Sunday, February 14, 2021

Taxing time: How the pandemic will affect filing your taxes - The Columbian

The IRS will begin accepting tax returns on Feb. 12. Here’s what you should know before you file:

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Workers are not required to have federal taxes withheld from their benefit payments. While they are given the option to have it withheld, few opt to.

Additionally, unemployment benefits are always subject to federal taxes, but a handful of states do not tax it.

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Publisher: The Columbian
Twitter: @thecolumbian
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And here's another article:

Third stimulus check: Why some should file their taxes ASAP | RochesterFirst

(CBS) – With lawmakers negotiating another round of coronavirus relief aid, many Americans are eager to learn if and when they’ll receive a third stimulus check. Aside from Congress’ time frame for passing the legislation, there’s another factor that could influence stimulus payments: your 2020 tax returns.

The reason boils down to the confluence of tax-filing season and the expectation that Congress will pass the next relief bill by mid-March. The IRS on Friday officially starts accepting tax returns, with the filing window closing on its customary date of April 15. 

Publisher: RochesterFirst
Date: 2021-02-14T14:43:05 00:00
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Collecting unemployment's impact on taxes

Many people filed for unemployment for the first time because of the pandemic and might not have chose to have taxes taken out.

When you file for unemployment, you can choose to have state and county taxes taken out of those unemployment benefits by filling out the Indiana W-4 and federal W-4, said Owner & CEO Liberty Tax Service Dori Miller.

"Most of our problems with the pandemic is getting the word out, and I think we failed to get the word out with unemployment," said Miller.

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Publisher: WPTA21
Date: 2021-02-14T23:37:40 00:00
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OTR: Mariano says 'taxes are not on the table'

"Right now, taxes are not on the table. We have no intention of raising taxes. I think we have to sort of figure out where we are in our budget, how much we are going to be short."

Publisher: WCVB
Date: 2021-02-14T16:33:00Z
Twitter: @WCVB
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Quite a lot has been going on:

12 tax red flags that could lead the IRS to audit you

Long after this year's tax season ends, the dreaded words IRS audit mean a headache is on the way for many U.S. taxpayers.

Typically, the tax agency will audit less than 1% of all tax returns. But even 0.5% is still one out of every 200 taxpayers, which might have you sweating over your chances of being audited.

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"Despite common misperceptions about IRS examination rates, the reality is that the likelihood of an audit significantly increases as income grows," says IRS Deputy Commissioner Sunita Lough.

Twitter: @Yahoo
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Reliance on sales taxes in Minnesota is well below national average, study finds | News |

That percentage was well below the average level of state reliance on sales taxes (23.3 percent). The Tax Foundation study is based on the most recent data available, which reflects tax collections during fiscal year 2018.

Consumption levies such as sales taxes are considered more stable than other taxes, including state income taxes, during economic downturns, according to the Tax Foundation. During the coronavirus era, sales tax collections initially dropped, but they recovered as more businesses reopened and consumers turned to online venues for products, the study says.

Publisher: Southernminn.com
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Mariano pledges no new taxes this year, but millionaire's tax likely headed for 2022 ballot

House Speaker Ronald Mariano pledged not to raise taxes on Massachusetts residents this year, but the appetite to boost taxes on the wealthy remains on Beacon Hill, lawmakers say.

“Right now, taxes are not on the table. We have no intention of raising taxes,” the Quincy Democrat said Sunday on WCVB’s “On the Record.”

Tax revenues have so far outperformed economists’ expectations, but the speaker said he worried revenues would still come up “short” next year. January tax collections came in a half-billion over the Baker administration’s forecast, at $3.35 billion, according to the state Department of Revenue.

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Publisher: Boston Herald
Date: 2021-02-15T02:07:05 00:00
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What You Need To Know About Opening A SEP IRA For Lower Taxes

A SEP IRA is funded pre-tax, which means you will get a tax deduction when you make a contribution. However, taxes will be owed when you eventually make a withdrawal from your SEP IRA. This type of IRA gives you the ability to potentially invest a significantly larger amount of money compared to other IRAs, which are capped at contributions of $6,000 per year.

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A business owner who works as a sole proprietor on up to an LLC, Partnership, S or C Corp can benefit from contributing to a SEP IRA. This plan is especially useful if you don't have employees. Or perhaps, your only employee is a spouse or close family member. If your company has employees, you may need to contribute the same percentage as you give to yourself. If you have employees, the required contributions may limit the net savings of funding a SEP IRA.

Publisher: Forbes
Date: 2021-02-14
Author: David Rae
Twitter: @forbes
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