If you review your existing tax blog index , you have not yet covered one of the most powerful tools available to Americans living and working overseas: the Foreign Earned Income Exclusion (FEIE) under Internal Revenue Code § 911. With more people working remotely, freelancing internationally, and becoming “digital nomads,” this provision has become increasingly [...]
Winning money, vacations, cars, or even gift cards through lotteries, sweepstakes, raffles, or online contests feels like “free money.” Unfortunately, the IRS usually does not see it that way. Under federal tax law, most prizes and awards are fully taxable income, even if you never receive cash. This article explains when winnings are taxable, how [...]
The Qualified Business Income (QBI) Deduction under Internal Revenue Code §199A allows many small business owners to deduct up to 20% of their business income on their federal tax return. For freelancers, landlords, consultants, and pass-through business owners, this deduction can mean thousands of dollars in tax savings. Yet many taxpayers either misunderstand it—or miss [...]
Many taxpayers are surprised to learn that the Internal Revenue Code offers powerful tax incentives for investing in economically distressed communities. These incentives operate through Qualified Opportunity Zones (QOZs) and Qualified Opportunity Funds (QOFs). When used correctly, Opportunity Zone investments can allow taxpayers to: Defer capital gains taxes, Potentially reduce taxable gain, and Eliminate tax [...]
Understanding IRS Form 3520 and IRC §6039F With more Americans receiving money from overseas relatives, international business partners, and foreign estates, one question comes up more and more: Do I owe tax on money or property received from outside the United States? In many cases, the answer is no—but failing to report it correctly can [...]
Understanding When Credit Card Rewards Become Taxable Income Under Federal Tax Law Credit card rewards, cash-back programs, and sign-up bonuses have exploded in popularity. Many taxpayers now earn hundreds—or even thousands—of dollars each year through points, miles, and rebates. But a common question arises every tax season: Do I have to report credit card rewards [...]
With more Americans using digital payment apps like Venmo, PayPal, Cash App, and Stripe, many taxpayers are surprised when they receive Form 1099-K from these platforms. A common question arises: Does receiving money through an app mean I owe taxes? The answer depends on why you received the money. Let’s break down how the IRS [...]
Recent Comments