Berg Advisors

Selling your home is a big deal, and it can seem overwhelming. If you’re getting ready to sell your house, you may feel like you’re doomed to make some big-time mistakes along the way. So, let’s take a look at the 10 biggest mistakes home sellers make—that way, you’ll be completely prepared:

Mistakes to Avoid When Selling Your Home Home-selling mistakes could mean leaving tens of thousands of dollars on the table! These simple tips will help you avoid them.

Some unscrupulous promoters have misrepresented eligibility rules for the Employee Retention Credit, luring well-intentioned businesses to claim the credit when they don’t qualify. The IRS is highlighting seven suspicious signs and urging businesses to seek a trusted tax professional to resolve an incorrect claim if they need to.

With ERC compliance work expanding, the IRS reminds businesses to quickly pursue the claim withdrawal process if they need to ask the IRS not to process an ERC claim for any tax period that hasn’t been paid yet:

https://www.irs.gov/newsroom/check-business-tax-returns-for-signs-of-incorrect-employee-retention-credit-claims

It’s important that U.S. citizens and resident aliens living abroad understand their tax obligations.

Their worldwide income -- including wages, unearned income and tips -- is subject to U.S. income tax, regardless of where they live or where they earn their income. They also have the same income tax filing requirements as U.S. citizens or resident aliens living in the United States.

An income tax filing requirement applies even if a taxpayer qualifies for tax benefits such as the Foreign earned income exclusion or the Foreign tax credit, which reduce or eliminate U.S. tax liability. These tax benefits are available only if the eligible taxpayer files a U.S. income tax return:

https://www.irs.gov/newsroom/reminder-taxpayers-must-file-and-pay-taxes-even-if-they-live-abroad

What could you do if you didn’t have a single debt payment in the world? That’s right—no student loans, car payments or credit card bills.

The quickest way to make your debt-free dream a reality is to use the debt snowball method:

How to Get Out of Debt With the Debt Snowball Plan Get rid of your debt fast! Learn why Dave Ramsey’s debt snowball method is the best way to knock out all of your debt.

The IRS recently issued a consumer alert following ongoing concerns about a series of tax scams and inaccurate social media advice that led thousands of taxpayers to file inflated refund claims during the past tax season.

The IRS warned taxpayers not to fall for these scams centered around the Fuel Tax Credit, the Sick and Family Leave Credit, and household employment taxes. The IRS has seen thousands of dubious claims come in where it appears taxpayers are claiming credits for which they are not eligible, leading to refunds being delayed and the need for taxpayers to show they have legitimate documentation to support these claims.

The IRS continues to urge taxpayers to avoid these scams as myths continue to persist that these are ways to obtain a huge refund:

https://www.irs.gov/newsroom/irs-warns-taxpayers-they-may-be-scam-victims-if-they-filed-for-big-refunds-misleading-advice-leads-to-false-claims-for-fuel-tax-credit-sick-and-family-leave-credit-household-employment-taxes

Making certain energy efficient updates to your home could qualify you for home energy credits.

The credit amounts and types of qualifying expenses were expanded by the Inflation Reduction Act of 2022. Taxpayers who make energy improvements to a residence may be eligible for home energy tax credits:

https://www.irs.gov/newsroom/irs-home-improvements-could-help-taxpayers-qualify-for-home-energy-credits

How much should you pay for insurance? Depending on what kind you need, what’s the average insurance cost per month?

Let’s look at some average numbers for the four main types of insurance you should have—auto, homeowners (or renters), health insurance and life insurance—and get a feel for what people normally pay:

How Much Does the Average Person Pay for Insurance? Insurance is getting expensive, no buts about it. Let’s take a look at the average insurance cost per month so you can tell whether you’re paying too much.

