With all of the last-minute changes to the Tax Code – and those stimulus check reconciliations – it was clear that the Internal Revenue Service (IRS) was going to have to make revisions to tax forms used to file 2020 tax returns (the tax returns that you’ll file in 2021). Most tax professionals expected a…
Last year, the Internal Revenue Service introduced a draft version of a form that we haven’t seen since 1982: Form 1099-NEC, Nonemployee Compensation. Form 1099-NEC is intended to replace the nonemployee compensation part of a form many of us have come to know and love: Form 1099-MISC, Miscellaneous Income. Form 1099-MISC is sticking around for…
Taxpayer asks: A not for profit hosted a competition in which my 11 yr old daughter won $500. In order to write her the check, They have asked to have her complete a W-9. I thought that since: 1. The value is below $6002. She is a child that will not be filing a return…
You’d think that the day after Tax Day would be quiet – but it’s not. You see, once tax time has come and gone, taxpayers are not completely off the hook. You’ll want to keep records and documentation on hand in the event that the IRS comes calling. Here are some tips to help you…
Tax Day is almost over. While that means that most taxpayers are sitting back and enjoying the day, many may be scrambling to remedy last-minute problems. Here are some common mistakes and how to fix them. 1. I can’t find my tax information. You’re not alone. Every year, taxpayers put their tax information in a…
We’re down to the wire! Tax season is nearly over for the 2011 tax year: just 15 days remain until Tax Day (remember that you have until April 17, 2012, to file your 2011 individual federal income tax return). If you haven’t yet filed, here’s your chance to get caught up on what was new…
Z is for Zero. If you work a regular job – meaning that you’re not an independent contractor – you pay federal income tax as you go by having it withheld from your pay during the year. This is called “withholding” and is based on the number of allowances you claim when you file a…
W is for Wash Sale. “Just call it a wash.” How many times have you said that? If you’ve ever uttered those words, then you have a pretty good understanding of a wash sale. It is, at its most basic, when you sell or trade stock or securities at a loss while simultaneously (or nearly…
R is for Refund. With tax season down to the wire, more and more taxpayers are wondering about the status of their refunds. Your refund information is generally available about 72 hours after your tax return is processed. You can track your refund online with the “Where’s My Refund?” service offered by IRS or use…
P is for Penalty on Estimated Tax. If you receive payments or other funds without having any federal income taxes withheld, you should consider making estimated payments throughout the year to avoid any penalties. This applies not only to the self-employed or occasional freelancers but also to those taxpayers who may receive income from other…