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Showing posts from April, 2020

Four reasons why you should file your tax return early

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The U.S. tax return filing due date is April 15 each year. Additionally, you may choose to file an extension that extends your tax return filing due date to October 15 (Please see  Tax Extension: How to file a tax extension? ). Because of COVID-19 and the related economic shutdown, the IRS granted all U.S. taxpayers with April 15 due dates an automatic tax return filing extension to July 15 (Please see  Coronavirus (COVID-19) Tax Impact - Relief from timely filing of 2019 Federal income tax returns ) . However, while your tax return is now due on July 15, you should still file your 2019 tax return early. Like any task, it may be tempting to procrastinate filing your tax return, but by doing so, you may face issues later on relating to your taxes and information. Therefore, you should file your tax return as soon as possible. Below are four reasons why it is beneficial to file your tax return early. Related Posts: -  The Complete List of Tax Credits for Individuals -  File y

Virtual Currency Trading: The wash sale tax tip that every crypto trader should know

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As virtual currency trading and ownership continues to grow, the U.S. regulatory policies and guidance remain vague, confusing, and inconsistent. However, based on current law, tax planning methods exist to help you lower your crypto tax bill. In the current regulatory environment, a tax loophole, or a tax planning strategy to legally reduce your tax liability, exists for crypto traders. The tax strategy focuses on the applicability of the Wash Sale rule as it relates to trading cryptocurrencies. It is important to note that the regulatory environment surrounding virtual currency is rapidly evolving, and so, crypto traders should remain up to date on newly released crypto guidance and policy. Below, I will detail the wash sale rule as it relates to trading crypto as well as explain the tax strategy for lowering your cypto tax bill. Every crypto trader should know the wash sale tax tip. Related Posts -   Cryptocurrency Taxation: How does the U.S. tax cryptocurrency? -  Tax guidanc

Unemployment Income: What to know about unemployment income if you've been laid off or furloughed

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As the U.S. economy continues to rapidly deteriorate, approximately 17 million Americans have filed for unemployment in the past four weeks. Just last week alone, approximately 6.6 million Americans filed unemployment claims. I expect these unprecedented times to continue as the worldwide economic shutdown continues with no end in sight. Related Posts -  Tax Refund Schedule: When should I receive my tax refund from the IRS? -  Rental of Residence: How to rent your house tax-free? -  How to determine your tax filing status? -  Must know tax rules relating to your IRA In response to the pandemic and related economic shutdown, the U.S. government passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The CARES Act expanded unemployment benefit relief. Namely, the CARES Act expanded the unemployment eligibility definition and increased the unemployment benefit by $600 per week for four months. Because of the increase in unemployment claims, it is important

Tax Refund Schedule: When should I receive my tax refund from the IRS?

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The U.S. Treasury Department and the IRS have officially extended the tax filing due date from April 15, 2020 to July 15, 2020. This extension applies automatically to all taxpayers with an original April 15 tax filing due date. For more information, please read  Coronavirus (COVID-19) Tax Impact - Relief from timely filing of 2019 Federal income tax returns . Tax filing season is in full swing. As stated in the disclaimer above, the disruption caused by COVID-19 resulted in the Treasury Department and IRS automatically extending the U.S. tax filing due date from April 15, 2020 to July 15, 2020. While this automatic extension allows you more time to file your tax return, why wait? Related Posts -  The Complete List of Tax Credits for Individuals - Are state tax refunds taxable? -  How to file a tax return for your kids when they make money in 2019? -  IRA Income: Must know tax rules relating to your IRA The IRS begins accepting tax returns near the end of January each ye

The Latest in Tax News: March 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 March 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 March. 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 - February 2020 COVID-19 News  -  Coronavirus (COVID-19) Tax Impact - Will you get a stimulus check? Explaining the $2 trillion stimulus package -  Coronavirus (COVID-19) Tax Impact - Relief from timely filing of 2019 Federal income tax returns Tax News for March 2020 Tax Topic: Stranded foreign visitors may be subject to U.S. taxes Tax Story Summary: Foreign citizens are stuck in the U.S. because of