Past due taxes can accumulate significant penalties and interest. The IRS may impose a failure to pay penalty of 0.5% of the unpaid balance per month, up to a maximum of 25%. If you also fail to file on time, an additional 5% per month failure to file penalty applies, likewise capped at 25%. Combined, […]
According to the IRS, a digital asset is property, not currency. Therefore, a digital asset is a capital asset. Furthermore, the IRS defines a digital asset as any digital representation of value recorded on a cryptographically secured, distributed ledger (blockchain) or similar technology. Examples of digital assets are Bitcoin, Dogecoin, Ether, Tether, and Non-fungible tokens […]
The IRS requires the fiduciary of a domestic decedent’s estate, trust, or bankruptcy estate file Form 1041 to report: The income, deductions, gains, losses of the estate or trust. The income that is either accumulated or held for future distribution or distributed currently to the beneficiaries. Any income tax liability of the estate or trust. […]
The Affordable Care Act (ACA) provides premium tax credits to help lower the cost of health insurance for eligible households. The premium tax credit – also known as PTC – is a refundable credit that helps eligible individuals and families cover the premiums for their health insurance purchased through the Health Insurance Marketplace. According to […]
Arizona State income tax filers can reduce their Arizona State tax liability while supporting qualified charitable organizations. These include public schools, private schools, and foster care organizations. A state tax credit lowers your tax liability by the amount you donate (up to certain amounts). To claim the credit on a 2025 tax return, Arizona State […]