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Expert tax tips, accounting insights, and financial guidance from George Dimov, CPA — serving clients across all 50 states for over a decade.
Page 8 of 57
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Every year, right before tax filing season, a large number of people do not plan to be fully ready for tax filing by the 15th of April, so the IRS provides help in the form of tax extensions and grace periods.
Most goods and services are subject to sales tax in New York State. However, some exemptions are especially aimed at cutting down the sales tax associated with essential goods. If you reside in or are planning to visit New York, it is beneficial to know the exemptions in order to save and avoid surprises during the checkout.
If you’re a snowbird—someone who spends winters in a warm state like Florida and summers in a northern state like New York—you might wonder if you have to pay taxes in both places. For snowbirds, taxes are a headache. With regards to income tax, it depends on where each state recognizes you as a resident and where your income is generated.
A lot of homeowners anticipate being able to deduct their entire property tax bill on their federal tax returns. More often than not, they realize it is not the case. If you are wondering, “Why isn’t my property tax deductible?” The reason often centers on tax laws, the SALT cap, or the specifics of the property tax bill you received.
If you’ve ever received a notice from the IRS about backup withholding, you might be wondering what it means and why it applies to you. Backup withholding is not the same as regular income tax withholding—it’s a specific requirement the IRS enforces in certain situations to ensure tax compliance. For many freelancers, investors, and anyone who receives income reported on Form 1099, understanding this rule is essential to avoid unexpected reductions in income.
Not knowing the IRS regulations about Backup Withholding can lead to surprises come tax time. This is an enforcement action involving payment collection from entities such as banks, brokers, or clients, where payments that fall within certain criteria are subjected to collection at a rate of 24%, which is then forwarded to the IRS. But how do you know if you are affected by it?
The moment tax season hits, everyone is on the lookout for strategies to lower their tax bill. A couple of strategies that come to mind for most people are tax deductions and tax credits. While both can help you save some money, deduction vs credit difference function quite distinctly from each other. And knowing deduction vs credit difference is important for good tax planning.
During tax season, many individuals actively look for strategies to reduce their tax liabilities. Two of the primary approaches used by taxpayers to reduce their tax bills are tax deductions and tax credits. While both of them benefit the taxpayer financially, their mechanisms are quite different—and knowing which one is more beneficial can prove to be quite useful.
The very idea of being notified that you are now subject to backup withholding would elicit frustration to many people. An upfront payment reduction of 24% certainly feels hefty. However, is backup withholding as bad as it is made out to be? Or can it serve some useful purpose? Here is a breakdown of what is backup withholding, alongside its pros and cons.
When it comes to taxes, some states have higher taxes than others, or in some cases, there is no tax at all. If you are searching for the right state to claim for taxes, it depends on the financial situation as well as the lifestyle one is maintaining.
Many homeowners believe that they can claim all of their property taxes on their federal tax return. Unfortunately, there is a limit on how much property tax can be claimed as an itemized deduction.
Being double-resident means a person is deemed a resident of two different states simultaneously for taxation purposes. This is common because every state has its own method of gauging residency, meaning a person can satisfy both sets of rules in a given year.
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