Robby Self-employment tax can be a significant financial burden for small business owners. However, there are ways to reduce or even eliminate this tax liability. One option is to form a limited liability company (LLC) and elect to be taxed as an S corporation. What is Self-Employment Tax? Self-employment tax is a combination of Social Security … Read more
Filing taxes is a crucial obligation for individuals and businesses alike. However, there may be instances where individuals fail to meet the tax filing deadline, leading to potential penalties and consequences. This article delves into the implications of not filing taxes, exploring the penalties associated with late filing and non-filing, and providing guidance on how … Read more
Understanding the distinction between taxable and nontaxable income is crucial for optimizing your tax strategy and minimizing your tax liability. This comprehensive guide will delve into the various types of income that are exempt from taxation, empowering you to make informed financial decisions. Nontaxable Income: A Detailed Overview Nontaxable income, as defined by the Internal … Read more
Estimated taxes are payments made throughout the year to cover the income tax liability that an individual expects to owe when they file their annual tax return. These payments are essential for avoiding penalties and ensuring that taxes are paid on time. The 110% rule is a specific provision that can help taxpayers meet their … Read more
Filing taxes is an essential civic responsibility that every citizen must fulfill. However, there may be instances when individuals fail to file their taxes on time or skip a year of filing altogether. Understanding the consequences of such actions is crucial to avoid potential legal and financial complications. Penalties and Interest The Internal Revenue Service … Read more
The average tax refund for a single person making between $100,000 and $199,999 is $4,436. This information is based on an analysis done by Lending Tree, which looked at individual income tax returns from the 2020 tax year. Factors that Affect Tax Refunds The amount of your tax refund depends on a number of factors, … Read more
Taxes are a necessary part of life, but it can be frustrating to feel like you’re paying more than your fair share. If you’re wondering why your tax refund is so small or why you owe money to the IRS, there are a few things you should consider. Reasons Why Your Refund May Be Small … Read more
Retirement is a significant milestone in life, marking a transition from active work to a new chapter of leisure and financial security. Determining the ideal time to retire is a multifaceted decision influenced by various factors. This article delves into the intricacies of retirement planning, providing a comprehensive guide to help you identify the optimal … Read more
Understanding the Issue When an individual passes away with unpaid tax liabilities, the Internal Revenue Service (IRS) has the authority to pursue the debt from the deceased person’s estate. If the estate has insufficient assets to cover the tax bill, the IRS may seek payment from the surviving spouse or other beneficiaries. Estate Responsibility The … Read more
An Employer Identification Number (EIN) is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to businesses for the purpose of identification. It is analogous to a Social Security Number (SSN) for individuals, and is used for various tax-related purposes, such as filing taxes, opening business bank accounts, and hiring employees. Limited Liability … Read more