Is Your Income Tax Withholding Adequate?


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?

Plan Ahead for the 3.8% Net Investment Income Tax


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


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.

Don’t Forget Income Taxes When Planning Your Estate


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

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

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How is Disability Income Taxed?


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.

2021 Personal Income Tax Return Checklist


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.

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.

Wayfair: Sales Tax and State Income Tax Implications


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.

Amending personal income tax returns 1040 individual to 1040X


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.

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.

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.

IRS management blamed for tax return backlog

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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.

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


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.

AICPA demands IRS pick up the phone faster for tax pros

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IRS looks for senior official to help run appeals office

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IRS looks for deputy chief taxpayer experience officer, contact reps

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

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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.

IRS sent incorrect balance due notices to couples

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


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?

Senators ask IRS to extend tax deadline for ITIN filers

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Keeping Pace With Corporate Income Tax Filing Season


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.

Democrats introduce bill to provide free tax filing through IRS

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Supreme Court to hear case involving taxation of U.S. expats

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How to Pay Federal Income Tax Online


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.

NYC sees sign of tax hit from bear market

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Is Your Income High Enough to Owe Two Extra Taxes?


High-income taxpayers face two special taxes — a 3.8% net investment income tax (NIIT) and a 0.9% additional Medicare tax on wage and self-employment income. Here’s an overview of the taxes and what they may mean for you.

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IRS makes more progress on tax return backlog

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The worst 401(k) mistake you can make when you switch jobs

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Crypto investors are likely paying less than half the taxes they owe

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Congress prods IRS to fix tax-return backlog, improve customer service

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Making Tax Digital for Income Tax Self Assessment: Our guide to Unique Taxpayer Reference numbers


Frankly, you already have enough to remember, thanks to Making Tax Digital (MTD) for VAT and Income Tax Self Assessment (ITSA). You will need to use this UTR number to submit tax returns, pay tax bills, or work with an accountant.

IRS Says Paper Income Tax Returns are Major Cause of Logjam

CPA Practice

The IRS doesn't have the ability to scan paper-based tax returns directly into their systems. The data must be manually typed, a tedious process that causes logjams in processing tax returns.

White House ties Republicans to a tax-hike plan disowned by GOP

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Will 2022 Income Tax Refunds be Smaller and Later?

CPA Practice

While returns are usually due April 15, this year that day falls on a Friday District of Columbia holiday, postponing the deadline to April 18 for most. Taxpayers in Maine and Massachusetts have until April 19 thanks to the Patriots’ Day holiday in.

What is a provision for income tax and how do you calculate it?


What is a tax provision? Simply put, a tax provision is the estimated amount of income tax that a company is legally expected to pay to the IRS for the current year. How provision for tax is calculated. Current income tax expense.

Senators seek FTC probe of

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U.S. debt outlook boosted to stable as tax revenues climb

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April Fool’s Day Blog: Income Tax Rates Increased to 94%… or Possibly Vox Pop


The top income tax rates have varied from 2% to 94% since the first United States income tax was instituted in 1862. Right now the top rate is 37%.

New Jersey Enacts Legislative Fix for Business Alternative Income Tax


Governor Murphy signed into law a bipartisan bill (S4068) that enhances the state’s electable pass-through entity (PTE) tax, known as the New Jersey Business Alternative Income Tax (BAIT) on January 18, 2022. State and Local Tax Services.

New Alabama Legislation to Exempt Federal COVID Benefits from Alabama Income Tax

Dent Moses

This legislation, when signed, will effectively exempt from state income taxes certain federal benefits that taxpayers received from the American Rescue Plan Act last year, a coronavirus relief bill passed by Congress.