Solutions to Make Better Decisions with Your Money

The Eerie Presence of Phantom Income

What is Phantom Income?  - TaxACT Blog

Halloween evokes spooky images of ghosts and goblins. These specters may not be visible to the eye, but rumor has it, their eerie presence can be felt.

Similarly, so-called “phantom income” is money that you don’t actually pocket, but the IRS still treats those funds as taxable income.

Nobody likes getting a larger than expected tax bill, especially on money they never actually had, but because the money (or “imputed income”) shows up on income statements, it’s fair game for Uncle Sam.

These situations are not very common, but here are a few examples of phantom income:

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Weekly Favorites: 9 Money Moves to Make Before the End of the Year, and more

TaxACT Weekly Favorites

TaxACT Weekly Favorites: October 31, 2014 The 5 Biggest Tax Differences Between an LLC and Corporation By Nellie Akalp Among the many decisions you need to make when launching a business is selecting a business structure. If you do nothing, … [Continue reading]

5 Money Books Every Millennial Should Have on Their ‘to-Read’ List

5 Books about Money Every Millennial Needs to Read - TaxACT Blog

Looking to d­elve deeper into financial topics like creating a budget, paying off debt and saving for retirement? These five books offer advice that's relevant to the financial concerns and needs of Generation Y: … [Continue reading]

7 Tax Tips for the Freelance Economy

How to Handle Taxes as a Freelancer - TaxACT Blog

Tax season feels eons away for many gainfully employed workers. Why bother thinking about W-9s that will come in January when Halloween, Thanksgiving and Christmas are all arriving before tax forms. Not to mention New Years, Valentine’s Day and … [Continue reading]

Weekly Favorites: Time to Make Year-End Tax Moves — and more

TaxACT Weekly Favorites

TaxACT Weekly Favorites: October 24, 2014 6 Do’s and Don’ts for an Energy-Efficient Home by Sally Herigstad Fall is here, and with it higher energy bills. You’re on the right track if you’re already thinking of ways you can save money this … [Continue reading]

How to Know Which IRS Tax Form to File — Form 1040, 1040EZ, or 1040A?

1040 Tax Forms— Which One Do You Need? — TaxACT

As an individual taxpayer, you can file your tax return with IRS Form 1040, 1040A or 1040EZ, depending on your tax situation. How do you know which form you should use? You can always use Form 1040, regardless of whether you qualify to use Form … [Continue reading]

Keep More Money in Your Pocket with the 2014 Earned Income Tax Credit (EIC)

2014 Earned Income Tax Credit (EIC) Guide — TaxACT

The 2014 Earned Income Tax Credit, or EITC (also know as EIC), is a credit designed for lower income working individuals and families. It is intended as an additional reward for working, thus the words "earned income." If you don't have … [Continue reading]

The Filing Extension Deadline Is Here—5 Tips for Finishing Your Return

The Filing Extension Deadline Is Here—5 Tips for Finishing Your Return - TaxACT

Way back in April, you hadn't quite finished your income tax return. You filed for an automatic six-month extension of time, until October 15, to file your return. October is here - and perhaps your tax return is right where you left it, six … [Continue reading]

Your Complete Guide to Filing Form 1041, U.S. Income Tax Return for Estates and Trusts

Your Complete Guide to Filing Form 1041 - TaxACT

IRS Form 1041 is an income tax return for estates and trusts, similar to Form 1040 for individuals. If you are the executor for an estate, you may be required to file Form 1041 – U.S. Income Tax Return for Estates and Trusts. Form 1041 must be … [Continue reading]

How the Advanced Premium Tax Credit Impacts 2014 Tax Returns

How the Advanced Premium Tax Credit Impacts 2014 Tax Returns - TaxACT

If you bought health insurance through a government-sponsored marketplace, you may be receiving a tax credit that helps pay for your health insurance premiums. Because the credit is directly sent to your insurance company to offset your premiums, … [Continue reading]

5 Myths about Do-It-Yourself Tax Solutions Debunked

5 Myths about Do-It-Yourself Tax Solutions - TaxACT

Make this the year you start doing your own taxes! Using online tax solutions can save you money compared to a tax professional. It's also a lot faster, easier and more accurate than preparing your taxes with paper, pencil, and a … [Continue reading]

Are You Uninsured? Find Out If You Qualify for a Health Insurance Penalty Exemption

Are You Uninsured? Find Out If You Qualify for a Health Insurance Penalty Exemption - TaxACT

2014 is the first year that individuals in the U.S. may have to pay a penalty if they don't have sufficient health insurance under the Affordable Care Act. If you have minimum essential coverage through your employer or that you’ve purchased on … [Continue reading]

Answer These 6 Questions before You Co-Sign a Loan for a Family Member

Answer These 6 Questions before You Co-Sign a Loan for a Family Member - TaxACT

What's the simplest answer to whether you should co-sign a loan for a family member? "No." That's what all too many co-signers wish they had said when they were asked to co-sign a loan, even for an adult child or a parent. Co-signing a loan … [Continue reading]

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