The IRS has been increasingly interested in tax compliance by those who receive income in virtual or cryptocurrencies. According to the agency, income from investments in these currencies are taxed at the appropriate capital gains rate.
In 2014, the IRS made clear that it considers Bitcoin and other cryptocurrencies to be property, not currency. These convertible virtual currencies, or CVCs, are therefore taxed as capital gains.
It has been over a year since the Tax Cuts and Jobs Act of 2017 went into effect, but there are still a few changes coming. For example, the Affordable Care Act's shared responsibility payment -- the penalty for not having the right health insurance -- has been phased out starting this year.
Late last month, the IRS began sending letters to over 10,000 cryptocurrency investors warning them that they may owe taxes on their crypto gains. Whether you received a letter or not, you should be aware that cryptocurrency tax compliance is currently a top priority for the IRS.
In response to a shortage of primary care professionals across the state, the Georgia legislature recently made changes to the tax code to further incentivize students and professionals in the area. HB 287, which took effect on July 1, 2019, removes income tax deductions for certain physicians serving as community-based faculty physicians – while creating new tax credits at the same time.
Many people spend little time thinking about their taxes before W-2s start coming in the mail. However, the more diversified your assets become the more important it is to create a tax plan for your finances. For those looking to make the most out of their income and reduce their tax liability, consider these tips:
For working-class Americans such as you, tax season can be very confusing. With all the expenses that come from everyday life, you might be worried about owing the IRS money in the end. Not knowing what your tax return will look like can be overwhelming.
You gathered your documents. You filed your taxes on time – maybe even early. Only to find that you owe thousands more in taxes than you have in the past. This was the case for many who filed their taxes this spring, thanks to sweeping changes in tax law.
Whether it’s contributing to a college fund, fixing a hole in the roof or just funding a vacation, millions of Americans depend on their tax refund every year. For some, it’s more than just extra money towards luxuries. It can be necessary to keep up with mortgage payments or repay debts. If your tax refund unexpectedly dropped, it could devastate your financial plans.
It may be only February, but tax season is officially upon us. By now, you should have received all of your relevant tax documentation to file your tax return for the past year.