Financial Cents

Don’t pay more in taxes than you have to. Take full advantage of all deductions and credits available. Planning is the key to successfully and legally reducing your tax liability. The author, Juanita Farmer, is the Managing Partner of J.D. Farmer & Associates, LLC, a public accounting firm, located in Germantown.

Rely on this blog for tips and strategies to survive tax season.

 

Partner Blog for Financial Cents

Special Tax Breaks for Members of the Armed Forces

Feature army jeep with flag and helmet

Active members of the U.S. Armed Forces should be aware that there are special tax benefits available to them such as not having to pay taxes on some types of income or more time to file and pay their federal taxes. If you’re an active member of the armed forces, here’s what you should know […]

Read more

Your Canceled Debt Could Be Taxable

_2017_03_cancellation-of-debt

Generally, debt that is forgiven or canceled by a lender is considered taxable income by the IRS and must be included as income on your tax return. When that debt is forgiven, negotiated down (when you pay less than you owe), or canceled you will receive a Form 1099-C, Cancellation of Debt, from your financial institution or […]

Read more

What to Do if You Receive an IRS CP2000 Notice

IRS sign

An IRS CP2000 notice is mailed to a taxpayer when income reported from third-party sources such as an employer, bank, or mortgage company does not match the income reported on the tax return. It is not a tax bill or a formal audit notification; it merely informs you about the information the IRS has received and […]

Read more

Filing an Amended Tax Return: What You need to Know

amend-tax-return

If you discover a mistake on your tax return after you’ve already filed, don’t panic. In most cases, all you have to do is file an amended tax return. Here’s what you need to know. Taxpayers should use Form 1040X, Amended U.S. Individual Income Tax Return, to file an amended (corrected) tax return. An amended tax […]

Read more

Recordkeeping Tips for Small Business Owners

are you organized

The key to avoiding headaches at tax time is keeping track of your receipts and other records throughout the year. Whether you use an excel spreadsheet, an app, an online system or keep your receipts organized in a folding file organized by month, good record-keeping will help you remember the various transactions you made during […]

Read more

How the Sharing Economy Affects Your Taxes

Sharing Economy

If you’ve ever used–or provided services for– Uber, Lyft, Airbnb, Etsy, Rover, or TaskRabbit. then you’re a member of the sharing economy and it could affect your taxes. The good news is that if you’ve only used these services (and not provided them), then there’s no need to worry about the tax implications. However, if […]

Read more

Delinquent Tax Debts Could Affect Passport Renewal

passport_revoked_1_.58a322a724b61

As a reminder, individuals with “seriously delinquent tax debts” are subject to a new set of provisions courtesy of the Fixing America’s Surface Transportation (FAST) Act, signed into law in December 2015. These provisions went into effect in February 2018. The FAST Act requires the IRS to notify the State Department of taxpayers the IRS […]

Read more

What to Do if You Missed the Tax Deadline

Featured Image - Taxes Filing Taxes IRS

Monday, April 15, 2019, was the tax deadline for most taxpayers to file their tax returns. If you haven’t filed a 2018 tax return yet, it’s not too late. First, gather any information related to income and deductions for the tax years for which a return is required to be filed, then prepare your return. […]

Read more

The Qualified Small Business Stock Exclusion

21401839 - back view of businessman drawing sketch on wall

As the driving force in today’s economy, small businesses benefit from numerous tax breaks in the tax code. One of these, the Qualified Small Business Stock (QSBS), was made permanent by the PATH Act (Protecting Americans from Tax Hikes Act of 2015). If you’re a small business investor, here’s what you need to know about […]

Read more

Scam Alert: Fake Calls from Taxpayer Advocate Service

IRS Scams

Like clockwork, every year, there’s a new twist on old scams. This year, it is the IRS impersonation phone scam whereby criminals fake calls from the Taxpayer Advocate Service. The TAS is an independent organization within the IRS that help protect your taxpayer rights. TAS can help if you need assistance resolving an IRS problem, […]

Read more
View archives »