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Showing posts from February, 2020

The Latest in Tax News: February 2020 Edition

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Textbook Tax presents its monthly tax news update. A quick read discussing various tax news, tax stories, and tax events trending in the world of tax during the month. The following tax topics cover the month of February 2020. The tax topics presented represent my favorites in tax news and tax-related events. Please comment any tax news stories you found interesting for the month of February. Additionally, please email me or connect with me on social media for the monthly tax news update sent straight to you! Related Posts -- Prior Weeks' Tax News -  January 2020 -  December 2019 Tax News for February 2020 Tax Topic: India delays implementation of its technology company aimed tax Tax Story Summary: India announced its plan to tax technology companies that lack a physical presence in India. The technology tax targets companies (without a physical presence in India) that earn income from adverting activities and data sales within the country. In addition, the companies

Education Tax Credits: The Lifetime Learning Tax Credit Explained

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It is time to file your taxes! While most people dislike filing their tax return, all people like receiving a tax refund. The sooner you file your taxes, the sooner you get a potential tax refund! If you are eligible for a tax refund, that means you overpaid/over-withheld taxes during the tax year. In other words, your actual tax liability is less than the estimated tax you paid during the year. In order to properly calculate your actual tax liability at year end, you must remember to claim all your eligible tax deductions and tax credits on your tax return. Doing so will decrease your taxable income and taxes owed. A tax credit is a tax break for qualified taxpayers that reduces dollar for dollar the amount of tax you owe. Therefore, tax credits have a more significant impact on your tax liability than tax deductions. Below, I will detail the Lifetime Learning Tax Credit. Find out if you qualify for the educational tax credit! Related Posts -  The Complete List of Tax Credit

Education Tax Credits: The American Opportunity Tax Credit Explained

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It is time to file your taxes! While most people dislike filing their tax return, all people like receiving a tax refund. The sooner you file your taxes, the sooner you get a potential tax refund! If you are eligible for a tax refund, that means you overpaid/over-withheld taxes during the tax year. In other words, your actual tax liability is less than the estimated tax you paid during the year. In order to properly calculate your actual tax liability at year end, you must remember to claim all your eligible tax deductions and tax credits on your tax return. Doing so will decrease your taxable income and taxes owed. A tax credit is a tax break for qualified taxpayers that reduces dollar for dollar the amount of tax you owe. Therefore, tax credits have a more significant impact on your tax liability than tax deductions. Below, I will detail the American Opportunity Tax Credit. Find out if you qualify for the educational tax credit! Related Posts -  The Complete List of Tax Cred

The Complete List of Tax Credits for Individuals

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It is tax season, meaning you can now file your 2019 tax return. In order to save money and increase your tax refund, it is important to know about the various federal tax credits available to U.S. taxpayers filing their federal income tax return. Below, I will detail by group the federal tax credits available to use on your 2019 tax return to reduce the amount of taxes due and increase your 2019 tax return refund! Related Posts -  Filing your 2019 Tax Return for Beginners: Form 1040 -  File your taxes online for free: The IRS Free File Program Explained -  Tax Filing Guide: How to determine your tax filing status? -  Rental of Residence: How to rent your house tax-free? What is a tax credit? A tax credit a tax break for qualified taxpayers that reduces dollar for dollar the amount of tax you owe. Therefore, tax credits have a more significant impact on your tax liability than tax deductions. Tax credits directly decrease your tax liability, resulting in a higher tax ref

Filing your 2019 Tax Return for Beginners: The Form 1040 Explained

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It is officially tax season, meaning you can now file your 2019 tax return! Additionally, by this point in February, you should have received your W-2 ( Understanding your Form W-2 ) and/or Form 1099 from your employer(s). So, you can now file your 2019 tax return at your convenience. If you are eager and want to receive your tax refund sooner, plan to file your tax return sooner rather than later. If you do not care about your refund, you have until April 15 to file your tax return. As you may or may not know, the Form 1040, or the U.S. Individual Income Tax Return, is the base tax form for U.S. taxpayers filing their federal income tax return. In 2019, only one version of the Form 1040 exists. However, depending upon your specific situation, you may have to file additional forms and schedules along with your Form 1040. Below, I will detail the Form 1040, providing an easy to follow explanation about the items and reporting requirements of the Form 1040. The following should h

The Latest in Tax News: January 2020 Edition

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Textbook Tax presents its monthly tax news update. A quick read discussing various tax news, tax stories, and tax events trending in the world of tax during the month. The following tax topics cover the month of January 2020. The tax topics presented represent my favorites in tax news and tax-related events. Please comment any tax news stories you found interesting for the month of January. Additionally, please email me or connect with me on social media for the monthly tax news update sent straight to you! Related Posts -- Prior Weeks' Tax News -  December 2019 Tax News for January 2020 Tax Topic: Google changes its intellectual property tax-planning strategy Tax Summary: In 2020, Google will change its corporate structure to license intellectual property in the U.S. Previously, Google licensed its IP from Bermuda. This change is the result of pressure from international regulatory bodies like the OECD and EU to combat aggressive tax planning structures. Google p

File your taxes online for free: The IRS Free File Program Explained

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It is officially tax filing season. While many people dread filing their tax return, I have some good news that may cheer you up and save you some money during this tax filing season. For those that meet the requirements, you may file your tax return for free via the IRS Free File Program! What is the IRS Free File Program? The IRS Free File program is a partnership between the IRS and leading tax-preparation companies. The partnership states that these tax-prep software companies must provide free online tax preparation and electronic filing for those who qualify for Free File. What are the requirements to qualify for the IRS Free File Program? You may file your taxes for free using the Free File software if your income is $72,000 or less (for tax year 2020). By qualifying for Free File, you may choose from several brand-name tax software companies. The software will guide you through the tax preparation process, ultimately preparing and printing your tax return. If your inc