Core Viewpoint - The discussion centers around the legitimacy of using household chore payments as earned income for funding Roth IRAs, which was dismissed by personal finance expert Dave Ramsey as not compliant with IRS regulations [2][3]. Group 1: Roth IRA Funding Requirements - Roth IRAs must be funded with legitimate earned income that can be reported and supported through a tax filing [3]. - Work performed inside the home, including chores, does not qualify as earned income for Roth IRA contributions [3][4]. - Income must come from verifiable labor that someone else would reasonably pay for, and must be reported on a tax return when required [4]. Group 2: Fair Market Value and IRS Compliance - Wages paid to children must reflect fair market value; paying significantly more than typical rates could lead to issues during an audit [5]. - Ramsey emphasized that any income used to fund a Roth IRA must be legitimate and accurately reported to the IRS [7]. Group 3: Examples of Qualifying Income - Ramsey provided examples of how his children earned qualifying income through tracked work outside the home and verifiable tasks at his office [6]. - Independent earnings from activities like babysitting, dog sitting, and yard work for others were also considered legitimate [6]. - An example was given where a child earned $1,223, which was reported accurately and contributed to a Roth IRA [7].

While Americans celebrate the New Year and return to work, it’s easy to forget what comes after the holiday season: tax season. Tax Day is still months away, but filing early could mean getting your refund sooner. Recent tax law changes could also result in a larger refund for a majority of filers compared to last year, according to CPA and TurboTax expert Lisa Greene-Lewis. "The majority of people do get a tax refund, and last tax season, that refund amount was $3,000. That's a lot of money," Greene-Le ...

While most of these forms should be provided to you by Jan. 31 (and they may also be available online), K-1s aren’t due until the 15th day of the third month after the end of the entity’s tax year. For example, if it uses the calendar year as its tax year, you might not receive a K-1 until March 15.Schedule K-1 for your share of the income and deductions from any pass-through, or flow-through, entity , such as a partnershipIn addition to money from employment, known in tax parlance as “ earned income ,” you ...

Fact checked by Vikki Velasquez Alistair Berg / Getty Images Filing taxes for your side hustle is easier with a little organization and the right forms Key Takeaways Side hustle earnings are taxable and must be reported, even without a 1099 form. Self-employment tax covers Social Security and Medicare contributions. Organized recordkeeping helps maximize deductions and accuracy. You may qualify for valuable tax breaks like the QBI deduction. Planning ahead can help prevent penalties and simplify ...

Government & Regulation - IRS is ending Direct File, a free, government-run tax-filing pilot program [1] - The program was started by the Biden administration last year [1]

Tax Filing Programs - IRS Direct File program will not be available for the upcoming tax filing season [1] - Free File and IRS tax preparation volunteers will still be available to assist taxpayers [1]

Core Points - The Trump administration has ended the IRS Direct File program, which was designed to simplify tax filing for Americans and save costs [1][4] - Critics argue that Direct File was costly to develop and had low participation rates, with only 296,531 returns filed in its second year, representing less than 0.5% of total returns [4][5] - Former Treasury Secretary Janet Yellen estimated that the average American taxpayer spent $270 and 13 hours filing their tax return [2] Group 1: Direct File Program Overview - Direct File was launched as a pilot in 2023 for 12 states and expanded to 25 states in 2024 [1] - The program cost taxpayers at least $41 million, or approximately $138 per return, which critics claim understates the true costs [5] - Participation in Direct File was the lowest among free tax preparation programs, with just under 141,000 returns filed in the pilot year [4] Group 2: Alternatives to Direct File - Americans will need to use paper returns or other software options, with low-cost software providers available [7] - Free options include IRS Free File, which offers free tax preparation software for eligible taxpayers with an AGI of $84,000 or less [8] - Volunteer Income Tax Assistance and AARP Foundation's Tax-Aide provide free tax help, assisting nearly 1.7 million taxpayers in 2024 [8]

IRS Kills Off Popular Free Direct File Option For The 2026 Tax Filing Season https://t.co/SHSOHAEkfO ...

Tax Implications for Married Couples - Being married allows couples to share a tax return, claim a larger standard deduction, and often pay less overall compared to filing individually [1] - Certain credits and deductions designed for single filers or specific groups may not apply to married couples [1] Filing Status and Deductions - The Head of Household (HOH) filing status is exclusive to single filers who support a qualifying dependent, making married couples ineligible [2] - For 2025, the standard deduction for HOH is $22,500, while married filing jointly (MFJ) is $30,000, and single filers or those married filing separately receive $15,000 [3] Earned Income Tax Credit (EITC) - The EITC is beneficial for lower-income workers, with stricter rules and lower income thresholds for married couples compared to single parents [4] - A single filer with three or more qualifying children can receive up to $8,046 in refundable credit, while married couples may exceed the income cutoff due to combined incomes [5] Saver's Credit - The Saver's Credit incentivizes retirement account contributions, with singles qualifying up to an AGI of $39,500, while the limit for married couples is $79,000 combined [6] - Singles can receive up to $1,000 back, whereas married couples can claim up to $2,000 combined, but many married households may not qualify due to combined income [6]

With worries about identity theft on the rise, the IRS is encouraging all taxpayers to consider getting an identity protection PIN (IP PIN) for the upcoming tax filing season. https://t.co/9Vf9hPK9XY https://t.co/LfQ18jOFDd ...