Don’t Be Taken by Surprise this Tax Season

Tax_ Bryant & AssociatesWhen filing for your taxes this year you may get an unfortunate surprise when you find out what can be counted as earnings. At Bryant & Associates, P.C., located in Lincoln, we want to make sure you are informed before you file. Below, our team of certified public accounts have provided you with five forms of taxable earnings that you may not have known about.

Did you receive any alimony?

The marriage may be over, but if you are still receiving money from your ex- spouse then the IRS also wants their cut. However, child support received is different; it is not taxable. The good news is the spouse that is paying out the alimony can deduct it from their taxes instead.

Win any prizes?

At Bryant & Associates, we always ask our clients whether they’ve won any prizes in the last year when preparing their taxes. Prizes can include cash, property, or any other award with tangible value. In short, you must pay taxes on your winnings. Even your gambling winnings are taxable! However, you can deduct any betting losses from the money you did win.

Did you get unemployment benefits?

Unfortunately, the IRS considers your unemployment benefits as an income and they want a part of it. As certified public accounts, we recommend a way to avoid paying into the IRS is when you apply for benefits is to ask for taxes to be withheld as you go. This way 10% of your unemployment check will be taken out. Or you can make estimated tax payments instead.

Did you have any debt forgiven?

If you were able to get your credit card bill cut from $10,000 to $6,000, then congratulations! However, At Bryant & Associates P.C.we want you to be aware that the IRS sees the forgiven debt as money earned and therefore is taxable. The good news is this law does not always apply to debt forgiven in a mortgage under the Mortgage Debt Relief Act. Contact us today to find out more!

Did you receive social security benefits?

At Bryant & Associates, we know you’ve paid into social security throughout your career, but now that you’re receiving social security benefits, you may be shocked to hear that you may have to pay taxes on these benefits. This may or may not be true. If social security benefits are the only money you receive then it is not taxable, but if you are earning other money as well, then up to 85% of your benefits are taxable.

Contact Bryant & Associates Today at (402) 423-0404!

At Bryant & Associates, P.C. in Lincoln, our firm of accounting specialists can help you with any questions or concerns you have about your taxes. Are you not sure about what is taxable and what isn’t this year? If you don’t want any surprises, contact us today at (402) 423-0404 and we can answer all of your questions!

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