Want to view your updated benefit account sooner next year? Opt-in to digital notices at https://secure.ssa.gov/RIL/SiView.action. Don’t have an online account yet? It’s simple and the website will walk you through the steps. Have questions or need help with your taxes? Contact us today, debra@nw-cpa.com.
Tag: taxes
When To Take Social Security
Financial planners will often advise waiting until age 70 to max out the potential amount of your Social Security checks. This may be a good policy but there are many variables that affect when you should claim. Amassed wealth for retirement, personal health, job security and/or burnout are some of the top reasons people may choose to apply before age 70.
Understanding Adult Dependents
Dependents fall into two categories, a qualifying child or a qualifying relative. In order to claim an adult dependent, they must pass these seven tests:
Dependent Taxpayer Test
Joint Return Test
Citizen or Resident Test
Qualifying Child Test
Member of Household or Relationship
Gross Income Test
Support Test
To find out if you can cut your tax bill by claiming an adult dependent, visit the AARP article, 6 Tax Breaks If You Have an Adult Dependent.
Newly Wed Tax Implications
Getting married this wedding season? Be prepared from a tax standpoint and know what paperwork you will need to complete within ten days of your nuptials. Learn this and more at the IRS website where they have all kinds of tax information and a great FAQ for just about any question. Still have more tax questions? Contact Debra Newby Watkins, CPA, 512 900-8952.
Tax checklist for newlyweds
Amended Tax Returns
Do you have questions about when to file an amended tax return? Did you know that certain filing errors will be corrected automatically by the IRS? If you need more information about when amended returns are required, visit this page. More informational topics are available at the bottom to help guide you through the process. Topic no. 308, Amended returns
Paying in Cash?
How would you feel if your service employees asked to be paid in cash? Would you suspect that they were trying to shave a little off of their taxes? Is it your job to “police” the people you employee for various jobs around your home? Many couples face this dilemma and may not be in agreement with each other. The Ethicist addresses this question and details why it is best to report all income when filing taxes, in his April 9, 2025 response, Our Gardener Wants to Avoid Taxes. Should We Pay Him in Cash?
Appropriate Witholding?
As tax time fast approaches you may have realized that your tax withholding was either too much or not enough. What are the best ways to assure this number is correct for future years? Visit irs.gov/witholding to learn more or watch this short video to get started.
IRS Free File
The IRS is again partnering with Free File to offer millions of taxpayers online access to file their taxes at no cost. Want to know if you qualify and how to use this service? Visit IRS.gov/freefile and follow these instructions, listed on the IRS Website.
To find the right IRS Free File product, taxpayers can:
- Go to IRS.gov/freefile,
- Click on Explore Free Guided Tax Software button. Then select the Find Your Trusted Partner tool for help in finding the right product, or
- Use the Browse All Trusted Partners tool to review each offer,
- Select the desired product , and
- Follow the links to the trusted partner’s website to begin their tax return.
Don’t Miss Out on Tax Refunds
Low to middle income families who are not required to file returns may not be aware they are entitled to certain individual tax credits as well as refunds based on tax withholdings by their employer. Other people who may benefit include, those experiencing homelessness, students new to the work force who may have worked part time, and parents (child tax credit). Learn more here: Not required to file doesn’t mean shouldn’t file
Gig Economy Tax Questions?
Many who have jobs as part of the gig economy do not realize that all the money they earn is taxable. Even without the official tax forms issued to them. Want to know more and better understand how your side-hustles or part time work, paid in any way, are taxable? Visit the IRS Gig Economy Tax Center and find answers to all of your tax related questions.