The Federal income tax is based on a “pay-as-you-go” system. There are 2 ways to pay as you go: withholding tax or estimated tax. This article discusses withholding tax (also referred to as “tax withholding”).
If you work at a job, your employer most likely withholds income tax from your paychecks. (Tax may also be withheld from other types of income – such as commissions, bonuses, and pensions.) The tax withheld is sent to the IRS on your behalf, and the funds are applied to your Social Security, Medicare, and income taxes for the year. The amount withheld in each category is reported on your Form W-2 (Wage and Tax Statement), which you receive from your employer.
Sometimes we all feel like the IRS has their own set of rules and that we must always comply. But did you know that the IRS has a Bill of Rights that they must follow as well for our protection?
America’s taxpayers have specific rights when they interact with the IRS. These ten rights are known collectively as the Taxpayer Bill of Rights. These rights cover a wide range of topics and issues, and lay out what taxpayers can expect in the event they need to work with the IRS on a personal tax matter. This includes when a taxpayer is filing a return, paying taxes, responding to a letter, going through an audit or appealing an IRS decision.
Now that school’s out, many students will be starting summer jobs…from working at a summer camp to being an office intern. The IRS reminds students that not all the money they earn may make it to their pocket. That’s because employers must withhold taxes from the employee’s paycheck. Here are a few things these workers need to know when starting a summer job:
During National Small Business Week, the IRS focuses on educating employers about the employer credit for paid family and medical leave created by the Tax Cuts and Jobs Act passed last year. Employers may claim the credit based on wages paid to qualifying employees while they are on family and medical leave.
Do you have an idea and a small business but need money to move forward? There are many avenues to go down to find funding but often government grants go untapped. Here's what you should know...
Federal government grants are created through legislation that is passed by the U.S. House of Representatives (a.k.a. Congress) and signed into law by the President. These grants are financed with taxpayer dollars and are available for a variety of purposes, depending on the type of applicant and the government agency. Currently, there are 26 Federal agencies that provide government grants.
During the busy months of summer, the last thing on your mind is your income taxes. However, reducing your tax liability is a year-round occupation and now is the time to consider some pertinent tax breaks and obligations.
Have you moved this summer or are you preparing for new education expenses this fall? These may offer some tax breaks that you can use to reduce your tax payments and even garner you a larger refund when tax time does arrive.
Here are five summertime tax tips to keep in mind:
You are entitled to a free copy of your credit report from each of the three national consumer reporting companies every 12 months.
Credit reports contain information that agencies and companies use to evaluate creditworthiness. Banks use them to know if they can trust you with a home mortgage or auto loan. Credit card companies use them to determine if they should approve your credit card application. Insurance companies use them in factoring your insurance premiums. The use of credit reports to evaluate your financial situation is even used by your potential employers partly as a measure of your job qualifications. Because of this reliance on credit reports, it is important for you to ensure that your credit report is accurate. The government has recognized this by making available free credit reports.