Solvable COVID-19 Study: How Effective Was Federal Aid During Coronavirus?


by Sonali Patel on September 09, 2020  0 Comment

Solvable COVID-19 Study: How Effective Was Federal Aid During Coronavirus?
Solvable, in collaboration with GOBankingRates, surveyed 1,229 Americans on their experience receiving government aid during COVID-19. The survey was broken down by employment type, and the makeup of responses is representative of the U.S. population, with responses from small business owners (14%), freelancers (10%), W-2 workers (65%) and retirees (11%). The results of the Solvable COVID-19 Study show that federal aid funds significantly helped people during the crisis. In fact, 83% of small business owners felt that federal funding was necessary to help them get through this time. More highlights from the study: Seventy-two percent of small businesses applied for help and of that, 77% received the requested funding. Fifty-four percent of freelancers applied for federal programs and of that, ...

What Profession Owes the Most Back Taxes?


by Sonali Patel on August 17, 2020  0 Comment

What Profession Owes the Most Back Taxes?
While U.S. credit card debt and student loans tend to garner publicity, tax debt continues to be a massive problem that is overlooked. Although the Internal Revenue Service (IRS) collects more than $3 trillion annually in taxes, penalties, interest and fees, approximately 16.4% of all federal taxes owed go unpaid. That may not sound like a high percentage. But it equates to $441 billion in lost revenue for the IRS. The IRS calls this the “average gross tax gap.” Factoring in late payments and successful collection efforts, the net tax gap, or total tax debt owed, drops to $381 billion. So, who owes all these taxes? Our latest State by State Tax Debt Industry Report reveals some eye-opening truths. Taxpayers ...

Solvable’s Debt-Free Scholarship


by Sonali Patel on July 27, 2020  0 Comment

In 2019, Solvable launched the Solvable Debt-Free Scholarship, to help the next generation of taxpayers start their journey of financial independence and freedom. To apply, students had to write an essay about what personal financial freedom meant to them, and received over 450 applications from students all over the country! Our team of essay readers were blown away by the  Some wrote about budgeting, some about investing and some about how their financial struggles growing up have led them to prioritize and pursue financial independence. After a lot of contemplation, one entry stood out as exemplifying the values of Solvable - taking charge of your financial situation and helping others to do the same. The winner of the 2019 Scholarship ...

What is IRS Form 8949?


by Sonali Patel on April 08, 2020  0 Comment

What is IRS Form 8949?
IRS Form 8949 is used to report capital gains and losses. This form is for use by individuals, corporations, partnerships. Form 8949 is used in conjunction with Schedule D on 1040 forms. If you purchased or sold any assets with capital value (think stocks, businesses, artwork, property etc.) you must report these transactions to the IRS on your federal tax return via IRS Form 8949 - Sales and Other Dispositions of Capital Assets. Use this form to report both short-term and long-term transactions. Separate your capital gains and losses according to how long you held or owned the property. The holding period for short-term gains or losses is usually 1 year or less. Short-term holdings are reported on Part 1 ...

COVID-19: Solvable’s Guide for Business Owners & Independent Contractors


by Sonali Patel on March 25, 2020  0 Comment

COVID-19: Solvable’s Guide for Business Owners & Independent Contractors
We will be updating this page weekly with new information and resources to help freelancers & business owners get through this time. Check back for more information or reach out to us if you have a specific question.   You Can Get Support in Time of COVID-19 Nearly everyone is facing some sort of hardship during the COVID-19 pandemic. Those on the front lines, such as healthcare workers, may be quarantined from their families to avoid transmitting the virus. Small businesses have closed. Independent contractors have lost anchor clients. Entire industries have shut down. The government has stepped in with a financial aid package, the Coronavirus Aid, Relief and Economic Security (CARES) Act. The $2 trillion package is designed to help ...

COVID-19: Solvable’s Guide for Taxpayers


by Sonali Patel on March 25, 2020  0 Comment

COVID-19: Solvable’s Guide for Taxpayers
We will be updating this page daily with new information and resources to help you through this time. Check back for more information or reach out to us if you have a specific question.  You Can Get Support in Time of COVID-19 Nearly everyone is facing some sort of hardship during the COVID-19 pandemic. Those on the front lines, such as healthcare workers, may be quarantined from their families to avoid transmitting the virus. Small businesses have closed. Independent contractors have lost anchor clients. Entire industries have shut down. The government has stepped in with a financial aid package, the Coronavirus Aid, Relief and Economic Security (CARES) Act. The $2 trillion package is designed to help small and large businesses, ...

Survey: Respondents Feel Debt Is Manageable and Able To Be Paid Off


by Joel Anderson, GOBankingRates on March 17, 2020  0 Comment

Survey: Respondents Feel Debt Is Manageable and Able To Be Paid Off
Being in debt usually means many of your payments go toward paying interest and potentially a less than ideal credit score. We’ve all heard statistics that people collectively have $13.2 trillion in debt, as of 2018. Statistics like these make it seem like people have large amounts of debt that they cannot manage or pay off. However, what many might not realize is that debt is far more manageable than it may seem. According to a survey conducted by GOBankingRates, the majority, at 59.16%, of all respondents felt they would be out of debt in five years or less – a reasonable amount of time. Additionally, the same survey reveals that the majority of respondents went into debt due to ...

Are You Experiencing Difficulty Claiming Dependents with the IRS?


by Mitchell Agnew on February 28, 2020  0 Comment

Are You Experiencing Difficulty Claiming Dependents with the IRS?
I recently received a call from a woman who received a letter from the IRS stating that she was not allowed to claim her two boys as dependents. Even worse, the letter she received also stated that she was now responsible for a tax liability amount of over $3,600. She was floored because she couldn’t understand why the IRS would argue this. The boys lived with her, and she had been claiming them since they were born. She had always gotten a refund and this had never been an issue in the past. Frustrated and looking for answers, she stated she called the IRS. After waiting on hold for an hour, she heard a message stating that due to the ...

See How One Self-Employed Worker Settled $39,378 in IRS Tax Debt


by Dawn Allcot on February 27, 2020  0 Comment

See How One Self-Employed Worker Settled $39,378 in IRS Tax Debt
Case study reports are not necessarily representative of typical results that consumers may achieve. Individual results vary based on circumstances. Please read the important disclaimer at the end of this document. Making the right phone call turned Nick’s life and finances around “You’ve gotta help me! “They’re threatening to take my whole paycheck! I’m a truck driver and I can’t afford to pay them all that money right now!” With these words – and one very smart phone call – Nick set himself on a path that would preserve his livelihood and settle his tax debt. It was the evening of March 14, 2014. A night Nick will remember forever. He shut his P.O. box, hands trembling with anger and ...

What Should You Do If the IRS Sends You a Form LT11 – Final Notice of Intent to Levy?


by Dawn Allcot on February 21, 2020  0 Comment

What Should You Do If the IRS Sends You a Form LT11 – Final Notice of Intent to Levy?
An LT11 form is a final warning from the IRS that they can issue a levy against your assets and file a Notice of Federal Tax Lien against your property if you don’t pay your tax debt. Chances are, you’ve received several IRS notices before the LT11 notice lands in your hands. If you cannot pay your delinquent tax debt, do not ignore the notices; contact a tax professional to assist you with tax debt relief. Unpaid tax debt is no joke and it’s not something you want to ignore. If you don’t respond to the IRS by paying your tax bill or calling to negotiate a payment plan when you receive your first tax bills for unpaid taxes, the ...