There are a variety of Form 1099 one may receive when collecting their tax documents. If you’re a worker, you won’t fill out the form yourself, but will receive it from the party who paid you or holds your investment account. Its one of the few tax forms that simply report information and you aren’t […]
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If you are an employee of a business, the employer is responsible for deducting federal and state taxes from your salary. However, independent contractors and self-employed individuals have to take care of this financial obligation on their own. Generally, these individuals will make estimated quarterly tax payments, and skipping them can lead to penalties and […]
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Targeting high-income taxpayers, the alternative minimum tax was enacted to combat only 155 households who were getting away with not paying any tax at all through credits, deductions, and exemptions. By today’s numbers, the AMT covers millions of families and grows each year. In 2008, the AMT grew to 3.9 million (up from 605,000 in […]
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Have you worked at a private startup for over a year, and held employee incentive stock options? If so you likely received a Form 3921 from your employer. Now that it’s tax season, here’s what you need to do. This form documents to the IRS that you have exercised stock options from your employer, and […]
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Don’t forget that alimony and child support have an impact on your taxes. You have to report the amounts when you file. Here’s the breakdown. Alimony Alimony payments are deducted from your taxable income, which lowers the amount you are taxed on as long as you meet the following requirements: You pay by cash, check, […]
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If you’ve lost your spouse, you may qualify for a special tax filing status. The qualifying widow(er) status can be used by taxpayers when filing a tax return after their spouse has died. There are some additional requirements that must be met as follows: When you file a return for the year your spouse dies, […]
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Many people don’t know they can write off expenses related to searching for a job, as its not a common deduction. That’s likely because there are specific rules regarding what is eligible for deduction and what isn’t. First, expenses must be incurred while searching for a job within your current occupation. You can’t seek employment […]
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The answer is possibly. Scholarships can be partially tax-free, while some of the funding is considered taxable. It depends on how the funds are allocated. If you are a full or part-time student working toward a degree at an eligible educational institution, including primary, secondary or post-secondary schools, then your scholarship is likely tax-free. There […]
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An innocent spouse seeks to be relieved from the liability of their spouse’s tax issues. Relief from Joint and Several Liability is Section 6015 of the Internal Revenue Code. Married taxpayers who file a joint return are liable for taxes, interests, and penalties according to the return, as well as any other taxes the IRS […]
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Individuals who are considered self-employed must still pay taxes. Self-employment taxes are contributions made to Social Security and Medicare, generally through quarterly payments known as estimated tax payments. Self-employment tax applies to anyone who makes $400.00 or more. In these cases, the taxpayer must file a Schedule SE (Form 1040) to pay self-employment taxes, since […]
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