Category Archives: General Filing
The utilization of tax withholding can be employed to avoid penalties for underpayment of taxes. Income taxes withheld from wages are considered to be paid evenly throughout the tax year, unless the taxpayer can provide evidence of the specific dates when the amounts were actually withheld. This rule provides taxpayers with three strategies to reduce […]
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The Form 1040, also known as the “U.S. Individual Income Tax Return,” is the primary form used by taxpayers to report their annual income and tax liability to the Internal Revenue Service (IRS). Every year, the IRS releases updated versions of the Form 1040 and its associated schedules and instructions, to reflect any changes in […]
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Millions of taxpayers who owe $5 or more in back taxes have already received CP14 warnings from the IRS politely reminding them that the IRS needs their money. Immediately following tax season, the IRS is not very active in collecting. They have a lot of work to do, after all. But by the end of […]
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Use Form 9465 to request a monthly installment plan if you cannot pay the full amount you owe shown on your tax return, or if the IRS determines that you cannot pay any of your tax debt, they may report your account as currently not collectible and temporarily delay collection until your financial condition improves. […]
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An estimated 1.5 million taxpayers who did not file a 2018 Form 1040 federal income tax return may be owed about $1.5 billion in unclaimed income tax refunds, but they must act by the April tax deadline, according to the Internal Revenue Service. There’s just a three-year window to seek these returns under the law, […]
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Millions of second-round Economic Impact (Stimulus) Payments are being made via direct deposits, paper checks, and prepaid debit cards. The IRS is supposed to distribute all payments by Friday, Jan. 15, 2021. Eligible taxpayers who didn’t receive their payment will need to claim it on their 2020 tax returns.
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The Internal Revenue Service has announced that anyone who already took a required minimum distribution (RMD) in 2020 from certain retirement accounts now has the opportunity to roll those funds back into a retirement account following the CARES Act RMD waiver for 2020. The 60-day rollover period for any RMDs already taken this year has […]
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The overhaul almost abolished the alternative minimum tax, or AMT, a complex and unpredictable parallel tax system. The purpose of the AMT is to limit tax breaks that are permitted under the regular tax system and to ensure that high earners can not avoid all taxes legally. Legislators ultimately retained the AMT, but with significant […]
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Significant changes were made to the “Kiddie Tax,” a special levy on the “unearned” income of a child above $2,100 in 2018 and $2,200 in 2019. It typically applies to investment income such as dividends, interest, and capital gains, and is not applicable to the earned income of a young person from newspaper delivery or […]
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The abolition of the personal exemption is also a significant shift. This provision was a subtraction from income before the overhaul for each person included in a tax return-typically family members. The amount for 2018 was set to be $4,150 per person, and for higher earners it was phased out. Personal exemption was also essential […]
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