When you file your income tax return, you entrust the Internal Revenue Service (IRS) with sensitive financial information. Understanding your rights regarding the confidentiality of this information is crucial. This guide will delve into the legal framework and practical implications of tax return confidentiality, empowering you to safeguard your privacy and protect your personal data. … Read more
Savings accounts are a cornerstone of personal finance, offering a safe and accessible way to store and grow your hard-earned money. However, understanding the tax implications of your savings is crucial to avoid any surprises come tax season. This guide will delve into the intricacies of savings account taxation, empowering you to make informed decisions … Read more
When you start a new job, you’ll need to fill out a Form W-4, which tells your employer how much federal income tax to withhold from your paychecks. One of the most important decisions you’ll make on this form is how many allowances to claim. Your allowances determine how much of your paycheck is withheld … Read more
Estimated tax payments are a crucial aspect of the tax system for individuals and businesses that earn income not subject to withholding. Failing to make these payments on time can result in penalties and interest charges. This comprehensive guide will provide a detailed overview of estimated tax payments, including the due dates for 2021, who … Read more
Tax cheating, the intentional underpayment or non-payment of taxes, is a significant concern for governments worldwide. In the United States, the Internal Revenue Service (IRS) estimates a substantial tax gap, highlighting the prevalence of tax evasion and avoidance. This article will delve into the extent of tax cheating, the methods employed by individuals and businesses … Read more
The IRS updates refund statuses once per week on Wednesdays. This means that if you e-file your tax return, you can expect to see your refund status updated on the Wednesday following the week in which you filed. If you file a paper return, it may take up to four weeks for your refund status … Read more
Understanding Estimated Taxes Estimated taxes are payments made throughout the year to cover the income tax you expect to owe when you file your annual tax return. These payments are required if you expect to owe more than $1,000 in taxes when you file. Who Must Pay Estimated Taxes? Individuals, including sole proprietors, partners, and … Read more
Factors to Consider When Making the Decision When deciding whether to lease or buy a car, there are several factors to consider, especially if you are self-employed. Here are some key points to keep in mind: Tax Implications: Leasing: Lease payments are typically deductible as a business expense, up to certain limits. However, you may … Read more
The Internal Revenue Service (IRS) is responsible for enforcing tax laws and ensuring that individuals and businesses pay their fair share of taxes. As part of this responsibility, the IRS conducts audits to verify the accuracy of tax returns. While the prospect of an audit can be daunting, it is important to remember that not … Read more
The answer to this question is yes, but with some important caveats. In general, you can deduct business expenses on your tax return even if you do not have any income from the business. However, there are a few key things to keep in mind: You must have a bona fide business. The IRS will … Read more