If a taxpayer disagrees with an IRS decision, they can ask the IRS Independent Office of Appeals to review their case. This office is separate from the rest of the IRS. Appeals officers review cases that taxpayers submitted, meet with the taxpayer informally and consider the taxpayer’s position and the IRS's position in a fair and unbiased manner:

https://www.irs.gov/newsroom/how-to-request-help-with-a-tax-matter-from-the-irs-independent-office-of-appeals

Every taxpayer has fundamental rights when working with the IRS. Collectively their rights are known as the Taxpayer Bill of Rights. One of these is the right to challenge the IRS's position and be heard. Here’s what this right means for taxpayers:

https://www.irs.gov/newsroom/by-law-taxpayers-have-the-right-to-challenge-the-irs-position-and-be-heard

You should only buy a house when you’re debt-free with a full emergency fund. Otherwise, owning a home and covering the expenses that go along with it will be super stressful.

Once you do that, these five steps will set you up with a great plan for buying a home on a budget:

How to Budget for a House Thinking about buying a house? To make sure your new home is a financial blessing (instead of a curse), it’s important to know how to budget for a house.

The IRS sends notices and letters when it needs to ask a question about a taxpayer’s federal tax return, let them know about a change to their account, or request a payment. Don’t panic if something comes in the mail from the IRS – they’re here to help.

When a taxpayer receives mail from the IRS, here's what they should do:

https://www.irs.gov/newsroom/what-taxpayers-should-do-if-they-receive-mail-from-the-irs

When business owners put together an emergency preparedness plan, it should include copies of vital records and financial information.

Here are some things everyone can do to help protect their financial records:

https://www.irs.gov/newsroom/emergency-preparedness-plans-for-businesses-should-include-financial-records

If you’re just curious about the average age people retire, the answer is simple: 61. But here’s the truth: What’s the average retirement age? is the wrong question. That’s because retirement isn't an age—it's a financial number:

What Is the Average Retirement Age? The average retirement age for Americans is 62, but if you’re thinking about retiring, age isn’t the only number to consider.

Taxpayers and tax professionals should remain alert and aware of these common scams, schemes, and cons to avoid losing money, personal information, or client data:

https://www.irs.gov/newsroom/taxpayers-and-tax-pros-beware-of-these-common-tax-scams

Disasters can have an immediate and lasting impact on individuals, organizations, and businesses. Year-round preparation is critically important. The IRS offers tips which may help taxpayers protect personal financial and tax information in their preparedness planning:

https://www.irs.gov/newsroom/irs-recommends-safeguarding-information-in-case-of-natural-disasters

By making a few tweaks to your insurance policies, you can stop all the nickel-and-diming—and keep more money in your pocket! Start saving money by watching out for these bogus insurance fees:

7 Hidden Insurance Costs to Avoid Hidden insurance costs can really add up. But you could save plenty by avoiding these bogus insurance fees.

IRS.gov has resources and tools to help small businesses understand and meet their tax responsibilities. Bookmark these webpages:

https://www.irs.gov/newsroom/small-businesses-find-tax-resources-and-tools-on-irs-dot-gov

Tax fairness means the tax system is equitable to all citizens. The right to a fair and just tax system is one of 10 rights in the Taxpayer Bill of Rights, which clearly outlines the fundamental rights of every taxpayer:

https://www.irs.gov/newsroom/what-the-right-to-a-fair-and-just-tax-system-means-for-taxpayers

To prove that college isn’t the only or even the best path for everyone, here’s a list of 25 high-paying jobs, listed from lowest to highest pay, that don’t require a bachelor’s degree. (By the way, that doesn’t mean they don’t require education—just not a four-year degree):

25 High-Paying Jobs That Don't Require a 4-Year Degree You don’t have to go to college to land a high-paying, fulfilling job. Here are the top 25 careers that don’t require a four-year degree.

When a taxpayer can't pay their full tax debt or if paying would cause financial hardship, they should consider applying for an offer in compromise. This is an agreement between a taxpayer and the IRS that settles a tax debt for less than the full amount owed:

https://www.irs.gov/newsroom/taxpayers-could-settle-federal-tax-debt-with-an-offer-in-compromise

After the IRS rejects an offer in compromise, taxpayers have 30 days from the date on the rejection letter to request an appeal of the decision.

To request an appeal, taxpayers file Form 13711, Request for Appeal of Offer in Compromise PDF, or mail a letter to the IRS with certain information about their situation. Taxpayers should mail their request for an appeal to the office that sent them the rejection letter:

https://www.irs.gov/newsroom/appeal-a-rejected-offer-in-compromise

If you feel like childcare prices are out-of-this-world expensive, you’re not going crazy—you’re right! More and more of us are trying to figure out how to afford day care because both parents work in 65% of homes that include married couples with children.

