Tax articles
395 plain-English guides to U.S. federal taxes, newest first.
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Understanding Form 709: The Gift Tax Return
When it comes to giving gifts, most people aren’t thinking about taxes. But if you’re giving away a significant amount of money or assets, the IRS may want to hear about it. That’s where Form 709 come…
Form 8606: Nondeductible IRA Contributions
When it comes to retirement savings, things can get a little tricky once you start mixing traditional IRAs, Roth IRAs, and after-tax contributions. That’s where Form 8606 comes in.
Schedule D: A Friendly Guide to Capital Gains and Losses
If you’ve sold stocks, mutual funds, cryptocurrency, property, or any other type of investment in the last year, chances are you’ve run into something called Schedule D while doing your taxes. It may…
Section 179: How It Helps Your Business Save on Taxes
If you’ve ever wondered whether buying new equipment, software, or even a vehicle for your business could actually lower your tax bill, then you’re already halfway to discovering what Section 179 is a…
Form 940 For Small Businesses: Who Files It and Why
If you run a business with employees, you've probably dealt with more than your fair share of tax forms. One that often flies under the radar (until it’s due, at least) of most small business owners i…
Form W-9: What It Is and Why You Might Need to Fill One Out
Form W-9 might look a little intimidating, but it's actually pretty simple! It’s mainly used when someone needs your taxpayer info—like your name and Social Security number—so they can report how much…
Form 1065: Return of Partnership Income
Form 1065 is used by partnerships to report their income, deductions, gains, and losses to the IRS. Although the partnership itself doesn’t pay income tax, Form 1065 is essential for informing the IRS…
What Is Form 941 and Why It Matters
If you run a business and have employees on your payroll, then you have definitely heard about Form 941 (or you should, we hope). But if you're new to hiring or just starting to get a grip on payroll…
Can I Roll My Taxes into Next Year?: A Last Resort For Tax Debt
When tax season rolls around and the numbers don’t quite work in your favor, it’s natural to start asking questions like, can I roll my taxes into next year? Maybe you owe more than you expected, or m…
Can the IRS Take Your 401(k)? What You Need to Know in 2025
While retirement accounts are generally protected from most creditors, they’re not off-limits to the IRS. However, the agency must follow specific legal steps before accessing your savings, and in man…
Tax Benefits of an LLC for Rental Property: What They Are and How to Take Advantage of Them
Rental property is a hot commodity these days, so if you own rental property or are considering investing in real estate, forming a Limited Liability Company (LLC) can provide neat financial advantage…
Tax Benefits for Small Business Owners: 12 Most Common Types
Owning a small business comes with many responsibilities, but it also offers significant tax advantages. Understanding the tax benefits for small business owners can help you save money, reinvest in y…
Tax Benefits for Buying a Car
Buying a car can come with some surprising tax perks, depending on how and why you purchase it. This article covers the tax benefits of buying a car, from potential deductions for business use to cred…
IRS Rejected Return: 6 Common Reasons and Fixes
“Filing taxes can be stressful” is the understatement of a lifetime, but it’s also true that the last thing anyone wants is to have their return rejected by the IRS. An IRS rejected return means that…
The Tax Penalty for No Health Insurance
Health insurance is an essential aspect of financial and medical security for many Americans. However, for those who choose to go without health insurance, there may be financial consequences dependin…
Tax Write Off for Donations to Goodwill
Donating to Goodwill is a great way to give back to the community while also benefiting from potential tax savings. The IRS allows taxpayers to claim a tax write off for donations to Goodwill and othe…
Backup Withholding: What It Is and Who Has to Pay It
Backup withholding is one of those tax mechanisms that can seem deceptively simple: Normally, it’s used by the IRS to ensure that individuals and businesses report and pay the appropriate taxes on cer…
State Income Tax Rates in the U.S.
State income tax rates vary widely across the U.S., from states with no income tax at all to those with steep progressive rates. This article breaks down how state income taxes work, compares flat vs.
Understanding Back Taxes: What They Are and How to Handle Them
Back taxes are unpaid taxes that were not paid by their due date. They can accumulate over time due to various reasons, such as financial difficulties, misunderstandings about tax obligations, or simp…
Energy Efficient Home Improvement Credit
With rising energy costs and growing environmental concerns, many homeowners are looking for ways to improve their homes' energy efficiency. The Energy Efficient Home Improvement Credit is a valuable…
Defining the Qualified Business Income Deduction (QBI)
For many, the QBI deduction is a crucial tool in managing tax costs, but it can also be complex to understand. Knowing how the deduction works, who qualifies, and what limitations exist can help busin…
What is the Fresh Start Program And How Can it Benefit You?
The Fresh Start Program is an initiative by the Internal Revenue Service (IRS) designed to help taxpayers struggling with unpaid taxes. Originally launched in 2011 and expanded over the years, this pr…
The Inheritance Tax: What You Should Know and What To Do About It
Inheritance tax is an important consideration for individuals who receive assets from a deceased person’s estate. While the United States does not have a federal tax for inheritances per se, several s…
Can I Claim My Girlfriend as a Dependent?
When tax season rolls around, many people start looking for ways to maximize their deductions and reduce their taxable income. One common question that comes up is: can I claim my girlfriend as a depe…