Latest news with #taxexperts
Yahoo
4 days ago
- Health
- Yahoo
A Health Crisis Cost You a Bundle. How to Claw It Back.
Americans undergoing a major medical event or relying on assisted care at home or in a facility should put the deduction on their radar, tax experts say. 'Make sure you've got proof of payment for any out-of-pocket cost, everything to support that deduction,' said Henry Grzes, lead manager for tax practice and ethics with the American Institute of CPAs. What Is the Medical Tax Deduction?
The Sun
03-06-2025
- Business
- The Sun
HMRC warning to check codes on letters as workers are owed £700 each – check if you're affected
BRITS are being urged to check their tax codes immediately as thousands could be due a £700 refund from HMRC. It comes as the May 31 deadline has passed for employers to issue P60 forms – a crucial document that confirms how much tax you've paid in the last financial year. 1 But tax experts are warning that many workers could be on the wrong tax code without even knowing it, potentially costing them hundreds of pounds. One in three Brits has been on the wrong tax code at some point, with average overpayments hitting a hefty £689, according to research by Canada Life. The blunder means HMRC could be sitting on billions in overpaid tax and the only way to get it back is to check your details and flag it. Taxpayers should double check the 'final tax code' on their P60 that's the string of letters and numbers near the top of the form. Codes like "BR", "D0", or "D1" should raise a red flag. These mean you may have been taxed at a flat rate with no tax-free allowance. Anyone who stayed with the same employer up to April 5 should have already received their P60, either in the post or digitally. And while it may be tempting to toss it aside, it's an important piece of paperwork. Not only is it used to claim tax rebates, it's also essential for applying for tax credits, benefits, loans, or even a mortgage. If you think your code is wrong, or if something doesn't look right on your payslip, it's time to act. How to check your tax code You can check your current tax code by logging into your personal tax account online, using the HMRC app, or digging out your latest payslip. You may also have received a Tax Code Notice from HMRC in the post, so it's worth checking any recent letters too. If the numbers don't add up, contact HMRC directly. You can call them on 0300 200 3300 or write to: Pay As You Earn and Self Assessment, HMRC, BX9 1AS. Those who've overpaid could see a refund land in their bank within five days once their claim is processed or receive a cheque in the post within two weeks. But it's not always good news, some may find they underpaid tax and owe HMRC money. If that's the case, most will be asked to repay it gradually over 12 months. If you're owed money, you may also receive a P800 letter or a simple assessment telling you how much you're due and how to claim it. There's a four-year limit on claiming back overpaid tax, so if you think you've been overcharged, don't delay. Whether you're a full-time employee, working multiple jobs, or have just switched roles, it's worth double checking your code because a five-minute check could leave you hundreds better off. The Sun has approached HMRC for comment.
CBS News
15-05-2025
- Business
- CBS News
6 ways tax relief can help with your 2024 debt
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. If you're dealing with unpaid IRS tax debt, a tax relief program could help you tackle the issue and get your finances back on track. Getty Images Another stressful tax season has come and gone, much to the relief of taxpayers across the nation. But while the tax filing deadline has passed, that isn't necessarily the end of the tax-related hassles for a large portion of taxpayers. Millions of Americans are now stuck grappling with the idea that they owe more than they can afford to pay to the Internal Revenue Service (IRS) for their 2024 taxes, especially as the penalties and interest compound on their unpaid taxes. And, any extra financial burden may be especially heavy right now, whether it's due to missing the deadline, underpaying on your taxes or simply being unable to pay the balance in full. After all, today's landscape of economic uncertainty and high interest rates has left many households struggling to keep up with their regular bills and debt, much less their unexpected tax obligations. So, it's easy for the pressure to pile up as the threat of IRS enforcement action, like wage garnishment and liens, looms. If you're dealing with this type of tax-related issue, it's important not to panic. Tax relief programs are still available, and they may be more helpful than you realize. Speak to a tax relief expert about your options now. 6 ways tax relief can help with your 2024 debt Whether you're facing a surprise bill, penalties for late filing or mounting tax debt from previous years, pursuing tax relief could help. Here's how: Installment agreements can help you pay over time If you're staring down a tax bill that you can't pay in full, getting help from a tax relief service to set up an IRS installment agreement could be your first line of defense. Rather than putting that tax debt on a high-interest credit card or taking out a personal loan, you can work with a tax expert or directly with the IRS to arrange to pay the IRS over time. For tax debts under $50,000, the standard term is up to 72 months, giving you substantial breathing room. While penalties and interest will continue to accrue until your balance is paid, the rates are typically far more favorable than credit card interest rates, which are hovering around 22% right now. And, by keeping your tax debt separate from your consumer debt, you're also protecting your credit score from the impact of increased credit utilization. Find out