IRS continues unemployment compensation adjustments, prepares another 1.5 million refunds
WASHINGTON – The Internal Revenue Service reported today that another 1.5 million taxpayers will receive refunds averaging more than $1,600 as it continues to adjust unemployment compensation from previously filed income tax returns. The American Rescue Plan Act of...
Here’s what taxpayers need to know about higher education tax credits
The American opportunity tax credit is: Worth a maximum benefit of up to $2,500 per eligible student. Only for the first four years at an eligible college or vocational school. For students pursuing a degree or other recognized education credential. Partially...
More than 2.2 million additional Economic Impact Payments disbursed under the American Rescue Plan
WASHINGTON — The Internal Revenue Service, U.S. Department of the Treasury, and the Bureau of the Fiscal Service announced today they have disbursed more than 2.2 million additional Economic Impact Payments under the American Rescue Plan. Today's announcement covering...
A tip for teachers: Some educator expenses may be tax deductible
The educator expense deduction allows eligible teachers and administrators to deduct part of the cost of technology, supplies and training from their taxes. They can only claim this deduction for expenses that were not reimbursed by their employer, a grant or other...
The Child Tax Credit Update Portal allows families to update direct deposit information or unenroll
The IRS recently upgraded the Child Tax Credit Update Portal to enable families to update their bank account information so they can receive their monthly Child Tax Credit payment. The tool also allows families to unenroll from the advance payments if they don’t want...
What taxpayers need know about using the IRS Tax Withholding Estimator
Gather documents. Before beginning, taxpayers should have a copy of their most recent pay stub and tax return. Taxpayers should go to the main Tax Withholding Estimator page on IRS.gov. Once there, they should carefully read all information and click the blue Tax...
Here are nine things taxpayer must consider when determining if an activity is a hobby or a business:
Whether the activity is carried out in a businesslike manner and the taxpayer maintains complete and accurate books and records. Whether the time and effort the taxpayer puts into the activity show they intend to make it profitable. Whether they depend on income from...
IRS online tool helps families see if they qualify for the Child Tax Credit; one of three tools now available for the upcoming advance payments
WASHINGTON — The Treasury Department and the Internal Revenue Service today urged families to take advantage of a special online tool that can help them determine whether they qualify for the Child Tax Credit and the special monthly advance payments beginning on July...
How the American Rescue Plan affects 2021 taxes, part 2
Changes expanding EITC for 2021 and beyond New law changes expand the EITC for 2021 and future years. These changes include: More workers and working families who also have investment income can get the credit. Starting in 2021, the amount of investment income they...
How the American Rescue Plan affects 2021 taxes, part 1
Child and dependent care credit increased for 2021 only The new law increases the amount of the credit and the percentage of employment-related expenses for qualifying care considered in calculating the credit, modifies the phase-out of the credit for higher earners,...