Whether your Social Security benefits are taxable (and, if so, the amount that is taxed) depends on a number of issues. The following facts will help you understand the taxability of your Social Security benefits. For … Read More
This is a common question: How long must taxpayers keep copies of their income tax returns and supporting documents? Generally, individuals should hold on to their income tax records for at least 3 years after the … Read More
This is our annual reminder that if you use workers other than employees to perform services for your business and pay them $600 or more for the year, you are required to issue each one a Form 1099-NEC after the end of the year to avoid facing the loss of the deduction for their labor and expenses. The 1099s for 2020 must be provided to workers no later than February 1, 2021. The forms are normally due January 31, but since it falls on a Sunday in 2021, the due date is extended until February 1.
Know About Losing Your Job If you have lost your job, there are a number of tax issues you may encounter. How you deal with these issues related to job loss can profoundly impact your taxes … Read More
Paper Tax Return: The IRS Will Not Open Your Mail Right Away IRS Paper Tax Returns are just another item on the list that coronavirus is affecting our lives? The Internal Revenue Service has completely flipped … Read More
Estate and Gift Tax Lifetime Exclusion Amount The Tax Cuts and Jobs Act (TCJA, often referred to as tax reform) generally went into effect in 2018. Tax Reform increased the federal estate and gift tax lifetime … Read More
Did you expect have your tax refund lower this year? You are not alone! In fact, the IRS put out a report by the Treasury Department on February 14th. The IRS report said that, the average refund it is paying in 2019 has gone down to $1,949 from $2,135 in the prior year. On average the tax refund decrease was $186 per taxpayer. In addition, the number of taxpayers filing returns so far has
It’s true, 2018 was an interesting year with tax reform going into affect. It is comforting to know there is the potential for an IRS tax break. And, there are many reasons for under prepaid 2018 taxes. The IRS requires taxpayers to pre-pay their taxes for any tax year. This is requirement is through payroll withholding, estimated tax payments or a combination of the two. Employees and retirees generally accomplish this through withholding. And, self-employed individuals and those with investment income by paying quarterly estimated payments.
Would you like to avoid IRS penalties in your business? Do you engage the services of an individual also known as an independent contractor? We mean, other than one who meets the definition of an employee. Did you pay him or her $600 or more for the calendar year? The IRS requires you to issue the sub-contractor a Form 1099-MISC to avoid penalties and the prospect of losing the deduction for the independent contractor’s labor and expenses in an audit?
Everyone likes to gamble, play the lottery or Bingo every once in a while. Even a recreational gambler, will come across that quirk in the tax law. What quirk you wonder? That glitch that can actually cause you to pay more for your health insurance if you have gambling winnings. Yes, even if the overall result from gambling for the year is actually a loss. How on earth can this be, you wonder?