Everyday Law & Life

Why Is My Tax Refund Delayed in the U.S.? Common Reasons and What You Can Do You filed your tax return, waited patiently... and still no refund. You’re not alone — millions of Americans experience refund delays each year. Here are the most common reasons why your IRS refund may be delayed, and what you can do to check or speed up the process. 🕒 1. Your Return Is Still Processing Even if your return was e-filed, the IRS can take up to 21 days (or longer) to process: During peak season (Feb–April), delays are common Paper returns take much longer 🧾 2. Errors or Incomplete Information Simple mistakes can cause red flags: Wrong Social Security Number Incorrect income amounts Missing forms or mismatched info IRS may hold your refund until corrected 🧍 3. Identity Verification Needed If your return triggered a fraud alert: IRS may require ID verification You’ll receive Letter 5071C, 6331C, or 4883C Refund will be paused until you verify you...

Can You Deduct Medical Expenses on Your Taxes in the U.S.? Here's What Qualifies Medical bills can add up fast — but did you know that some of those expenses may be deductible on your taxes ? Let’s explore when and how you can claim medical expense deductions in the U.S., and what qualifies under IRS rules. 🧾 What Is the Medical Expense Deduction? You may be able to deduct qualified unreimbursed medical expenses — but only if you itemize deductions on your tax return. 🔍 They must exceed 7.5% of your Adjusted Gross Income (AGI) to be deductible. 💡 Example: AGI: $60,000 7.5% of AGI = $4,500 If your out-of-pocket medical costs = $7,000 → You can deduct $2,500 on Schedule A ✅ What Medical Expenses Qualify? You can deduct: Doctor, dentist, surgeon, chiropractor, psychiatrist fees Hospital services & nursing care Prescription medications & insulin Health insurance premiums (if not employer-paid) Long-term care costs Medical eq...

Do You Have to Pay Taxes on Cryptocurrency in the U.S.? IRS Rules Explained Cryptocurrency is exciting, volatile, and — yes — taxable. If you bought, sold, staked, or even received crypto as a gift, you might owe taxes to the IRS. Let’s break down when and how crypto is taxed in the United States. 💸 Is Crypto Considered Income or Property? The IRS classifies cryptocurrency as property , not currency. This means crypto transactions are generally subject to capital gains tax , not income tax — unless you're paid in crypto. 📊 Taxable Events You may owe taxes if you: Sell crypto for fiat (USD, etc.) Exchange one crypto for another Use crypto to buy goods or services Receive crypto as payment for work Earn rewards via staking or mining 📝 These events must be reported on IRS Form 8949 and Schedule D 🧮 How Is It Taxed? Short-term gains (held <1 year): taxed at ordinary income rate (10%–37%) Long-term gains (held >1 year): taxed at ca...

Who Qualifies as a Dependent on Your Tax Return in the U.S.? Claiming a dependent on your tax return can lead to major savings — including credits, deductions, and even lower tax brackets. But who actually qualifies? Let’s walk through the IRS rules and common scenarios to determine who you can legally claim as a dependent. 👶 Two Types of Dependents The IRS defines two main types: Qualifying Child Qualifying Relative Each has different rules. 🧒 1. Qualifying Child Requirements: Relationship : Your child, stepchild, sibling, or their descendant Age : Under 19 (or under 24 if a full-time student) Residency : Must live with you more than half the year Support : Cannot have provided more than half of their own support Joint return : Cannot file jointly with a spouse (unless only to claim refund) 👴 2. Qualifying Relative Requirements: Doesn’t have to live with you (if a listed relative) Gross income < $4,700 (2023 limit, adjusted annua...

Do U.S. Citizens Have to Report Foreign Bank Accounts? FBAR & FATCA Explained If you're a U.S. citizen with money in a foreign bank account, you might be wondering: Do I have to report it to the IRS? And what are the penalties if I don’t? The answer: Yes, and it can get serious. Let’s break down your responsibilities under FBAR and FATCA — and how to stay compliant. 💼 What Is FBAR? FBAR stands for Foreign Bank Account Report . If you have $10,000 or more (total across all foreign accounts) at any point during the year, you must file FinCEN Form 114 . Not filed with IRS — submitted to FinCEN Due by April 15 (automatic extension to October) 🌍 What Is FATCA? FATCA = Foreign Account Tax Compliance Act Requires reporting of foreign financial assets over certain thresholds Filed using IRS Form 8938 Thresholds vary: $50,000 (single, living in U.S.) $200,000 (married, living abroad) ⚠️ What Happens If You Don’t File? Penalties can ...

When Does Debt Expire in the U.S.? Understanding the Statute of Limitations If you’ve ever had an old debt come back to haunt you, you may have wondered: Can they still collect on this? Can I be sued? In the U.S., debt doesn't technically "expire," but the Statute of Limitations (SOL) determines how long a creditor can sue you. 🕒 What Is the Statute of Limitations on Debt? The statute of limitations is a legal time limit for a creditor to file a lawsuit to collect a debt. Once it expires, they can no longer legally sue you — but they can still try to collect. 📅 How Long Is the Time Limit? It depends on: The type of debt The state you live in Debt Type Typical SOL Range Credit card debt 3–6 years Personal loans 3–10 years Medical bills 3–6 years Auto loans 4–6 years Mortgage debt Up to 10 years 📍 Always check your state's laws — they vary widely. ⚠️ Important: The Clock Can Restart The SOL resets if you: ...