College Financial Aid
College in the United States is expensive. In the 21st century alone the cost has doubled and only continues to rise (6.8% in 2021). The average cost is 35,331 per year and for most Americans, this is impossible to pay without financial aid. So, let’s say you are in college, have a student loan, a few grants, and scholarships, and a work-study job through your college. These all affect your tax return and future financial liabilities, especially with student loans. Then it’s time to complete your tax return, you may find yourself asking what payments are considered income, what can be deducted, and how can I make sure I’m planning my taxes to minimize financial responsibilities in the future.
Grants and Scholarships
First, let’s look at the effects scholarships and grants have on your tax liability. Financial aid in the form of grants and scholarships doesn’t need to … Read More
2023 Health Insurance for S Corporation Owners: An Update
2023 Health Insurance for S Corporation Owners: An Update
In this article, we give you the ins and outs of what you need to do with your S corporation to ensure your health insurance deductions and also avoid the $100-a-day penalties for violating the rules of the Affordable Care Act.
The good news is that the old rules still apply.
Step 1. Get the cost of the health insurance on the S corporation’s books. You can do this in one of two ways:
1) Direct payment. The S corporation can make the premium payments directly to the insurance
company for the accident and health insurance policy that covers the owner-employee who has more
than 2 percent ownership (and his or her spouse and dependents, if applicable).
2) Reimbursement. The owner-employee who has more than 2 percent ownership can make the
premium payments to the insurance company and furnish proof of the … Read More
IRS Tax Settlement Firms
The Truth About IRS Tax Settlement Firms
They sound good, but a qualified tax attorney is probably a safer bet
By
MARK P. CUSSEN
Updated December 06, 2022
Reviewed by
LEA D. URADU
Individuals and businesses with outstanding tax balances due can face severe penalties from the Internal Revenue Services (IRS), including the eventual seizure of personal or business assets in some cases. To handle this dilemma—which can trigger a significant financial crisis—a new type of business has sprung up to help delinquent taxpayers cope with their tax debts.
Known as tax settlement firms, these entities claim they can drastically reduce or eliminate whatever the client owes the IRS. But can these firms really deliver what they promise, or is it buyer beware?
KEY TAKEAWAYS
- Tax settlement firms claim to have a litany of experts such as former IRS employees who can go to bat for their clients.
- Promises
… Read MoreCollege Financial Aid
College Financial Aid
College in the United States is expensive. In the 21st century alone the cost has doubled and only continues to rise (6.8% in 2021). The average cost is 35,331 per year and for most Americans, this is impossible to pay without financial aid. So, let’s say you are in college, have a student loan, a few grants, and scholarships, and a work-study job through your college. These all affect your tax return and future financial liabilities, especially with student loans. Then it’s time to complete your tax return, you may find yourself asking what payments are considered income, what can be deducted, and how can I make sure I’m planning my taxes to minimize financial responsibilities in the future.
Grants and Scholarships
First, let’s look at the effects scholarships and grants have on your tax liability. Financial aid in the form of grants and scholarships doesn’t need to … Read More