Blog – Page 2 of 51 – Michele Cagan, CPA

How to File Your Taxes for FREE in 2021

02/22/2021
personal finance, taxes

Want to file your taxes for free? You can... but you'll want to make sure you don't end up paying to "free-file." There are a lot of free tax prep programs available…and there are many that start out as free but then hit you with fees when it’s time to file. Here we’ll take a look at which options are really free, and whether they make sense for you. If Your Income Is $72,000 or Less If your income is $72,000 or less, the easiest place to find legit 100% free tax filing software is the IRS website’s Free File…

Save Money on Taxes: Make Your 2020 IRA Contribution Through April 15, 2021

02/13/2021
retirement, taxes

UPDATED FOR 2021 You still have plenty of time to lower your 2020 tax bill. For a win-win, make an IRA contribution for 2020. You can go with a currently tax-deductible traditional IRA or the Roth IRA (which is not deductible this year but offers many other advantages). As long as you put the money in by April 15, 2021, that contribution can count for 2020. If you haven't already maxed out your 2020 retirement plan contributions, it’s a good idea to do it now. With traditional IRAs, making the maximum $6,000 contribution ($7,000 if you’re 50 or older) could slash $600 or more…

3 Ways You’re LOSING Money by Getting a Big Tax Refund

02/12/2021
dealing with debt, personal finance, retirement, taxes, you need to know this

Updated for 2021 Most of us celebrate getting a huge tax refund – we have big plans for that money every year. We act like getting that big chunk of change is a good thing, but it’s not. In fact, you actually lose money by giving the Federal government an interest-free loan every year. According to the IRS, the average tax refund for tax year 2019 was $2,549, which works out to $212 a month. But if you put that money to work for you instead of lending it to them, you could end up with a much bigger pile…

Two Education Tax Credits Put Big Money Back in Your Pocket

02/09/2021
personal finance, taxes

UPDATED FOR 2021 Paying for college is crazy expensive - even when it's mostly online. And if you’re footing the bill for more than one education, your finances are probably stretched pretty thin. Two tax credits can help put more money back in your pocket: The American Opportunity Tax Credit and the Lifetime Learning Credit. And the more generous of the two credits - the AOTC - chops $2,500 per student off your tax bill. Plus, a pretty big portion of that tax credit is refundable – meaning if you don’t owe any taxes, you can get cash back. If…

Help! I Got IRS Notice CP-2000

12/28/2020
taxes, you need to know this

How to handle tax notices from the IRS You just got a letter from the IRS. Your first reaction may involve panic… and that can lead to not dealing with the letter at all. Avoiding that IRS notice could end up costing you a lot of money. So take a breath, grab the letter, and read it. Chances are what you got was a CP-2000, a notice of underreported income. The most important thing to do here is respond. And we’re going to talk about exactly how you can do that. But first, let’s figure out why the IRS is…