Depending on what you’re borrowing money for, a personal loan can amount to a fairly large sum of money. It’s important to understand the tax implications of receiving this money and of paying it back. In some cases personal loans don’t have any tax implications at all, but in others they can alter your tax … Read more
To encourage tax compliance, the IRS is able to impose almost 150 penalties. This approach definitely uses more stick than carrot, but it’s not quite as awful as it sounds. If you’ve never had an issue with the IRS before, you can ask for (and likely get) some penalty relief. Intro to IRS Penalty Relief … Read more
Although you may never have expected it to happen to you, sometimes taxpayers find themselves owing the IRS money they just don’t have. Fortunately, you have several options if you find yourself in this position. You’ll need to weigh those options carefully, however, as you won’t be eligible for some and others may hurt more … Read more
If you earned money through self-employment but didn’t pay estimated taxes, you may find yourself looking at an IRS penalty for underpayment. Here’s what causes a tax underpayment penalty and what you can do to avoid penalties in the future. What is the IRS Underpayment Penalty? Although you file only one tax return each year, … Read more
Come tax time, it may feel like trying to figure out where to get your taxes done is even more complicated than actually doing them yourself. You’ll find a wide variety of tax preparation software both on store shelves and online, with many online programs offering you access to a free version of their software. … Read more
Stock options and restricted stock units are a great way to build wealth over time. Unfortunately, stock compensation is taxable and if the stock price is rapidly appreciating, you can end up owing a pretty big tax bill when your stock vests. One way to potentially limit this tax liability is by taking a Section … Read more
The tax laws that apply to U.S. citizens are notoriously complex, and the rules aren’t any easier for resident aliens. In fact, come tax time, you may discover that the IRS and the United States Citizenship and Immigration Services (USCIS) don’t assign you the same status. That’s why today we’re going to explain your alien … Read more
People often joke about creating offshore accounts to hide money from the taxman, but the IRS isn’t laughing. In reality, Uncle Sam has an incredibly long reach and no qualms at all about collecting foreign income taxes from money Americans earn abroad. Here’s what you need to know if you’re earning income both in the … Read more
Working for a startup can be an exciting prospect that gives you an opportunity to make a significant impact on a company’s culture as well as the products and services they bring to market. Compensation can get tricky, however, as cash-strapped new companies look for creative ways to compensate employees. Stock options and incentives can … Read more
RSUs (Restricted Stock Units) are a big part of compensation for many employees, especially in the tech industry. Unfortunately they can be a little complicated to understand. If you’re scratching your head wondering what exactly you own and how it’s taxed, you’re not alone. Here are the things you need to understand about restricted stock … Read more
