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If you missed out on your 2021 stimulus payment, there’s still time to claim what you’re owed. According to USA Today, the Internal Revenue Service (IRS) is giving eligible taxpayers another chance to receive up to $1,400 through the Recovery Rebate Credit. Are You Eligible For The Stimulus Payment? You may qualify for this Economic Impact Payment (EIP) if you: Filed a 2021 tax return but did not claim the Recovery Rebate Credit. Have not yet filed your 2021 tax return but do so before April 15, 2025. To check if you’re eligible, review your 2021 tax return. If the Recovery Rebate Credit section is blank or marked $0, you could still receive your payment. Filing before the deadline ensures you receive not only this credit but also any additional refund you may be entitled to. How To Claim Your Stimulus Money For those who already filed their 2021 tax return but didn’t claim the credit, there’s nothing else to do — the IRS began automatically distributing stimulus payments in...
Buying a home can be an overwhelming and expensive purchase. On Friday, August 30, 2024, the current national average interest rate for a 30-year, fixed-rate mortgage was 6.38%. The interest rates have gotten so high that John Hope Bryant , the founder of Operation HOPE , is trying to convince people that a 40-year mortgage plan is more fair. But when first-time homeowners and first-time investors are listening to Realtors, real estate attorneys and mortgage lenders discuss percentage rates, it may not seem as clear. That is, until new homeowners see property and interest (P&Is) really affect their monthly budget. (Varying property taxes can make budgeting even more complicated.) Photo credit: ArtTower Using Chicago as an example, if you bought a home in the Windy City right now (with very good credit between 700-739) for the city’s average home value of $305K , you’d pay about $1,729 per month for P&I. If that sounds high, the average rent in Chicago is $1,836 per month for a...
At the top of their X profile, the official @IRSnews account has pinned a tweet advising Americans to be cautious while filing their annual return . “There are many different kinds of social media content,” they wrote, “including tons of misleading tax advice that can put you at risk.” Now, more than ever, it’s crucial to be diligent amid the endless scams and near-constant flow of fake news online. Currently, the rumored IRS $8700 stimulus check has people asking questions. Here’s everything we know about the situation so far: What Are Stimulus Checks? After a bumpy few years navigating the “new normal” following the COVID-19 pandemic , Americans have become familiar with stimulus checks. The idea behind them is to generate economic activity during times of strife. Thanks to bonuses from the government, consumers have more to spend without the stress of going into debt or dipping into savings. In March 2020, then-POTUS Donald Trump signed the Coronavirus Aid, Relief, and Economic...
The latest TikTok challenge taking over our timelines, the #NoSpendJanuary challenge, is a new approach to savings that urges individuals to resist unnecessary spending. Scrolling through the #NoSpendJanuary hashtag, you see a sneak peek into people’s regular spending habits. Although we’re almost through the month, it’s never too late to learn valuable financial lessons and collect helpful resources to mend unhealthy spending habits. It’s not just about the challenge itself, but a space for learning the diverse financial habits of entrepreneurs, business owners, content creators and professional’s financial habits in the new year . Creator of the award-winning “Millennial In Debt” web series, Melissa Jean-Baptiste is a testament to financial wins through a frugal lifestyle . A first-generation Haitian-American, she paid off $102,000 in student loans on simply a teacher’s salary. According to the U.S. Bureau of Labor Statistics, the average American household spent $72,967 in 2022....
Don’t let tax time sneak up on you. Planning now can save you from making errors that could keep you from receiving the full refund to which you’re entitled. Or you might accidentally pay less than you owe and have to pay a penalty and interest on the unpaid balance. Whether you’ll need to complete an individual or a business tax return, here’s what you can do now to get a jump-start on your 2021 tax return: Filing an Individual Return Start by pulling together receipts for any items you plan to list as itemized deductions and gather your dependents’ information, such as their childcare expenses, as well as any child support payments you may have received. Put all these documents in a single secure place, so you have them when you get ready to file. You’ll also want to determine which tax preparation method you’ll use. If you need a third-party preparer, shop around now. At the start of the year, gather all the documents you’ll receive from third-parties, such as: Income statements,...
When you started your business , you may have been looking for ways to save as much as possible. Perhaps you’ve considered hiring an accountant but can’t seem to justify the extra expense. However, you could actually be saving your business money in the long run. Below are 4 reasons why you should hire an accountant for your small business. 1. SAVE MONEY Accountants are experts in taxes. That means when tax time rolls around, you’ll be able to save money through tax breaks and deductions. In fact, in a survey of about 400 small business owners, over half of them believed they overpay in taxes each year. That same survey showed that accountants are the most important professionals for small businesses — ahead of attorneys. 2. REAP BENEFITS FROM GOOD BOOKKEEPING There are likely lots of other things you’d rather do than perform the mundane tasks of collecting records, reconciling accounts, and everything else involved in bookkeeping. Hiring an accountant can save you from this work...
Franchise taxes aren’t taxes on franchise businesses, as you may assume from the name. Instead, states require certain entities, such as corporations or limited liability companies, to pay a tax for the privilege of doing business there. Franchise taxes are separate from state income tax that’s imposed on businesses. Continue reading to find out if your business owes franchise tax and what consequences you may face if you don’t pay. What is franchise tax? Who has to pay franchise tax? How to calculate franchise taxes Consequences of not paying franchise taxes The final word on franchise tax What is franchise tax? Several states levy a tax on companies for doing business in the state. That tax is often called a franchise tax, but it could also be known as a capital stock tax, commercial activity tax or another name. Dan De Jong, senior tax manager for KPMG, likens state franchise taxes to pizza restaurants . Every pizzeria owner puts their own spin on their pizza recipe, but they all...
As the calendar year ends and business tax season looms, entrepreneurs must start gathering documents and calculating their income, expenses and deductions to determine how much the IRS expects them to pay in taxes by the April deadline. A small business tax preparation checklist could help ease the process. Whether you’re getting ready for your first business tax season or you’re an experienced veteran, continue reading to brush up on what you need to prepare. When is business tax season? Small business tax preparation checklist Steps to take next tax year When is business tax season? Personal tax returns are due in April every year, and springtime is often thought of as tax season, especially for pass-through entities, which we’ll discuss in greater detail, below. But business owners may need to pay taxes throughout the year. Because business owners don’t have an employer who withholds tax from their earnings, they typically make quarterly estimated tax payments. Self-employed...