When it comes to your taxes, knowing the lingo is key to understanding them. What’s the difference between and tax credit, tax deduction, and an adjustment? A credit is an amount off what you owe, dollar for dollar. Tax deductions and adjustments are amounts off your income, which reduces your taxable income. Tricky right?
Last week, the National Bureau of Economic Research announced that the recession ended in June 2009. According to the announcement, the economic downturn reached a plateau that month and hasn’t decreased since then. In other words, we are now on the painfully slow journey to recovery. The end of a recession doesn’t mean that economic […]
A few days ago, I discovered a big fat envelope from the Internal Revenue Service in my mailbox. “Well, this can’t be good,” I thought. Inside was an IRS CP 2000 Letter. It had a friendly-enough-sounding title “We are proposing changes to your tax return.” But I knew the truth. A CP 2000 notice is […]
When you get paid small amounts of cash every day it’s easy to think you can just pretend they never happened. But tips are income and the IRS is well aware that servers are notorious under reporters of income. But reporting your tips isn’t just the right thing to do, it can also help you show more income which will go a long way with creditors.