Filing taxes can induce anxiety for many, especially when the looming possibility of an IRS audit comes into play. With recent funding boosts aimed at increasing scrutiny on high-income earners, taxpayers are rightfully concerned about their chances of being chosen for a review. In this article, we will delve into what triggers an audit, the
Personal
As tax season approaches, a significant change in tax reporting requirements is anticipated to affect millions of Americans. Many taxpayers will encounter Form 1099-K for the first time as they prepare their returns. This form will be generated for individuals with more than $5,000 in business transactions conducted through popular payment platforms like PayPal, Venmo,
Recent data from the Federal Reserve Bank of New York reveals that American households are facing an alarming trend as credit card debt has neared an unprecedented $1.21 trillion. In the fourth quarter of 2024 alone, credit card balances escalated by a staggering $45 billion, marking a 7.3% increase from the previous year. This surge
Inflation has emerged as a pressing concern in the early months of 2023, especially considering the recent trends in consumer pricing. The latest data from the U.S. Bureau of Labor Statistics indicates a significant upsurge in the Consumer Price Index (CPI), a vital economic indicator measuring the average change over time in the prices paid
The food industry is currently witnessing a shocking surge in wholesale egg prices that has left many consumers reeling. As of recent reports, average wholesale prices for large, white shell eggs soared to an astounding $8 per dozen—a significant leap from the previous record of $5.46 per dozen set in late December 2022. This price
As we step into another tax season, the Internal Revenue Service (IRS) has already initiated its annual journey by processing approximately 3.2 million tax refunds by January 31. This early data indicates that the tax filing landscape is once again tumultuous, with many individuals eager to claim their refunds. The average refund reported during this
In the context of rising financial pressures on consumers, a new bipartisan proposal aimed at capping credit card interest rates has emerged, drawing attention from various sectors. Senators Bernie Sanders and Josh Hawley have introduced a bill that seeks to limit credit card APR to a maximum of 10% for five years—a move reminiscent of
In recent discussions regarding tax reforms, President Donald Trump has reignited the debate around the carried interest loophole—a tax provision that grants hedge fund managers and private equity investors preferential tax rates on certain earnings. This loophole allows investment fund managers to classify a portion of their compensation as “carried interest,” which effectively subjects it
In an alarming trend, credit card balances in the United States have reached a staggering $1.17 trillion in 2024. This statistic is particularly concerning as it reflects a broader pattern that spans across income levels, affecting even the wealthiest individuals. A notable example is Robert F. Kennedy, Jr., who recently disclosed debts of up to
In recent years, the conversation surrounding federal financial aid in the United States has taken on a renewed urgency, particularly amid fluctuating administrative policies and economic realities. The recent announcement from the U.S. Department of Education that the Trump Administration’s proposed “federal funding freeze” would not impact federal Pell Grants and student loans has both