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Month: October 2024

Goffstown, NH Resident Has Concerns

As long as your child doesn’t earn more than the standard deduction, $14,600 for the 2024 tax year, they will not be required to file a separate tax return. If your teen earns under $1,150, this is tax-free income. Anything above this will be subjected to taxes. Income earned by your child that is over $2,300 will be subject to the parent’s tax rate. This could mean that a larger amount is taken for taxes. As long as your working teenager is still a minor, relies on you for more than half of their financial support, and lives with you for at least half of the year, you can continue to claim them on your taxes for a dependent deduction.

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Payment Options If You Owe Back Taxes to the IRS

Milford, NH Resident Looks for Help

When you owe back taxes to the IRS, it is important to have an open line of communication with the agency. In most cases, they are willing to work with you to set up a payment plan or negotiate the balance owed. If you neglect to pay or communicate with the IRS regarding your outstanding tax bill, you may face liens on your home and other property, wage garnishment, and even restrictions placed on your passport. If you owe less than $50,000, you may be able to repay this money through the streamlined installation agreement. This allows you up to 72 months to repay the money. You can ask the IRS for an extension to pay, giving you an additional 180 days to gather the funds before paying the bill.

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