As the IRS targets wealthy Americans for audits, here are red flags for everyday filers

The IRS is working on plans to avoid increased audits on taxpayers making less than $400,000 — but certain areas can invite scrutiny, regardless of income. Some red flags could include unreported income, including cryptocurrency earnings and unreasonable tax breaks. For all returns filed between 2013 and 2021, the IRS examined 0.44% of individual returns […]

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Freezing your credit is first step to avoid identity theft, expert says. Here’s what to know

The National Public Data breach has capped off a series of large leaks of consumer data this year. The first and best defense for consumers is to freeze their credit, experts say. Here’s what you need to know about that process. PN_Photo | Getty Images So far, 2024 has been a huge year for data

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This strategy for required withdrawals in retirement can help you avoid IRS penalties

If you’re retired with multiple sources of income, you’re expected to withhold taxes or make quarterly payments to avoid IRS penalties. But some retirees can correct missed tax payments via withholdings from required minimum distributions, or RMDs. Tax withholdings from your RMD are considered on-time payments, even when used to cover taxes from previous quarters,

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Working remotely from a cruise ship? Here’s why the IRS still expects taxes

As a U.S. citizen or permanent resident, you incur U.S. income taxes on “worldwide income,” whether you’re making money while working from a ship or in another country.  Taxes get more complicated if you disembark and work in a different country. Casino prizes won on board are also subject to federal income tax. Jenny Hunnicutt

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The end of this tax break could be ‘very disruptive’ to business owners, expert says — what to know

Enacted via the Tax Cuts and Jobs Act of 2017, the qualified business income deduction, or QBI, is worth up to 20% of eligible revenue, subject to limitations. That tax break is scheduled to expire after 2025 without changes from Congress, which could affect millions of filers. “It’s something that is very important to a

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Lower capital gains tax, SNAP cuts: What Project 2025 may mean for your wallet in a Trump presidency

Project 2025, a collection of policy recommendations “for an effective conservative administration,” proposes an overhaul of the federal government. The proposals include cuts to food stamps and federal student loan forgiveness programs, tax bracket changes and a rate cut for high-income investors. While some of the changes pitched in Project 2025 could happen via executive

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Treasury, IRS announce ‘major milestone’ of $1 billion in past-due taxes collected from millionaires

The Treasury Department and the IRS announced the collection of more than $1 billion in tax debt from high-income individuals over the past year. In September, the IRS announced plans to expand its scrutiny of those making more than $1 million annually with more than $250,000 in recognized tax debt. However, the funding enacted in

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IRS has taken nearly 2 years to help tax identity theft victims get their refunds

Tax identity theft victims are waiting nearly two years for resolution and refunds from the IRS, the National Taxpayer Advocate reported last week. As of April, the agency had roughly 500,000 unresolved cases, up from 484,000 in September. However, the IRS is working on a “range of improvements” to address the issue. Erin Collins, national

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What the new IRS guidance on crypto tax reporting means for investors

The U.S. Department of the Treasury and IRS on Friday released final tax reporting rules for digital asset brokers. Mandatory yearly reporting will phase in starting in 2026, which will cover gross sales from 2025. However, investors need to assign basis, or original purchase prices, for each crypto wallet before 2025, experts say. Recep-bg |

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Great savers could face a ‘tax time bomb’ in retirement, advisor says — here’s how to avoid it

If you’re nearing retirement with a large pre-tax 401(k) plan or individual retirement account balance, you need a plan for managing future levies, experts say. With required withdrawals approaching, great savers could face a “tax time bomb” in retirement, said Scott Bishop, partner and managing director of Presidio Wealth Partners. Only 3 in 10 Americans

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