Tax talk

365 days, thousands of conversations, and hundreds of car washes. Yes, it’s been a full year of making your own hours and helping others with theirs as a rideshare driver. 

State and federal income taxes vary greatly from each other. Read on to learn about the difference and how it impacts you.

You may have heard rumors that federal government employees don’t pay the same taxes as other Americans. However, that is simply not true.  While some of their pension and retirement plans are different than non-federal employees, they still pay taxes and are impacted by the same tax code as non-federal employees.

It is a federal crime to commit tax fraud and you can be fined substantial penalties and face jail time. Lying on your tax return means you committed tax fraud.

A recent survey by the American Pet Products Association has revealed that owners of pets in the United States spent over $151.9 billion on their animals in 2024, a significant portion of which was related to food, followed by veterinarian costs. While it may not be possible to put a value on the importance of having a pet in your life, there are definitely ways to recover the costs of their maintenance to some extent.

A recent survey by the American Pet Products Association has revealed that owners of pets in the United States spent over $151.9 billion on their animals in 2024, a significant portion of which was related to food, followed by veterinarian costs. While it may not be possible to put a value on the importance of having a pet in your life, there are definitely ways to recover the costs of their maintenance to some extent.

What are back taxes?

If you owe taxes and don’t pay them, you could face IRS collection, including liens, levies, and even passport restrictions, depending on your tax debt situation.

The amount that the IRS says I owe on my taxes is wrong, what should I do?

The good news? Tax debt relief is possible. The not-so-good news? Not everyone qualifies for a settlement, but there are several options to explore and consider. The IRS offers a variety of tax debt relief programs and a lot of online tools and forms to make it easier to apply for them. If you are overwhelmed by the complexity of your situation, consult a professional. Either way, it’s best to deal with tax debt as soon as possible.

Tax law is constantly evolving and, for the most part, that’s a good thing! However, keeping up with the changes from year to year can be quite a headache, especially when you were counting on a deduction that you suddenly find out no longer exists. 

The sharing (gig, freelance) economy can be lucrative! More and more people are entering the sharing economy at a record pace. Whether you participate in ridesharing such as Uber or Lyft, apartment- or house-renting using Airbnb, crowdfunding with Kickstarter, knowledge-sharing through TaskRabbit, or even your online store through Etsy, the funds you receive are income. The more profitable your activities are, the more of an impact they may have on your tax return - it’s all good until you receive an unexpected tax bill.