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PEOPLE MAY WANT TO FILE A TAX RETURN – EVEN IF THEY ARE NOT REQUIRED TO DO SO
Posting from the IRS
IRS Tax Tip 2023-27, March 2, 2023
Some people choose not to file a tax return because they aren’t legally required to file, but they could be missing out on refundable tax credits or an income tax refund. This could apply to someone if they:
- Have had federal income tax withheld from their pay.
- Made estimated tax payments.
- Qualify to claim refundable tax credits.
Here are a few of the valuable tax credits eligible people can claim on a tax return
- Earned Income Tax Credit – The EITC helps workers who earned $59,187 or less when they file their tax return. Taxpayers can use the EITC Assistant on IRS.gov to check their eligibility.
- Child Tax Credit – Taxpayers can claim the Child Tax Credit if they have a qualifying child under the age of 18 and meet other qualifications.
- Credit for Other Dependents – Taxpayers who do not qualify for the child tax credit may qualify for the Credit for Other Dependents. This includes people who have:
- Dependent children who are age 18 or older at the end of 2022.
- Parents or other qualifying individuals they support.
- Education credits – Education expenses can add up fast, but there are two higher education credits to help. The American Opportunity Tax Credit is for qualified education expenses for the first four years of higher education. The Lifetime Learning Credit is for qualified tuition and related expenses paid for eligible students enrolled in an eligible educational institution.
The Interactive Tax Assistant can help people when they’re deciding whether to file
The Interactive Tax Assistant is a tool that provides answers to many common tax law questions based on an individual’s specific circumstances. It can help someone decide whether they should file a tax return and if they’re eligible for many common tax credits.
The tool keeps the taxpayer anonymous. The taxpayer’s information isn’t stored and is used by the assistant only to answer the taxpayer’s questions. The assistant will not share, store or use information in any other way, nor can it identify the individual using it. The system discards the information the user provides when they exit a topic.
Taxpayers can e-file to get their refunds faster
The fastest way people can get a refund is to e-file and select direct deposit. The IRS issues more than 9 out of 10 refunds for e-filed returns in fewer than 21 days.
MUSINGS BY DIANE:
This is not a scam.
The IRS Interactive Tax Assistance can help you decide whether or not to file a return. Why not take advantage of this tool in order to see if there are available funds.
Diane L. Drain
The post File Tax Returns – Even if Not Required to do so appeared first on Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer.
Why I’m a Member of the National Association of Consumer Advocates I’m a bankruptcy lawyer. When I first started I said “All I do is Bankruptcy.” What I found out is that people in financial trouble are magnates for illegal stuff being done to them. A lot of that is fair credit reporting violations and […]
The post I Just Renewed My Membership in Consumer Advocates by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.
Why I’m a Member of the National Association of Consumer Advocates I’m a bankruptcy lawyer. When I first started I said “All I do is Bankruptcy.” What I found out is that people in financial trouble are magnates for illegal stuff being done to them. A lot of that is fair credit reporting violations and […]
The post I Just Renewed My Membership in Consumer Advocates by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.
See the post at https://www.cnn.com/2023/02/27/politics/us-student-loan-debt-timeline/index.htmlJim Shenwick, Esq. 917 363 3391 [email protected]At Shenwick & Associates we help people and businesses with too much debt!Please click the link to schedule a telephone call with me.https://calendly.com/james-shenwick/15min
Question: What do Akorn Pharmaceuticals and the Corner Bakery Café have in common? Answer: Both recently declared bankruptcy. The economic uncertainty brought on by the global pandemic has led to an increase in bankruptcy filings, with companies and individuals alike struggling to stay afloat. Meanwhile, the Chicago Loop Alliance says office occupancy is only about half+ Click Here For Read More
The post With bankruptcies expected to surge, here are 5 tips to stay solvent appeared first on David M. Siegel.
Question: What do Akorn Pharmaceuticals and the Corner Bakery Café have in common? Answer: Both recently declared bankruptcy. The economic uncertainty brought on by the global pandemic has led to an increase in bankruptcy filings, with companies and individuals alike struggling to stay afloat. Meanwhile, the Chicago Loop Alliance says office occupancy is only about half+ Click Here For Read More
The post With bankruptcies expected to surge, here are 5 tips to stay solvent appeared first on David M. Siegel.
