Money you inherit is taxable to you. ● While this is a very complicated area of taxation, in most cases the person receiving the inheritance is not liable for tax associated with the gift. You cannot claim your parents as dependents if they live in the nursing home. ● If you provide over 50% of support for a relative, you …
I received a phone call from the IRS, is it real or a scam? Identity thieves often impersonate IRS agents. They will use any method to trick the victim into providing personal information or wiring money directly to the imposter. The imposter may provide a fake IRS identification number or even alter the caller ID information to make it appear …
If you withdraw money from an IRA (individual retirement account) prior to age 59 ½, there is a 10 percent penalty assessed in addition to the income tax due on the withdrawal. However, if you strategically plan, there are ways to avoid the early withdrawal penalty. Education Costs: You can avoid the penalty if you use the IRA funds to …
In 2016 the IRS uncovered an estimated $387 billion in underreported income. Underreported income includes revenue not reported to the services or deductions taken that are disallowed. This figure alone shows the wide spread “cheating” taxpayers commit to reduce their tax liability. The most common cheats include: -Not reporting tips -Working under the table -Falsifying business expenses -Under-reporting cash business …