If day care is part of your family’s day-to-day, let’s dig in to why it costs so much and how you can make it work for you:

13 Ways to Afford the High Cost of Childcare If you feel like day care prices are getting expensive, you’re not going crazy—you’re right! Here’s how to budget for the high cost of childcare.

The IRS encourages taxpayers to use the IRS Tax Withholding Estimator to ensure they’re withholding the correct amount of tax from their pay in 2024.

This digital tool provides workers, self-employed individuals and retirees with wage income a user-friendly resource to effectively adjust the amount of income tax withheld from their wages.

The Tax Withholding Estimator will help taxpayers avoid unwanted results in 2024 if the refund for their 2023 return was too large, too small or if they received a surprise tax amount due:

https://www.irs.gov/newsroom/be-ready-for-next-year-irs-tax-withholding-estimator-helps-ensure-withholdings-are-correct-for-2024

Employers who hire people from certain groups can reduce the tax they owe when they claim the Work Opportunity Tax Credit on their federal tax return.

This credit encourages employers to hire workers certified as members of any of ten groups facing barriers to employment. When hiring, employers may want to take a moment to review eligibility requirements for the Work Opportunity Tax Credit:

https://www.irs.gov/newsroom/employers-should-certify-employees-before-claiming-the-work-opportunity-tax-credit

What is umbrella insurance? An umbrella policy protects you from lawsuits and large claims that your homeowners or auto insurance policies don’t cover. Let's answer all your questions about what umbrella insurance is, how it works, and what it covers. It’s pretty much your money’s best friend:

What is Umbrella Insurance and How Does it Work? Are you wondering What is umbrella insurance? If your net worth is nearing $500,000, you should be. And I’ll answer all your questions about how it works.

A deduction reduces the amount of a taxpayer's income that's subject to tax, generally reducing the amount of tax the individual may have to pay. Most taxpayers now qualify for the standard deduction, but there are some important details involving itemized deductions that people should keep in mind:

https://www.irs.gov/newsroom/deductions-for-individuals-the-difference-between-standard-and-itemized-deductions-and-what-they-mean

A tax credit is an amount taxpayers claim on their tax return generally to reduce their income tax. Eligible taxpayers can use them to potentially reduce their tax bill and increase their refund.

Some tax credits are refundable. If a taxpayer's tax bill is less than the amount of a refundable credit, they can get the difference back in their refund. Some taxpayers who aren't required to file may still want to do so to claim refundable tax credits. Not all tax credits are refundable, however. For nonrefundable tax credits, once a taxpayer's liability is zero, the taxpayer won't get any leftover amount back as a refund.

There are a wide range of tax credits, and the amount and types available can vary by tax year. Taxpayers should carefully review current tax credits when preparing their federal tax return:

https://www.irs.gov/newsroom/tax-credits-for-individuals-what-they-are-and-how-they-can-benefit-taxpayers

Let’s talk about the financial basics you’ll need to cover first so your dream home is a blessing for your family—not a curse:

How to Own Your Dream Home Four simple steps to affording your dream home without hurting your financial future.

Sellers of clean vehicles can now register using the new IRS Energy Credits Online tool, available free from the IRS.

Known as IRS Energy Credits Online or IRS ECO, this free electronic service is secure, accurate and requires no special software. Though available to any business of any size, IRS Energy Credit Online may be especially helpful to any small business that currently sells clean vehicles:

https://www.irs.gov/newsroom/irs-opens-free-energy-credit-online-tool-for-sellers-of-clean-vehicles-to-register-for-time-of-sale-reporting-and-dealer-advance-payments-for-the-clean-vehicle-credit

The credit for other dependents is a $500 non-refundable credit available to taxpayers with dependents who are not eligible for the child tax credit. Taxpayers can claim this credit in addition to the child and dependent care credit and the Earned Income Credit.

This information can help taxpayers determine their eligibility to claim this credit:

https://www.irs.gov/newsroom/parents-check-eligibility-for-the-credit-for-other-dependents