AM TaxRx

Gains Taxpayers who sell their main home and have a gain from the sale may be able to exclude up to $250,000 of that gain from their income. Taxpayers who file a joint return with their spouse may be able to exclude up to $500,000. Homeowners excluding all the gain do not need to report the sale on their tax return. #irs #irstaxtip #axtip #homeowner #homeownership #sales #homesold #tests #dateofsale #realestate #mainhome #taxpayer #gains #exlude #marriedfilingjoint #single #spouse #income #amtaxrx

Many people are engaged in hobby activities that are also a source of income. For example, some people started selling handmade items during the pandemic. These people must report this income on their tax return. A hobby is any activity that a person pursues because they enjoy it and with no intention of making a profit. This differs from those that operate a business with the intention of making a profit. #irs #irstaxtip #business #businesstax #tax #taxes #income #hobby #profit #businessoperation #handmade #income #taxableincome #taxpayer

Home ownership and use To claim the exclusion, the taxpayer must meet ownership and use tests. During a five-year period ending on the date of the sale, the homeowner must have owned the home and lived in it as their main home for at least two years. #irs #irstaxtip #axtip #homeowner #homeownership #sales #homesold #tests #dateofsale #realestate #mainhome #taxpayer #amtaxrx

Section 201 of the SECURE Act provides that employers that adopt a retirement plan by the due date of their 2020 tax return, including extensions, may elect to treat that plan as being effective for the employer’s 2020 tax year. #irs #irstaxtip #2020 #taxyear #secureact #employers #adoptaplan #retirement #retirmentplan #retroactive #tax #taxes #taxpayer #business #amtaxrx

The Internal Revenue Service has started sending letters to more than 36 million American families who, based on tax returns filed with the agency, may be eligible to receive monthly Child Tax Credit payments starting in July. #irs #irstaxtip #taxtip #childcredit #advancepayments #taxcredit #optout #website #payment #families #childtaxcredit #amtaxrx

IRS.gov assistance 24/7 Tax help is available 24/7 on IRS.gov. The IRS website offers a variety of online tools to help taxpayers answer common tax questions. #irs #irstaxtip #taxtip #twentyfourseven #onnline #jelp #website #irswebsite #faq #onlinetools #tax #taxpayer #questions #amtaxrx

Taxes are pay-as-you-go This means taxpayers need to pay most of their taxes owed during the year as income is received. There are two ways to do that: Withholding from pay, pension or certain government payments such as Social Security Making quarterly estimated tax payments during the year.... #irs #irstaxtip #taxtip #taxes #taxpayer #payasyougo #pension #wages #paycheck #payments #socialsecurity #quarterly #estimatedtaxes #estimatedtaxpayments #tax #amtaxrx See more

Unscrupulous individuals seek to obtain personal information for the purpose of tax-related identity theft. Whether through a telephone call, text message or email, the con artist tries to convince the recipient that they need to provide Social Security numbers, bank account or credit card information or passwords. The scam may also include sending links that once clicked on can download malicious software that collects, or mines personal data. #irs #irstaxtip #dirtydozen #scam #emails #phone #phishing #bankaccount #creditcard #passwords #links #mines #software #personalinformation #taxrelated #identitytheft #text #taxpayer #amtaxrx

Corporations generally have to make estimated tax payments if they expect to owe tax of $500 or more when they file their return. Corporations can see Form 1120-W, Estimated Tax for Corporations for more information. #irs #irstaxtip #taxtip #taxpayer #corporations #ccopr #irsbusiness #businesstax #taxes #tax #taxreturn #estimatedtaxpayments #estimatedtax #amtaxrx

Who must pay estimated tax? Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when they file their return. #irs #irstaxtip #irssmallbiz #irssmallbusiness #taxes #tax #taxpayer #flowthrough #shareholders #partners #soleproprietors #taxpayments #taxreturn #amtaxrx

The monthly advance payments will be estimated from their 2020 tax return, or their 2019 tax return if 2020 information is not available. Advance payments will not be reduced or offset for overdue taxes or other federal or state debts that taxpayers or their spouses owe. Taxpayers will claim the remaining child tax credit based on their 2021 information when they file their 2021 income tax return. #irs #irstaxtip #taxtip #childtaxcredit #check #advancepayment #summer #taxpayer #taxreturn #taxfiing #federal #state #payments #taxdebt #child #amtaxrx

Cryptocurrency transactions that aren't reported by exchanges are still required to be reported AND are easily traceable as they are all recorded on a public ledger, a blockchain. The IRS has hired Chainanalysis and Integra FEC for millions of dollars to set themselves up to audit millions of non-reporters over the coming years by scouring the various blockchains out there. #irs #irstaxtip #taxtip #taxes #audit #unreportedincome #ledger #blockchain #FEC #integra #bitcoin #currency #proprerty #thirdparty #transactions #taxpayer #amtaxrx

#IRS will NOT ask you for a credit card or SSN on social media. For your #TaxSecurity and identity protection, be sure to follow the real IRS. #irs #irstaxtip #taxsecurity #creditcard #SSN #socialmedia #fraud #imposters #identitytheft #taxpayer #amtaxrx