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Is Your Income Tax Withholding Adequate?

RogerRossmeisl

When you filed your federal tax return this year, were you surprised to find you owed money? Receiving a tax refund essentially means you’re giving the government an interest-free loan. The post Is Your Income Tax Withholding Adequate?

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House Republicans aim to abolish IRS, replace income tax

Accounting Today

Income taxes Sales tax Biden Administration IRS Tax

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Plan Ahead for the 3.8% Net Investment Income Tax

RogerRossmeisl

High-income taxpayers face a 3.8% net investment income tax (NIIT) that’s imposed in addition to regular income tax. Net Investment Income Tax appeared first on Roger Rossmeisl, CPA. Individual Tax Briefs 3.8%

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Abolish Income Taxes? Idea Gains Some Traction in Congress

CPA Practice

TNS) Seeming to come out of left field, President Joe Biden last week blasted Republicans for pushing legislation that would abolish federal income taxes and the IRS then replace those revenues with a 30% or so national sales tax. “It Fair Tax Act of 2023 Republican Georgia Rep.

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Your Estate Plan: Don’t Forget About Income Tax Planning

RogerRossmeisl

As a result of the current estate tax exemption amount ($12.06 million in 2022), many people no longer need to be concerned with federal estate tax. Now, because many estates won’t be subject to estate tax, more planning can be devoted to saving income taxes for your heirs.

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How is Disability Income Taxed?

RogerRossmeisl

Many Americans receive disability income. if, and how is disability income taxed? As is often the case with tax questions, the answer is … it depends. If the income is paid directly to you by your employer, it’s taxable to you as ordinary salary would be.

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Michigan Expects $9B Budget Surplus, May Cut Income Taxes

CPA Practice

billion surplus at the end of this fiscal year, increasing the likelihood that all that cash could trigger a permanent cut in the state income tax. Related: Democrats say 700,000 Michigan households could save thousands under tax cut plan. By Alyssa Burr, mlive.com (via TNS).

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Payroll Tax vs. Income Tax

Patriot Software

Tax withholding comes with the territory of being an employer. Employment taxes can be broken down into payroll taxes and income taxes. But when you hear about a payroll tax deferral, you probably want to know the exact difference between payroll tax vs. income tax.

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MicroStrategy co-founder sued by D.C. for not paying income taxes

Accounting Today

Income taxes Tax State taxes Bitcoin Tax evasion

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New AZ State Income Tax Form Requires Employer Action

Patriot Software

Arizona employers, you may know that Senate Bill 1828 substantially reduced the state’s income taxes starting with the 2022 tax year. But did you also know that it requires employer action for the 2023 tax year? Payroll Human Resources Payroll Taxes State-mandated Laws

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State Income Taxes for Out of State Employees

Patriot Software

Each state’s income taxes are different. Some states have low taxes, some have high taxes, and some states don’t have income taxes at all.

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2021 Personal Income Tax Return Checklist

DMCL

Our 2021 Personal Tax Return Checklist is designed to help you make this process as easy and efficient as possible. It also assists us in ensuring we have information that is as complete and accurate as possible to assure your taxes are minimized and correctly reported.

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Wayfair: Sales Tax and State Income Tax Implications

TaxConnex

Wayfair created enormous changes for businesses making remote sales into the states related to sales tax. Could Wayfair have also impacted the way you manage your state income tax obligations? Sales Tax Perspective. Sales tax nexus can be physical or economic – or both.

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Income Tax Planning as Part of Your Estate Plan

RogerRossmeisl

As a result of the current estate tax exemption amount ($11.58 million in 2020), many estates no longer need to be concerned with federal estate tax. Now, because many estates won’t be subject to estate tax, more planning can be devoted to saving income taxes for your heirs.

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Amending personal income tax returns 1040 individual to 1040X

MyIRSRelief

Amending and or correcting a US individual 1040 income tax return (1040X), there are many reasons to do so: correcting filing status of the taxpayers, which if not corrected, would result in incorrect total income reported, tax deductions and tax credits. Tax liability. Tax Credits. Other taxes, local, state, etc. Amending your 1040 tax return to 1040X when situations occur where one spouse may want to file early, and the other does not.

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Rental Property Income Tax: Why Active or Material Participation Matters

Anders CPA

Owning rental real estate can be a great supplemental source of income in addition to a normal day job. What is most commonly misunderstood about this type of investment is how an individual can treat the income and or losses for tax purposes.

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How is Crowdfunded Income Taxed?

CPA Practice

Crowdfunding organizers and any person receiving amounts from crowdfunding should keep complete and accurate records of all facts and circumstances surrounding the fundraising and disposition of funds for at least three years.

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How to Prepare Your Practice and Your Clients for MTD for Income Tax: In conversation with Edwards Greene

Accounting Insight

At Accountex Summit Manchester, Dorcas Mbwiti, Senior Product Manager at Wolters Kluwer Tax & Accounting UK took the opportunity to talk to Sarah Davy, Partner at Edwards Greene. A: I’ve been involved in tax for 20+ years on the private client side of things.

