January 3, 2018
Everyone in the U.S. pays taxes on the income that they receive throughout the year from many different sources. The IRS requires that we pay taxes as the income is earned; not just at the end of the year. This system is referred to as “pay as you go”.
While this may not apply to those who are employed, which have taxes withheld on each paycheck, some individuals don’t have enough withheld or have income from other sources that do not withhold at all. These latter folks must pay on their own in the form of Estimated Tax. The IRS requires that these taxes be made in four equal payments or get penalized
The calculation for estimated taxes is not all that difficult if done during the prior year’s tax prep, those who have had changes in their income or have not paid in according to plan will want to recalculate and use this last chance to make a timely payment for 2017.
If you need help calculating the estimates, signing up online to pay, or need a voucher to send in a check, give us a call!
Do I still have enough to itemize?
Since before I can remember, taxpayers have had the option of reducing their income (to arrive at taxable income) by using either the standard deduction or itemized deductions. It was the one place on the tax return where most folks felt like the IRS granted them a little bit of favor…because you got to deduct whichever...
What’s going on with my exemptions under the Tax Cuts and Jobs Act (TCJA)?
Under the former law, which of course applies to the tax returns being filed for 2017, taxpayers can claim a personal exemption for themselves, their spouse (if filing jointly) and each qualifying child or relative. Each of these exemptions allowed taxpayers to reduce their taxable income by...
As we all know (if you don’t, I’m not sure what rock you’ve been sleeping under), Congress presented and the President signed in to law the Tax Cuts and Jobs Act (TCJA) on December 22, 2017. This law amends the Internal Revenue Code of 1986.
This new law affects us all. No taxpaying person in the United States will escape these changes. For some of...