more about the tax debt relief programs available to you now. Penalty relief may help reduce what you owe The IRS automatically applies failure-to-file and failure-to-pay penalties to late tax returns and unpaid balances. These penalties can grow quickly, especially when combined with interest charges. But if you've generally maintained a good tax compliance history and have a reasonable cause for failing to meet your tax obligations (such as serious illness, natural disasters or unavoidable absence), the IRS' First-Time Penalty Abatement program might work for you. This relief option is particularly valuable because penalties can add up quickly. Failure-to-pay penalties alone accrue at 0.5% per month up to 25% of the unpaid tax. By working with a tax relief expert to request abatement, you could potentially reduce your overall tax debt by hundreds or even thousands of dollars, freeing up those funds to tackle other debts more aggressively. Offers in Compromise could help you settle your debt for less For those facing more significant financial hardship, another tax relief option — an Offer in Compromise (OIC) — could allow you to settle your tax debt for less than the full amount owed. This isn't a quick fix or an easy process, but for qualifying taxpayers, it can provide substantial relief. When you request an OIC, the IRS evaluates your ability to pay based on income, expenses, asset equity and future earning potential. Approval rates have historically been low for this program, but working with a professional can increase the odds of success when trying to set up an OIC. And, if successful, this option could save you thousands of dollars and help clear your path to financial recovery. Currently Not Collectible status buys you time If you're experiencing severe financial hardship, you can work on your own or with a tax relief specialist to request that the IRS designate your account as Currently Not Collectible (CNC). The CNC status doesn't eliminate your tax debt, but it does temporarily halt collection activities, giving you breathing room to address your more immediate financial needs without the pressure of IRS collections. Filing or amending your return may help reduce what you owe Sometimes, the issue isn't that you owe money. It's that your tax return was incorrect. If you rushed to file your taxes by the April deadline and now realize you missed deductions, credits or income adjustments, working with a tax relief specialist to amend your return could lower your liability. Or, if you haven't filed at all yet, filing as soon as possible is almost always better than continuing to delay. Filing triggers the clock for many relief options and may help you qualify for payment plans or penalty relief sooner. The bottom line Owing money to the IRS can feel overwhelming, especially if you're already dealing with high inflation, credit card debt or a tight budget. But tax debt doesn't have to be a permanent burden. With the right mix of IRS programs and strategic guidance, you can tackle your 2024 tax bill, and even past debt, in a manageable way. It's important to act now, though, before penalties pile up further or collection actions kick in.
Yahoo
07-05-2025
- Business
- Yahoo
Dodgy tax claims exposed as ATO reveals 'hit list' for 2025: 'Wanted to deduct $30,000'
A pair of swimmers, a luxury yacht and hair care are not acceptable tax deductions. · Getty Accountants have revealed some of the 'cheekiest' tax claims Australians have tried to sneak past as the Australian Taxation Office (ATO) reveals its 'hit list' for 2025. You might think a luxury yacht or an engagement ring would be a far-fetched deduction, but they were legitimate claims put through last year. Chartered Accountants ANZ (CA ANZ) recently surveyed 180 Australian tax experts and exposed the extent 'some Australians might stretch the truth to try to get a tax break'. CA ANZ Tax Leader Susan Franks issued a stark warning as she highlighted some of the more ridiculous claims. 'One respondent said their individual client was claiming monthly salon haircuts, on the basis that their hair grows during business hours,' Franks said. RELATED 'There were many dubious claims related to health, wellness and personal aesthetic, including one for the cost of a gym membership, as the individual needed to be strong and fit to renovate their rental property. 'Another related to a Pilates reformer machine purchased to help an office worker who had a sore back. 'We also noticed a trend of big-ticket luxury purchases passed off as business and work expenses, including one who tried to claim a family trip to a tropical island was related to their earthmoving business.' She said a luxury yacht was claimed as a work expense as 'they might have some business to do on the islands.' ATO reveals 'hit list' for 2025 More than 10 million people claimed a work-related deduction in 2024, with work-from-home (WFH) deductions one of the most popular. The ATO said it was targeting exaggerated work-related expenses, WFH deductions and multiple income sources, like side hustles. ATO Assistant Commissioner Rob Thomson said there was no way outrageous claims like a real estate agent who wanted to deduct $30,000 for veneers or a truckie putting through a pair of swimmers as he stopped at a pool near a highway would fly. 'While some people have tried their luck with unusual work-related deduction claims, most people realise to be able to claim an expense, it needs to meet strict criteria,' Thomson said. 'While a lunchtime dip might clear your head for work, swimwear for a truck driver is clearly not deductible. Assistant Commissioner Rob Thomson said the ATO is targeting incorrect work-related expenses this year. · ATO/Yahoo Finance 'We know in many instances mistakes relating to work-related expenses could be avoided with a little time and effort.'
