Employers file multiple tax returns to report certain things to the Internal Revenue Service. Forms 944 and 941 are the most common two tax returns for employers. In context, both forms are the same but when it’s filed is different. Employers use Form 944 to report wages and other income paid to employees, and taxes … Read more
The New York Department of Motor Vehicles (DMV) MV-44 Form is your application for a permit, non-driver ID card, and driver’s license. Every New York resident that wants to get their driver’s license and mentioned types of ID cards need to fill out MV-44. It’s a must state form for all new drivers that are … Read more
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
Form 1099-B, Proceeds from Broker and Barter Exchange Transactions is the information return that reports plenty of information. In particular with what’s reported on Form 1099-B, you should know about the wash sale rule. This rule was introduced to prevent people from selling securities at a loss to get a tax write off. If you’re … Read more
The Medicare tax is a mandatory payroll tax that pretty much everyone working pays. It has a flat tax rate like the Social Security tax but at a lower percentage. The Medicare tax rate is 1.45 percent of the employee’s income in which the employer matches and pays the taxes to the Internal Revenue Service. … 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
Single filers with a qualifying dependent can file taxes as head of household. Taxpayers that are eligible to file taxes as heads of households get a lower tax rate and an increased standard deduction. Not every taxpayer who has a dependent is eligible for this status. As the name suggests, the head of household is … Read more
Form 8802 is the tax form used for requesting certification of US tax residency. Also known as Form 6166, certification of US tax residency enable eligible taxpayers to claim benefits under an income tax treaty or VAT exemption. The form itself is relatively easy to fill out. You will need to provide information about yourself … Read more