Falling behind on federal student loans can lead to other major financial problems according to CNBC
Falling behind on federal student loans can lead to other major financial problemsA story on CNBC reports that "more than 80% of borrowers who experienced default stated that they’d faced at least one additional consequence as a result. The most common impact was a drop in their credit score (62%) followed by being subject to collection fees (47%) and losing eligibility for future federal financial aid (37%)."
The story can be found at https://www.cnbc.com/2023/02/22/falling-behind-on-student-loans-can-lead-to-other-financial-problems.html
We help individuals & businesses with too much debt!Jim Shenwick, Esq 917-363-3391 [email protected]
The New York Post is reporting that “A growing number of office landlords are defaulting on loan payments as the rise of remote work causes more corporate tenants to rethink long-term leases". The story can be found at https://nypost.com/2023/02/21/office-landlord-debt-defaults-rise-as-remote-work-takes-hold-report/?utm_source=gmail&utm_campaign=android_nyp If New York City office landlords are defaulting on their mortgages, should commercial tenants in New York City with surplus space due to remote work or the recession also be asking for concessions such as a reduction in base rent or additional rent or seek to exit or terminate their leases? At Shenwick & Associates, we believe they should be, and we have helped many commercial tenants surrender, exit, or terminate their leases. We also work with their good guy guarantors to reduce or eliminate their exposure.We recently helped a garment center company surrender their lease on very favorable terms and the post can be found at https://shenwick.blogspot.com/2023/01/office-lease-closing-termination-or.htmlJim Shenwick Esq. has office leasing, bankruptcy & workout experience and an LLM in Taxation from NYU Law School. "Jim Shenwick, Esq helps individuals & businesses with too much Debt!"
Relief of Indebtedness Income and Workouts under Section 108 of the Internal Revenue Code.Shenwick & Associates performs many workouts for clients, and one point that is often overlooked during negotiations is relief of indebtedness income. Section 108 of the Internal Revenue Code provides that income from discharge of indebtedness is income to the Debtor, unless otherwise provided for in that section. The following example illustrates the point: If a debtor owes a creditor $100,000.00 and the creditor agrees to accept $50,000.00 as payment for that debt, the debtor has been enriched by the sum of $50,000.00 and the Debtor must report $50,000 of income on its tax return.Answers to many relief of indebtedness income questions are provided below:
- Question: Do creditors really report relief of indebtedness income to the IRS?
Answer: Yes they do and the income is reported on IRS Form 1099-C
- Question: Which creditors report income to the IRS?
Answer: All banks and financial institutions do. Landlords, hospitals and trade vendors generally do not report relief of indebtedness income, although they should. 3. Question: Is the income ordinary income or capital gain? Answer: Sadly, it is ordinary income. 4. Question: Is relief from indebtedness income recognized by the guarantor of a debt? Answer: The IRS generally holds that a guarantor (whether or not the primary obligor has defaulted and the guarantor has become liable for the indebtedness) does not realize relief of indebtedness income on release of a liability. IRC 108(e)(2)5. Question: Do I have to recognize relief of indebtedness income if I file for bankruptcy? Answer: No. See section 108(a)(1)(A) of the Internal Revenue Code. This is why many debtors elect to file for bankruptcy rather than do a workout.6. Question: If I am insolvent (my Liabilities exceed my Assets also known as the Balance Sheet test) do I have to pick up relief of indebtedness income? Answer: No. See section 108(a)(1)(B) of the Internal Revenue Code7. Question: What if I am a member, partner, or shareholder of a company that defaults on an unpaid debt? Answer: A member, partner, or shareholder of an LLC, partnership, or S corporation (a pass-through entity) must report income unless an exception applies.
Clients or their advisors with questions regarding relief of debt income should contact Jim Shenwick, Esq. [email protected] 917 363 3391 "We held individuals and businesses with too much debt!"
Judge Wilde's, a Bankruptcy Judge Revisits the Rent Cap Calculations allowed a Landlord under Section 502(b)(6) of the Bankruptcy Code. The article can be found at jdsupra at https://www.jdsupra.com/legalnews/sdny-revisits-rent-cap-calculations-a-8004543/?origin=CEG&utm_source=CEG&utm_medium=email&utm_campaign=CustomEmailDigest&utm_term=jds-article&utm_content=article-link
Jim Shenwick, Esq. [email protected] 917 363 3391"We held individuals and businesses with too much debt!"
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