRA are still available until April 15. But with recent changes to the tax code, certain expenses that seem like legitimate write-offs (or had been in the past) aren’t … Read more

TurboTax and Others Charged at Least 14 Million Americans for Tax Prep That Should Have Been Free, Audit Finds

More than 14 million taxpayers paid for tax prep software last year that they could have gotten for free, according to a scathing audit released Wednesday by the Treasury Inspector General for Tax Administration. That amounts to roughly a billion dollars in revenue for TurboTax maker Intuit, H&R Block and other tax software companies, according … Read more

My Mother Passed Away But Received 1099-C in Error

Question: Dear Steve, My mother passed April of 2019 and Portfolio Recovery Associates LLC has sent her 3 1099-C forms with the Identifiable event date of 9/27/19 and Identifiable event code of G. The statute of limitations in South Carolina is 3 years and these debts are older than 10 years. I don’t believe the … Read more