Tax Resource Center
What is an Offer in Compromise?
An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability, or doing so creates a financial hardship. IRS consider your unique set of facts and circumstances such as ability to pay, income, expenses and asset equity. IRS generally approve an offer in compromise when the amount offered represents the most IRS can expect to collect within a reasonable period of time.
Use the Offer in Compromise Pre-Qualifier tool to confirm your eligibility and prepare a preliminary proposal.
Can you take the home office tax deduction?
The law changed in 2018 and eliminated the home office deduction for people who work for an employer. You can only qualify for the home office deduction now if you're self-employed. You're not eligible if you're an employee, even if you've been working remotely and had to set up an office in your home.
Is college tuition tax deductible?
If taxpayers, their spouses or their dependents take post-high school coursework, they may be eligible for a tax benefit.
There are two credits available to help taxpayers save money on higher education, the American opportunity tax credit and the lifetime learning credit.
How to file a final tax return for someone who has passed away
When someone dies, their surviving spouse or representative files the deceased person’s final tax return. On the final tax return, the surviving spouse or representative will note that the person has died. The IRS doesn’t need any other notification of the death.
Usually, the representative filing the final tax return is named in the person’s will or appointed by a court. Sometimes when there isn’t a surviving spouse or appointed representative, a personal representative will file the final return.
How to tell the difference between a hobby and a business for tax purposes
A hobby is any activity that a person pursues because they enjoy it and with no intention of making a profit. People operate a business with the intention of making a profit. Many people engage in hobby activities that turn into a source of income. However, determining if that hobby has grown into a business can be confusing.
To help simplify things, the IRS has established factors taxpayers must consider when determining whether their activity is a business or hobby.
What taxpayers should do if they get an identity theft letter from the IRS
When a thief steals someone’s Social Security number, they can use it to file a fraudulent tax return. This is tax-related identity theft. The IRS scans tax returns for possible fraud. If a tax return is flagged as suspicious, the agency will pull it for more review. Then the IRS will send the taxpayer a letter notifying them of potential ID theft. The suspicious tax return won’t be processed until the taxpayer responds to the letter.
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