Category: Direct Tax

Education can be expensive, but the IRS offers tax relief in the form of two valuable credits: the American Opportunity Credit (AOC) and the Lifetime Learning Credit (LLC). Both are claimed using IRS Form 8863, titled "Education Credits (American Opportunity...

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Form 8862, officially titled “Information To Claim Certain Credits After Disallowance,” is a vital tool for taxpayers seeking to reclaim tax credits that were previously disallowed. The IRS may deny refundable credits like the Earned Income Tax Credit (EITC), Child...

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When it comes to specialized health-related tax accounts, Form 8853 plays a vital role in helping eligible taxpayers report contributions, distributions, and policy-related benefits tied to two specific programs: Archer Medical Savings Accounts (Archer MSAs) and Long-Term Care Insurance Contracts....

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For U.S. taxpayers with investments in foreign mutual funds, offshore insurance wrappers, or other passive investment vehicles based outside the United States, Form 8621 – Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund...

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Tax matters involving dependents can become complex, especially in situations where parents are divorced or separated. One critical IRS form that comes into play is Form 8332 – Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent....

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When you donate property other than cash—such as clothing, furniture, artwork, or even stocks—to a qualified charity, you may be eligible for a valuable tax deduction. However, to claim this deduction, the IRS requires that you report non-cash donations properly,...

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While most taxpayers are only concerned with the regular federal income tax system, there exists a parallel tax system known as the Alternative Minimum Tax (AMT). Originally designed to ensure that high-income individuals pay at least a minimum amount of...

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Tax-favored retirement accounts like IRAs, 401(k)s, and other qualified plans are essential tools for building long-term wealth. However, if you take an early distribution, fail to take required minimum distributions (RMDs), or contribute more than allowed, the IRS may impose...

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Tax season can be a stressful time for individuals and self-employed professionals alike. Whether you’re waiting on additional tax documents, still sorting through your finances, or facing personal difficulties, the IRS provides a formal way to request more time to...

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When businesses and individuals invest in tangible property—such as machinery, vehicles, or office furniture—or incur costs for intangible assets like patents or goodwill, the IRS allows them to deduct the cost over time through depreciation and amortization. To claim these...

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