The latest tax changes weren’t up to date with the start of the tax season. In particular with the unemployment compensation exclusion. When this tax change came into effect, the tax season had already started. Taxpayers that were eligible for this tax exclusion but had already filed their returns couldn’t get the exclusion on their returns. … Read more
On 1099 information returns, filers are required to enter their state identification numbers. Whether you’re filling out 1099-MISC, 1099-B, 1099-G, or 1099-INT, you must enter the state identification number. However, this is for entering your business state identification number. The Internal Revenue Service requires these information returns (1099s) to be sent to state tax departments. … Read more
An IRS test batch, or also known as the Controlled Release Process is when the Internal Revenue Service tests if the tax preparation services work as they should. A week prior to the start of every tax season, the Internal Revenue Service runs the Controlled Release Process to ensure that tax preparation services are up … Read more
For an employee to file her or his federal income tax return, the necessary information returns are needed to report income and taxes paid through withholdings. Employers need to file and furnish a copy of Form W-2 to employees by January 31st, but not every employee fulfills this obligation on time. As someone who’s waiting … Read more
The US Return of Partnership Income or better known as Form 1065 is the tax return of businesses with a partnership tax classification. The same as S corporations the deadlines that apply to partnerships are the same for the calendar year. Partnerships must file and submit their tax returns to the Internal Revenue Service by … Read more
S corporations file their federal income tax returns at the same time as individuals and other businesses with different tax classifications. An S corporation files Form 1120-S to report the income earned during the tax year and calculate the tax owed. The 1120-S has the same deadline as the individual taxes. The 1120-S must be … Read more
Form 1099-MISC under $600 isn’t mandatory by the Internal Revenue Service. As someone who paid miscellaneous income to someone that doesn’t exceed $600, you don’t need to file the 1099-MISC. Forms 1099-MISC are filed for many reasons. The following types of payments that exceed $600 during the tax year are reported with a 1099-MISC. Any … Read more
When filing your tax return electronically through a tax preparation service like TurboTax, it’s expected to come across some errors. The cash charitable is too large is a commonly crossed issue that taxpayers who’ve made charitable contributions using cash. There shouldn’t be anything to worry about, as you’ll get to claim this deduction on your … Read more
In personal finances, where you take shelter and how that’s provided is very important as we all need a place to live. It’s perfectly okay to find yourself asking whether to rent or buy a house. There is no direct answer to this question because all of our lives are different to a certain extent, … Read more
The Internal Revenue Service has a few ways to measure a taxpayer’s financial situation. One of these ways is the adjusted gross income, enabling the IRS to understand your actual earnings appropriately. Undoubtedly, your gross income is the total amount you’ve earned, but what about that $5,000 IRA contribution you’ve made? Is that something that … Read more