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You’ve been saving money for college since junior was a baby, and now he’s going off to college. That’s wonderful, but before you withdraw funds from your 529 plan to pay college expenses, there are a few things you should know. The 529 plan doesn’t rule out financial aid. Those funds are treated as the parent’s assets, and so will result in less of a reduction on eligibility for financial aid...

Taking the family along on a business trip this summer? Learn how to save on your taxes and take the tax deductions you’re entitled to on your working vacation. It’s tricky to mix, but with the right mindset and careful planning, you can take advantage of some travel related tax deductions for business. Working Vacations If you’re attending a business conference or meeting in another city and...

Every few years, radical ideas sweep across the internet and capture the interest of so many people. Most recently, there have been a plethora of stories about folks looking for a simpler life. For some, that simpler life is a tiny house where the upkeep is low, the costs are low, and you strip your residence down to the bare essentials. For others, it’s the allure of travel and living life in an...

No matter your goals for a second home, understanding the tax breaks for your vacation residence can help you relax in style. What is a Vacation Home? First, you’re going to have to unlearn your definition of a vacation home. According to the IRS, a vacation home can be any residence that has sleeping space, cooking space, and is “permanent in place”. In this case, permanent doesn’t mean...

It’s summertime, which means the IRS is busy sending out letters to taxpayers if there were issues processing the returns filed this spring. Receiving any correspondence from the IRS can be intimidating, but it doesn’t have to be. Check out these tips for what to do if you receive a letter from the IRS. Don’t panic. You can usually deal with a notice simply by responding to it. Most IRS notices...

There’s been a large increase lately in the popularity of multilevel marketing companies and people, especially women, becoming a part of these businesses as a side income or even as a full time career. The rise of these companies such as Stella & Dot, Avon, Mary Kay, Young Living, Herbalife, Rodan + Fields creates a unique tax situation that many of these direct sellers may not be familiar with....

The Internal Revenue Service has issued a warning to taxpayers about bogus phone calls from IRS impersonators demanding payment for a non-existent tax, the “Federal Student Tax.” Even though the tax deadline has come and gone, scammers continue to use varied strategies to trick people, in this case students. In this newest twist, they try to convince people to wire money immediately to the...

Are you an employer? If so, you’ve got a major challenge to accomplish in the next few months. Most businesses aren’t ready for the new overtime rules and worker classification changes to the Fair Labor Standards Act (FLSA) that the Department of Labor recently published, which will impact millions of U.S. workers and their employers. The new overtime rules go into effect December 1, unless...

Have you been using some help around the house? Hiring a babysitter or other house staff could be a luxury or a necessity. Regardless, this activity, under the right circumstances, could affect your taxes. If you hire a babysitter or other house staff, you may need to: Report the amount you paid to this employee to the IRS when you file your taxes. Pay employment taxes, income taxes, and...

If you can’t pay your taxes in full, the IRS will work with you. Past due debts like taxes owed, however, can reduce your federal tax refund. The Treasury Offset Program can use all or part of your federal refund to settle certain unpaid federal or state debts, to include unpaid individual shared responsibility payments. Here are five facts to know about tax refund offsets. Bureau of the Fiscal...