The Blog

IRS Provides Tax Inflation Adjustments for 2020

The tax law change covered in the revenue procedure was added by the Taxpayer First Act of 2019, which increased the failure to file penalty to $330 for returns due after the end of 2019. The new penalty will be adjusted for inflation beginning with tax year 2021. The tax year 2020 adjustments generally are used on tax returns filed in 2021.

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New Version Out of SSN Scam

Be on the lookout for new variations of tax-related scams. The latest is with SSN!

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Still Time To Contribute to Your IRA

Whether you are a veteran in your career or you are working an hourly job you still have time to contribute to your Traditional IRA if you were under 70 years and 6 months old by the end of 2019 and receive taxable compensation. IRA or individual retirement accounts are alternative to employer-related accounts. If

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Tax Tips to Help New Business Owners Find Success

If you are starting business, there are so many things to consider, and taxes are one of the major ones.

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Am I Taking Too Many Exemptions

Be knowledgeable about the tax deductions you are taking. The wrong ones can get you into trouble.

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It’s Important Taxpayers Know Their Filing Status

When a taxpayer files their tax return, they need to know their filing status. What folks should remember is that a taxpayer’s status could change during the year. So, any time is a good time for a taxpayer to learn about the different filing statuses and which one is best for them. Knowing the correct filing

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Education Credits to Help

Two Education Credits Help Taxpayers with College Costs With school back in session, parents and students should look into tax credits that can help with the cost of higher education. They do this by reducing the amount of tax someone owes on their tax return. If the credit reduces tax to less than zero, the

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Tax Credit for Other Dependents

Taxpayers with dependents may qualify to claim a few different tax credits. One of these is the child tax credit. The child tax credit benefits people whose dependent meets a series of tests. If the dependent doesn’t meet those qualifications, the taxpayer may be able to claim the credit for other dependents. Here’s some info about

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New 100% Depreciation

The 100% additional first-year depreciation deduction generally applies to depreciable business assets with a recovery period of 20 years or less and certain other property. Machinery, equipment, computers, appliances, and furniture generally qualify.

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Include Your Home Office as a Tax Deduction

Taxpayers/business owners who use their home for business may be eligible to claim a home office deduction. It allows qualifying taxpayers to deduct certain home expenses on their tax return. This can reduce the amount of the taxpayer’s taxable income. Below are some things to help taxpayers understand the home office deduction and whether they can claim it.

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Franek Tax Services, Tax Return Preparation, Cary, NC