Independent Contractor or Employee
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Principal Residence Gain Exclusion Break
The $250,000 ($500,000, if married) home sale gain exclusion break is one of the great tax-saving opportunities.
Unmarried homeowners can potentially exclude gains up to $250,000, and married homeowners can potentially exclude up to $500,000. You as the seller need not complete any special tax form to take advantage.
To take full advantage of the principal residence gain exclusion break, you must pass two tests: the ownership test and the use test.
Read MoreGig work taxes. What to know.
There are terms being thrown around these days: Gig Work, Gig Economy, Side Gig, etc. They all mean the same. I started my own business to make extra income, or I quit my job to start my own business and make money. Whatever you call it self-employment is what it is. Small businesses are a huge part of the economy.
Read MoreChanges to IRS mail boxes
Received an update from the IRS.
The IRS is closing several individual payment P.O. boxes (or lockbox addresses) in the San Francisco, Calif., and Hartford, Conn., areas beginning Jan. 1, 2022. Payments mailed to these closed payment locations after Jan. 1 will be returned to sender. To help ensure timely receipt, encourage your clients to avoid mailing to these closing addresses. Check Where to File on IRS.gov for active addresses before mailing payments. If you or your client receive an IRS payment letter, send payment to the address found in the letter. The IRS also encourages taxpayers to use IRS Direct Pay. It’s a fast, secure and easy way to pay a tax bill or estimated tax payment directly from a checking or savings account. Users receive instant confirmation that their payment has been made. For more information, see Publication 3891, Lockbox Addresses for 2021.
If you need assistance dealing with the IRS call me 712-274-3469.
Child Tax Credit Portal New Features
I received an update from the IRS today.
The IRS has launched a new feature allowing any family receiving monthly Child Tax Credit payments to quickly and easily update their mailing address using the Child Tax Credit Update Portal, found exclusively on IRS.gov. This feature will help any family who chooses to receive their payment by paper check avoid mailing delays or even having a check returned as undeliverable. To have the change take effect in time for the September payment, people need to complete the change request before midnight ET on Monday, Aug. 30.
Later this year people will also be able to:
- Add or remove children in most situations;
- Report a change in marital status; or
- Report a significant change in income.
If you need assistance with a tax problem, let’s talk. Phone: 712-274-3469, email: TaxHelp@BabitzkeEA.com, of Facebook Messenger (you can be anonymous).