A multitude of changes were made in the tax code under the Tax Cuts and Jobs Act. This was the first year taxpayers filed their tax returns under the new law. Even with the IRS introducing the new IRS Withholding Calculator where taxpayers can check how much to withhold from a paycheck, many are struggling to make…
The IRS has been lacking sufficient funding for years, which has impacted many of its services. The agency is understaffed and is forced to do with archaic equipment. The IRS has repeatedly quoted a lack of funding for its failure to provide proper and timely support to American taxpayers. In order to modernize the equipment used by…
Having filed your return, you may be relieved that taxes are over for you this year. But there’s a major change coming later in the year that might result in a significant change in your paycheck withholdings. The IRS is all set to make changes to how you adjust your withholdings for your paychecks. The goal is to make withholdings more accurate so that…
During the filing season, scammers file fraudulent tax returns using stolen identities to get a large refund. According to an audit report by the Treasury Inspector General for Tax Administration, As of February 15, 2019, the IRS held 10.7 million tax returns with refunds totaling $57.9 billion with an Earned Income Tax Credit or Additional Child…
Nobody wants an IRS audit, but there are situations that attract an audit. Most times, when the IRS detects an inaccuracy in a tax return, they send a notice or a letter to seek more information from the taxpayer. The word ‘notice’ may cause some to worry, but the IRS routinely sends notices to taxpayers to provide or ask…
Numerous individuals judge the success of their tax planning by the size of the refund they receive. Although the amount of refund gained is one indication of how well you managed your money, it’s not the only indicator. Sometimes, it means you had been overpaying the IRS all year. If you are unsure of how much you will owe in a…
Filing your tax return late or paying late can lead to problems with the IRS. Though taxpayers can get an extension to file where they can file their tax return within six months from the filing deadline, it does not mean an extension to pay taxes. If taxes are not paid before the filing deadline, it can…
Many taxpayers withhold more from their paychecks and receive a large refund at the end. Even though a big refund puts a smile on many individual’s faces, it’s not a good idea to withhold more. First, you get zero interest on the extra tax money withheld so it’s equivalent to giving a free loan to the IRS. And second, you cannot spend…
Does the New Tax Law Increase or Decrease Your Tax Bill? Major changes in the tax code were brought about with the Tax Cuts and Jobs Act in 2017. The Affordable Care Act (ACA), elimination of many itemized deductions, and changes in tax credits and deductions — it’s not been easy for taxpayers to stay on top of it all….
Tax planning throughout the year reaps benefits during tax time. Small businesses can lower their tax bill for 2019 by using the many tax deductions available to them this tax year. Knowing these deductions now can help you to strategize your investments and expenditures, and also keep your tax records right. Along with the 20% tax break that many…
