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I Lost Money On Bitcoin: What Can I Do?

If you lost money on Bitcoin or other cryptocurrencies, you may be eligible for a tax deduction. Sometimes, what the IRS taketh away, the IRS also giveth. How Are Cryptocurrencies Taxed? Your cryptocurrency trades are subject to capital gains taxes just like stock trades are. If you sell higher than you bought, you have a …

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Do You Need to Include Your 1099s with Your Tax Return?

You generally don’t need to include a 1099-MISC or 1099-NEC with your tax return. So why do people think you need to, and is there anything else to consider? Why do people think you need to attach your 1099 to your tax return? There are no instructions from the IRS telling you to attach your …

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What Happens If You Get a 1099 After Filing Your Taxes?

Did you file your taxes early hoping to get your refund sooner or just get tax season over with as quickly as possible? What happens if you get a 1099 after you file, and what should you do about it? Option 1: You Already Reported the Income You must report your income even if you …

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Self-Employed Tax Deduction Checklist

Are your taxes as low as they can be? Run through this checklist to make sure you haven’t skipped over any deductions available to the self-employed. Common Self-Employed Tax Deductions Self-Employment Tax: One half of your self-employment tax is deductible for income tax purposes. If you’ve already entered your business income and don’t see this …

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Letter 6475: Do You Need to Do Anything?

IRS Letter 6475 gives you information about your 2021 Economic Impact Payments. You may need the information in Letter 6475 to file your tax return. Why did I get IRS Letter 6475? The IRS is sending everyone Letter 6475. When you file your tax return, you need to answer whether you received any Economic Impact …

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Business Expenses and Self-Employment Taxes in the 50/30/20 Rule

When you’re creating a budget based on self-employment income, you need to make some tweaks to traditional budgeting methods. The concepts are the same, but personal budgeting rules like the 50/30/20 rule don’t take into account things like business expenses and self-employment taxes. Here’s what you can do to adapt your budget. What is the …

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Should you do a Roth conversion when the market goes down?

Market downturns are often a good time to convert your retirement accounts. Here are some things you should consider. What’s a Roth conversion? A Roth conversion moves money from your Traditional IRA or 401(k) to a Roth IRA or 401(k). You pay ordinary income taxes on the amount you move. Since the money stays in …

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What are the Early Retirement Account Distribution Rules?

If you need to cover an emergency expense or make a major purchase from a house, you may be thinking about withdrawing money from your retirement account. Depending on your reason for the distribution, you might have to pay a penalty, or you might qualify for an exception. Normal Early Retirement Distribution Rules These rules …

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