Your spouse owes outstanding federal or state debt. You are not responsible for your spouse’s debts. If you file joint taxes with your spouse, the tax refund will be garnished and used to pay the outstanding debt. The outstanding debt can be back IRS taxes, back state or city taxes, back child support, unpaid student loans, or any other unpaid federal obligations. You have two options to stop your refund from being garnished.
IRS Tax Benefits for College Education
You are working hard on your college education. The costs for tuition and books are expensive. To help you with the cost of college, there are IRS tax breaks available to you.
Tax Refund was Seized
2013 taxes are done and you expected a tax refund. You checked your bank account for the bank deposit. You checked your mailbox for a check. No refund. What is going on? You finally receive a letter from the IRS or State. Your tax refund was seized.
Federal and State Tax Liens Effect on Credit Rating
You noticed an IRS or state tax debt on your credit report. Your first thought, “How can you pay when the IRS does everything possible to make your life difficult?” There is one issue with this thought. Federal or state tax agencies do not report your back tax debt to the credit bureaus.
IRS Taxes on Early Retirement Distribution
For years you contributed money to a 401K or IRA. Your employer may have matched your contributions. You now have a good chunk of money saved up in your retirement. Then something happens in your life and you need money. One thought is to withdraw money out of your retirement. But, there are tax consequences. What to do?
Volunteering in Detroit, Michigan
This was a fun experience for us. A new program called Life Remodel selects a Detroit, Michigan neighborhood to dramatically overhaul. The kick off to get students at Cody High School involved in their own community was on May 7, 2014.
Amending your Prepared IRS Tax Return
You filed your taxes on time and it was a huge relief. Getting your taxes prepared every year is burdensome. Then you stumble upon some additional tax information. The nervous twitch you feel inside about taxes comes back. We recommend amending your IRS tax return.
Health Care IRS Tax Penalty
You do not like the new Affordable Health Care for America Act, AKA Obamacare. A decision was made not to purchase health insurance. You rather pay the tax penalty to the IRS. We will review how to calculate the tax penalty for not purchasing health insurance.
What will the IRS do when you owe back taxes?
You’re expecting a large tax bill. You are afraid of the big bad IRS. The IRS will take your car in the middle of the night. The IRS will possess your home and leave you with no place to live. The IRS will wipe out your bank account and garnish your wages. The IRS will make it impossible for you to earn a living. How does the IRS expect you to pay the taxes owed if you can’t earn a living?
Top 5 IRS Tax Deductions for Parents
We review the top 5 IRS tax deductions for parents.