There is no extension of time to pay taxes you owe, so interest and penalties will accrue from the day the tax is due – April 15 of the filing year. The IRS is a formidable creditor, and may garnish your wages or levy your bank account if you do not make an arrangement to…
DetailsThe IRS allows individual taxpayers an automatic extension of time (until October 15) to file their tax return, so long as Form 4868 is filed on or before April 15. There are penalties for late filing that will accrue if you do not file the extension form by April 15, or if you ultimately file…
DetailsIRS-certified volunteers provide free basic income tax return preparation with electronic filing to qualified individuals. Lower income individuals and families are eligible for free tax preparation assistance, and there are more than 12,000 free tax preparation sites nationwide. You can find a location near you at: https://www.irs.gov/individuals/free-tax-return-preparation-for-you-by-volunteers.
DetailsIf you are self-employed or work as an “independent contractor” (who receives a Form 1099 instead of a Form W-2), neither estimated federal income tax nor the FICA taxes are withheld from your income and you could have a tax liability when you file your return. You may be required to make periodic estimated tax…
DetailsThe IRS website provides a wealth of information and assistance: http://www.irs.gov. Be careful – many websites try to look like the IRS website to fool you into buying information and services that the IRS provides free. You may choose to seek paid tax advice but don’t get scammed by a for-profit business which is trying…
DetailsYou (or your parents if you are a dependent) may be eligible for a tax credit for certain higher education-related expenses. The IRS website provides information and an interactive tool to help you determine eligibility at: https://www.irs.gov/help/ita/am-i-eligible-to-claim-an-education-credit.
FICA stands for the Federal Insurance Contributions Act. It is also referred to as the “payroll tax.” This is money that your employer is required to withhold from your pay and match with its own contribution to fund Social Security and Medicare. Social Security provides income to the elderly, the disabled and the children of…
DetailsMost employers are required to withhold your estimated income tax from your pay. When you start working, your employer will have you fill out an IRS Form W-4. You report the number of exemptions from income tax that you want your employer to use when it calculates the taxes it will withhold from your pay.…
DetailsYour federal income tax pays your share of the cost of running the federal government and the cost of the services it provides, including the military, roads, bridges, education, and much more. The Internal Revenue Service (“IRS”) is the federal agency responsible for collecting income tax. With the support of federal laws requiring employers and…
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