Tag Archives: Estimated Tax Payments
The IRS imposes an underpayment penalty if you don’t pay enough tax throughout the year, either through withholding or by making timely estimated tax payments. This penalty has recently surged, reaching a significant 8% interest rate. This increase particularly impacts gig workers, consultants, freelancers, and other self-employed individuals who are responsible for their own tax […]
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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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If you choose not to have taxes withheld from your wages, or if you have not paid enough for each paycheck, you may have to make estimated tax payments. Similarly, self-employed people typically pay income tax by estimated payments. Four Important facts about estimated taxes If you think you need to pay estimated taxes, or […]
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If you are an employee of a business, the employer is responsible for deducting federal and state taxes from your salary. However, independent contractors and self-employed individuals have to take care of this financial obligation on their own. Generally, these individuals will make estimated quarterly tax payments, and skipping them can lead to penalties and […]
— Read moreGenerally, many people are required to file a tax return, which is why they do. But even if you don’t have to, you may still want to. There’s a chance you may be eligible for a tax refund and not even know it. The following six items may give you reason enough to file a […]
— Read moreEstimated Tax Payments When you have any form of income that isn’t subject to regular taxation, such as retirement distributions or self-employment pay, the IRS may hold you accountable for making payments to cover any amount of tax you may owe at the end of the year. If you don’t pay the correct amount, (your […]
— Read moreDo you drive a bus for a living? Being on the road, helping people get where they need to go can feel very rewarding. Reward yourself at tax time by claiming deductions which can lower the amount you owe in taxes and put more money in your pocket. If you work for a specific business, […]
— Read moreWhen you work in the professional media circuit, such as a news reporter, you likely don’t mind being in the spotlight. However, you never want to attract the attention of the IRS for failure to file a correct tax return. Media professionals who work for a company ona regular basis and are considered an employee […]
— Read moreYou make your living by performing in front of others, be it through song, dance, spoken word, or some other medium. If you work for a specific venue, you may receive a Form W-2, as they would be considered your employer. However, if you freelance or receive payments from someone you don’t work for regularly, […]
— Read moreNot everyone can drive and operate a forklift. It takes a special skill, training, and an extra cautious mindset to be a safe forklift driver. When it comes to taxes, forklift operators have to know how to drive their way through a rigorous tax code. However, with a little extra help, tax time for forklift […]
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