No Tax on Tips: A Double-Edged Sword for Government Revenue

Hey, picture this: you’re eating at your go-to restaurant, and the food is so good you leave your server with a fat tip. It’s pretty sweet, isn’t it? Now, what if that tip money was totally tax-free? Sounds awesome for the server, doesn’t it? But hang on a sec – let’s think about how this little tweak could mess with the whole economy and the government’s piggy bank. What does No Tax on Tips mean for everyone?

No Tax on Tips
No Tax on Tips

The Proposal

So, get this: There’s been some chatter lately about maybe letting servers keep their tips without Uncle Sam taking a cut. Big names like Trump and Harris are actually on board with this idea. The whole point? To put more money in the pockets of people who are breaking their backs in service. But here’s the thing – it’s not as easy as it sounds. You know … Read the rest

How to Amend a Tax Return on TurboTax

Step 1: Gather Your Information

Before you begin the amendment process, gather all necessary documents. This includes your original tax return and any new documents that affect your tax situation.

Step 2: Access Your TurboTax Account

Sign in to your TurboTax account. Make sure you’re using the account that you used to file your original return.

Step 3: Select ‘Amend a Return’

Navigate to the ‘Tax Home’ page. Under ‘Your tax returns & documents’, select ‘Amend (change) return’.

Step 4: Follow the On-Screen Instructions

TurboTax will guide you through the amendment process. It will ask you why you’re amending your return and what areas need to be changed.

Step 5: Enter the New Information

Enter any new or updated information into the appropriate fields. TurboTax will automatically calculate how these changes affect your tax return.

Step 6: Review Your Changes

Before submitting, review your changes carefully. Make sure … Read the rest

What Are the Warning Signs of an IRS Audit?

Where's My Refund

Worried about an IRS audit? Learn the warning Signs of an IRS Audit, and find out what to do if you’re flagged with this guide!

Worrying about an IRS audit is something no one wants to face. But if the Internal Revenue Service identifies certain questionable activities in your tax returns, you may be targeted for an audit. This guide will explain the types of red flags that trigger an IRS audit and steps that you can take to ensure a smoother process.

Signs of an IRS Audit
Signs of an IRS Audit

Unreported Income:

The most common factor that will trigger an IRS audit is unreported income. If the IRS detects a discrepancy between the income you’ve reported and what the agency expects, they may investigate to uncover any additional income that has not been claimed. Make sure to include all your sources of income, including investments and royalties, to avoid any … Read the rest

How to Amend a Tax Return on TurboTax

You will need to file an amended tax return if you discover that you accidentally left out information, made an error in math or used the wrong codes on your original return. Here is How to Amend a Tax Return on TurboTax:

Amend your tax returns as soon as you realize there is an error or omission on your original return. If you wait too long, you may not be allowed to file an amendment. In addition, the IRS may assess penalties and interest charges if they think you are failing to report additional income or rebating taxes you should have withheld on a payment.

How to Amend a Tax Return on TurboTax
How to Amend a Tax Return on TurboTax

Prior to the Due Date

You can file a superseding return if you need to change your return before the original due date. This is done by attaching a copy of the amended form, along with an … Read the rest

Tax Filing Extension Deadline Approaching

Tax Filing Extension Deadline

If you received an extension to file your federal and state tax returns and still need to file, you must do so by October 15 to avoid interest and penalties. With the Tax Filing Extension Deadline quickly approaching, here’s what you should know:

Tax Filing Extension Deadline
Tax Filing Extension Deadline

Here are two reminders for taxpayers who requested a tax-filing extension.

  1. File any time before October 15, in most years.
    Tax payers who have requested an extension to file their tax returns can file at any moment before the Friday, October 15 deadline. As long as they have all of the necessary documents. They can also e-file or use tax return preparation software for free through the IRS Free File program. Those who owe taxes but are unable to pay them by October 15 should file and pay as soon as possible. The sooner they file their return, the sooner any interest and
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Using IRS Where’s My Refund Tool

IRS Where's My Refund Tool
Maialisa / Pixabay

The popular IRS Where’s My Refund Tool from the IRS is something you can use anywhere to check the status of your refund and look at your tax return. You do need some information from your return, including your SSN (Social Security Number), filing status and the amount of your current year refund.

Within 24 hours you can check the status of your return when you file electronically. If you choose to mail in a copy of your return to the IRS, then wait 4 weeks prior to checking the online tool. You can see one of three status levels when you check: Received, Approved, and Refund Sent.

The information is updated nightly, so only check once a day. If you want to check the status of your return on your phone (IRS Where’s My Refund Tool number: 800-829-1954), download the IRS app ISR2Go. Amended returns have … Read the rest

H&R Block’s Message To Trump: We Want Tax Reform Too

It appears that Trump, the Republican front runner in the 2016 presidential election, is going after H&R Block via one of his many campaign rants. H&R Block’s Message To Trump is quite simple. He says that he wants the federal government to change the tax code so much that it puts H&R Block out of business. What does everyone think of the Trump tax reform plan?

The ability to make the federal tax code easier to understand has always prompted public debate. For the last twenty years, Steve Forbes has proposed a flat tax that requires just a one page tax return.

However, the United States tax code is still very hard for the average person to decipher because it has so many types of deductions, credits, exemptions and brackets to understand.

Trump tax reform
This image depicts the total tax revenue (not adjusted for inflation) for the U.S. federal government from 1980
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