Pronto Tax Blog
Do You Have to Pay Taxes on PayPal, Venmo, or Cash App Payments For Your Los Angeles Side Hustle?
Quick Answer: You have to pay income tax on any net profit earned through PayPal, Venmo, or Cash App, regardless of whether the platform issues you an official Form 1099-K. However, the IRS only taxes true financial gain, meaning personal bill splits, gift...
The Rules of How to Fight an IRS Audit Appeal Are Now In Your Los Angeles Business’s Favor
Quick Answer: The Supreme Court recently stripped the IRS of its automatic advantage in legal disputes. Because judges now review tax rules independently, the agency faces a much higher risk of losing in court, giving you strong bargaining power to...
What’s the Best Time for Los Angeles Retirees To Execute Retirement Planning Tax Strategies?
Quick Answer: Retirees should execute retirement planning tax strategies during their gap years, which are the temporary low-income window after you stop full-time work but before Social Security benefits and Required Minimum Distributions (RMDs) begin. This...
What Is the Tax Extension Date For Los Angeles Extended Filers?
Quick Answer: For individual taxpayers, the federal deadline to file your extended tax return (Form 1040) is October 15. Or September 15, if you're waiting on a business Schedule K-1. Just remember that an extension grants extra time to file your paperwork, not...
What Are the IRS Rules on Claiming Dependents After Divorce For Los Angeles Parents?
Quick Answer: The IRS automatically gives the dependent tax claim to the parent the child slept under the same roof with for at least 183 nights. A noncustodial parent can only claim the child if the custodial parent officially signs IRS Form 8332 to pass over...
IRS Tax Debt Resolution Strategies: How Los Angeles Parents Can Safeguard Trump Accounts
Quick Answer: The IRS cannot directly seize money in your child's Trump Account because the minor is the legal owner and funds are locked until age 18. However, moving cash from a bank account tied to an active tax lien triggers transferee liability,...
How Does the SALT Deduction Work For Los Angeles High Earners?
Quick Answer: In 2026, the State and Local Tax (SALT) deduction allows you to write off up to $40,400 on Schedule A, but a Modified Adjusted Gross Income (MAGI) over $505,000 triggers a 30% phaseout that reduces the cap down to a $10,000 floor. To legally bypass...
How 529 Plans Are Taxed for Los Angeles Families
Quick Answer: Contributions to a 529 plan are made with post-tax dollars, allowing your investment to compound shielded from federal and state capital gains taxes during the growth phase. Withdrawals are 100% tax-free when used for qualified education expenses,...
What Happens If You Don’t Pay Payroll Taxes, Los Angeles Business Owners
Quick Answer: If your business falls behind on payroll taxes, the IRS has the legal authority to look past your corporation or LLC shield and hold you personally liable for the employee's withheld portion under the Trust Fund Recovery Penalty. Because these...
How Does the Lifetime Learning Credit Work for Los Angeles Students, Parents, and Professionals?
Quick Answer: The Lifetime Learning Credit (LLC) is a non-refundable federal tax credit worth up to $2,000 per tax return. It’s calculated as 20% of the first $10,000 in qualifying higher education tuition and fees, with no limit on the number of tax years it can...
Should Los Angeles Homeowners Add A Name To A Deed?
Quick Answer: While it’s mechanically simple to add a name to a deed, doing so during your lifetime is a financial mistake that triggers unexpected IRS gift tax reporting and destroys your child's future stepped-up basis tax shield. To safely bypass probate court...
What If I Can’t Pay The IRS What I Owe? Help for Los Angeles Taxpayers
Quick Answer: If you can't pay the IRS what you owe by the notice deadline, the IRS will not immediately seize your paycheck or freeze your bank account. Missing the date does, however, trigger a predictable sequence of automated mail notices. You still...