IRS Form 5213 for the Hobby Loss Rules
When a U.S. taxpayer has a hobby, any income generated from the hobby must be reported on their tax return. However, there are special rules with respect to deducting hobby related expenses.
What is the “Kiddie Tax” for US Federal Tax Purposes – How to Report on Form 1040
The “Kiddie Tax” for U.S. tax purposes means a child's investment income is subject to the same higher marginal tax rates as their parents. This article and video discuss the rules and how to report on Form 1040.
IRS Letter 6419 for Advanced Child Tax Credit Payments
The child tax credit (CTC) is claimed on a taxpayer's annual Form 1040 tax filing. During the 2021 tax year, taxpayers may have received an advanced CTC amount which needs to be reconciled at year-end. The IRS Letter 6419 attempts to confirm with taxpayers what advanced payments they may have received.
Save Taxes With a Home Equity Line of Credit
In general, taxpayers that purchase a home are allowed to deduct the mortgage interest expense as an itemized tax deduction. In certain cases, interest from a HELOC may also be tax deductible.
How to File IRS Form 4952 Investment Interest Expense Deduction
When taxpayers borrow funds to purchase investments, the taxpayer may be able to deduct some or all of that investment interest expense. The investment interest expense is an itemized tax deduction calculated on Form 4952.
IRS Form 8606 Nontaxable Distributions From an IRA
In general, distributions from a Traditional IRA are included in taxable income. However, a distribution may be nontaxable to the extent the taxpayer has basis in their Traditional IRA. This article and video covers an example Form 8606.
What are Refund Anticipation Loans (RAL)
The RAL loans are loans issued in anticipation of receiving a federal tax refund. These loans are generally issued by certain tax return preparation companies.
Can You File a Superseded Form 1040 Tax Return
If a taxpayer files Form 1040 and needs to make changes, the taxpayer may be able to submit an amended return or a superseded tax return. This article discusses the differences between amended and superseded returns.
How to Report Gambling Winnings & Losses on IRS Form 1040
Gambling winnings are generally included in gross income and subject to federal income taxes. This article examines how a taxpayer should report their gambling winnings and losses on their federal tax return.
IRS Letter 6475 for the Third Stimulus Check
The IRS Letter 6475 is a confirmation letter from the IRS which provides the total amount of the third stimulus check paid to the taxpayer.