American Opportunity Tax Credit (AOTC) 2019

American Opportunity Tax Credit 2019: (AOTC) is a financial assistance to children or for taxpayers to pursue Post-secondary education. AOTC permits taxpayers to reduce income taxes up to $2500 for each eligible student. IRS allows students who are on H1B, GC, GC EAD, Citizens and Resident Aliens to claim American Opportunity Credit or Lifetime Learning […]

What Is Tax Withholding?

Things You Need To Know About Tax Withholding An employer deducts/withholds a certain amount of salary from the employee as income tax; the same amount would be deducted from the Paycheck and remits the same to the state, federal, or local tax administration. This amount which has been deducted or withheld is termed as Tax […]

What Is a 529 Plan?

529 plan– named on the section 529 of the Internal Revenue Code is a savings plan offering tax and financial aid benefits. This plan encourages saving for the future education expenditure and costs. Legally known as the ‘Qualifying tuition plans’ this plan is generally sponsored by the state agencies or any educational institutions. These savings […]

1099 Miscellaneous

What Is 1099 Misc? A 1099 Misc.  is one of the forms in the 1099 series provided by the IRS (Internal Revenue Service). It is a document filed to report or declare the miscellaneous payments payed / made to individuals who are non- employees but still work under or for someone. A few examples would […]

What Is Capital Loss?

Capital Loss: Incurring a loss is one situation no one ever wants to be in but sometimes such a situation could prove useful. Declaring a capital loss could help you in managing the taxes and their returns. What exactly is a Capital Loss? In simpler words. A capital loss is the difference obtained when the […]