Your home is probably one of the more valuable assets you own. Indeed, according to Ramsey Services, the average sales price of a house in the Golden State is upwards of $600,000, which is more than $280,000 more than the national average. Owning a home gives you...
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Tax Controversy
What is innocent spouse relief?
Filing a joint tax return as a married couple can offer you certain benefits. However, if you and your spouse decide to divorce, you may bear responsibility for paying any outstanding taxes or penalties. According to Benefits.gov, you may be eligible for innocent...
Is student loan forgiveness taxable?
In most cases, when you have a debt forgiven, tax agencies treat them like income. Since President Joe Biden announced he is forgiving student loan debt for many borrowers, there is concern about whether it is taxable. According to Time, the federal government will...
Signs of financial abuse when seeking innocent spouse relief
All you technically need to prove, when seeking innocent spouse relief, is that you signed a joint return with your spouse and that you were not aware of erroneously reported income that resulted in an unfair fine. That second part, however, may prove harder to show...
What could cause the IRS to deny an offer in compromise?
Falling on hard financial times can be an anxious period for you, particularly if you owe money in back taxes. Still, even if you have a hefty tax bill, the IRS does provide leeway to some people by accepting an offer in compromise. However, not everyone will...
Is forgiven debt taxable?
Debt settlement is a way to seek assistance when a person can not manage or make payments on their debt. Though this exists as a useful option for many people struggling financially, it is also a potentially complex matter, and it is important to understand as much...
What is wage garnishment and can you get out of it?
When a person owes money to someone else and has not made active steps to repay that money, the next step may be wage garnishment. In California courts, this means that the courts will not collect money from a debtor but can allow a person’s wages to be withheld to...
Offers in compromise: What do you need to know?
If you fall behind on your taxes, or if your tax bill is greater than what you can afford, the worst thing you can do is ignore the situation. Though the IRS has an intimidating reputation, it can be understanding, which is evident by the fact that it offers a few...
Understanding Innocent Spouse Relief
If you and your spouse are no longer together, and you receive a notice from the Internal Revenue Service that you owe taxes on a joint return, you may be wondering if you are responsible for paying it. In most circumstances, you are liable for taxes owed on a joint...