At a Glance: The difference between not filing and not paying taxes lies in the penalties involved. Not filing incurs a higher penalty, with 5% of unpaid taxes per month (up to 25%) and a minimum penalty of $135 if more than 60 days late. Not paying incurs a lower penalty of 0.5% of unpaid [……
At a Glance: Yes, you can file your own taxes if you’re an income-earning individual living and working in the U.S. There are various ways to file, including using tax software or filling out paper forms. The IRS Free File option provides free online tax preparation and filing services for ind…
At a Glance: Taxes are the portion of your income paid to the government for public services. Only those earning above a certain threshold must file taxes. Tax software like H&R Block and TurboTax can generate required forms, and low-income taxpayers may qualify for free services. Gather W2 and…
At a Glance: A tax refund is the reimbursement of excess taxes paid by the taxpayer to the state and federal governments. It occurs when a taxpayer pays more tax than required. Various factors can lead to a tax refund, such as errors in tax forms, changes in personal circumstances, or intentionally …
At a Glance: Taxes are mandatory payments made by citizens to the government at the local, state, and federal levels. They fund government workers’ salaries and various public programs. Taxes are divided into three levels: federal, state, and local. The government utilizes tax revenue for prog…
At a Glance: Back taxes are unpaid taxes that accumulate interest and penalties. Taxpayers usually need to file six years of back tax returns. Required documents include Form 1040, income statements, and documents for tax credits. Back taxes can be filed by hand, with software, or through a tax prof…
At a Glance: Federal taxes are imposed by the federal government and apply to everyone regardless of state. State income taxes, on the other hand, are determined by each state’s government and vary from state to state. States can also charge sales and use taxes, while there is no federal sales…
It could happen to the best of us – before you know it the tax deadline crept up on you and you have had no time to submit your taxes. Or perhaps you skipped one year and you’re too afraid to file in case of penalties. This year, due to the pandemic-fueled economic recession, the [&helli…
It feels like 2020 has been longer than a decade, and many Americans are looking forward to some financial relief with an early tax return. But when can you file your taxes for 2020? Here we discuss the tax deadline for this year, how early you can start filing, and all you need to know […]
At a Glance: Tax withholding is a system in which the US government deducts income taxes from salaried employees’ paychecks to cover their estimated tax liability. The government intentionally overestimates the taxes owed to ensure it collects the full amount, resulting in tax refunds for many…