As another tax season begins many taxpayers will end up owing taxes when filing their income tax returns. This is not an issue when the taxpayer has money to pay the tax balance due. However, when the taxpayer does not have the funds necessary to pay tax due some individuals would rather not file or file a tax return extension. …
Made a Mistake? Need to Amend a Previously Filed Tax Return?
Amending My Income Tax Return, a short video from our friends at the IRS… Why would a taxpayer amend a tax return? Generally speaking the majority of taxpayers will amend their tax return if they omitted income or deductions on the originally filed tax return. However, taxpayers may file an amended tax return for various other reasons like to change …
Recently Married? Is it Better to File Jointly or Separately?
Income Tax Return – MFJ vs MFS This is a question every tax professional will get asked 5+ times a week during tax season. I just got off the phone with my recently married friend (the wedding was nice) who inquired if it would be beneficial to file jointly or separately. I have been getting asked this question over and …
How to File a Tax Return Extension
It is important for taxpayers to understand that a tax return extension is an extension of time to file your income tax return and not an extension of time to pay the tax. Extensions are generally needed when information necessary to file a complete and accurate tax return is not available until after the filing deadline. This is an all …
IRS FORM: 1099-MISC
IT IS NOW TIME TO START PREPARING IRS FORM 1099-MISC NOTE: 2017 FORM 1099-MISC, reporting nonemployee compensation (box 7) is required to be filed on or before January 31, 2018. The IRS penalty for failing to file 1099(s) is now $250 for each incident. In addition, the following tax returns: 1065 (partnership return), 1120 (corporate return), 1120S (s-corporation return), 1040 …
Self Employed – Estimated Tax Payments
Congrats on being self-employed and making money (and paying taxes). When you are self-employed taxes are no longer being withheld from your paycheck. You are now solely responsible for your “withholding” situation! You have two options (1) do absolutely nothing (2) pay in quarterly estimated tax payments. (1) If you do nothing you will have to pay all your taxes …
Income Taxes & Lawsuits
Important Notice: This Article has not yet been updated to reflect the TCJA (Tax Cuts and Jobs Act) please contact Peter E. Alizio or consult with a tax professional to obtain more accurate information. I. Will a Lawsuit Award or Settlement be subject to Income Tax? The Internal Revenue Code defines gross income as income from whatever source derived unless …