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Apr 6, 2025A Qualifying Relative is someone you may be able to claim as a dependent on your tax return, based on specific IRS criteria. A qualifying relative can be a child, sibling, parent, or even an in-law, as long as they meet the following criteria: If all of these conditions are met, the individual may be […]
adminApr 6, 2025An eligible child can be considered your dependent if they meet the following IRS requirements: The minor can be your son, daughter, stepchild, foster kid, adopted child, brother, sister, stepbrother, stepsister, half-brother, half-sister, grandchild, niece, or nephew. You must have contributed more than half of his or her assistance. The child cannot file a joint […]
adminApr 6, 2025A qualifying dependent may be a qualifying kid or relative. Your dependents include your: You can only claim each dependency once. If a dependent files their own tax return, they must specify that they are being claimed. IRS Standards for Claiming a Dependent: You may claim a dependent if they meet the following IRS standards: […]
adminApr 6, 2025For tax purposes, the IRS demands that you include your personal relationship status at the top of Federal Form 1040.Each filing gives you with your standard deduction, which varies by tax year. Choosing the appropriate filing status is a crucial prerequisite. There are five filing statuses in total. Filing Statuses Additional Notes
adminApr 6, 2025An Individual Retirement Arrangement (IRA) is a retirement savings plan in which you can contribute a portion of your annual earnings. This is recorded on Form 1099-R. There are two types of IRAs.There are two types of IRAs: Traditional and Roth. Traditional IRAs are frequent if your income exceeds the amount required to qualify for […]
adminApr 6, 2025What is an IRA?To begin, Traditional IRAs and Roth IRAs are two popular individual retirement plans. That being said, Traditional IRAs are common if your salary exceeds the amount required to qualify for a Roth IRA. You’re also eligible for a tax deduction and anticipate being in a reduced tax rate after retirement. Roth IRAs, […]
adminApr 6, 2025Your Adjusted Gross Income (AGI) is your total gross income minus specific deductions, commonly known as “adjustments to income.” It’s an important amount on your tax return since it influences your eligibility for numerous credits and deductions. Your gross income comprises the following: Wages and Salaries Business or freelancing income Interest and Dividends Capital Gains […]
adminApr 6, 2025What Are Capital Gains and Capital Losses? Capital gains and capital losses occur when you sell an asset, such as stocks, real estate, or other investments. A capital gain is the profit you make when you sell the asset for more than you paid for it. A capital loss is the opposite—when you sell for […]
adminApr 6, 2025Taxable interest income is any type of interest you got that was credited to an account and can be withdrawn without penalty during the year it was accessible. Some interest you get may be tax-free. Taxable interest is reported on Forms 1099-INT or 1099-OID, and you must include all taxable and tax-exempt interest on your […]
adminApr 6, 2025Interest paid from particular investments not subject to federal income tax is tax-exempt. Municipal bonds, which state and local governments issue to finance public projects like roads, schools, or utilities, are the most usual source of this kind of income. Although this interest is not taxed at the federal level, depending on your location and […]
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