Hardship and Struggling Taxpayers
Depending on the degree of economic hardship that you are suffering, you may be eligible for adjustment to payments on back taxes, deferment of collection action, or leniency in regards to the default status of payment agreements (i.e. offer in compromise). Canceled debt from commercial lenders is often included as taxable income on your federal income taxes. At eFile.com, we will help you prepare and e-file your 2019 Tax Return. The eFile app will also find any tax credits and deductions you qualify to claim on your return.
Here are other life situations that affect your taxes:
- Job Loss: If you have been the victim of outsourcing or downsizing during these turbulent economic times, learn about job loss tax adjustments and get possible tax relief. For example, you can set up a health savings account (HSA), make tax-deductible contributions, and withdraw the money tax-free for qualified medical expenses (this is available to you even if you did not lose your job).
- Job Searching: Job search expenses start to add up when you have printing costs, travel costs, and expenses incurred from networking, among other things. According to IRS regulations, you can deduct certain expenses incurred while looking for a new job, even if presently employed. You can deduct these expenses without being offered a new job.
- Bankruptcy: Bankruptcy and insolvency can be financially draining for many people. It is important to know the tax ramifications of bankruptcy or insolvency, such as reporting forgiven debt on your tax return if you receive Form 1099-C, Cancelation of Debt, from the creditor or lender that forgave the debt.
- Divorce and Separation: A life-altering event such as separation or divorce has many tax implications. If you received alimony that is in a divorce or separation agreement finalized in 2019 or later, you do not have to report the alimony on your tax return.
- Marriage: If you got married in 2019, congratulations! Getting married is a big step in your life and will also impact your tax return. Take a look at some important marriage tax information and details when planning for or preparing your tax return now that you are a married person. The first thing you need to do when preparing your 2019 Tax Return is to select a filing status; you can only file as Married Filing Jointly or Married Filing Separately.
- Child Tax: Did you have a child in 2019? Congratulations on the new addition to your family! There are many important taxes related to children and dependents such as the non-refundable Child and Dependent Care Tax Credit and tax deductions on college savings accounts.
- Tax Withholding: Do you expect a tax refund next tax season? If so, why wait until then if you could get this refund money earlier? As of November 2019, the IRS issued over 111 million refunds for 2018 Tax Returns, and the average refund check was almost $3,000! That means that every month most taxpayers pay an average of $250 too much in taxes. Are you one of them? You might withhold too much tax from your paycheck. Remember the time value of money: money now is worth more than the same amount of money in the future. Learn how to adjust your paycheck withholding.
- Tax-Free Income: Are you sure that you have considered all your tax-free income options? Learn about sources of income that the IRS cannot tax such as child support and life insurance benefits.
- Estimate Your Taxes: An essential component of tax planning is using a tax calculators to assess your tax credit, deduction eligibility plus to estimate your taxes before it is time to file your tax return. Click the link below to start estimating your 2019 Taxes now. To get a complete idea of your taxes, complete and e-file your 2019 Tax Return on eFile.com.
Plan to Save: Start the Free 2019 Tax Calculator