Blog

The sun is setting in the sky over the trees

<h2><strong>Owing money to the IRS can be stressful. But there are steps you can take to manage the situation. Here’s what you need to know.</strong></h2><h2>Understand Your Tax Bill</h2><p>First, make sure you understand why you owe money. Review your tax return and any notices from the IRS. If you spot any errors, contact the IRS to resolve them.</p><p>Keep all your documents organized. This includes your tax return, any IRS notices, and your payment records. Having everything in one place will make it easier to manage your payments and communications with the IRS.</p><figure id="figure-w8ihyu6fjjm1mqnkqf"><img id="w8ihyu6fjjm1mqnkqf" src="https://images.unsplash.com/photo-1692598504840-26e774f6dd62?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyNnx8dGF4JTIwZG9jdW1lbnRzfGVufDB8fHx8MTcyNzU2MzQwOXww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="tax documents" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1692598504840-26e774f6dd62?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyNnx8dGF4JTIwZG9jdW1lbnRzfGVufDB8fHx8MTcyNzU2MzQwOXww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h2>Contact the ways to get in touch, including phone and online services.</h2><h3>Payment Options</h3><p>The IRS provides different payment options. You can pay in full or set up a payment plan. If you can’t pay in full, consider an installment agreement. This allows you to pay your debt over time.</p><h2>Explore Other Solutions</h2><p>In some cases, you might qualify for an Offer in Compromise. This is an agreement with the IRS to settle your debt for less than the full amount. To qualify, you must meet specific criteria and provide detailed financial information.</p><p>Another option is to request a temporary delay in collection. If the IRS agrees, they will review your situation periodically to see if your financial situation has improved.</p><h3>Seek Professional Help</h3><p>If you feel overwhelmed, consider hiring a tax professional. They can help you understand your options and deal with the IRS. A tax professional can also represent you in negotiations and ensure you meet all deadlines.</p><figure id="figure-bdsh0lt8mm1mqnnz5"><img id="bdsh0lt8mm1mqnnz5" src="https://images.unsplash.com/photo-1488751045188-3c55bbf9a3fa?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyM3x8dGF4JTIwcHJvZmVzc2lvbmFsfGVufDB8fHx8MTcyNzU2MzQxMXww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="tax professional" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1488751045188-3c55bbf9a3fa?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyM3x8dGF4JTIwcHJvZmVzc2lvbmFsfGVufDB8fHx8MTcyNzU2MzQxMXww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h2>&lt;h</h2>

What to Do When You Owe the IRS

<h2>Understanding Tax Deductions</h2>
<p>Tax deductions can help reduce your taxable income, leading to lower tax payments. But it's important to know what you can and cannot claim. This guide will help you understand the basics of tax deductions.</p>

<figure id="figure-qufzqf5jd8m1e29p67"><img id="qufzqf5jd8m1e29p67" src="https://images.unsplash.com/photo-1635859890085-ec8cb5466806?crop=entropy&cs=tinysrgb&fit=max&fm=jpg&ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyMnx8dGF4JTIwZm9ybXN8ZW58MHx8fHwxNzI3MDM4NzI4fDA&ixlib=rb-4.0.3&q=80&w=1080" alt="tax forms" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9"></figure>

<h3> deductions are available to most taxpayers. Here are some of the most common:</p>
<ul>
  <li><b>Mortgage Interest:</b> You can deduct the interest you pay on your mortgage.</li>
  <li><b>Medical Expenses:</b> You can deduct medical expenses that exceed 7.5% of your adjusted gross income.</li>
  <li><b>Charitable Donations:</b> Donations to qualified charities can be deducted.</li>
</ul>

<image:tax deduction/>

<h3>What You Cannot Claim</h3>
<p>Not all expenses are deductible. Here are some items you cannot claim:</p>
<ul>
  <li><b>Personal Expenses:</b> Costs like groceries and clothing are not deductible.</li>
  <li><b>Commuting Costs:</b> Travel expenses to and from work are not deductible.</li>
  <li><b>Entertainment:</b> Most entertainment expenses are not deductible.</li>
</ul>

<p>Understanding what you cannot claim is as important as knowing what you can. This helps you avoid mistakes on your tax return.</p>

<h3>How to Claim Deductions</h3>
<p>To claim deductions, you need to itemize them on your tax return. This means listing each deductible expense. You will need to fill out Schedule A of Form 1040.</p>

<image:tax return/>

<p>Itemizing can be more work than taking the standard deduction. But it may save you more money if your deductible expenses are high.</p>

<h3>Conclusion</h3>
<p>Tax deductions can significantly reduce your taxable income. Knowing what you can and cannot claim is essential. Keep accurate records and consult a tax professional if you need help.</p>

<p>Understanding tax deductions can help you make the most of your tax return. Stay informed

Understanding Tax Deductions: What You Can and Cannot Claim

LaShai  Thomas

income tax

Roboto

Roboto Slab

<p><a title="Free Tax Prep Cosultation" href="https://calendly.com/simplyenterpriseinc/tax-preparation-consultations">https://calendly.com/simplyenterpriseinc/tax-preparation-consultations</a> </p>