Textbook Tax

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 Individu...

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? -  Ta...

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 clai...

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 ne...

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 ...

After much debate, Congress passed the highly-discussed stimulus package on March 27, 2020. The $2.2 trillion coronavirus stimulus package, named the CARES Act, includes aid to Americans via direct cash assistance, additional unemployment income, and additional business tax credits. Because the CARES Act is a 880 page legislative document, I thought it would be helpful to provide a quick summary detail about the stimulus package. Namely, I will focus on the direct cash assistance portion of the bill as this seems to be the area that interests most individuals. So, if you want to learn about the stimulus checks, please continue to read below where I answer some frequently asked questions about the coronavirus stimulus check including: Will I get a stimulus check from the coronavirus stimulus package? Am I eligible for the stimulus check? When will I receive the stimulus check? How to maximize my stimulus check? Related Posts: -  Tax Tips for Bloggers: Four things ev...

The Coronavirus (COVID-19) pandemic has officially disrupted the 2019 tax filing season. On March 13, 2020, President Trump issued an emergency declaration under the Disaster Relief and Emergency Assistance Act. The emergency declaration instructed Steven Mnuchin, the Secretary of the Treasury, to provide tax deadline relief to Americans affected by the COVID-19 pandemic under section 7508A(a). As a result, on March 18, 2020, the Department of the Treasury and the IRS released Notice 2020-18, which superseded and restated its earlier Notice 2020-17. The Notice provides relief to "affected taxpayers," which I will detail below. Related Posts: -  File your taxes online for free: The IRS Free File Program Explained -  Tax Extension: How to file a tax extension? -  Understanding your Form W-2 -  Five easy steps to lower expenses and decrease spending in 2020 -  Coronavirus (COVID-19) Tax Impact - Will you get a stimulus check? Explaining the $2 trillion stimu...

The blogging profession has expanded rapidly in the past several years. Because of the popularity of blogging, it is important that the blogging community understands the tax laws that apply to the profession. Like any other job, when you earn money from your blog, you must report and pay taxes on the income. While you may be employed by a blog, generally speaking, most individuals in the blogging community are self-employed bloggers; therefore, it is crucial for you as a blogger to understand the tax laws surrounding self-employed individuals. Below, I will detail four tips that every blogger should know about their tax situation. Those tips include estimated tax payments, self-employment tax, business versus hobby analysis, and deductible expenses. Related Posts: -  The Complete List of Tax Credits for Individuals -  Tax guidance on virtual currency transactions -  Take advantage of a declining market by saving on taxes Tips for Bloggers: Four things ev...

It is officially tax season, meaning you can now file your 2019 tax return! By this point, you should have received your W-2 ( Understanding your Form W-2 ) and/or Form 1099 from your employer(s), and so, you can now file your 2019 tax return at your convenience until the tax return deadline of April 15. However, as always, you do have the option to file a federal tax extension to extend your filing deadline to October 15. Related Posts -  The Complete List of Tax Credits for Individuals -  Dependency Definitions: What is a qualifying child and a qualifying relative? -  Take advantage of a declining market by saving on taxes -  Guide to Taxable Income for Individuals How do I file a tax extension? As stated, the IRS offers a tax extension to all taxpayers regardless of any reason for needing the tax extension. The tax extension gives you an additional six months to file your federal tax return, extending the filing deadline from April 15 to October 15 (d...

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 comp...