More Money, More Opportunities
Sports betting winnings are taxable income, and you’re required to report them to the IRS, even if you don’t receive a W-2 G form. Apps like DraftKings and FanDuel will issue a W-2 G if you win $5,000 or 300 times the amount wagered. While you can deduct losses, it’s often difficult to exceed the standard deduction. It’s recommended to set aside 24-25% of winnings for
Losing a parent brings emotional challenges, but also potential IRS tax issues that can be costly and complicated. Key points include: outstanding debts don’t disappear, final and estate tax returns are required, executors can be personally liable, joint accounts and property with tax liens can be affected, unreported income triggers scrutiny, inherited IRAs have mandatory withdrawals, and Social Security overpayments must be returned. Additionally, gifts over a certain amount may trigger gift tax, and life insurance payouts can inflate an estate’s
The IRS is advising taxpayers to avoid calling them during the two weeks following Presidents Day weekend due to exceptionally long wait times. Instead, the IRS encourages utilizing online tools like the Interactive Tax Assistant, Get Refund Status, Taxpayer Assistance Locator, and the Free File portal. If a call is necessary, be prepared for a potentially lengthy hold, and note that Mondays and Tuesdays, and periods near the tax deadline, typically have the longest wait times.
If your stimulus check was sent to the wrong bank account—whether closed, overdrawn, or unrecognized—you will eventually receive your payment, but it will likely take longer. If the account is closed, the bank will return the check to the IRS, who will then mail a paper check. If an account is overdrawn, banks may apply the payment to the negative balance, though many have paused this practice. For those who received their refund via a tax prep service’s temporary account, the
The IRS’s “Get My Payment” app, intended to allow people to track and provide bank account information for coronavirus stimulus payments, has a significant flaw: those who have closed bank accounts used on prior tax returns (2018 or 2019) cannot update their information. Payments intended for these accounts will be rejected, resulting in a mailed check—which may be sent to an outdated address—and a potentially lengthy wait. The IRS currently offers no way to update this information
