subject: Offers in Compromise for Teachers Tax Help for the Most Underpaid and Overworked [print this page] Offers in Compromise for Teachers Tax Help for the Most Underpaid and Overworked
Hard working The teachers are one of the most overworked and underpaid professions. As far as IRS tax debt is for a teacher rarely end up with debts that are due to their relatively low incomes.
Light at the end of the tunnel teachers have relatively good pensions and retirement accounts and the IRS can take the teacher with a tax liability if the teacher's account in cash.
Do not count yourChicken With the withdrawal of money from the investment account, the IRS expects to be paid because of their reference to the money from the account. You should expect to shell over 30% of the funds to the IRS or the risk that because of money.
No respect So what happens when you've spent your life trying to teaching and now the IRS tells you that you owe money, when you finally get a decent payout from the state? There are several factors thatbe taken into account before you explore options for dealing with the IRS tax liability.
With a portfolio that you do not refuse You have a teacher to make a lifetime of much less than other professions that have your same level of education, your income will certainly never spectacular. In this sense, you could settle a candidate for all of your tax liability for a lesser amount, will be called an offer in compromise. However, to see whether you are eligible for aOffer in compromise, you need to take a look at your finances.
Above all, how much you have of your pension and / or retired, and what did you do it on? The reason is that the money is obtained from withdrawing from these accounts as income for the tax year, and the higher your income, the less chance you have received an offer in compromise. The only exception is if had the money to make the necessary expenditures are spent as medicalCosts.
Second, you own a home, and how much equity you have in it? The more equity you have, the lower your chances of an offer.
And finally, how much debt you owe the IRS and if the debt of less than U.S. $ 10,000 trying to get an offer in the balance, is probably not the best choice. The only way to submit a bid for as much tax liability would be if you were penniless.
Did you teach mathematics? "If you think you may be able toreceive an offer in compensation will receive a pen and paper and find out what the IRS considers your financial situation. The formula is:
Their disposable income + capital = You have your financial status. The amount is more than your fault, do not even try to get an offer in compensation.
But for the sake of argument let's say you're a tenant, you have an old beat up car, and you had your hard-earned retirement care of your mother Use home bills. Of courseAfter all that you have no way to repay the IRS in full, so that in this case, you would qualify for an offer in compromise.