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The Ins and Outs of Real Estate Income: Tax Planning for Short-Term Rentals

CTP

Using real estate as a source of income is only becoming more popular with the advent of sites like Airbnb and VRBO that enable homeowners to earn extra cash from property they already own. Real estate owners have four main ways to make money off their property: Rental income.

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State Income Tax Exemption: Exempt or Not Exempt? That Is the Question

Patriot Software

Most of us would agree with the following statement: Employee wages are taxed federally and at the state level. Some employees can state income tax exemption. We all know that taxes can be complicated.

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More time to prepare for Making Tax Digital for Income Tax Self-Assessment

Inform Accounting

The mandatory use of software for Making Tax Digital for Income Tax Self-Assessment is being phased in from April 2026. Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) was due to be phased in from April 2024. Making Tax Digital from April 2026.

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The Employer’s Guide to Federal Income Tax Withholding

Patriot Software

When you run a business, the word taxes might fill you with dread—especially if you have employees. You pay some employment taxes (e.g., unemployment), while others are taxes you deduct from your employees’ wages and pay on their behalf.

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The Evolution of Nexus and its Implication for Income Tax

CPA Practice

Although Wayfair was strictly a sales tax case, states have also begun to assert economic nexus for income tax purposes. Unlike sales tax, currently only a handful of states have established thresholds for income and franchise tax purposes, including.

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Foreign Nationals in the US Are Now Subject to US Income Taxes

KROST

Foreign nationals in the US: Do you have a federal income tax filing obligation? Now that you moved to the US, whether on a temporary basis or permanent, you may need to consider whether you have a US income tax return filing requirement and pay taxes in the US.

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Tax season set to start Jan. 23

Accounting Today

Income taxes Tax preparation IRS Tax Tax season

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AICPA demands IRS pick up the phone faster for tax pros

Accounting Today

Income taxes IRS Tax AICPA

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Alabama Amends Alabama Accountability Act – Increased Alabama Income Tax Credit Available

Dent Moses

Governor Ivey recently signed Senate Bill 261 into law, which increases the tax credit for contributions made to Scholarship Granting Organizations (“SGO”). Prior to the 2022 amendment, the credit was limited to 50% of the taxpayer’s Alabama tax liability with a cap of $50,000.

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IRS warns about 1099-K compliance

Accounting Today

Income taxes IRS Tax Tax forms

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Tax season begins Jan. 23 with the IRS promising improvements

Accounting Today

Income taxes Tax preparation IRS Tax Tax season

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High earners are flocking to low-tax states

Accounting Today

Income taxes Tax State taxes

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Arkansas Inflation Relief Drops Top State Individual Income Tax Rate to 4.9%, Lowest in State History 

Patriot Software

Governor Hutchinson recently signed legislation to immediately lower the state’s top individual tax rate and provide tax credits to low- and middle-income taxpayers. Arkansas residents, this one’s for you.

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IRS looks for deputy chief taxpayer experience officer, contact reps

Accounting Today

Income taxes IRS Tax

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IRS refunded $14.8B for unemployment compensation exclusion

Accounting Today

Income taxes Tax refunds IRS Tax Tax forms

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IRS looks for senior official to help run appeals office

Accounting Today

Income taxes IRS Tax

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How Missouri’s Income Tax Reduction Will Unfold in 2023 and 2024

Anders CPA

New legislation signed on October 5, 2022, exempts taxpayers’ first $1,000 of income from taxation and will reduce the top rate of individual income tax. This law will be applicable to tax years beginning on or after January 1, 2023. Changes to Missouri’s Income Tax Rate.

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IRS sent incorrect balance due notices to couples

Accounting Today

Income taxes Tax debts IRS Tax

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How to Pay Federal Income Tax Online

xendoo

They offer several ways to pay your tax online. Tax Return or Notice. 1040, 1040A, 1040EZ, health care Form 1040, retirement plan 5329 or tax-favored account 5329. Estimated Tax 1040ES. Proposed Tax Assessment. Electronic Federal Tax Payment System.

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Crypto traders in U.S. surged 149% to 2.3 million as pandemic hit

Accounting Today

Income taxes Cryptocurrency IRS Tax Tax research

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Keeping Pace With Corporate Income Tax Filing Season

ThomsonReuters

A new episode of Thomson Reuters Tax & Tech Talks podcast shares tips and best practices for streamlining operations and navigating this unprecedented tax season. Beneficial tax technology features and functions.

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D.C. Attorney General sues Liberty Tax over 'misleading' cash advance promotion

Accounting Today

Income taxes Lawsuits Tax Tax franchises

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New Chancellor, Jeremy Hunt, reverses most of the mini budget

Wellers Accounting

Tom Biggs ACA CTA , explains what you need to know as most of Kwasi Kwarteng's and Liz Truss's mini budget is scrapped.

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How to File Income Tax Return: Tax Filing Preparation Guide 2022

Snyder

For e-commerce business owners, income tax filing season marks the start of a highly stressful time. Among the taxes that e-commerce businesses need to file, income tax is the most common one. What is income tax? How does income tax work?

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List of State Income Tax Deadlines for 2022

CPA Practice

The deadline for most Americans to file their federal tax returns in 2022 is April 18, instead of the usual April 15 date. Most states that have their own income tax reporting. This is because of a holiday recognized in the nation's capital.