I lose my job?
The loss of a job may create new tax issues. Severance pay, unemployment compensation, and payments for any accumulated vacation or sick time are taxable. However, services such as public assistance and food stamps are not taxable.
I withdraw funds from my IRA?
Prior to age 59½, IRA withdrawals are generally subject to being included in your gross income, plus a 10% additional tax penalty. NOTE: There are exceptions to this penalty. Contact our office to discuss your situation.
My 401(K) tanked this year?
Generally, you can not claim a capital gains loss on retirement accounts that already are receiving favorable tax treatment. The only time you would have a loss is when you receive a distribution that had previously been taxed.
My creditor cancelled my debt?
The tax impact of debt forgiveness or cancellation depends on your individual facts and circumstances. Typically, if you borrow money from a commercial lender and they cancel or forgive the debt, the cancelled amount may be included in your taxable income. In most cases, the lender will send you a Form 1099-C at the end of the year.
I can’t pay my taxes?
Don’t panic. If you cannot pay the full amount of taxes you owe, you should still file your return by the deadline. Send as much as you can with the return to alleviate and/or avoid penalties and interest. Contact the IRS to discuss your payment options at 1-800-829-1040. The agency may be able to provide some relief such as a short-term extension to pay, an installment agreement, or an offer in compromise.
