The earned income credit (EIC) has been around for years. But it’s never been worth as much as it will be for 2021 under the new American Rescue Plan Act (ARPA). Some favorable changes are only for the 2021 tax year, while others are permanent. The Basics The EIC is targeted at lower and moderate-income individual taxpayers who work for a …
The days of classic “tax shelters”— such as cattle breeding or oil drilling deals — are long gone. But at least one major tax shelter is still standing: Your home. If you own your principal residence, you can cash in on a bevy of tax breaks, saving thousands of tax dollars or even more. Here are six ways your home …
The Treasury Inspector General for Tax Administration (TIGTA) urges taxpayers to be on “high alert” about IRS employee impersonators. According to TIGTA, since October 2013, thieves have stolen millions of dollars from taxpayers believing the fraudulent calls saying that they owed the government money and cash needed to be sent immediately. The TIGTA states that they receive thousands of calls …
Today, the individual income tax is the single most important source of federal revenue, but it wasn’t always that way. In 1936, excise taxes, such as tobacco and alcohol taxes, brought in more than any other revenue source. Then, in 1943, the corporate income tax briefly became the most important source of federal revenue. But since the end of World …