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Archive for Robert Hartman

Electric Car And Vehicle Tax Credit: What To Know And How To Claim It

How can you get up to $7,500 in tax credit from the federal government, save a lot of money on gas, and do something good for the environment? The answer is shockingly simple: buy a new electric or plug-in hybrid car this year.

If you’re in the market for a new car, going green may save you a lot of green at tax time. Whether you already bought an electric vehicle this year or are thinking of buying one, here are some facts to know to help you claim the electric car and vehicle tax credit.

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Paying Taxes On Bitcoin And Other Forms Of Cryptocurrency

With exponential gains in value and thousands of new retailers now accepting it as payment, Bitcoin has suddenly become one of the hottest discussion topics around the country. Bitcoin (BTC) is currently the most circulated virtual currency (also referred to as cryptocurrency, or “crypto”) in the world and can be exchanged for U.S. dollars, Euros, and other real or virtual currencies like Ethereum (ETH) and Ripple (XRP).

You may spend virtual currency to pay for products or services, or you may treat it like an investment or commodity and hold onto it. But how is a virtual currency like Bitcoin taxed and treated by the IRS? Do you have to pay taxes on Bitcoin? Depends on what you do with it.

  • How is virtual currency like Bitcoin handled for federal tax purposes?

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IRS Audit Triggers: 10 Red Flags To Avoid

In 2017, the IRS received more than 152 million tax returns from individuals, married couples, and businesses. And these numbers are predicted to increase for 2018. With so many people filing, you’d think it’s highly unlikely to get audited. However, you should think again. Since the IRS began allowing e-filing, many people have been filing taxes themselves, which means they’re more likely to make mistakes.

This is one important reason why the IRS set up a filter system to pay specific attention to certain parts of your tax return and flag them if they seem suspicious or potentially inaccurate. You’ll have a much better chance of avoiding an audit if you keep these 10 IRS audit triggers in mind when you file your taxes. Read more

What Federal Forms Do You Need To File Taxes?

Whether you’re filing taxes yourself or having a tax preparer do them for you, it’s important to have all the necessary documents. Gathering them beforehand can save both time and frustration.

You should receive the majority of these documents by January 31, which is the new deadline for companies and employers to send out W-2 and 1099 forms. Each federal tax form is explained below so you can make sure you have everything you need to file your taxes. Read more