[Editor's Note: This article was originally published in June 2012 but has been updated for accuracy and comprehensiveness.]
Currently Not Collectible (CNC) status means the IRS has determined you cannot afford to pay your tax debt due to financial hardship. As a result, the IRS temporarily stops collection efforts such as wage garnishments and bank levies, though your balance will continue to accrue interest and penalties.
{Editor’s Note: This post was originally published in September 2013 and has been updated for accuracy and comprehensiveness.}
When tax season rolls around, many people look for ways to reduce their bill—and rightly so. But understanding how different tax breaks work can make a big difference in how much you actually save. Two common tools in your tax-saving toolbox are tax credits and tax deductions. While they might sound similar, they work in very different ways. Let’s break it down.
Editor’s Note: This post was originally published in January 2014 and has been updated for accuracy and comprehensiveness.
Having a baby is an exciting life event, but it also comes with significant expenses—many of which start during pregnancy. The good news is that certain pregnancy-related medical costs may be tax-deductible, helping you ease the financial burden. However, not all expenses qualify. Understanding which maternity costs you can and can’t deduct will help you keep better records and maximize your potential tax savings.
As the cost of higher education continues to rise, student loans have become a reality for millions of individuals pursuing their academic dreams. While managing student loan debt can be challenging, there is a silver lining for borrowers: potential tax deductions that can provide some relief. In 2023, understanding the intricacies of student loan tax deductions is crucial for maximizing your financial benefits. In this post, we'll walk you through the key points of student loan tax deductions, helping you make informed decisions and potentially reduce your tax burden.
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Do you have a kid going to college? Are you or your spouse taking higher education or continuing education classes? Then you need to take advantage of educational tax credits offered by the federal government.
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*This post has been updated to reflect tax changes
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If you are headed back to school as an adult, it’s nice to know you’ll get more out of it than an education. You could also save money on your taxes.
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As medical costs climb, it’s nice to think you could deduct them from your taxes. And you can, but there are limits.
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The American Rescue Plan Act or ARPA was signed on March 11, 2021, and provides around $1.9 trillion in federal spending.
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Tax credits are like “found money” that turns up when you fill out your tax form. Unlike deductions, credits are awarded dollar for dollar. In other words, if you are eligible for a $300 tax credit, you get $300 off your tax bill—kind of like a sale at the grocery store.
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