The Internal Revenue Service has penalties for taxpayers who underpay their taxes. The underpayment penalty rate applies if a taxpayer pays less than 90 percent of tax liability. This is the same whether the tax payments made through the tax withheld by an employer or the estimated tax payments. Regardless of the type of tax … Read more
What happens if I don’t file taxes? The Internal Revenue Service has strict penalties for not filing taxes. In case you don’t file your tax return, even if you don’t owe any taxes, you are required to file a federal income tax return. If you don’t file your tax return after the April 15 deadline, … Read more
Does the Request for Taxpayer Identification Number and Certification, Form W-9 expire? Upon furnishing a requestor with Form W9, know that it doesn’t expire but there are some occasions where a new Form W9 may need to be obtained. If you’re a business owner, you must obtain a new Form W9 from vendors that appeared … Read more
Can I refuse to fill out a W9? Yes, you can refuse to fill out Form W9 but only if you’re suspicious of the reason for the request. Whether a business or a person requests it, know the reason for the request. For example, businesses are required to furnish you with Form 1099-MISC if the … Read more
The timing of payments for 1099-MISC is simple. You can send each recipient of Form 1099-MISC with a single payee statement to report all the payments types. Form 1099-MISC timing is important because there are different deadlines that you should be aware of. You must furnish the recipients with a copy of Form 1099-MISC by … Read more
The contributions to an Individual Retirement Account or better known as the IRA are deductible. Regardless of how much you contribute, as long as you have a traditional or other qualifying plans, you may be eligible for this deduction. There isn’t a limit on how much is contributed to claim the deduction but your modified … Read more
The tax season is approaching and from the start of the tax season to the last day to file taxes, you will have about two and a half months. That’s assuming that you won’t be filing an extension. You can file taxes electronically for free through an IRS-authorized e-file provider to fulfill tax obligations easily … Read more
Schedule A—Itemized Deductions is what you will need to fill out to itemize deductions. It’s a single-page, fairly plain tax form that all taxpayers who itemizes deductions must file and attach to their federal income tax returns. Schedule A can guide you and give you an idea of what kind of expenses are deductible. In … Read more
Which is better, VFIAX, or VFINX? Vanguard 500 Index Fund Admiral Shares—VFIAX, and Vanguard 500 Index Fund Investor Shares—VFINX has their own differences. The biggest difference between the two is the expense ratio, and perhaps the main difference. But what is the expense ratio? It’s the amount you pay for the management of the funds. … Read more
The quarterly tax payments are mandatory if your income isn’t subject to withholding. The quarterly federal estimated tax payments can be made online through Direct Pay, IRS-authorized payment processors, and EFTPS. Under federal law, all taxpayers must pay taxes gradually during the course of the tax year. If the income you earn isn’t subject to … Read more